The Gold Bar property is located at the southeastern end of the Battle Mountain-Eureka-Cortez gold trend in Eureka County, Nevada. Within the property there are three defined gold deposits; Gold Pick, Gold Ridge, and Cabin Creek. The mineralization is similar for all three deposits and lies within 150 metres of surface, hosted in carbonate-rich sedimentary rocks of the Devonian McColley Canyon Formation. Gold Ridge and Cabin Creek are ancillary deposits and together comprise approximately 22% of the mineral resource. Sandstorm’s royalty covers the bulk of the mineral resource at Cabin Creek.
An updated Feasibility Study released in 2018 supports four open-pits mined in phases with first planned ore production coming from Cabin Creek. Gold Bar is designed as a 7,300 tpd operation with mined ore passing through a single stage of crushing and onto a heap-leach pad followed by an ADR recovery process. Gold recovery is estimated at 82% and average annual gold production is approximately 60,000 ounces over a 7.4-year mine life.
Current Proven and Probable Mineral Reserves at Gold Bar total 16.5 Mt at 1.0 g/t gold containing 524,000 ounces (0.20 – 0.23 g/t cut-off grade).
McEwen closed a public offering for gross proceeds of approximately US$50,000,000. Part of the proceeds will be used for advancing current mining projects and exploration prospects.
With a 2019 exploration budget of $5 million, work has focused on near surface oxide and deep sulfide targets testing the potential of the property for Carlin-type gold deposits.
Since achieving commercial production during the second quarter, Gold Bar has reached several operational benchmarks. Gold Bar produced 11,029 gold ounces during the third quarter 2019.