McEwen (NYSE, TSX: MUX) has confirmed its newly acquired Tartan mine project in Flin Flon, Manitoba, could add at least 30,000 oz. of annual gold output once it restarts production following a resource update.
At a cut-off grade of 1.35 grams per tonne (g/t) gold, the resource totalled 2.62 million indicated tonnes grading 3.67 g/t for 308,900 contained oz. and 2.83 million inferred tonnes grading 3.32 g/t gold for 302,700 contained oz., the Canadian miner outlined in an update on Monday.
The size of the resource, McEwen noted, can be expanded through additional drilling along the western and eastern flanks of the project’s main zone, vertically at the main and south zones, and at the adjacent Tartan West property.
The company said it has budgeted C$6 million this year to test these near-mine/regional drill targets and expand the resource.
Shares of McEwen rose 1.8% by midday Monday, in line with a broader market recovery. The Toronto-based miner has a market capitalization of $1.1 billion.
Restarting former mine
The company regards the Tartan project — acquired the project through its takeover of Canadian Gold Corp. in October — as a contributor to its goal of doubling gold production to 250,000-300,000 gold ounces by 2030.
The Tartan project covers 26.7 sq. km and 20 mineral claims along the Flin Flon Greenstone Belt. Exploration on the property began as early as the 1920s, but mine construction did not occur until the 1980s. During a brief period of operation between 1987-1989, it produced approximately 47,000 oz. of gold.
McEwen acquired the project with a view to restarting the historic mine and expanding its Canadian production pipeline. The site currently has a 450-tonne-per-day processing plant, related surface infrastructure, and a decline providing access to developed mining blocks within the main and south zone.
The company contemplates that a doubled throughput through future permit modifications could result in annual production to reach 45,000-55,000 oz. per year. Metallurgical test work is currently underway to optimize process plant design, along with underground mine planning.
At the time of acquisition, McEwen noted that the Tartan mine has many similarities (i.e. ramp access, mining method and proposed process plant design) to its Fox Complex in Ontario.
In 2026, the company is projected to produce 114,000-126,000 oz. across its three mines in Canada (Fox Complex), US (Gold Bar) and Argentina (San José). Next year, it is expected to add a fourth operation at El Gallo in Mexico.
