NEVADA – The feasibility study is done and the outlook is promising for the Gold Bar project belonging to McEwen Mining
of Toronto. McEwen owns 100% of the project 50 km northwest of Eureka, in the Battle Mountain-Eureka trend.
McEwen says the project needs only US$60 million in initial capital and has an payback period of three years at US$1,150/oz gold (base case) or two years at US$1,300/oz. Gold Bar has an estimated after tax net present value with a 5% discount of US$30 million and an internal rate of return of 20%. An owner operated open pit mine with a run-of-mine oxide heap leach would produce 65,000 oz of gold annually at a cash cost of US$728/oz. All-in sustaining costs are estimated to be US$995/oz of gold.
The Gold Bar deposit has proven and probable reserves within the planned pit design of 13.1 million tonnes grading 1.16 g/t Au and containing 441,000 oz of gold. In measured and indicated resources there are 2.1 million tonnes grading 0.95 g/t Au or 611,000 oz of gold. The inferred resource is 4.6 million tonnes at 0.82 g/t or 111,000 contained oz.
Additional information is available at McEwenMining.com