McEwen Unveils $181 Million Grey Fox PFS Extending Mine Life 15 Years with 31% IRR
MUX•McEwen’s Grey Fox PFS projects 87,000 ounces of annual gold output from 2028–2041, peaking at 100,000 ounces in 2029, and extends Fox Complex mine life to 2041. Initial CAPEX of $181 million supports a pre-tax NPV5% of $429 million with a 31% IRR at $3,000/oz gold.
1. Grey Fox Production and Mine Life
Grey Fox PFS projects 43,175 ounces annually from 2028–2035 and 90,701 ounces from 2035–2040, peaking at 100,000 ounces in 2029. The study extends Fox Complex mine life by 15 years to 2041 and underpins objectives to achieve 250,000–300,000 gold equivalent ounces per year by 2030.
2. Capital Expenditure and Funding
Initial CAPEX is estimated at $181 million, phased $17 million in 2026, $60 million in 2027, $80 million in 2028 and $24 million in 2029. Management expects to fund these expenditures through existing treasury and operating cash flow with minimal equity dilution.
3. Economic Metrics and Project Returns
At a $3,000/oz gold price the project delivers a pre-tax NPV5% of $429 million, IRR of 31% and a payback period of 3.9 years, with life-of-mine C1 costs of $1,833/oz and AISC of $2,212/oz. Under a $4,500/oz scenario, pre-tax NPV rises to $1.25 billion, IRR to 70% and payback to two years.
