McEwen Secures Key Permit for El Gallo Mine; Mill Construction to Begin Mid-2026 - First Gold Pour Mid-2027

Rhea-AI Summary

McEwen (NYSE: MUX) received an extension of its Environmental Impact Assessment for the El Gallo mine, clearing the way for Phase 1 mill construction targeted for mid-2026 and a first gold pour targeted mid-2027. The company has purchased the ball mill, which is onsite, and estimates remaining capital costs of $25 million to complete construction. Phase 1 is expected to produce about 20,000 GEOs annually from reprocessing material on a historical leach pad. Work on Phase 2 has begun to access in-situ silver deposits that could extend mine life beyond the initial 10 years. Historical silver resources total 53.1 Moz Measured & Indicated and 31 Moz Inferred, but these estimates are historical and will be updated in 2026.

Positive

• Permit granted enabling Phase 1 mill construction
• Ball mill purchased and onsite
• Phase 1 target first gold pour in mid-2027
• Phase 1 expected 20,000 GEOs annually
• Historical silver resources: 53.1 Moz M&I and 31 Moz Inferred

Negative

• Estimated $25 million remaining capital required to complete construction
• Historical resource estimates are not current and cannot be relied upon
• Production timeline uses targeted dates (mid-2026 start, mid-2027 pour) not guaranteed

News Market Reaction

+1.75%

1 alert

+1.75% News Effect

On the day this news was published, MUX gained 1.75%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Share price: $18.89 Phase 1 production: 20,000 GEOs per year Remaining capex: $25 million +5 more

8 metrics

Share price $18.89 Pre-news price vs 52-week range $6.38–$24.88

Phase 1 production 20,000 GEOs per year Expected annual output once El Gallo Phase 1 is in commercial production

Remaining capex $25 million Estimated remaining capital costs to complete El Gallo Phase 1 mill

Initial mine life 10 years Phase 1 El Gallo life before potential Phase 2 silver expansion

Silver M&I resources 53.1 million oz Historical measured & indicated silver resources, El Gallo and satellites

Silver inferred resources 31 million oz Historical inferred silver resources, El Gallo and satellites

Silver price assumption $28.50/oz Metal price used in historical resource estimate

Gold price range $950–$1,500/oz Gold price range used in historical resource estimate

Market Reality Check

Price: $24.15 Vol: Volume 1,356,012 vs 20-da...

normal vol

$24.15 Last Close

Volume Volume 1,356,012 vs 20-day average 1,043,458 (relative volume 1.3x). normal

Technical Shares trade above the 200-day MA (18.89 vs 12.04), showing a pre-news uptrend.

Peers on Argus

MUX slipped -0.79% while key peers ASM, SLSR, MTA, ITRG and USAS also showed neg...

MUX slipped -0.79% while key peers ASM, SLSR, MTA, ITRG and USAS also showed negative moves (from -1.25% to -3.19%), but no peers appeared in the momentum scanner, suggesting stock-specific rather than a confirmed sector-driven move.

Historical Context

5 past events · Latest: Dec 08 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 08	Exploration update	Positive	-3.2%	Successful 2025 drilling at Gold Bar aimed at mine life extension.
Dec 04	Drill results	Positive	-0.4%	High-grade Froome West intercepts and extended mineralization at depth.
Nov 06	Earnings & strategy	Mixed	-10.0%	Q3 2025 results with lower revenue but higher EBITDA and long-term growth plan.
Nov 03	Earnings call notice	Neutral	-4.8%	Announcement of Q3 2025 results conference call schedule.
Nov 03	Strategic acquisition	Positive	-1.4%	Agreement to acquire 31% interest in Paragon Geochemical via share deal.

Pattern Detected

Recent positive operational and strategic updates have been followed by negative next-day price reactions, indicating a pattern of selling into good news.

Recent Company History

Over the past months, McEwen reported exploration success at Gold Bar, expanded mineralization at the Froome Mine, Q3 2025 results with a long-term plan to reach 250,000–300,000 GEOs by 2030, and a strategic 31% stake in Paragon Geochemical. Despite largely constructive news, 24-hour price reactions ranged from about -0.37% to -10%. Today’s El Gallo permit and construction timeline update fits into this broader growth narrative for multiple assets.

Market Pulse Summary

This announcement secures an extension of the environmental approval for El Gallo, enabling Phase 1 ...

