McEwen’s strong shallow Grey Fox assays prep expansion bid in Timmins gold zone

McEwen Mining (TSX: MUX; NYSE: MUX) says drill results at its Grey Fox gold deposit bode well for developing the wider Fox complex of historical mines and exploration sites in northeast Ontario.

Highlights released on Wednesday include 7 metres grading 4.9 grams gold per tonne from 90 metres depth in drill hole 24GF-1471; 2.4 metres at 13.8 grams from 119 metres down hole 4GF-1474; and 2.8 metres grading 9.8 grams from 208.5 metres depth in 24GF-1452.

“These results demonstrate that the Gibson area of Grey Fox has good grading mineralization over mineable widths in close proximity to existing underground infrastructure,” the company said in a release. “Grey Fox is currently a more than 1-million-oz. gold deposit and is the next project in our growth pipeline after the current development of our Stock project. 

McEwen plans to develop Grey Fox and Stock in the 70-sq.-km Fox complex 70 km from Timmins along 18 km of the Destor-Porcupine fault. The complex includes the past-producing Black Fox and the active Froome mine. Black Fox produced 950,000 oz. during 1997 to 2001 and from 2009 to 2021. Froome, less than 1 km west of Black Fox, started in 2021 and produced 44,400 oz. last year.

Shares in McEwen Mining gained 3% to $11.75 apiece on Wednesday afternoon in Toronto, valuing the company at $609 million. They’ve traded in a 52-week range of $8.05 to $17.08.

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