McEwen has revealed that the Mexican Government has granted an extension of the environmental impact assessment (EIA) (Manifestación de Impacto Ambiental) for the El Gallo mine.
The El Gallo complex is situated in Sinaloa, Mexico, along the foothills of the Sierra Madre Occidental, and encompasses more than 1,700km² of mineral claims.
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This approval is a key milestone that enables McEwen to commence phase one mill construction.
The company plans to commence construction of the mill in mid-2026 and expects first gold pour by mid-2027.
Phase one of the project targets production of around 20,000 gold equivalent ounces per year once commercial production is reached.
Production will be sourced by reprocessing material from the historical leach pad, minimising the need for major development or exploration costs.
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By GlobalDataThis strategy is expected to improve the company’s free cash flow.
McEwen has acquired the ball mill, which is now on-site at the El Gallo mine.
The remaining capital required to complete construction is estimated at $25m (C$34.43m).
The company has also begun work on phase two, which will target production from the project’s in-situ silver deposits.
This second phase has the potential to extend the life of El Gallo well beyond the initial ten years envisioned under phase one.
Across the El Gallo and nearby district satellite deposits, historical silver resources are reported at 53.1 million ounces (moz) in the measured and indicated categories, and 31moz in the inferred category for areas not yet mined.
The resources were estimated using a silver price of $28.50/oz and a gold price range of between $950/oz and $1,500/oz.
McEwen stated that this estimate is historical in nature and that it plans to update El Gallo’s resource estimates in 2026 based on currently defined resource areas.
In July 2025, McEwen signed a binding letter of intent with Canadian Gold to acquire all its issued and outstanding securities, which would make the latter a wholly owned subsidiary of McEwen upon completion.
