McEwen Mining Inc. (NASDAQ: MUX) received the Mexican government’s approval of an extension to the Environmental Impact Assessment for its historic El Gallo gold and silver operation. The permit removes a key regulatory barrier, allowing the company to move forward with Phase 1 mill construction and to target its first gold pour in mid‑2027.
The company has already purchased a ball mill and positioned it onsite, and it plans to begin Phase 1 construction in mid‑2026. Once the mill is operational, the project is expected to produce roughly 20,000 gold‑equivalent ounces (GEOs) per year. McEwen estimates that $25 million of capital remains to complete the Phase 1 build, a relatively modest investment compared with the original greenfield cost profile.
Work has also begun on Phase 2, which will tap the project’s in‑situ silver deposits. Historical silver resources at El Gallo total 53.1 million ounces in Measured and Indicated categories and 31 million ounces in the Inferred category, with updated estimates slated for 2026. The silver component could extend mine life and add a second revenue stream once the Phase 2 infrastructure is in place.
From a business perspective, the permit de‑risks the project’s timeline and reduces capital uncertainty, accelerating the company’s path to cash flow. The El Gallo reactivation is a core element of McEwen’s strategy to double production by 2030, and the Phase 1 output is projected to contribute about 20 % of that target. Lower upfront costs and the use of existing infrastructure also improve the project’s cost profile and margin potential.
Investors viewed the permit as a significant milestone. The approval removes a major regulatory hurdle, clarifies the construction schedule, and reduces the capital deployment window, all of which are viewed positively in the context of McEwen’s growth strategy.
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