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 Probable Mineral Reserves at Gold Bar total 17.2 Mt at 0.84 g/t gold containing 423,100 ounces (effective December 1, 2020, no cut-off grades stated).
Most of the material mined during 2019 came from the Cabin Creek pits and gold production for the year totaled 30,705 ounces.
McEwen closed a public offering for gross proceeds of approximately US$50 million. Part of the proceeds will be used to advance current mining projects and exploration prospects.