The Gold Bar property is located at the southeastern end of the Battle Mountain-Eureka-Cortez gold trend in Eureka County, Nevada. Within the property there are three defined gold deposits; Gold Pick, Gold Ridge, and Cabin Creek. The mineralization is similar for all three deposits and lies within 150 metres of surface, hosted in carbonate-rich sedimentary rocks of the Devonian McColley Canyon Formation. Gold Ridge and Cabin Creek are ancillary deposits and together comprise approximately 22% of the mineral resource. Sandstorm’s royalty covers the bulk of the mineral resource at Cabin Creek.
McEwen announced an updated Feasibility Study in January 2021 and key results included average annual gold production anticipated to be 47,500 oz at a cash operating cost of $1,093/oz. Updated Probable Reserves are 17.2 million tons at a gold grade of 0.025 oz/tn (0.76 g/tn) containing 304,200 oz of gold (based on a variable cut-off grade). Production is planned over seven years. In addition, an updated inclusive Indicated Mineral Resource Estimate contains 493,700 oz of gold contained in 18.5 million tons with an average grade of 0.027 oz/tn and 52,100 oz of Inferred Mineral Resources contained in 2.2 million tons (based on variable cut-off grade).
Most of the material mined during 2019 came from the Cabin Creek pits and gold production for the year totaled 30,705 ounces.
McEwen closed a public offering for gross proceeds of approximately US$50 million. Part of the proceeds will be used to advance current mining projects and exploration prospects.