Analysis

This announcement secures an extension of the environmental approval for El Gallo, enabling Phase 1 mill construction targeted for mid‑2026 and a first gold pour in mid‑2027. Phase 1 aims for about 20,000 GEOs per year with remaining capex of $25 million, while historical silver resources of over 84 million ounces highlight Phase 2 potential. Investors may watch upcoming 2026 resource updates, construction progress, and cost discipline across the broader asset base.

Key Terms

environmental impact assessment, manifestación de impacto ambiental, gold equivalent ounces, measured and indicated, +2 more

6 terms

environmental impact assessment regulatory

"the extension of its Environmental Impact Assessment (Manifestación de Impacto Ambiental)"

An environmental impact assessment is a process that evaluates how a planned project or development might affect the natural environment, including air, water, land, and wildlife. It helps identify potential risks and suggests ways to minimize harm before the project begins. For investors, it matters because projects with significant environmental risks may face delays, increased costs, or restrictions, affecting their overall viability and returns.

manifestación de impacto ambiental regulatory

"Environmental Impact Assessment (Manifestación de Impacto Ambiental) for the El Gallo Mine"

A manifestación de impacto ambiental is a formal report that evaluates the likely environmental effects of a planned project or operation and the measures to avoid or reduce harm. For investors it matters because this document is usually required to get permits and can change a project's timeline, costs, legal risk and public acceptance—think of it as a regulatory health check that can make or break a project's ability to proceed.

gold equivalent ounces technical

"Phase 1 is expected to produce approximately 20,000 GEOs (Gold Equivalent Ounces)"

Gold equivalent ounces express the combined output or reserves of a mine by converting other metals (like silver, copper or zinc) into the amount of gold they would be worth at current market prices, so everything is shown as a single “gold” number. For investors this provides a common yardstick to compare production, value and growth across projects that produce multiple metals—like converting several currencies into one familiar money unit.

measured and indicated technical

"historical silver resources total 53.1 million ounces in the Measured and Indicated categories"

Measured and indicated are two levels of confidence used to describe the size and quality of a mineral deposit: "measured" means the quantities and grade are well tested and closely known, while "indicated" means they are reasonably estimated but with more uncertainty. Investors use these categories to judge how reliably a resource can be converted into reserves and future cash flow—think of measured like a weighed recipe and indicated like a good estimate based on past batches.

inferred technical

"and 31 million ounces in the Inferred category for areas that have not currently been mined"

Inferred means a conclusion or piece of information drawn from available clues rather than directly observed or confirmed. For investors, an inference is like reading a weather forecast from cloud patterns: it helps form expectations about a company’s performance or risks when hard data is missing, but it carries uncertainty and should be weighed alongside verified facts.

ni 43-101 technical report feasibility study regulatory

"El Gallo Complex Phase II Project, NI 43-101 Technical Report Feasibility Study, September 10, 2012"

A NI 43-101 technical report feasibility study is an independently prepared, standardized engineering and financial assessment that evaluates whether a proposed mining project can be built and operated profitably. Think of it as a detailed business plan and engineer’s blueprint rolled into one: it sets out estimated mineral quantities, production methods, costs, timelines and projected returns. Investors use it to gauge project risk, validate management’s claims and decide whether the potential reward justifies the capital and time required.

AI-generated analysis. Not financial advice.

TORONTO, Dec. 16, 2025 (GLOBE NEWSWIRE) -- McEwen Inc. (NYSE/TSX: MUX) (“McEwen” or the “Company”) is pleased to announce that the extension of its Environmental Impact Assessment (Manifestación de Impacto Ambiental) for the El Gallo Mine has been granted by the Mexican government. This approval is a critical step that will allow McEwen to begin Phase 1 Mill Construction. The Company is targeting mid-2026 for construction start, and mid-2027 for its first gold pour. McEwen has purchased the ball mill, which is onsite at the mine. The Company has also started work on Phase 2, which will involve production from the project’s in-situ silver deposits. This could extend the life of El Gallo well beyond the initial 10 years contemplated under Phase 1. 

Phase 1 is expected to produce approximately 20,000 GEOs (Gold Equivalent Ounces) annually once commercial production is achieved. Production will come from reprocessing the material from the historical leach pad. Remaining capital costs to complete construction are estimated at $25 million. Since the material to be processed was previously mined, no significant development or exploration costs are anticipated, enhancing free cash flow.

