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Mexico Approves EIA Extension for McEwen’s El Gallo Mine, Paving Way for Mill Construction
McEwen Mining has announced that the Mexican government granted an extension of the Environmental Impact Assessment (Manifestación de Impacto Ambiental) for its El Gallo mine complex in Sinaloa, Mexico.
Located along the foothills of the Sierra Madre Occidental, the El Gallo complex spans more than 1,700 square kilometers of mineral claims.
The approval represents a key milestone, allowing McEwen to proceed with phase one mill construction. The company plans to begin building the mill in mid-2026, with the first gold pour expected by mid-2027.
Phase one of the project is designed to deliver roughly 20,000 gold equivalent ounces per year once commercial production is achieved. Production will come from reprocessing material taken from the historical leach pad, which significantly reduces the need for major development or exploration spending. This approach is expected to boost the company’s free cash flow.
McEwen has already acquired a ball mill, which is now on-site at the El Gallo mine. An estimated $25 million (C$34.43 million) in additional capital is required to complete construction. Meanwhile, the company has started 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 deposit and nearby satellite deposits in the district, historical silver resources are reported as 53.1 million ounces (moz) in the measured and indicated categories, plus 31 moz in the inferred category for areas that have not yet been mined. These resources were estimated using a silver price of $28.50 per ounce and a gold price ranging from $950 to $1,500 per ounce.
McEwen noted that this estimate is historical and 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 of Canadian Gold’s issued and outstanding securities, which would result in Canadian Gold becoming a wholly owned subsidiary of McEwen upon completion of the transaction.
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