- McEwen Mining (MUX, Financial) begins construction of a new ramp system at Stock Mine, indicating a strategic growth move.
- The Stock Mine offers substantial advantages over Froome Mine, including elimination of an 8% metal stream obligation at $605/oz.
- Production is expected to commence in the second half of 2025, focusing initially on the East Zone for early cash flow.
McEwen Mining Inc. (MUX) has announced the commencement of construction on a new ramp system at its Fox Complex's Stock Mine, located in the prolific Timmins gold mining district, Ontario, Canada. This strategic move marks a significant phase of growth for the company as it transitions from the Froome Mine to the Stock Mine.
The construction of the Stock Mine ramp system is designed to provide access to three gold zones: West, Main, and East, boasting current resources of 281,000 ounces at 3.12 g/t Indicated and 181,000 ounces at 2.87 g/t Inferred. This development presents several operational advantages over the existing Froome Mine. Most notably, it eliminates the onerous 8% metal stream obligation that required selling gold at a heavily discounted rate of $605 per ounce. Additionally, the softer material at Stock Mine will increase mill throughput capacity, enhancing gold output, while the on-site mill location significantly reduces haulage costs compared to Froome's 35-kilometer distance.
Production is slated to begin in the latter half of 2025, with initial efforts centered on the East Zone to facilitate early production and cash flow. The Stock Mine leverages past production insights and aims to capitalize on the current strong gold market, with its location along the Destor-Porcupine fault—known as the "Golden Highway"—providing strategic access to one of the richest gold mining areas.
This endeavor positions McEwen Mining to establish a more cost-effective production framework and realize increased gold output at a lower cost per ounce, thereby strengthening its competitive stance in the precious metals market.
