McEwen Mining’s Grey Fox PFS Shows Potential to Boost Fox Complex Output to 100,000 Ounces Annually

McEwen Inc. (NYSE: MUX) (TSX: MUX) announced positive results from a Pre-Feasibility Study (PFS) for its wholly owned Grey Fox Project near Timmins, Ontario, positioning the project as a key growth driver for the Fox Complex. The study projects that Grey Fox will significantly increase production at the complex and extend mine life through 2041, according to a press release disseminated on behalf of the company.

The PFS estimates that with Grey Fox contributing, the Fox Complex could 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 goal of increasing total annual production to between 250,000 and 300,000 gold equivalent ounces by 2030.

Initial capital expenditures for Grey Fox are estimated at $181 million. The study 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, the post-tax NPV increases to $841 million with a 55% IRR and a payback period of 2.3 years. Management noted that current precious metals prices are expected to generate sufficient cash flow to largely fund development internally, while leveraging existing Fox Complex infrastructure such as the Stock Mill, tailings facilities, and workforce.

The Grey Fox project is part of McEwen’s strategy to expand its gold and silver production base. The company also holds interests in other assets, including a 46.3% stake in McEwen Copper, which owns the advanced-stage 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 aims to be carbon neutral by 2038. Its Feasibility Study results were announced in a press release dated October 7, 2025.

McEwen also recently purchased a 27.3% interest in Paragon Advanced Labs Inc., a public company deploying PhotonAssay units globally. The company believes this technology is poised to become the new industry standard for assaying precious and base metals, with Paragon aiming to be a leading service provider.

Chairman and Chief Owner Rob McEwen has invested over US$250 million personally and takes a salary of $1 per year, aligning his interests with shareholders. He is a recipient of the Order of Canada, a member of the Canadian Mining Hall of Fame, and a winner of the EY Entrepreneur of the Year (Energy) award. His objective is to build MUX’s profitability and share value, and ultimately implement a dividend policy, as he did while building Goldcorp Inc.

The full press release is available here.