Attractive IRR Of 28% For Mexican Precious Metals Project
McEwen Mining Inc. (TSX: MUX)has released positive Feasibility Study (FS) results for its 100%-owned Fenix Project, which is located in the State of Sinaloa, Mexico.
Chairman and Chief Owner, Rob McEwen, said the Fenix Feasibilty Study envisions a 9.5-year mine life with an attractive after-tax IRR of 28% using a $1,500/oz gold and $17/oz silver price.
“At current gold and silver prices, the project’s after-tax IRR almost doubles and the NPV more than triples versus the base case,” MrMcEwen said.
“The project will incorporate an environmentally progressive method of tailings management, using inpit storage that creates multiple benefits, most importantly a secure containment of tailings enabling better reclamation results.
“Average annual production is projected at 26,000 oz gold in Phase 1 and 4,200,000 oz silver equivalent in Phase 2.
The critical path environmental permits are in hand for the first phase of production. Our next steps will involve detailed engineering, assessment of procurement options, and the evaluation of financing alternatives,”Mr McEwen said.
The current operation at El Gallo Gold is a fully permitted site; permit for the Phase 1 was granted by the Federal Environmental Authority (SEMARNAT) in September 2019, for the addition of a mill and leach circuit in the location of the existing facilities for the reprocessing of the heap leach pad material. The permit amendment also includes the backfilling of a previously mined pit with mill tailings, as part of an integrated concurrent closure plan for the El Gallo Gold Mine.
Further project advancement for Phase 2 is subject to permit approvals. Phase 2 project permitting will require authorization to expand the process plant footprint at El Gallo Gold and the haul road, and to augment the tailings volume to be deposited at the depleted pit.
The Fenix Project has CONAGUA approval for the extraction of groundwater and land-use permits for the construction of wells required for the life of Fenix Project.
