McEwen Mining (NYSE: MUX) (TSX: MUX) released a pre-feasibility study (PFS) for its wholly owned Grey Fox Project near Timmins, Ontario, indicating the project could significantly boost production at the Fox Complex and extend operations through 2041. The study, which evaluates open-pit and underground mining scenarios, positions Grey Fox as a key growth driver within the company's portfolio.
According to the PFS, the Fox Complex, with Grey Fox contributing, is projected to reach approximately 100,000 ounces of gold production in 2029 and average 87,000 ounces annually from 2028 through 2041. This aligns with McEwen's broader target of increasing total annual production to between 250,000 and 300,000 gold equivalent ounces by 2030. The study estimates initial capital expenditures of $181 million and outlines strong project economics, including a post-tax net present value (NPV) of $282 million and a 25% internal rate of return (IRR) at a gold price of $3,000 per ounce. At a gold price of $4,500 per ounce, post-tax NPV increases to $841 million with a 55% IRR and a 2.3-year payback period.
Management stated that current precious metals prices are expected to generate sufficient cash flow to largely fund development internally while leveraging existing Fox Complex infrastructure, including the Stock Mill, tailings facilities, and workforce. The Grey Fox project is located in the prolific Timmins gold district, which has a long history of mining and established infrastructure, reducing development risks.
The positive PFS results come as McEwen Mining continues to advance its other key assets. The company holds a 46.3% interest in McEwen Copper, which owns the large, long-life Los Azules copper development project in Argentina. According to the last financing for McEwen Copper, the implied value of McEwen’s ownership interest is US$456 million (US$7.67 per share). The Los Azules project is designed to be one of the world’s first regenerative copper mines and carbon neutral by 2038, with its feasibility study results announced in an October 7, 2025 press release.
Additionally, McEwen recently purchased 27.3% of Paragon Advanced Labs Inc., a public company deploying PhotonAssay units globally. Chairman and Chief Owner Rob McEwen, who has invested over US$250 million personally and takes a salary of $1 per year, aims to build MUX’s profitability and share value, ultimately implementing a dividend policy as he did while building Goldcorp Inc.
The Grey Fox PFS underscores McEwen Mining's strategy to grow production from its existing operations while advancing major development projects. With the Fox Complex expected to deliver consistent output through 2041, the company is positioned to benefit from strong gold prices and contribute to its long-term production targets.
