McEwen Mining Inc.
McEwen Mining: Fenix Project Feasibility Study Report Filed
TORONTO, Feb. 16, 2021 (GLOBE NEWSWIRE) -- McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) (“McEwen” or the “Company”) is pleased to announce the filing of a technical report prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), for its 100%-owned Fenix Project (the “Project”), which is located in the State of Sinaloa, Mexico. The technical report is available on SEDAR under the Company's profile at www.sedar.com.
“The Fenix Feasibility Study envisions a 9.5-year mine life with an attractive after-tax IRR of 28% using $1,500/oz gold and $17/oz silver. At $1,800/oz gold and $25/oz silver the project generates a 51% After-Tax IRR and a $91 million NPV@8% .
The project will incorporate an environmentally progressive method of tailings management, using in-pit storage that creates multiple benefits such as improved safety, smaller environmental footprint, lower capital and operating costs, and improved reclamation outcomes.
Average annual production is projected at 26,000 (1 ) oz gold in Phase 1 and 4,500,000 (4 ) oz silver equivalent in Phase 2. The critical path environmental permits are in hand for the first phase of production. In addition, the El Gallo Complex infrastructure remains in place, as well as an established, well-experienced local workforce. Our next steps will involve detailed engineering, assessment of procurement options, and the evaluation of financing alternatives,” said Rob McEwen, Chairman and Chief Owner.
Fenix FS Highlights
Feasibility Study Report
The complete Fenix Project FS NI 43-101 Technical Report is available on www.sedar.com and www.mcewenmining.com. The FS was prepared by GR Engineering Services Limited (“GRES”) in accordance with the requirements of Canadian National Instrument 43-101 “Standards of Disclosure for Mineral Projects” (“NI 43-101”) and SEC Industry Guide 7.
Permits
The current operation at El Gallo Gold is a fully permitted site; permit for the Phase 1 was granted by the Federal Environmental Authority (SEMARNAT) in September 2019, for the addition of a mill and leach circuit in the location of the existing facilities for the reprocessing of the heap leach pad material. The permit amendment also includes the backfilling of a previously mined pit with mill tailings, as part of an integrated concurrent closure plan for the El Gallo Gold Mine. In-pit tailings storage provides a number of key benefits to the project, including:
- Lower construction and operating cost compared to a conventional tailings dam or dry-stack facility.
- Much improved safety and long-term tailing and pit stability.
- Reduced footprint minimizes surface disturbance and maximizes reclamation results.
- Promotes the re-use of process water, reducing groundwater demand.
- Reduces reclamation and management costs.
Further project advancement for Phase 2 is subject to permit approvals. Phase 2 project permitting will require authorization to expand the process plant footprint at El Gallo Gold and the haul road, and to augment the tailings volume to be deposited at the depleted pit.
The Fenix Project has CONAGUA approval for the extraction of groundwater and land-use permits for the construction of wells required for the life of Fenix Project.
Resource Estimates
Estimated resources for the Fenix Project are comprised only of material within the boundaries of conceptual pit shells, except for the El Gallo heap leach pad, which is considered completely available for reprocessing.
For the purposes of mine scheduling, the contained gold ounces in the Heap Leach Material have been depleted from the drill-defined resource model estimate by an amount of 23 koz Au, to account for the production from heap leach operations and gold in circuit assessments between the timing of the resource estimate up until the reserve estimate date of December 2020.
Table 1: Fenix Project Resources Estimate (5)(6)
Table 2: Fenix Project Reserves Estimate December 31, 2020 (8)
Table 3: Assumptions for Heap Leach Pad and El Gallo Silver Pit Optimization Phase 2 (6)(9)
FOOTNOTES
(1) The Base Case utilizes the three-year moving average prices for gold and silver (approximate value). Estimated 26,000 oz Au per annum production assumes full production from years 2023 to 2027. Average after-tax cash flow per annum from full production years 2023 to 2031 is approximately $12 million per annum. Average after-tax cash flows per annum for the period from start-up of production to closure (2022 to 2032) is approximately $8.5 million per annum. These cash flows assume the use of all eligible tax loss carry forwards from the El Gallo Gold Mine.
(2) Cash cost is calculated by dividing total life-of-mine production costs, general and administrative expenses and royalties by total ounces produced.
(3) All-in sustaining costs (AISC) are calculated by dividing the sum of all cash costs plus sustaining capital and reclamation costs by total ounces produced.
(4) All references to AgEq are based on an 88 Ag oz to 1 Au oz ratio. For Phase 1 silver accounts for <2% of total production. For Phase 2 gold accounts for approximately 9% of total production. Average annual AgEq production is from years 2028 to 2031.
(5) Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves. Numbers in the table have been rounded to reflect the accuracy of the estimate and may not sum due to rounding.
(6) Resources stated as contained within a potentially economically minable open pit; pit optimization parameters are, USD$1,300/oz Au, and USD$16.00/oz Ag. In-pit resource estimates have been developed based on gold and silver recoveries from both historical and recent testwork programs. Resource estimates are effective as of Oct 31, 2018 for the Heap Leach Material and June 1, 2019 for El Gallo Silver. Resources are inclusive of reserves.
(7) The heap leach pad spent ore resource number assumes a cut-off grade that permits processing of the entire pad, whereas blocks within the leach pad model will be mobilized while mining, which will make them difficult to segregate; sub-cut-off leach pad material will inherently have potential acid generating sulfide liabilities if placed in our waste dumps and so it will be prudent to process the entire leach pad and place tailings in a previously mined pit at an overall environmental and economic benefit.
(8) The reserves stated here satisfy the requirements of the CIM Definition Standards, and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines of November 2019, and have been converted only from those portions of the Mineral Resources that are classified as Measured or Indicated Mineral Resource categories after having been evaluated with consideration of all known modifying factors affecting economic viability. The reserves cut-off grade and cashflow models are based on $1,500/oz Au, and USD$17.00/oz Ag.
(9) Cut-off grades vary by pit according to economic, recovery and metallurgical parameters.
ABOUT MCEWEN MINING
McEwen Mining is a diversified gold and silver producer and explorer focused in the Americas with operating mines in Nevada, Canada, Mexico and Argentina. It also owns a large copper deposit in Argentina.
Source: https://www.mcewenmining.com/investor-relations/press-releases/press-release-details/2021/McEwen-Mining-Fenix-Project-Feasibility-Study-Report-Filed/default.aspx
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Socio comercial de Recursos Humanos - Argentina
El Socio Comercial de Recursos Humanos supervisará todos procesos de reclutamiento y todas las actividades de recursos humanos para las operaciones existentes y los nuevos proyectos en Argentina.
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