All over the world, production of precious metals continues to slow down. In the most recent update, the Black Fox gold and silver mine in Argentina will be shutting down its operations for a few days.
Major Changes for McEwen Mining Operations
The McEwen Mining group operates multiple mines all over the world. One of their biggest ventures is located in San Jose, Argentina. The local Black Fox mine is now suspending operations due to the coronavirus crisis. These measures will remain in effect until at least the end of March, albeit they may be extended if necessary.
This news is not entirely surprising, as a lot of gold mines around the world have announced similar measures. In light of those events, McEwen Mining is also suspending operations in Ontario and Nevada. Both of those locations will face a similar shut down until the end of the month, with more potential measures to follow.
Despite the shutdown, Black Fox will continue its development activities for the Froome deposit. That deposit sits 900 metres from the Black Fox open pit. In Nevada, minor activities involving production and development will continue as well. All of this will occur while keeping the social distancing guidelines in mind at all times.
Interestingly enough, McEwen Mining is capable of operating one additional mine without too many restrictions. Its El Gallo heap-leach operation in Mexico is still going. Contrary to other countries, Mexico has not issued any orders regarding non-essential businesses such as precious metal facilities.
Markets Remain On Course
On the weekly silver price chart below, there is a strong push from $12.5 to $14.4 in the span of five days. Some experts had expected to see a stronger bounce, as the second “leg down” from two weeks ago has yet to be fully recovered. Overcoming the “first leg down” from $18.6 to $16.66 will not occur anytime soon, despite production being ramped down globally.
Gold, on the other hand, keeps noting a strong push to overcome its recent dip. Following the recent $130 gain in value, one has to wonder how long this uptrend will continue. For now, the gold price is approaching another key Fib level near $1,638. Overcoming that level may be crucial to determine whether or not a new all-time high is within reach at some point in 2020.
Despite overall precious metal production slowing down, the markets are not slowing down. In fact, this may be the best time to obtain precious metals or maintain one’s portfolio accordingly. With these prices moving in the right direction again, the market momentum will only intensify accordingly.