Gold Bar project is located within the Battle Mountain-Eureka-Cortez gold trend in 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, which produced 33,000 ounces of gold in 2014 with an all-in-sustaining cost of $713 per ounce and is located approximately 25 miles to the Southeast; and Barrick Gold’s Cortez mine, which produced 902,000 ounces of gold in 2014 with an all-in-sustaining cost of $706 per ounce and is located approximately 35 miles to the Northwest.
Gold Bar is a proposed mine development project consisting of a conventional open pit mine with an oxide gold heap leach recovery circuit. The project had a pre-feasibility study completed by SRK Consulting (published in November 2011) and is currently in the permitting phase.
Gold Bar has received underground water rights from the Nevada Division of Water Resources. This permit approval is a significant development for the project and McEwen Mining continues to advance the permitting process for construction and production. Gold Bar is forecasted to produce 50,000 ounces gold per year for 8 years at a cash cost of $700 per ounce and an all-in sustaining cost of $850 per ounce.
The Plan of Operations (POO) submitted by the Company in the fourth quarter of 2013 was assessed complete and the Bureau of Land Management (BLM) has determined that an Environmental Impact Statement (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.
A $1.4 million budget for 2015 for the Gold Bar project focuses primarily for the advancement of the EIS, as well as a drill program of approximately 10,000 ft. (3,050 metres) on the Gold Pick deposit area. The drill program is designed to increase the resource confidence level by converting certain portions of the pit resources from inferred to measured and indicated categories. This will help drive stronger mine economics for the future feasibility study, scheduled to be completed in the third quarter of 2015. Final permit approval is scheduled for the second half of 2016.
Gold Bar technical information on this page was derived from: (1) the technical report titled “NI 43-101 Technical Report on Resources and Reserves Gold Bar Project, Eureka County, Nevada” dated February 24, 2012 with an effective date of November 28, 2011, prepared by J. Pennington, C.P.G., MSc., Frank Daviess, MAusIMM, Registered SME, Eric Olin,, MBA, RM-SME, MSc, Herb Osborn, P.E, Joanna Poeck, MMSA, B. Eng., Kent Hartley P.E. Mining, SME, BSc, Mike Levy, P.E, P.G, MSc., Evan Nikirk, P. E., Mark Allan Willow, M.Sc, C.E.M. and Neal Rigby, CEng, MIMMM, PhD, all of whom are qualified persons and all of whom are independent of McEwen Mining, each asdefined 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. And (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.
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.