McEwen Mining Inc. (NYSE:MUX) Q2 2023 Earnings Call Transcript

Page 3 of 3

William Shaver: Yes. So thanks for the question. The mill tonnage in May and June has increased up to about 1,320 tonnes a day. But meanwhile, the stockpile is still very close to 100,000 tonnes. So although we’re increasing the tonnes through the mill, the mine is operating very well. The whole operation is kind of in a sweet spot in terms of the mining operation. So we’re keeping up with the milling process even though we’ve increased it by something more than 15% over last year. So we would like to get the stockpile lower to transfer it over into actual cash. But we also want to keep the mine running at that sweet spot so that we get the optimum mining cost. So yes, I would say we’re doing better on the milling where the mine is fine, keeping up and we’re continuing to try to improve the throughput through the mill.

Unidentified Analyst: Okay. Thank you on that. As far as Nevada goes, I know there was some exploration around the Atlas pit that was done last year and seemed to have some promising results. Have those – has that been followed up on? And I guess, is that a target for later this year? Or is that something – or if you focus elsewhere you’re drilling near term?

William Shaver: We’re actually focusing on other portions of our property. The drill holes at the Atlas pit I guess, we found a small amount of ore in one pit wall that at some point, we may go and take, but we’re talking about something in the order of 10,000. It hasn’t turned out as positive as we hope.

Unidentified Analyst: Okay. And thank you for the update. And I guess my last question would be – I was a little late to the call this morning, but the – if you could – maybe you’ve gone over this, so this question was asked earlier. But the expansion of the ramp, I know you – are you still planning to put out a study for that? Or I guess, a larger study for that? Or is that something that is going to be moving forward in the balance of this year.

William Shaver: So yes, and we’re talking now about the ramp at the stock mine?

Unidentified Analyst: Yes.

William Shaver: Yes, that ramp will be moving ahead. We’re doing the final bit of delineation drilling with regard to that part of the project. And we are putting together, I guess, what we’re calling an economic analysis, which we’ll have early in – late in the third quarter or early in the fourth quarter. But we don’t plan to do a revised PEA or pre-feasibility study on that. We’re going to basically produce an economic analysis to make the final decision to go ahead. But at this point, we’re basically working at full speed to move that project ahead.

Unidentified Analyst: Okay. Thanks so much for all your time this morning.

Rob McEwen: Thanks Bill.

Operator: There are no further questions at this time. Mr. Rob McEwen, I will turn the call back over to you.

Rob McEwen: Thank you, operator. Assuming the metal prices stay where they are and we’re delivering on guidance, we don’t anticipate having to come to the capital markets to fund any of our development projects. We’re in a good position from our liquidity, and we’re quite excited about the projects we’re advancing. We – there will be exploration news coming out throughout this latter part of the summer and into the fall, both from Los Azules and coming from the Fox Complex. So quite excited by that. Thank you very much, and have a great day.

Operator: This concludes today’s conference call. You may now disconnect.

Follow Mcewen Mining Inc. (NYSE:MUX)

Page 3 of 3