Mcewen Inc. (NYSE/TSX: MUX) has announced the receipt of a crucial permit extension for its El Gallo mine from the Mexican government. This approval is a significant milestone, allowing the company to commence phase 1 mill construction, with a targeted start in mid-2026 and the first gold pour expected in mid-2027.
The company has already acquired the onsite ball mill and has initiated work on phase 2, which will involve production from the project’s in-situ silver deposits, potentially extending the mine's life well beyond the initially contemplated 10 years under phase 1.
Phase 1 is projected to yield approximately 20,000 gold equivalent ounces annually once commercial production is achieved. The remaining capital costs for construction are estimated at $25 million. As the material to be processed was previously mined, no significant development or exploration costs are anticipated, which is expected to enhance free cash flow.
Historical silver resources for the El Gallo and district satellite deposits show total measured and indicated silver resources of 53.1 million ounces and 31 million ounces in the inferred category for areas that have not currently been mined.
Mcewen Inc. will be updating the resource estimates for El Gallo in 2026 based on the currently known resource areas.
Additionally, Mcewen Inc. has a 46.4% interest in Mcewen Copper, which owns the Los Azules copper development project in San Juan Province, Argentina. The implied value of Mcewen’s ownership interest in Mcewen Copper is stated to be US$456 million.
The Los Azules copper project is designed to be one of the world’s first regenerative copper mines and carbon neutral by 2038. The feasibility study results were announced in a press release dated October 7, 2025.
Mcewen Inc. has also recently acquired 27.3% of Paragon Advanced Labs Inc., a newly listed public company deploying photonassay™ units worldwide, a technology believed to be on track to become the new industry standard for assaying precious and base metals.
Chairman and Chief Owner Rob McEwen has personally invested over US$200 million and takes a salary of $1 per year, aligning his interests with shareholders. He aims to build MUX’s profitability, share value, and eventually implement a dividend policy, as he did while building Goldcorp Inc.
The technical information in the press release has been reviewed and approved by qualified persons as defined by SEC S-K 1300 and Canadian Securities Administrators’ National Instrument 43-101 "Standards of Disclosure for Mineral Projects." Following these announcements, the company's shares moved 4.37%, and are now trading at a price of $19.695. For the full picture, make sure to review McEwen's 8-K report.
