Gold Bar

The Gold Bar property is located on both patented lands and public lands managed by the Bureau of Land Management (BLM) Battle Mountain Field Office in Nevada. McEwen Mining has been actively developing the Gold Bar mine since 2013.

In November 2017, the BLM published a Record of Decision for the Final Environmental Impact Statement, completing the National Environmental Protection Act (NEPA) process. Gold Bar became the first new gold mine in Nevada to receive permit approval in several years.

Following permit approval, McEwen Mining initiated a comprehensive exploration program aimed at extending the mine's life. This involved expanding the mineral inventory around the planned open pits and exploring new areas on the property.

In February 2018, a feasibility study was completed, with changes to the implementation strategy for the Gold Bar mine, such as the addition of a crushing, conveying and agglomeration plant and changes in heap leach pad construction. These changes were made to reduce project risk and maintain high capital efficiency.

Gold Bar South, which was acquired in 2016, comprises 109 mining claims located approximately 3.5 miles (5.5 kilometers) southeast of the Gold Bar mine. It hosts a near-surface oxide gold deposit, complementing the primary operations.

The Gold Bar mine reached commercial production in May, 2019. During its first year, Gold Bar produced 30,700 gold ounces at costs per ounce of $1,101 for cash costs and $1,282 for all-in sustaining costs.

In 2023, despite initial challenges caused by weather conditions leading to flooding and production slowdowns, Gold Bar significantly ramped up production towards the end of the year. During Q4, new daily, monthly, and quarterly production records were achieved due to improved mining productivity, the addition of crushing crews, and the timely, on-budget expansion of the heap leach pad. As a result, Gold Bar produced 43,700 ounces of gold in 2023, within its annual production guidance range. Costs per gold ounce sold improved to $1,565 for cash costs and $1,891 for all-in sustaining costs.

For 2024, Gold Bar’s production guidance is between 40,000 and 43,000 ounces of gold, with projected costs per ounce of $1,450 to $1,550 for cash costs and $1,650 to $1,750 for all-in sustaining costs. Production is expected to be higher in the first half of the year due to a scheduled waste-stripping phase in the Pick pit, in preparation for the 2025 mining program. The mining sequence is being continuously optimized.

In the first half of 2024, Gold Bar produced 24,013 gold ounces and is on track to potentially exceed its annual production guidance. Higher-grade output from the Pick pit contributed to the increased production. Benefiting from lower waste movement, costs per ounce during the period were $1,313 for cash costs, and $1,400 for all-in sustaining costs. The mine generated $55 million in revenue, capitalizing on higher gold prices.

As of December 31, 2023, the mineral estimates at Gold Bar include 25,000 ounces of Inferred gold, 81,000 ounces in Measured and Indicated, and 164 thousand ounces in Proven and Probable categories. Exploration activities continue in 2024, with a $7 million budget focused on near-mine resources. A better understanding of the geological characteristics at Gold Bar has led to new drilling targets at the Pick and Cabin pits, building on results from the 2023 drilling campaign.

In April 2024, McEwen Mining entered into a definitive agreement to acquire Timberline Resources Corporation through a merger, and the acquisition was completed in August 2024. This acquisition presents McEwen Mining with the opportunity to:

• Strengthen its portfolio of projects in Nevada, a very favorable mining jurisdiction;


• Acquire gold resources at a low per-ounce cost, with the potential to contribute to McEwen Mining’s gold production growth within 2 to 5 years depending on the mining scenario;


• Expand its exploration targets, including deep sulfide gold and polymetallic base metal targets;


• Realize synergies between Timberline’s projects and the Gold Bar mine, including shared technical personnel, procurement functions, mine infrastructure, and recruitment in the Eureka region.