MEXICO – The Mexican government has granted environmental approval the El Gallo 2 project belonging to McEwen Mining of Toronto. The new mine in Sinaloa is expected to produce 95,000 oz AuEq per year (5.2 million oz of silver and 6,100 oz of gold) at an approximate cash cost of US$750/oz AuEq.
McEwen has shaved an estimated $20 million from the El Gallo 2 project by reducing the number of leach tanks; installing a smaller Merrill-Crowe plant and refinery; using modular crushers; and reducing the number of transformers. The company says about $150 million, including $10 million already spent, will be required to complete the mine.
The final decision to proceed with El Gallo 2 has yet to be made. That decision awaits various optimization studies and financing alternatives.
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