Page 28 By Gregory Reynolds McEwen Mining Inc is conducting a 12 million exploration of its recently acquired Black Fox Complex In October 2017 the Complex was acquired by McEwen The Black Fox Mine is a key component of the Com plex which also includes the Black FoxStock mill and the Froome and Grey Fox deposits McEwen has the goal to qualify for inclusion in the SP 500 Index by creating a proftable gold and silver producer focused in the Americas McEwen s principal assets consist of the San Jose Mine in Santa Cruz Ar gentina 49 interest the El Gallo Gold Mine in Mexico the Black Fox Mine in T imm ins Canada the Gold Bar Mine in Nevada currently under construction and the lar ge Los Azules copper project in Ar gentina advanc ing towards development McEwen has a total of 337 million shares outstanding Rob McEwen chairman and chief owner owns 24 of the shares As of April 6 2018 the company was debtfree with liquid assets of approx imately 52 million On March 7 Rob McEwen said we are ente ring the early stages of a com modities cyclical bull market that could last another 1012 years This is an oversold sector it s very depressed and were coming into a cyclical up turn in commodities McEwen told Kitco News on the side lines of the PDAC 2018 that while some of the major miners have nega tive growth curves in terms of project ed production it will be the juniors and intermediates that will run with the show On April 16 2018 McEwen Mining Inc reported consolidated production for Q1 2018 of 35069 gold ounces and 695651 silver ounces or 44344 gold equivalent ounces GEOs us ing a 751 gold to silver ratio Black Fox produced 12078 GEOs in Q1 in line with the company s full year production guidance for 2018 of 48000 GEOs For the year McEwen Mining achieved production of 152329 gold equivalent ounces GEOs The silver to gold ratio used for 2016 and 2017 was 751 Its consolidated net loss for 2017 was 106 million or 003 per share Net cash outfow during the year from op erating activities was 154 million principally due to higher exploration development and operating expenses associated with its longterm growth plans All amounts are reporte d in US dollars unless otherwise stated The company also has the Lexam Project located in the heart of the T immins Gold Camp Lexam consists of four properties the contiguous Bufalo Ankerite Fuller and Paymaster Properties lo cated 3 km southeast of downtown T immins Lexa m South and the Da vidson T isdale Property located ap proximately 4 km northeast of Lexam South Bufalo Ankerite Fuller and Da vidson T isdale are 100 owned by McEwen Mining The Paymaster Property is a joint venture with Goldcorp 61 McE wen Mining 39 Goldcorp Fuller Paymaster and Davidson T is dale were minor historic producers Bufalo Ankerite produced 102 mil lion ounces of gold at an average re covered grade of 65 grams per tonne mainly from a 4000foot deep pro duction shaft The Black Fox Complex is located in the wellestablished T immins Gold Mining Camp in Northern Ontario Canada Given the mine s proximity to Mathe son and T imm ins and that the re gion s primary industries are min ing and forestry local supplies and services are easily available and can be delivered in a timely manner The Complex is composed of two land packages that total 1750 hectares and cover 1 1 kilom etres 7 miles of the Destor Porcupine Fault known as the Golden Highway which has a total strike length of approximately 200 ki lometres 124 miles and hosts many of Ontario s richest gold mines A 12 million exploration program is ongoing across the Black Fox Com plex In the frst quarter of 2018 Black Fox produced 12078 GEOs in line with the company s full year production guidance for 2018 of 48000 GEOs The Black Fox Mine produced 51209 ounces of gold at an average grade of 62 grams per tonne during the frst three quarters of 2017 and 14279 ounces of gold at a grade of 647 grams per tonne in the fourth quarter of 2017 Since the Black Fox Mine was ac quired on Oct 6 2017 only gold pro duction from the mine after this date was included in the 2017 total Although there is a history of explo ration and production the land pack ages appear underexplored to depth and along trends The 2018 propertywide exploration program main objectives are to test for extensions of existing resources follow up on signifcant drill results and to investigate new exploration tar gets Page 26