Rob McEwen the chairman and CEO of McEwen Mining Inc MUXTSX MUXNYSE and founder and former chairman and CEO of Goldcorp doesnt mince words In the last year what we went through at McEwen Mining could almost be described in Biblical terms we had a fire a flood and COVID is sort of a plague.
McEwen Mining has operations in four countriesthe U S Canada Mexico and Argentinaand produces gold and silver and has a large copper deposit in Argentina Last year the company produced 135 000 ounces of gold and 3 4 million ounces of silver.
Ill start by saying our properties are well located in very productive gold mining districts It is good real estate to be exploring in Rob said I have experienced the enormous and explosive creation of wealth due to a successful exploration effort That why I am such a big proponent and funder of exploration and attracted to distressed situations in areas where there is a history of a lot of gold being produced.
Last year McEwen Mining started up the Gold Bar Mine in Nevada and ran into difficulties We built the mine based on a geological interpretation by SRK Consulting but we werent getting the results we were expecting We called them back in to review the situation We were shocked that they changed their geological interpretation which resulted in a significant reduction in the estimated size of the deposit As a result we took a 83 million write down in Q2.
Since then the company has continued to produce gold as well as conduct exploration drilling at Gold Bar We expect to have new resource and reserve estimates and an updated feasibility study by the fourth quarter Rob said.
The good news is that weve had a very good exploration year at Black Fox particularly the Grey Fox and Stock zones which we believe should have a very positive impact on production over the next three to four years Also at Black Fox were developing a ramp down to a satellite deposit called Froome We expect that we will be producing gold from Froome by the end of next year Rob said.
In Mexico We are working on a feasibility study for the Fenix project that contemplates a 10 year life of mine said Rob In the second quarter McEwen Mining produced 1 900 gold equivalent ounces from residual leaching of the heap leach pad.
McEwen Mining also holds a 49 interest at the San Jos Mine in Argentina It is one of the highest grade silver and gold mines in the Americas Government imposed measures designed to stop the transmission of COVID have materially increased the cost of mining Rob said As such the San Jos mine is operating well below its required manpower needs for an efficient operation.
McEwen Mining will be led by Rob McEwen Chairman President and CEO along with a team of directors consisting of Dr Leanne Baker Michele Ashby formerly directors of US Gold and Michael Stein Richard Brissenden Allen Ambrose and Dr Donald Quick formerly directors of Minera Andes.
Guaranty and Subordination Agreement dated November 30 2017 by McEwen Mining Inc for the benefit of El Banco Nacional de Comercio Exterior S N C incorporated by reference from the Current.
McEwen Mining Inc with ticker code MUX now have 5 analysts covering the stock with the consensus suggesting a rating of Buy The target price ranges between 3 6 and 1 75 calculating the average target price we see 2 44 Given that the stocks previous close was at 0 9 this would imply there is a potential upside of 171 1.
Apr 02 2020nbsp018332ABOUT MCEWEN MINING McEwen Mining is a diversified gold and silver producer and explorer with operating mines in Nevada Canada Mexico and Argentina It also owns a.
Robert Ross McEwen 68 Executive Chairman amp Chief Executive Officer McEwen Mining Inc Robert Ross McEwen is a businessperson who founded Goldcorp Inc and who has been at the helm of 10.
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