McEwen Mining says a new pre-feasibility study has strengthened its long-term growth outlook for the Grey Fox gold project in Ontario. The company reports the development could increase production while extending the life of its Fox Complex near Timmins by approximately 15 years. McEwen expects the project to support its strategy to expand annual production in Canada’s established gold mining district.
Production profile for Grey Fox between 2028 and 2041
The study forecasts Grey Fox will produce an average of 87,000 ounces of gold annually from 2028 through 2041. Output is expected to reach a peak of approximately 100,000 ounces in 2029. McEwen links the forecast to the role Grey Fox would play in its Ontario operations.
At present, the Fox Complex relies primarily on ore from the Froome Mine, which is processed through the nearby Stock Mill. Once operational, Grey Fox would provide a new long-term source of high-quality ore. The company says this is intended to help maintain production levels into the next decade.
Role in corporate production targets and gold market demand
Grey Fox is positioned within McEwen’s broader corporate strategy to raise total annual production to between 250,000 and 300,000 gold equivalent ounces (GEOs) by the end of the decade. McEwen expects the project to make a substantial contribution toward that target. The company also cites ongoing interest in gold as a safe-haven asset and central bank buying.
The pre-feasibility study frames long-life projects as increasingly valuable within the global mining sector. McEwen’s stated objective is tied to expanding output while taking advantage of precious metals market conditions. The company’s growth outlook is described as strengthened following completion of the study.
Capital and financial metrics from the pre-feasibility study
McEwen estimates an initial capital investment of approximately $181 million to bring Grey Fox into production. The company states that with gold prices exceeding $4,000 per ounce, funding is expected to come largely from internal cash generation rather than significant external financing. It also reports robust economics under a more conservative assumption of $3,000 per ounce.
The study includes a post-tax net present value (NPV) of $282 million and an internal rate of return (IRR) of 25%. McEwen reports a payback period of 4.6 years and a life-of-mine all-in sustaining cost (AISC) of $2,212 per ounce. These figures are presented as indicators of profitability across different gold price scenarios.
Resource base and reserves included in the mine plan
The pre-feasibility study is based on an indicated mineral resource containing nearly 2 million ounces of gold. Current estimates cited by McEwen outline approximately 18.8 million tonnes grading 3.28 grams of gold per tonne. Of this total resource, about 980,000 ounces have been converted into reserves and incorporated into the mine plan.
McEwen says these reserves represent roughly 40% of the total resource inventory. The company highlights remaining potential for additional expansion beyond what is included in the current mine plan. This is linked to further work aimed at increasing reserve estimates.
Exploration program and potential to extend mine life
Management says additional drilling could increase reserves through conversion of existing resources and discovery of new mineralized zones at Grey Fox. To support this effort, McEwen has allocated approximately $5 million for further exploration and drilling programs. The company indicates that successful resource conversion could extend mine life beyond the current plan.
McEwen also states that improved reserve estimates could further improve project economics. The exploration focus is described as part of maintaining development upside following completion of the pre-feasibility study. No additional drilling results are provided in the study summary.
Development schedule and permitting work before construction
With the pre-feasibility study completed, McEwen says it is preparing for subsequent stages of project development. Planned activities include detailed engineering and design, procurement of long-lead equipment and materials, amendments to water permits, updates to mine closure plans, and regulatory approvals with environmental compliance.
The company expects construction to begin in spring 2027. Underground mine development is scheduled to commence during the second half of that year. If development proceeds on schedule, commercial production could begin in 2029.
Underground mining approach and processing at Stock Mill
Grey Fox is planned as a combination of two separate underground mining systems accessed through independent portals. Ore from underground workings would be transported to the surface and then hauled to McEwen’s existing Stock Mill for processing. The material would be processed alongside feed from the Stock Mine.
McEwen says using existing infrastructure is intended to reduce development costs and accelerate implementation compared with building a new processing plant. The approach is described as lowering capital requirements by relying on established facilities for ore treatment. This setup is tied directly to maintaining continuity with current operations.
Gold recovery rate from laboratory testing
Laboratory testing reported in connection with the pre-feasibility study indicates Grey Fox ore should achieve a gold recovery rate of approximately 87.5%. McEwen says this recovery level supports the project’s economic outlook. It also confirms suitability for processing using existing facilities.
The company notes that recovery performance is important for maximizing revenue and supporting long-term profitability as operations move deeper underground. No additional metallurgical parameters are provided alongside the recovery figure in the summary provided.
Timmins district context for Ontario gold production
McEwen links Grey Fox development to Ontario’s role as a major gold-producing region. The Timmins mining district is described as having a long history of successful gold production and remaining one of Canada’s key centers for exploration and mine development.
The company expects continued investment by other operators in new projects and expansions across existing mines will keep Timmins contributing to Canadian and global gold supply. Grey Fox is presented as part of that broader regional production landscape within Ontario.
Status as a growth opportunity within McEwen’s portfolio
McEwen characterizes Grey Fox as one of its most important growth opportunities following completion of the pre-feasibility study. The company points to strong economics, significant resource potential, existing infrastructure advantages, and a projected mine life extending well into the 2040s.
The company says if future exploration expands reserves and development remains on schedule, Grey Fox could become a cornerstone asset within Canada’s gold sector while contributing to McEwen’s long-term success.