Historical Silver Resources

For the El Gallo and district satellite deposits, historical silver resources total 53.1 million ounces in the Measured and Indicated categories and 31 million ounces in the Inferred category for areas that have not currently been mined (El Gallo Complex Phase II Project, NI 43-101 Technical Report Feasibility Study, September 10, 2012, Table 1). Resources were calculated using a silver price of $28.50 per ounce and a gold price between $950 and $1,500 per ounce. This estimate is historical in nature; a qualified person has not done sufficient work to classify the historical estimate as current mineral resources and should therefore not be relied on or considered as current. The Company will be updating the resource estimates for El Gallo in 2026, based on the currently known resource areas.

About McEwen

McEwen shares trade on both the NYSE and TSX under the ticker MUX.

McEwen provides its shareholders with exposure to a growing base of gold and silver production in addition to a very large copper development project, all in the Americas. The gold and silver mines are in prolific mineral-rich regions of the world: the Cortez Trend in Nevada, USA, the Timmins district of Ontario, Canada, and the Deseado Massif in Santa Cruz province, Argentina. McEwen is also reactivating its El Gallo gold and silver mine in Mexico.

The Company has a 46.4% interest in McEwen Copper, which owns the large, long-life, advanced-stage Los Azules copper development project in San Juan province, Argentina – a region that hosts some of the country’s largest copper deposits. According to the last financing for McEwen Copper, the implied value of McEwen’s ownership interest is 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. Its Feasibility Study results were announced in the press release dated October 7, 2025.

McEwen also recently purchased 27.3% of Paragon Advanced Labs Inc., a newly listed public company that is deploying PhotonAssay™ units around the world, a technology that the Company believes is poised to become the new industry standard for assaying precious and base metals, with Paragon aiming to be one of the leading service providers.

Chairman and Chief Owner Rob McEwen has invested over US$200 million personally and takes a salary of $1 per year, aligning his interests with shareholders. He is a recipient of the Order of Canada, a member of the Canadian Mining Hall of Fame and a winner of the EY Entrepreneur of the Year (Energy) award. His objective is to build MUX’s profitability, share value and eventually implement a dividend policy, as he did while building Goldcorp Inc.

Technical Disclosure

Technical information pertaining to historical resources contained in this press release has been reviewed and approved by Luke Willis, P.Geo, Director of Resource Modelling for McEwen Inc., who is a Qualified Person (QP) as defined by SEC S-K 1300 and Canadian Securities Administrators’ National Instrument 43-101 "Standards of Disclosure for Mineral Projects." 

Technical information pertaining to production details and capital estimates presented in this press release have been reviewed and approved by Channa Kumarage, P.Eng, Director of Technical Services for McEwen Inc., who is a Qualified Person (QP) as defined by SEC S-K 1300 and Canadian Securities Administrators’ National Instrument 43-101 "Standards of Disclosure for Mineral Projects." 

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking statements and information, including "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements and information expressed, as at the date of this news release, McEwen Inc.'s (the "Company") estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies, and there can be no assurance that such statements and information will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements and information. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements and information include, but are not limited to, fluctuations in the market price of precious metals, mining industry risks, political, economic, social and security risks associated with foreign operations, the ability of the Company to receive or receive in a timely manner permits or other approvals required in connection with operations, risks associated with the construction of mining operations and commencement of production and the projected costs thereof, risks related to litigation, the state of the capital markets, environmental risks and hazards, uncertainty as to calculation of mineral resources and reserves, foreign exchange volatility, foreign exchange controls, foreign currency risk, and other risks. Readers should not place undue reliance on forward-looking statements or information included herein, which speak only as of the date hereof. The Company undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. See McEwen Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and other filings with the Securities and Exchange Commission, under the caption "Risk Factors", for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information regarding the Company. All forward-looking statements and information made in this news release are qualified by this cautionary statement.

The NYSE and TSX have not reviewed and do not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by the management of McEwen.

