News Summary
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.
Material Impact
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.
Catalysts
* Los Azules Technical Report: The full NI 43-101 technical report for the Los Azules Feasibility Study is scheduled for publication later this month (December 2025), which will provide more detailed insights into the project’s economics and execution plan.
* Canadian Gold Corp Acquisition: The shareholder vote for the Canadian Gold Corp acquisition is in December 2025, with court ratification expected in early January 2026. Following this, an updated resource estimate (end of February 2026) and a Preliminary Economic Assessment (PEA) (Q4 2026) for the Tartan Lake project are anticipated.
* Resource Updates: Expect an updated resource estimate for the Gold Bar Mine Complex’s Lookout Mountain project with year-end financials (end of February 2026), and a Windfall resource estimate later in 2026. An updated resource estimate for the Froome Mine (Fox Complex) is also planned for the end of February 2026.
* Grey Fox PFS: The Pre-Feasibility Study (PFS) for the Grey Fox project (Fox Complex) is expected to be published in Q1 2026.
* Stock Mine Production: Commercial production at the Stock Mine (Fox Complex) is targeted to commence by mid-2026, which is crucial as Froome Mine winds down.
* McEwen Copper IPO: Management is looking to take McEwen Copper public sometime in 2026, following the positive Feasibility Study and RIGI acceptance.
* Goliath Resources Assays: Additional assay results from Goliath Resources’ 2025 drill program at Surebet are pending and could provide further insights into that investment.
* El Gallo Construction: Watch for the commencement of Phase 1 mill construction at El Gallo in mid-2026 and progress towards the mid-2027 first gold pour.
Materiality Conclusion
The news regarding the El Gallo Mine permit is a routine but positive development. It confirms the company’s ability to advance a known development project according to its stated timelines and budget, contributing to its future production goals. It mitigates permitting risk for this specific project but does not fundamentally alter the company’s financial outlook or strategic positioning beyond what was already anticipated.
