The Black Fox Mine is located outside of Matheson, Ontario, Canada in the Timmins Gold District. Black Fox began operating as an open pit mine and transitioned to underground operations in 2011. Underground ore is extracted using a combination of long hole stoping, cut and fill, and narrow vein mining methods. Ore is accessed from a series of declines branching off from the main ramp to surface. The underground mine at Black Fox begins at the bottom of the open pit approximately 200 metres below surface and is expected to extend to more than 800 metres in depth.
Ore mined at Black Fox is transported to the Black Fox mill, located 28 kilometres away, and is fed into a 2,400 tpd grinding circuit which includes two stages of closed circuit ball milling. Soluble gold is recovered by adsorption upon activated carbon using carbon-in-column, carbon-in-leach, and carbon-in-pulp processes yielding recoveries of 90% to 95% on average.
As of Dec. 31, 2016, the Proven and Probable Mineral Reserve at Black Fox was 111 kozs of gold contained in 0.8Mt at a grade of 4.2 g/t (3.47 g/t cut-off) and the Measured and Indicated Resource was 554 kozs contained in 2.9 Mt at 6 g/t gold (3.40 g/t cut-off inclusive of Reserves).
McEwen Mining Inc. closed the acquisition of the Black Fox mine from Primero Mining Corp. in October 2017.
Sandstorm has a gold stream agreement to purchase 8% of the life of mine gold produced from Black Fox and 6.3% of the life of mine gold produced from the Black Fox extension (which includes a portion of the Pike River concessions) for a per ounce cash payment equal to the lesser of US$524 and the then prevailing market price of gold.