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Table 1. Historical Resource Estimate - El Gallo Complex Phase II Project Feasibility Study, Sep. 10, 2012

Resource	Category	Tonnage (‘000 tonnes)	Silver (oz)	Silver Grade (gpt)	Gold (oz)	Gold Grade (gpt)
El Gallo         (Cut-off Grade 12 gpt Ag)	Measured Indicated Inferred	17,134 2,356 6,072	35,966,692 3,307,711 4,564,947	65.3 43.7 23.4	28,937 2,286 3,539	0.05 0.03 0.02
Magistral         (Cutoff Grade 0.30 gpt Au)	Measured Indicated Inferred	6,692 3,435 223	- - -	- - -	354,887 147,580 8,167	1.59 1.34 1.14
Palmarito         (Cut-off Grade 30 gpt Ag Eq.)	Measured Indicated Inferred	4,069 129 10,302	12,045,234 219,948 15,562,152	92.1 53.2 47.0	30,089 794 74,991	0.23 0.19 0.23
Palmarito Tailings         (Cut-off Grade 44 gpt Ag Eq.)	Measured	147	763,761	162.0	638	0.14
Palmarito Dumps         (Cut-off Grade 26 gpt Ag Eq.)	Indicated	145	805,556	172.5	1,298	0.28
Chapotillo         (Cut-off Grade 0.44 gpt Au Eq.)	Inferred	1,475	1,740,941	36.7	21,905	0.46
Haciendita         (Cut-off Grade 0.44 gpt Au Eq.)	Inferred	1,649	1,244,510	23.5	42,083	0.79
Mina Grande         (Cut-off Grade 0.44 gpt Au Eq.)	Inferred	3,801	2,883,040	23.6	74,179	0.61
Mina Grande Tailings (Cut-off Grade 0.58 gpt Au Eq.)	Inferred	463	804,333	54.1	7,523	0.51
San Dimas         (Cut-off Grade 0.41 gpt Au Eq.)	Inferred	846	576,580	21.2	19,325	0.71
Los Mautos         (Cut-off Grade 24 gpt Ag Eq.)	Inferred	965	1,323,642	42.7	3,637	0.12
San Jose del Alamo   (Cut-off Grade 0.38 gpt Au Eq.)	Inferred	501	35,539	2.2	13,162	0.82
Las Milpas         (Cut-off Grade 24 gpt Ag Eq.)	Inferred	678	964,316	44.2	1,724	0.08
CSX         (Cut-off Grade 27 gpt Ag Eq.)	Inferred	672	1,262,048	58.4	846	0.04

Notes:

• Mineral resources are not mineral reserves and do not have demonstrated economic viability.
• CIM definitions were followed for the estimation of mineral resources.
• All figures were rounded to reflect the relative accuracy of the estimates.
• Open Pit constrained resources were established using the following parameters which were considered appropriate in 2012:
  • Metal prices of US$28.50/ounce silver and between US$950-US$1500/ounce gold
  • Mining costs of US$1.75/tonne ore and US$1.65/tonne waste
  • Heap leach recovery assumptions of 60% silver and 60% gold
  • Processing costs of US$18.50/tonne milled and US$6.50/tonne (Ag) and US$13.20/tonne (Au) heap leached
  • Milling recovery assumptions of 85% silver and 75% gold.
• Since 2012, resources listed under Magistral have mostly been mined, crushed, processed and recovered via conventional leaching on the heap leach pad at El Gallo.
• Palmarito Dump material has also since been crushed and placed on the leach pad at El Gallo since the publication of this resource estimate.
  

FAQ

What permit did McEwen (MUX) secure for El Gallo on December 16, 2025?

McEwen secured an extension of its Environmental Impact Assessment for El Gallo, enabling Phase 1 mill construction.

When will construction and first gold pour occur at El Gallo (MUX)?

The company is targeting mill construction start mid-2026 and a first gold pour mid-2027.

How much more capital does McEwen (MUX) estimate is needed to finish El Gallo Phase 1?

Remaining capital costs to complete construction are estimated at $25 million.

What is the expected annual production for El Gallo Phase 1 (MUX)?

Phase 1 is expected to produce approximately 20,000 GEOs annually once commercial production is achieved.

Does McEwen (MUX) already own milling equipment for El Gallo?

Yes. McEwen has purchased the ball mill, which is reported to be onsite at the mine.

What are the silver resource figures cited for El Gallo and district deposits (MUX)?

Historical figures cite 53.1 million ounces silver Measured & Indicated and 31 million ounces Inferred; these are historical estimates and will be updated in 2026.