McEwen Mining's Grey Fox Gold Resources Surge: A Milestone in Exploration

McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) has announced a significant increase in the estimated gold resources at its Grey Fox deposit, located within the Fox Complex in Ontario, Canada. The company reported a 95% increase in the inferred resource to 458,000 ounces of gold and a 32% increase in the indicated resource to 1,538,000 ounces, as of December 31st, 2024. This substantial growth in resources is a testament to McEwen Mining's commitment to exploration and its ability to create value for shareholders.

The increase in resources at Grey Fox can be attributed to several factors, including exploration drilling that discovered and extended new and existing gold lenses, a higher gold price used to calculate the resource, and favorable foreign exchange rates. The higher gold price, from US$1,750 in 2021 to US$2,000 in 2024, allowed for a lower cut-off grade, from 2.30 g/t Au to 1.60 g/t Au. This enabled the inclusion of lower-grade material in the resource estimate, increasing the overall tonnage and gold contained.

The Grey Fox deposit is situated approximately 3 kilometers southeast of McEwen Mining's Black Fox Mine and about 75 kilometers east of Timmins, Ontario, Canada. The geology of the Fox Complex is highly favorable for structurally controlled gold mineralization, primarily due to its proximity to the world-class Porcupine-Destor Fault Zone and subordinate splay faults such as the A-1 and Gibson-Kelore. The deposit contains over 150 distinct mineralized lenses across 1.4 square kilometers, with many extending to the bedrock surface. This high concentration of lenses in a compact area may indicate a robust mineralized system at Grey Fox, particularly evidenced at the Gibson zone, where drilling has confirmed mineralization from near surface (<25 m) down to vertical depths exceeding 800 m.

The Gibson zone's 181% increase in Indicated resources is particularly strategic due to the existing ramp infrastructure, which could accelerate the path to production while minimizing capital requirements. The historical bulk sample grading 27 g/t from this zone suggests the potential for high-grade mining zones within the broader resource. The Whiskey-Jack zone emerges as a potential early-stage mining target with its superior grade of 5.7 g/t and wider mineralization (5-7 meters), which could provide attractive early cash flows. Its proximity to the Gibson Ramp (350 meters) further enhances its near-term production potential.

The discovery cost of US $14.46 per ounce at Grey Fox is remarkably efficient compared to the industry average of US $40-50 per ounce, indicating excellent exploration efficiency and potential for continued cost-effective resource growth. This efficient exploration and resource growth can be attributed to several factors, including exploration drilling, a higher gold price, favorable foreign exchange rates, proximity to infrastructure, geological favorability, and the presence of multiple mineralized lenses.

In conclusion, McEwen Mining's Grey Fox gold resources have surged to a significant milestone, with a 95% increase in inferred resources and a 32% increase in indicated resources. This achievement highlights the company's commitment to exploration and its ability to create value for shareholders. The Grey Fox deposit's favorable geology, high concentration of mineralized lenses, and the potential for high-grade mining zones make it an attractive target for McEwen Mining's operations. The Gibson and Whiskey-Jack zones, in particular, could provide early production ounces and attractive cash flows, contributing to the long-term success of the company's operations.