The Gold Bar mine started commercial production in May 2019 but has been beset by plant performance issues and the realisation that the geological model was wrong, occasioning a significant writedown of its value.

The company said the updated probable reserve contained 302,000 ounces of recoverable ounces for a potential mine life of five-to-seven years compared with an initial reserve estimate of 430,000oz when the company started mining in 2019. McEwen has produced 58,600oz from Gold bar to date.

The company intends to publish a feasibility study in 45 days on Gold Bar.

Shares in McEwen Mining are trading at C$1.34, valuing the company at $565 million.