Encouraged by drill results at the Grey Fox deposit, McEwen Mining (RSX: MUX; NYSE: MUX) is looking at the potential to expand its production pipeline. The deposit is part of the company’s Fox gold complex in the Timmins camp in northern Ontario. McEwen is intrigued by the potential of exploration targets at depth and attractive near surface gold grades.
Gold at Grey Fox has been found in multiple zones, including Gibson, Whiskey-Jack, 147 and Grey Fox South (GFS). The current resource estimate for Grey Fox is 1.2 million oz. gold in material grading 4.80 g/t gold (indicated) and 236,000 oz. gold at 4.35 g/t gold (inferred). An updated resource estimate will be completed in late September.
Highlights of the best assay results (true widths) at Grey Fox include the following:
- Hole 24GF-1426: 586.7 g/t gold over 0.5 metre
- Hole 24GF-1424: 14.3 g/t gold over 5 metres
- Hole 24GF-1397: 17.4 g/t gold over 4.2 metres
- Hole 22GF-1366: 8.8 g/t gold over 3.9 metres.
The Gibson zone drew interest because a bulk sample taken in 1989 has historical documentation suggesting the average grade was over 27 g/t gold. The zone consists primarily of a syenite intrusion with sediments (similar to the Young-Davidson mine of Alamos Gold).
The Whiskey-Jack zone is the highest grading zone of the Grey Fox deposit. It currently has an indicated resource of 80,000 oz. gold in material grading 7.0 g/t and an inferred resource of 43,000 oz. gold at a grade of 6.1 g/t gold. Located at the northwest corner of the Grey Fox resources, Whiskey-Jack is stratigraphically controlled by the A1 splay fault, which is interpreted as marking the boundary between shallow Grey Fox style mineralization and deeper Black Fox mineralization.
Two other zones, Grey Fox South and 147, are located near the southern edge of the Grey Fox deposit. The better gold grades (586.7 g/t and 14.3 g/t) are found within the north-south oriented variolitic mafic volcanics, likely dues to iron enrichment. Mineralization at Grey Fox South begins less than 50 metres below surface, making it suitable for open pit mining.
McEwen will continue its exploration program at Grey Fox through 2025.
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