Weekend Show – Sat 15 Jun, 2019

Hour 1 – The USD, Gold, and A Couple Gold Stocks

In the first half of this weekend’s show I focus on the US Dollar and the risk/reward balance for the US markets. The second half is dedicated to the metals however I spend most of the time discussing 3 junior stocks.

Please keep in touch by emailing me at Fleck@kereport.com. I love hearing from all of you.

  • Segment 1 – Marc Chandler, Managing Partner at Bannockburn Global ForEx joins me for an in depth look at the USD. Marc outlines three factors that have him thinking the secular bull market in the USD is coming to an end.
  • Segment 2 – This is an extended segment with Jesse Felder, Founder of The Felder Report. We start off with the risk/reward he sees in the Us markets then move in the metals sector.
  • Segment 3 – Jayant Bhandari shares his thoughts on Miramont Resources and McEwen Mining.
  • Segment 4 – David Erfle, Founder of The Junior Miner Junky attended a site visit for Cartier Resources this week. He shares his thoughts on the overall Company.

Exclusive Company Interviews and Comments This Week


Marc Chandler
Jesse Felder
Jayant Bhandari
David Erfle

McEwen kicks off commercial production at Gold Bar in Nevada

Canadian precious metals producer McEwen Mining (TSX, NYSE:MUX) said Thursday it had begun commercial production at its Gold Bar project in Nevada, US, which is expected to generate 50,000 bullion ounces this year.

The Toronto-based miner also said operations will be in charge of Jack Henris, who has years of experience in mine management, having worked at Newmont for 12 years and at Barrick for nine. Most recently, Henris held the vice president of mining and geotechnical position at Goldcorp.

The company says production at Gold Bar has been steadily increasing since the first gold pour in February, and forecasts output of 50,000 ounces, at an all-in sustaining cost of $975/oz. for 2019.

Gold Bar is located in the southern Roberts Mountains within the Battle Mountain-Eureka-Cortez gold trend, about 48km (30 miles) northwest of Eureka, central Nevada, and covers an area of  97 sq. km (37 square miles) contained in 1,196 claims.

The property was previously mined from 1987 to 1994 by Atlas Precious Metals Inc., and the permitting process for McEwen’s project began in 2012.

President and chief operating office, Chris Stewart, said the company plans to begin modifying o the ore crushing and stacking system this summer to mitigate the impact of challenging winter weather like the 2018/2019, which was the wettest winter ever recorded in the US.

Once at full-tilt, the open-pit mine is expected to generate 65,000 ounces of gold annually over an 8-year mine life.

Sustained growth

In the past four years, Rob McEwen — one of the gold’s industry’s best-known bulls — has been aggressively working on expanding his company, which already has producing mines in Mexico, Argentina and most recently also in Ontario, Canada.

His goal is to take McEwen Mining to the Standard & Poor's 500 Index, which groups the 500 largest companies that list either in the NYSE or NASDAQ.

The Canadian resources magnate expects to get there through a combination of organic growth in production, as well as mergers and acquisitions.

McEwen's priority this year is advancing exploration at its Timmins, Ontario, properties.

In 2017, McEwen acquired junior exploration company Lexam VG, which gave it access to mineral properties in advanced exploration stage in the heart of Timmins Gold Camp, northern Ontario. Later that year, it completed the acquisition of Black Fox mine and, by December, it announced it was speeding up exploration activities at its newly acquired properties near Timmins, Ontario.

In January, McEwen said exploration at its Timmins properties would be a priority for the company in 2019, adding that it had set aside C$20 million for that purpose.

The miner recently conducted a drilling program on the Black Fox property with the intention of expanding known mineralized trends near existing mining areas.

They included laterally, along the Black Fox Mine’s western flank and central mine and down-plunge at the Deep Central Zone below the 820-metre level.

“For a mine with a history of producing 5 grams per tonne of gold, these drill assay results are very encouraging. These results highlight the significant potential of our exploration to extend the mine life at Black Fox and improve its profitability,” Sylvain Guerard, McEwen’s senior vice-president of exploration, said in a separate release.

McEwen also noted that results of drilling at Grey Fox, an exploration property located within the Black Fox area, suggests a new mineralization.

The post McEwen kicks off commercial production at Gold Bar in Nevada appeared first on MINING.com.

McEwen provides update on fatal accident at Gold Bar Mine in Nevada

On Monday, May 13, McEwen Mining reported that a fatal accident involving a contractor's employee occurred at the Gold Bar Mine in Nevada. 

The Company initiated an investigation into the accident, working with the contractor and the local authorities to determine the cause. 

The accident involved a haul truck that overturned while operating at the site, and the individual who was fatally injured was its driver. There were no other injuries associated with the accident. 

On Friday, McEwen provided an update. The formal investigation by local authorities is not complete, the company said, but preliminary analysis by McEwen Mining suggests that the truck driver may have suffered a medical emergency while operating the haul truck prior to losing control, running up an embankment and overturning.  

The driver was found within minutes by another truck driver who immediately called for assistance. The section of haul road immediately around the accident site remains closed to allow for the investigation. Mine operations such as crushing and stacking on the heap leach pad resumed on Tuesday, drawing on available stockpiles of ore, and mining activities restarted Friday.  

McEwen conveyed sympathy to family, friends and colleagues for their sudden and tragic loss. Grief counselling and support is being offered to all employees and contractors at the mine, the company said. 

