Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
McEwen Mining (TSX: MUX; NYSE: MUX) says drilling at the Fox gold complex 65 km east of Timmins, Ontario, continues to return promising grades both to extend the Stock zones and delineate the Froome mine.
The company is beginning to receive assays from drilling at the Stock Main zone (the historic Stock mine). Hole SM21-024 returned 9.1 metres of 7.43 g/t gold, including 2.6 metres of 23.72 g/t gold within 25 metres of the surface. Hole S21-202 intersected 21 metres grading 4.29 g/t gold, and it will be further drilled next year.
McEwen says if the intercept connects to mineralization at Sock West, it will materially enlarge the boundaries of the Stock West system.
The host lithology of the Stock West mineralization, which was intersected by hole S21-202 was also recently encountered in the footwall of the Stock mine.
At the Froome mine, 317 underground drill holes were completed this year to delineate the orebody. Bulk mining began earlier this year with results that have met expectations for gold grade, dilution and total ounces produced.
The Froome mine is 900 metres west of the Black Fox open pit and is bridging the mine life towards the future expansion program at the Fox Complex. The Fox Complex Preliminary Economic Assessment (PEA) is currently being finalized for publication and will also update the resource and life-of-mine at Froome, McEwen said.
The company assembled the Fox complex in 2017 with the takeover of Lexam VG Gold in April and the acquisition of the Stock and Black Fox properties in October.
(This article first appeared in the Canadian Mining Journal)
