McEwen expands high-grade gold zone at Froome mine

[Ben Graham]

McEwen (TSX, NYSE: MUX) said new drilling at its Froome mine in northern Ontario boosted the property’s higher-grade gold mineralization by about 45%.

Drillhole 25PR-G467 cut 31 metres grading 7.7 grams gold per tonne from 298 metres depth, McEwen said Thursday in a statement. Another hole, 25PR-G478, cut 15 metres at 6.1 grams gold from 328 metres downhole.

“Drilling continues to prove out the high-grade discovery at the Froome mine, with mineralization extended at depth and to the west providing enhanced optionality,” National Bank Financial mining analyst Don DeMarco said Thursday in a note.

Some of the deepest intersections so far show gold mineralization remains open at depth, McEwen said. This provides confidence that additional resources exist below the currently planned limit of the mine, according to the company.

Westward extension

High-grade gold mineralization at Froome has been extended by 100 metres vertically since the company released its last drilling update in July. Gold mineralization in the Froome West zone was extended westward by up to 50 metres, potentially increasing the number of defined ounces per vertical metre, McEwen said.

Four drills are now active at Froome West, targeting further expansion of the most recent results. Continued exploration success could allow simultaneous mining to take place both at Froome and the future Stock mine, supporting a “meaningful” extension of operations, the company said.

Gold production at Stock is expected to start in mid-2026.

McEwen plans to publish an updated resource for Froome West at the end of February. Surface diamond drilling will continue into the first quarter.

Fox complex

Other highlight results released Thursday included hole 25PR-G454, which cut 7 metres grading 6.4 grams gold starting at 169 metres downhole, and hole 25PR-G487, which cut 8.1 metres grading 4.6 grams gold from 358 metres.

Froome and Stock are part of the company’s Fox complex, which is located near Timmins, Ont. Fox holds 18.6 million measured and indicated tonnes grading 3.64 grams gold for contained metal of 2.18 million oz., according to the company’s most recent investor presentation.

McEwen shares fell 1.8% to C$25.70 Thursday morning in Toronto, giving the company a market value of about C$1.4 billion ($1 billion).