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McEwen Mining Inc.’s fourth quarter and full year 2021 results show that at the Gold Bar mine in Nevada production increased substantially while cost per ounce went down. Production also went up at McEwen’s Fox Complex in Canada and the San Jose mine in Argentina, while cost per ounce went down at Fox and increased only slightly at San Jose.

The Gold Bar mine is in the southern Roberts Mountains of the Battle Mountain-Eureka-Cortez gold trend in Eureka County. It is about 25 miles south/southeast of the Nevada Gold Mines’ Cortez Gold Mine.

Gold Bar produced 9,950 gold equivalent ounces in the fourth quarter of 2021, up 66% from 6,000 GEOs in the fourth quarter of 2020. The mine produced 43,850 GEOs in 2021, an increase of 57% from 28,000 GEOs in 2020.

Gold Bar’s cash costs in 2021 were $1,687 per gold equivalent ounce, down 20% from $2,106 in 2020. The all-in sustaining cost in 2021 was $1,753 per GEO, down 29% from $2,459 in 2020. For the fourth quarter of 2021, cash costs were $2,038 per GEO, down 41% from $3,439 in the fourth quarter of 2020. The all-in sustaining cost in the fourth quarter of 2021 was $2,104 per GEO, down 44% from $3,726 in the fourth quarter of 2020.

In its results report McEwen Mining said production at Gold Bar increased significantly in 2021 “primarily due to improved heap leach operating efficiencies and no materially adverse COVID-19 impacts on operations.”

The permitting process to access ore at the Gold Bar South satellite deposit is ongoing and the company anticipates receiving the permit in the first quarter of 2022. The initiation of gold production from Gold Bar South is planned for the second half of 2022.

In 2021, McEwen Mining spent $4.2 million on exploration activities at Gold Bar, including metallurgical, geotechnical and drilling programs for a cumulative 8,620 feet at Ridge and Tonkin Rooster. Delineation drilling programs were conducted at Atlas Pit, SW Pick Extension, and Cabin North, with a cumulative 8,629 feet completed. Delineation drilling at Cabin North and the SW Pick Extension is ongoing. McEwen Mining said the Gold Bar exploration budget for 2022 is $2.5 million.

At McEwen’s Fox Complex in Northern Ontario, production was 9,500 GEOs in the fourth quarter of 2021, up 18% from 8,000 GEOs in the fourth quarter of 2020. Fox produced 30,060 GEOs in 2021, an increase of 23% from 24,400 GEOs in 2020.

On Jan. 26, 2022 McEwen announced the results of a Fox Complex Preliminary Economic Assessment. The PEA outlined potential to extend the mine life by nine years, generating average annual production of 80,800 gold ounces at average cash costs and AISC per ounce of $769 and $1,246, respectively.

McEwen Mining has a 49% interest in the San Jose mine in Argentina. The mine produced 20,200 GEOs in the fourth quarter of 2021, up 38% from 14,600 GEOs in the fourth quarter of 2020. San Jose produced 78,800 GEOs in 2021, an increase of 41% from 54,500 GEOs in 2020.

McEwen’s total production in 2021 was 154,410 GEOs, above the midpoint of guidance for the year and 34% higher than the 2020 production of 114,800 GEOs. The gold equivalent ounce total in 2021 came from 118,500 ounces of gold and 2,572,000 ounces of silver.

For 2022, the company’s gold equivalent production guidance is 153,000 to 172,000 ounces.

Cash costs per gold equivalent ounce sold from McEwen’s 100%-owned mines in 2021 were $1,453, down 18% from 2020. All-in sustaining costs per GEO sold from McEwen’s 100%-owned mines in 2021 were $1,635, down 21% from 2020. The company said additional cost reductions remain a focus.

McEwen Mining said it is continuing to invest aggressively in exploration, completing 254,800 feet of drilling at the Fox Complex, in addition to the total of 17,500 feet of drilling at Gold Bar.

The company said its 100%-owned mines generated a cash gross profit of $17.3 million in 2021 and a gross loss of $6.5 million. McEwen’s consolidated net loss in 2021 of $56.7 million, or $0.12 per share, relates primarily to the investment of $35 million in advanced projects and exploration, general and administrative costs of $11.4 million, and a gross loss of $6.5 million from operations, according to the company.

The company said its cash and liquid assets and working capital on Dec. 31, 2021 were $63.5 million and $32.6 million, respectively.

McEwen Copper’s Los Azules project in Argentina ramped up in the fourth quarter of 2021 with the opening of a seasonal exploration road, the activation of two camps, the start of construction of a new all-year access road, and the preparation of drill pads and roads to support the current drilling program. Drilling started in January 2022, with the number of rigs at the site increasing from five to seven in March.

“Our overarching goal is to design a mine that will be the model for copper mining in the 21st century, one that supplies the raw material to enable a greener world, while incorporating the use of renewable energy sources and technological innovation for a low-carbon footprint and energy efficient mining,” the company said in its results report.

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McEwen Mining also reported it is planning a copper exploration project in Nevada at its Elder Creek property

Companies from around the world sent team members to the expo to engage face-to-face and show off their products in person at one of the first major networking events for mining since the start of the coronavirus pandemic.

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