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.
McEwen Mining announced an updated Feasibility Study in March 2022 and key results included average annual gold production anticipated to be 44,150 oz at a cash operating cost of $1,197/oz. Updated Proven and Probable Reserves are 15.5 million tons at a gold grade of 0.82 g/tn containing 260,200 oz of gold (based on a variable cut-off grade). Production is planned over seven years. In addition, an updated exclusive Indicated Mineral Resource Estimate consists of 82,400 oz of gold contained in 14.8 million tons with an average grade of 0.056 oz/tn (1.9 g/tn) and 44,400 oz of Inferred Mineral Resources contained in 19.5 million tons with an average grade of 0.02 oz/tn (0.79 g/tn). Resources are based on variable cut-off grades.