McEwen Inc. (TSX: MUX) has released a pre-feasibility study for its wholly owned Grey Fox project, positioning the deposit as a major new source of ore for its operating Fox Complex and a central piece of the company’s plan to lift annual output.
The study uses a base case built on a $3,000 per ounce gold price. On that basis, Grey Fox carries a post-tax net present value of $282 million at a 5% discount rate, a 24.8% internal rate of return, and a payback period of 4.6 years. McEwen also published an enhanced case at $4,500 gold, which pushes the post-tax NPV to $841 million, the IRR to 55.1%, and payback down to 2.3 years.
Notably, neither figure reflects where gold is actually trading, with the spot price of gold currently sitting at $4,336.
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The mine plan reshapes the Fox Complex timeline. Grey Fox extends the complex’s life by 15 years to 2041, drawing on reserves that account for roughly 40% of the current resource. From 2028 to 2035, the deposit is expected to add an average of 43,000 gold ounces a year, with the Stock Mine supplying the balance. From 2035, Grey Fox becomes the complex’s sole producer, averaging about 87,000 ounces annually before tapering off in 2041.
The contribution is sizeable against a low base, with Fox Complex production this year is pegged at 16,000 to 19,000 ounces. With Grey Fox in the mix, the complex is projected to reach roughly 100,000 ounces in 2029 and average about 87,000 ounces a year from 2028 through 2041.
Initial capital is estimated at $181 million, spread across $17 million in 2026, $60 million in 2027, $80 million in 2028, and $24 million in 2029. The company expects to fund the build largely from treasury and operating cash flow, helped by Grey Fox’s reliance on the existing Stock Mill, tailings facilities, and workforce rather than fresh standalone infrastructure.
On unit costs, the base case carries life of mine cash costs of $1,833 per ounce and all-in sustaining costs of $2,212. Under the $4,500 pricing case, those figures rise to $2,042 and $2,421, respectively, reflecting higher royalty and cost inputs at stronger pricing.
Next steps run through detailed engineering and long-lead purchasing, alongside a water permit and closure plan amendment to be developed with the company’s Impact Benefit Agreement partner.
McEwen is targeting permits within 12 to 18 months, construction in spring 2027, underground development in the third quarter of that year, and commercial production in 2029.
McEwen Inc last traded at $25.47 on the TSX.
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