The post McEwen provides update on fatal accident at Gold Bar Mine in Nevada appeared first on MINING.com.

McEwen ponders sale of Mexican assets

McEwen Mining reported its first quarter results on April 9, along with the news that it is considering the sale of its Mexican assets. The net proceeds would be used to advance other development projects and retire a portion of the company’s debt.

The El Gallo heap leach complex in Sinaloa state produced 5,413 oz. of gold in Q1 2019. Gold is recovered from residual leaching of the heap. The processing plant underwent a small expansion during the quarter to boost efficiency and enable faster gold recovery.

McEwen is also studying the feasibility of complete redevelopment – the Fenix project – of El Gallo. The feasibility study examines the construction of a mill at El Gallo, an innovative method of in-pit tailings disposal, and feed sourcing from several deposits. Fenix carries a 12-year life of mine and annual production rate of 47,000 oz. of gold equivalent.

The company released 2019 guidance of 162,000 oz. of gold (up from 135,203 in 2018), 3.2 million oz. of silver (3.0 million). Using a ratio of 75:1 for gold to silver, that equates to 205,000 gold equivalent ounces (175,640).

(This article first appeared in the Canadian Mining Journal)

The post McEwen ponders sale of Mexican assets appeared first on MINING.com.

McEwen Mining halts payout over “much lower revenue” this quarter

McEwen Mining (MUX) was trading 3% lower on Thursday after the Toronto-based company announced suspension of a shareholder payout just a day before the record date.

Chairman Rob McEwen, who owns 23% of the company worth $586 million in New York, said it decided on the freeze because of operating issues at the Black Fox mine in Ontario and with the startup of its Nevada project Gold Bar:

“While viewed as temporary, these issues have resulted in much lower revenue this quarter than planned. As a result, we decided the prudent and responsible course of action was to conserve our cash and suspend the distribution.”

The distribution of ½ cent per share would have been paid on March 15 to shareholders of record on March 8.

McEwen's gold equivalent output climbed 15% from 152koz in 2017 to 175.6koz last year. 100%-owned Black Fox produced 49koz gold equivalent in 2018.

Commercial production at Gold Bar in Nevada was expected to commence in the final quarter of this year with average 63koz per year over a 7.4-year life.

The post McEwen Mining halts payout over "much lower revenue" this quarter appeared first on MINING.com.

Canada’s McEwen Mining 2018 production exceeds guidance

Canadian precious metals producer McEwen Mining (TSX, NYSE:MUX) on Tuesday posted 2018 production results that exceeded expectations, with gold equivalent output climbing 15% from 152,329 ounces in 2017 to 175,561 ounces last year.

Full-year production included 135,124 ounces of gold, up 23% when compared to the previous year, and 3.03 million ounces of silver, or 4.5% less than in 2017.

Output at the Toronto-based miner 100%-owned Black Fox mine in Canada totalled 48,848 gold equivalent ounces, in line with guidance of 48K gold equiv. ounces. Production at the company’s 100%-owned El Gallo project in Mexico, in turn, reached of 39,106 gold. equiv. ounces, topping guidance of about 32,000 ounces.

El Gallo mine, in Mexico, had one of the best performances, producing 39,106 gold-equivalent ounces, more than the 32,000 expected for 2018.

McEwen said it continued to evaluate the potential of constructing a new mine and mill at El Gallo. A feasibility study for the project, dubbed Fenix, is expected to be completed in the first half of 2019.

The miner also reported construction at Gold Bar, in Nevada, US, was near completion and on schedule for inaugural gold production in the current quarter.

In the last three years, Rob McEwen — one of the gold’s industry’s best-known bulls — has been aggressively working on expanding his company, which already has producing mines in Mexico, Argentina and most recently also in Ontario, Canada.

His goal is to take McEwen Mining to the Standard & Poor's 500 Index, which groups the 500 largest companies that list either in the NYSE or NASDAQ.

In 2017, the Canadian resources magnate McEwen told MINING.com he was giving himself two-to-three years to make that happen through a combination of organic growth in production as well as mergers and acquisitions.

Shortly after, it acquired junior exploration company Lexam VG, which gave McEwen access to mineral properties in advanced exploration stage in the heart of Timmins Gold Camp, northern Ontario. The same year it completed the acquisition of Black Fox mine and, by December 2017, it announced it was speeding up exploration activities at its newly acquired properties near Timmins, Ontario.

The post Canada’s McEwen Mining 2018 production exceeds guidance appeared first on MINING.com.

Q&A: Legendary executive Rob McEwen talks about gold mining in golden times

DERRICK PENNER More from Derrick Penner Published on: August 4, 2016 | Last Updated: Rob McEwen, self-described chief owner of McEwen Mining Inc. VANCOUVER SUN Legendary mining executive Rob McEwen knows a thing or two about gold-mining companies, having built Goldcorp Inc. into a powerhouse producer before stepping down as chairman and CEO in 2005. Now, he’s working on building up his next venture, McEwen Mining Inc., with mines in Mexico and Argentina just as gold has hit a rebound. The Vancouver Sun caught up with him at the recent Sprott Natural Resources Symposium to talk about his views on where the rally is going: Q: With your firm, you take the title chief owner. Why is it important for you to spell that out? A: I think it’s very important that people running companies have skin in the game, they have something at risk. They don’t just get a big salary … Continue reading