McEwen Mining has raised $12.5 million to spend on exploration of some burgeoning gold property, east of Timmins.
The Toronto mid-tier miner announced Dec. 31 that it had closed a flow through share offering, launched at mid-month, for ongoing activity at its Timmins area gold projects.
“These funds will be used for exploration to facilitate the rapid expansion of our discoveries at Stock and Grey Fox, which are key elements in our plans for growing the Fox Complex annual gold production to 100,000-150,000 oz over a 10-year mine life," said Rob McEwen, chairman and chief owner in a statement.
The company said the focus of its drill program at Stock is to expand the gold resource, look for a gold connection between the former Stock Mine and Stock West prospect, and support a dewatering effort to access this mine in the second half of 2021.
These properties are part of the company's Black Fox Complex, east of Timmins, which contains two main properties, Stock and Black Fox, situated along Highway 11.
The Stock property is 36 kilometres east of the city. The Black Fox property is 9 kilometres east of Matheson.
At the Stock property, exploration drilling has been ongoing since 2018 to define gold mineralization in two zones east and west of the former Stock Mine, which operated between 1989 and 2005, producing 137,000 ounces of gold.
The deepest drill hole that yielded gold at Stock West returned 7.7 grams per tonne over 25 m, at a depth of 550 metres.
The deepest intersection under the Stock Mine, at a depth of 950 metres had an assay value of 18.0 grams per tonne over 9.1 metres.
Exploration is also ongoing to expand the resource base at Grey Fox with a drill program keying on select zones that offer good potential for the discovery of a high-grade deposit that would significantly grow the deposit.
The company's plans at Black Fox are to bring the Froome deposit into production in late 2021, with the nearby Grey Fox deposit next in the queue.
The indicated category resources at Grey Fox is 888,000 gold ounces at an average grade of 7.1 grams per tonne.
McEwen Mining is a gold and silver producer and explorer with operating mines in Nevada, Canada, Mexico and Argentina where it owns a large copper deposit.