McEwen Mining Inc (NYSE: MUX) is stock gained by 61.76% to $1.62 on June 11, 2021. It previously touched a low of $1.08 on March 8, 2021. The stock is overvalued, and investors may offload the stock and enter at low levels for significant gains.
Solid exploration results
McEwen reported robust exploration results from its ongoing drilling operations at the Stock West project.
McEwen discovered the Stock West target initially in late 2019. It conducts drilling operations at this site as part of its $20 million two-year delineation and exploration program.
The drilling supports the PEA (Preliminary Economic Assessment) to assess its mining operations expansion potential.
It is also buoyant with encouraging results from its drilling program at its Gold Bar mine property close to Eureka, Nevada.
McEwen also expects meaningful implications for its ongoing exploration at its Argentina-based San Jose Property’s drill results.
An update on drilling in Ontario
Since last year August, McEwen drilled 57 holes at its Stock West target.
A significant number of these holes support LSM (litho-structural modeling). It also received encouraging assay results from its second exploration phase in 2020-21.
The hole S20-138a will provide 8.43 g/t Au over a width of 14.3 meters.
The hole S20-148 expects to offer 6.76 g/t Au over a width of 15.6 meters.
The company also expects to mine visible gold from several drilled holes.
McEwen integrates data from its current drilling program with resource and geographical models. Its EVP (Exploration), Stephen McGibbon, said Stock West’s recent drilling results are less than 500 meters. It shows an example of near-term growth opportunities.
Nevada gold bar drilling
McEwen would spend $5 million for drilling at its Gold Bar Mine in Nevada to delineate mineral resources. It performed RMR (resource model reconciliation) of actual mining depletion within 5% on CO (contained ounces) in Q1 2021.
McEwen produced 23,300 ounces of gold in Q1 2021. It holds a working capital of $35.3 million besides cash and liquid assets of $52.5 million in Q1 2021.