McEwen looking to extend production pipeline at Fox complex

McEwen Mining is considering extending the production pipeline at its Fox gold complex in Ontario, Canada, based on promising assay results from the Grey Fox deposit.

Gold at the deposit has been found in multiple zones, including Gibson, Whiskey-Jack, 147, and Grey Fox South. The miner said the results demonstrate intriguing exploration targets at depth and attractive near-surface gold grades with the potential to be rediscovered using lower-cost open pit mining methods.

"Geological interpretations suggest that Grey Fox sits stratigraphically above the mineralisation of the Black Fox and Froome mines," McEwen said. "Consequently, there is potential for deeper Black Fox and Froome style mineralisation directly below some of the Grey Fox zones. Historical production from these two mines is more than 1Moz gold." 

Grey Fox is around 3km from the Black Fox and Froom mines. According to McEwen, the former produced 950,000oz of gold to the end of 2021, while the latter produced 24,300oz of gold equivalent in 2021.

Grey Fox has indicated resources estimated at 1.2Moz of gold at a grade of 4.80gpt and inferred resources of 236,000oz of gold at 4.35gpt.

McEwen said it will complete an updated resource estimate in late September.

McEwen's share price is up 4.13% to US$11.35. Its market cap is $1.37 billion.