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McEwen Mining invests $30 million in Timmins-area exploration

Toronto gold company funds next mine in its stable of gold properties
(McEwen Mining photo)

McEwen Mining has raised $30 million to fund exploration and development of the next mine in the project pipeline at its Fox Complex, east of Timmins.

The Toronto gold company closed financing last week through a flow-through share offering, which will be earmarked for exploration drilling and construction of an underground access ramp from the surface to reach gold at its Stock East and West properties.

These properties are some of the company’s biggest assets and are scheduled to be the next sources of gold production, coming online in the next couple of years.

Located roughly halfway between Timmins and Matheson, the Fox Complex is a series of gold properties and deposits, extending along Highway 101, that’s being explored and mined in a sequence.

The company is making the transition from mining the Froome deposit over to Stock West, which will become the primary source of gold production once mining at Froome is complete in 2026.

Construction of an underground ramp to reach the Stock West ore body begins this year with development expected to be done at the end of next year.

The company also considers this area, which contains the former Stock Mine, to be underexplored and believes the deposits are open to finding more gold at greater depths.

Elsewhere on McEwen's 7,000-hectare land package, exploration drilling continues at its Grey Fox deposit.

In late May, McEwen provided new assay results from Grey Fox, considered a long-term development prospect.

The company reported “intriguing” gold targets at depth and “attractive” grades near surface which could be mined by open-pit methods. Gold at Grey Fox has been found in multiple zones, the company said last month.

The current gold resource for Grey Fox is 1,168,000 ounces at a grade of 4.80 grams per tonne (g/t) in the indicated category and 236,000 ounces at 4.35 g/t. A new estimates comes out in September.