-0.03 -2.78% Volume: 5,668,995 January 19, 2021

+0.01 +0.85% Volume: 524,938 January 19, 2021


About Project Fenix

Located in Mexico

Project Fenix is a proposed redevelopment plan for McEwen Mining’s El Gallo Complex in Mexico. A Preliminary Economic Assessment (PEA) published in 2018 is further updated by a Feasibility Study (FS) that will be filed by mid-February, 2021. Project Fenix evaluates the potential extension of production in the complex, based on a 2-phased transformation of the processing from the El Gallo mine, innovative in-pit tailings disposal, and sourcing from further deposits.

The project envisions constructing a mill at the existing mine site that will initially reprocess the existing heap leach material, and further will transition to open pit mining and processing ore from the El Gallo Silver deposit.

At a base case using gold and silver prices of $1,500 and respectively $17 per ounce, key outcomes of the feasibility study for Project Fenix include a 9.5-year Life‑of‑Mine (LOM), average annual production rate of 26 thousand equivalent ounces (Au Eq) until Year 7 and further of 4.2 million silver equivalent ounces (Ag Eq), a low initial capital cost, a 28% After-Tax Internal Rate of Return (IRR) and a $32 million After-Tax net present value (NPV) using an 8% discount rate.

At an upside case using gold and silver prices of $1,900 and respectively $25 per ounce, project Fenix has a 55% After-Tax IRR and a $98 million After-Tax NPV using an 8% discount rate.

About Diagram About Diagram


Silver pille



19.5 M Oz


.3 M Oz


19.2 M Oz
For more details click here.

Capital and Operating Costs

Phase 1 capital expenditure is estimated at $42 million. Phase 2 additional expansion capital expenditure is $24 million. The project offers low upfront capital requirements by:

  • Utilizing existing infrastructure at El Gallo Gold Mine;
  • Commissioning an in-pit tailings storage facility in an existing open pit; and
  • A significant reduction in required leach tank volumes for El Gallo Silver processing in comparison with previous studies.

Mining and Processing

The Fenix Project involves a two-phase development process. The process plant would use conventional and proven mineral processing and precious metals recovery technologies.

Tailings produced during the operation would be stored in a mined-out open pit at the El Gallo Gold Mine. As part of this process, tailings deposition would include a delivery system designed to maximize tailings consolidation and water recovery.

Exploration Potential
at El Gallo Complex

In recent years, exploration efforts at the El Gallo Complex have focused on both near-mine and property-wide targets. A property-wide soil geochemical survey completed in 2018 identified multiple additional targets and indicated the potential for extensions of known zones of sulfide mineralization.

Near-mine drilling efforts have been successful in delineating and extending mineralization near the Samaniego and Sagrado Corazon pits. The new gold mineralization generally contains sulfides that could be processed in the Phase 2 process plant.

At the property scale significant mineralization has been confirmed at Encuentro South, located 7 miles (11 km) southwest of the El Gallo Mine. The project area lies on an important 4 mile (7 km) long, regional NW-SE mineral trend that also hosts two other exploration targets, Las Milpas and Twin Domes. Extensive exploration along this trend has identified favorable alteration signatures and abundant anomalous gold and silver mineralization in surface rock and soil samples.

The 42 core holes (7,522 meters) drilled at the Encuentro South prospect indicate that the favourable gold assays occur in at least three distinct zones that are either shallow dipping NW, or sub-vertical NS structures and are still open along strike and at depth. The mineralization zone has a strike length of approximately 230 meters and was identified from surface to a depth of 130 meters.

Mineralization at Encuentro South is characterized primarily by structurally controlled, multi-event quartz breccias and stockwork zones hosted by propolytically altered meta-andesites. Minor silicification and hematisation alteration is also seen locally. The mineralization is considered of the low-sulphidation, epithermal style as seen elsewhere on the property.

Highlights of drill results from Encuentro South are presented below.


Latest exploration drilling at the El Gallo Complex has been concentrated primarily on three prospective areas; one area called Encuentro South has returned particularly encouraging results at shallow depths.

Highlights are summarized on the right. For all drill results click here.

Hole ID Gold
Grade (gpt)
Width (m)
ENX-032 9.59 9.1
including 126.50 0.5
and 2.94 38.2
including 27.30 1.2
ENX-043 7.82 5.4
including 28.70 1.1
ENX-009 16.09 2.1
ENX-041 16.27 1.9
ENX-051 1.30 19.5
and 6.13 4.8
ENX-019 1.85 15.2
including 3.99 5.0
ENX-021 1.66 12.7