McEwen Mining Inc. (NYSE:MUX) Q4 2022 Earnings Call Transcript

Mike Kozak: No, that makes perfect sense. Thanks for that color. Maybe just one follow-up. And you touched on this briefly. I was going to ask on it anyway. But you mentioned that now you’ve upgraded that exploration road, so that you can get 18-wheeler trucks in there. Can I then assume that if you wanted to you would now be able to winterize the camp? I’m not saying if you will or if you won’t, but is that possible now to enable drilling year-round?

Michael Meding: Yes. So, as we had highlighted before, and Rob had mentioned in prior press release, one of the things that is critical for us is access to site. And access to site we have through the exploration road and through the southern road. And on top of that, we upgraded the exploration road, as you said, to bring tractor trailers to site. Now this means that a potential construction of a winter camp, a true four-season camp with fixed installations, is now possible much more efficiently. So, should we decide to go forward and construct this camp, then we could think about winter drilling this season, but we’re currently evaluating that and look for what is the most cost effective and efficient solution and also what is required from a study program point of view to be able to complete the feasibility study by end of 2024.

Mike Kozak: Okay. Very good. Very helpful. Thanks. That’s all from me.

Rob McEwen: Thanks, Mike.

Operator: Your next question comes from the line of John Tumazos from John Tumazos Very Independent Research. Your line is open.

John Tumazos: Thank you very much, and congratulations on all the progress. In your press release, you mentioned 42 meters of 2.78% copper and hole AZ23191 on Los Azules. Could you tell us how deep that was? And whether it was oxide leach mill open pit or underground ores?

Rob McEwen: Mike, care to cover that question?

Michael Meding: Sure. The section is in our press release where you can see where the copper mineralization is. So, best is to open that up. The 174, the exploration one, is mostly primary, and the 3191 is mostly secondary, and then goes into primary.

John Tumazos: Is primary mill ore or leach ore?

Michael Meding: Primary would be either mill ore or using a technology such as Nuton’s heap leaching technology or technology.

John Tumazos: So, it’s not an old fashioned leech, but it might be a tomorrow heap leech?

Michael Meding: No.

Rob McEwen: Yes. Today, it’s the mill. It would be a mill today. But thinking that there is advances taking place in recovering metals, that — we’re hoping we’ll see a heap leach alternative.

John Tumazos: Thank you for clarifying and helping me. Could you just repeat the 2023 cost guidance that was omitted from the release? I didn’t get it that quickly.

Stefan Spears: Hi, John. It’s Stefan Spears on the line. Yes, so in December, we guided on a consolidated basis, so that’s 100% owned operations cash costs of $1,200 and all-in sustaining of $1,500; Gold Bar, we guided cash cost of $1,400, all-in sustaining of $1,680; Fox was $1,000 cash cost and $1,320 all-in sustaining; and San Jose at $1,250 cash costs and $1,550 all-in sustaining.