McEwen Secures Key Permit for El Gallo Mine; Mill Construction to Begin Mid-2026 - First Gold Pour Mid-2027

McEwen Inc. announced on December 16, 2025, that it has secured the Environmental Impact Assessment (EIA) extension from the Mexican government for its El Gallo Mine. This key permit enables the commencement of Phase 1 Mill Construction. The company is targeting mid-2026 for the start of construction and mid-2027 for the first gold pour. A ball mill for the project has already been purchased and is on-site.

Phase 1 of the El Gallo project is expected to produce approximately 20,000 Gold Equivalent Ounces (GEOs) annually from reprocessing historical leach pad material. The remaining capital costs for this phase are estimated at $25 million. Additionally, Phase 2 work has begun, focusing on production from in-situ silver deposits, which could potentially extend the mine life beyond the initial 10 years. The company plans to update the historical silver resource estimates (referenced from a 2012 NI 43-101 report) in 2026.

This news is a positive development for McEwen Inc. as it confirms the progress of the El Gallo Mine project. The granting of the EIA extension is a crucial step that removes a permitting hurdle and allows construction to proceed. The announced timelines for construction (mid-2026 start) and first gold pour (mid-2027) are consistent with the expectations outlined by management during the Q3 2025 earnings call on November 6, 2025. During that call, management indicated that El Gallo Phase 1 would require approximately $25 million in capital expenditure, to be funded through existing treasury, cash flows from operations, and a potential gold prepay, aligning with the capital cost noted in this release.

The initiation of Phase 2 work, targeting in-situ silver deposits, suggests a longer-term vision for El Gallo beyond the initial leach pad reprocessing. While the 20,000 GEOs annual production from Phase 1 is not a game-changing amount for a company of McEwen's size, it adds to the diversified production pipeline and contributes to the company's stated goal of increasing annual output. The confirmation of project execution and the adherence to previously communicated timelines are important for investor confidence, especially following operational challenges at Gold Bar and the Froome mine mentioned in Q3 2025. The impact is positive and contributes to the company's growth strategy but does not represent a significant deviation from prior expectations.

McEwen Inc. (NYSE: MUX, TSX: MUX) is a diversified gold and silver producer with a significant copper development asset. The company's strategy is to combine existing gold and silver production with the potential of a massive copper deposit, complemented by ongoing exploration.

Flagship Project: While McEwen Inc. has multiple producing gold and silver assets, its "massive copper option" is the Los Azules Copper Project in San Juan, Argentina, owned 46.4% by McEwen Copper Inc., a subsidiary. * Status: Advanced-stage development project. A Feasibility Study (FS) published in October 2025 confirmed robust project economics with an after-tax NPV of $2.9 billion (at 8%) and an IRR of 19.8%, with a payback period of 3.9 years. Initial capital is estimated at $3.17 billion. * Production Targets (PEA): Average annual copper cathode production of 204,800 tonnes (451 million lbs/yr) for the first 5 years, and 148,200 tonnes/yr (327 million lbs/yr) over a 21-year mine life. * Costs (PEA): C1 Cash Costs of $1.71/lb Cu and All-In Sustaining Costs (AISC) of $2.11/lb Cu. * ESG Focus: Designed for low environmental impact, utilizing leach + SX/EW process to produce 99.99% LME Grade A copper cathodes. It aims for 72% lower mine-to-metal carbon intensity than the industry average, 100% renewable power, and 74% less water use than conventional milling. Carbon neutrality is targeted by 2038. * Regulatory Milestones: Accepted into Argentina's Large Investment Incentive Regime (RIGI) in September 2025, providing 30 years of legal, fiscal, and customs stability, and tax incentives. Environmental Impact Statement (EIS) approved in December 2024. * Financing: IFC (International Finance Corporation) collaboration agreement secured in September 2025 to align with ESG standards and for potential future debt and equity financing. Preliminary finance proposals of over $1.1 billion for equipment and infrastructure have been received. * Exploration Potential: McEwen Copper holds approximately 32,000 hectares, with less than 10% explored. 8 significant targets identified, 4 for upcoming season, with strong belief in increasing resource size and converting into a major mining district. McEwen Inc. also holds a 1.25% NSR royalty on Los Azules.

Other Key Operating Assets: * Fox Complex (Ontario, Canada): Gold producer. Focus on extending mine life through exploration at Grey Fox and development of the Stock Mine, which is set to become the primary feed source by 2026. * Gold Bar Mine (Nevada, USA): 100% owned open-pit gold producer. Mine life extended to 2029 through acquisitions (Timberline Resources) and ongoing exploration (Lookout Mountain, Windfall). * San José Mine (49% owned, Argentina): Silver-gold mine. Attributable production of 50,000-60,000 GEOs for 2025.

Key Investments/Development Projects: * El Gallo Mine (Mexico): Current news item, moving to Phase 1 construction for reprocessing leach pads. * Canadian Gold Corp: Acquisition of 100% interest in Canadian Gold Corp. (Tartan Lake Gold Mine Project, Manitoba) expected in early 2026. A former high-grade producer with existing infrastructure. * Goliath Resources Limited: Strategic investment (approx. 3.7% ownership) in an exploration company in BC's Golden Triangle. * Paragon Geochemical: 31% strategic interest in a company utilizing PhotonAssay technology.