Announcement • 7h
Mcewen Inc. Announces Results of Pre-Feasibility Study for Grey Fox Project At Fox Complex
McEwen Inc. announced the results of the Pre-Feasibility Study for its 100%-owned Grey Fox Project, located near Timmins, Ontario. Grey Fox is expected to become a major source of ore for the Fox Complex and play a key role in increasing production. With the addition of Grey Fox, gold production at the Fox Complex is projected to reach approximately 100,000 gold ounces in 2029 and average approximately 87,000 gold ounces annually from 2028 through 2041. Based on current prices of over $4,000 per ounce of gold and over $50 per ounce of silver, management believes that forecast production will generate sufficient cash flow to self-fund production growth with limited to no share dilution. Grey Fox is expected to benefit from the combination of utilizing the Company’s Stock Mill and tailings facilities, along with its existing workforce. Grey Fox will extend the Fox Complex mine life by 15 years to 2041, with mine reserves totalling approximately 40% of the current resource, leaving opportunity to further extend the mine life supported by significant exploration upside. From 2028 to 2035, Grey Fox is projected to contribute an average of 43,000 gold ounces to annual production for the Fox Complex, with the balance being sourced from the Stock Mine. From 2035 to 2040, Grey Fox will become the sole source of production, averaging 87,000 gold ounces per year, and tapering off in 2041. Initial capital expenditures are estimated to be $181 million. Based on current gold prices of over $4,000 per ounce, capital expenditures are expected to be funded primarily internally, from treasury and operating cash flow. CAPEX requirements will be spread out as follows: $17 million in 2026, $60 million in 2027, $80 million in 2028 and $24 million in 2029. Cash costs and all-in sustaining costs per ounce over the life of mine of $1,833 and $2,212, respectively, at a gold price of $3,000 per ounce (base case). Cash costs and all-in sustaining costs per ounce over the life of mine of $2,042 and $2,421, respectively, at a gold price of $4,500 per ounce (enhanced case). At a gold price of $3,000 per ounce: Pre-tax NPV (5%) of $429 million, IRR of 31%, and payback of 3.9 years; Post-tax NPV (5%) of $282 million, IRR of 25%, and payback of 4.6 years. At a gold price of $4,500 per ounce: Pre-tax NPV (5%) increases to $1,250 million, with an IRR of 70%, and payback of 2 years; Post-tax NPV (5%) increases to $841 million, with IRR of 55% and payback of 2.3 years. Grey Fox PFS Summary Base Case Using a $3,000/oz Gold Price: Mine Life 15 years, Total Material Mined 9,406 kt, Process Feed Average Gold Grade 3.24 g/t, Average Annual Plant Production (First 8 Years) 43,175 oz, Average Annual Plant Production (Last 6 Years) 90,701 oz, Total Net Revenue LOM $2,500 million, Average Annual Net Revenue $179 million, EBITDA LOM $902 million, Average Annual EBITDA $60 million, LOM C1 Cost $1,833/oz, LOM AISC Cost $2,212/oz, Initial CAPEX $181 million, Sustaining CAPEX $174 million, Closure Cost $7 million, Pre-Tax NPV (5%) $429 million, IRR 30.7%, Payback 3.9 years, Pre-Tax NPV (5%) /Initial CAPEX 2.4, Post-Tax NPV (5%) $282 million, IRR 24.8%, Payback 4.6 years, Post-Tax NPV (5%) /Initial CAPEX 1.6. Grey Fox PFS Summary Enhanced Case Using a $4,500/oz Gold Price: Mine Life 15 years, Total Material Mined 9,406 kt, Process Feed Average Gold Grade 3.24 g/t, Average Annual Plant Production (First 8 Years) 43,175 oz, Average Annual Plant Production (Last 6 Years) 90,701 oz, Total Net Revenue LOM $3,750 million, Average Annual Net Revenue $268 million, EBITDA LOM $2,130 million, Average Annual EBITDA $142 million, LOM C1 Cost $2,042/oz, LOM AISC Cost $2,421/oz, Initial CAPEX $181 million, Sustaining CAPEX $174 million, Closure Cost $7 million, Pre-Tax NPV (5%) $1,254 million, IRR 70.0%, Payback 2.0 years, Pre-Tax NPV (5%) /Initial CAPEX 6.9, Post-Tax NPV (5%) $841 million, IRR 55.1%, Payback 2.3 years, Post-Tax NPV (5%) /Initial CAPEX 4.7. Grey Fox Life of Mine Capital Cost Summary: Initial CAPEX $181 million (Detailed Engineering $7 million, Physical Procurement $11 million, Construction $99 million, Project Indirects $33 million, Capitalized OPEX $4 million, Contingency $27 million), Sustaining $174 million (Physical Procurement $48 million, Construction $126 million). Operating Costs: Mining $70 million/year ($108/t processed), Processing $19 million/year ($28/t processed), Tailings $8 million/year ($12/t processed), Water Treatment Plant $0 million/year ($0/t processed), Total Site Operating Costs $97 million/year ($149/t processed). Grey Fox Mineral Resource Statement, July 11, 2025: Indicated 18,819 kt at 3.28 g/t for 1,986 koz Au, Inferred 5,056 kt at 2.69 g/t for 438 koz Au.
