The Gold Bar Project is located within the Battle Mountain-Eureka-Cortez gold trend of Eureka County, Central Nevada. The property was previously mined from 1990 to 1994 by Atlas Precious Metals Inc. The nearest operating mines are Barrick Gold's Ruby Hill Mine at approximately 25 miles to the Southeast - now closed - and Cortez Mine at approximately 35 miles to the Northwest. In 2014 Ruby Hill Mine produced 33,000 ounces of gold with an all-in-sustaining cost of $713 per ounce and Cortez Mine produced 902,000 ounces of gold with an all-in-sustaining cost of $706 per ounce.
The Project is located on both public lands managed by the Bureau of Land Management (BLM) Battle Mountain Field Office, and on patented lands. The BLM and the Nevada Division of Environmental Protection (NDEP) will be the primary regulatory agencies responsible for ensuring environmental protection as the Gold Bar Project progresses through permitting and approval processes.
The Company has already secured for the Project approval from the Nevada Division of Water Resources for adequate water rights necessary to conduct mining activities. The approved water rights will be sufficient for life-of-mine operations. This permit approval is a significant development for the project and McEwen Mining continues to advance the permitting process for construction and production.
The Plan of Operations (POO) submitted by the Company in 2013 was assessed complete and the Bureau of Land Management (BLM) has determined that an EIS is necessary to fulfill the requirements under the National Environmental Protection Act (NEPA). Upon completion of the environmental analysis the BLM will be able to proceed with the approval determination of the POO. Stantec Consulting Services based in Reno, Nevada is the third-party contractor that will assist the BLM in the preparation of an EIS for the Gold Bar Project. Formal notice from the BLM states that our Record of Decision (ROD) for Gold Bar is expected in January, 2017. The Company expects that all other applicable State and Local permits will also be acquired in this timeframe. Once received, the Company can begin construction, which is expected to take approximately 10-12 months to complete.
2015 programs at Gold Bar included the advancement of the Environmental Impact Statement (EIS), as well as a drill program of approximately 10,000 ft (3,050 metres) on the Gold Pick deposit area. The drill program was designed to increase the resource confidence level by converting certain portions of the pit resources from inferred to measured and indicated categories, consequently helping to drive stronger mine economics for the feasibility study published in December 2015. The proposed development of the feasibility study is a conventional open pit mine with oxide gold heap leach recovery circuit. Gold Bar is forecasted to produce 325,000 ounces of gold at 65,000 ounces per year and at a cash cost of $728 per ounce.
The Company will continue to optimize the Gold Bar Project in anticipation of a positive ROD decision in 2017. Primary areas of focus for project development in 2016 include further metallurgical test work, exploration of used and new equipment markets, and initiation of employee search for key operational positions. These targets will add near-term value to Gold Bar and allow McEwen Mining to be well prepared for initiating construction.
Gold Bar technical information on this page was derived from:
(1) the technical report titled “NI 43-101 Technical Report Gold Bar Project Feasibility Study, Eureka County, Nevada” dated December 03, 2015 with an effective date of September 19, 2015, prepared by Breese Burnley, PE., Kent Hartley, PE., Brooke Miller, CPG., Jay Pennington, CPG., Daniel Sepulveda, SME-RM., Justin Smith, SME-RM, PE., Mark Willow, SME-RM, CEM,, all of whom are qualified persons and all of whom are independent of McEwen Mining, each as defined by NI 43-101. To access the report click here.
(2) a news release titled “McEwen Mining Financial & Operating Results" released on March 10, 2014 by McEwen Mining Inc. To access the news release click here.
(3) A news release titled "McEwen Mining Q3 Operating & Financials Results" released on November 10, 2014 by McEwen Mining Inc. To access the news release click here.
(4) A news release titled "McEwen Mining Reports 2015 First Quarter Operating & Financial Results" released on May 11, 2015 by McEwen Mining Inc. To access the news release click here. and
(5) A news release titled "McEwen Mining Announces Positive Feasibility Study for Gold Bar Project, Nevada" released on October 21, 2015 by McEwen Mining Inc. To access the news release click here.
McEwen Mining reports its resource estimates in accordance with standards of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in Canadian National Instrument 43-101 ("NI 43-101"). These standards are different from the standards generally permitted in reports filed with the SEC. Under NI 43-101, McEwen Mining reports measured, indicated and inferred resources, measurements which are generally not permitted in filings made with the SEC. According to Canadian NI 43-101 criteria, the estimation of measured resources and indicated resources involve greater uncertainty as to their economic feasibility than the estimation of proven and probable reserves. Under SEC Industry Guide 7 criteria, measured, indicated and inferred resources are considered Mineralized Material. The SEC considers that in addition to greater uncertainty as to the economic feasibility of Mineralized Material compared to proven and probable reserves, there is also greater uncertainty as to the existence of Mineralized Material. U.S. investors are cautioned not to assume that measured or indicated resources will be converted into economically mineable reserves. The estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources.
Mineral resources which are not mineral reserves do not have demonstrated economic viability.