TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) CEO Kirill Klip told shareholders that the royalty firm is pleased to see significant developments towards the advancement of the Los Azules copper project, where TNR holds a 0.4% net smelter returns royalty.
In a statement, Klip said that advancements towards feasibility have brought automaker Stellantis NV (NYSE:STLA, EPA:STLA) as a strategic partner in the future development of the “giant” copper, gold and silver project.
“After investing US $25 million last year, an additional US $30 million stake in McEwen Copper has been invested by Rio Tinto's Venture Nuton," Klip said.
"TNR Gold's vision is aligned with the leaders of innovation among automakers like Stellantis, with the aim of decarbonizing mobility, and our mining industry leaders like Rob McEwen's vision 'to build a mine for the future, based on regenerative principles that can achieve net zero carbon emissions by 2038.”
Earlier this week, Los Azules’ operator McEwen Mining revealed its 4Q financial and operational highlights, which include welcoming two strategic investors: Nuton, a Rio Tinto Venture and part of the world's second largest mining company, and Stellantis, the world's 4th largest automobile manufacturer and mobility provider.
On the exploration side, McEwen spent a total of $61.2 million in 2022 at Los Azules to advance drilling, engineering and project feasibility work. A preliminary economic assessment is expected to be released during the second quarter of 2023.
As well, in 2022, a second access road was completed into Los Azules that McEwen said would accelerate development of the project and give it year-round access to the property.
“Currently, we are developing a scenario for Los Azules as an open pit mine that initially processes leachable copper content in a heap leach, with a solvent extraction and electrowinning facility to produce LME Grade A copper cathodes,” McEwen Mining said in a release.
“This scenario would greatly reduce capital expenditures as compared to 2017's PEA using concentrator technology, in addition it would be more environmentally sensitive due to its much lower water consumption and carbon footprint. The project design makes use of renewable energy, reducing overall complexity and improves its financial attractiveness.”
Metallurgical studies are ongoing, including with Nuton's technology for heap leaching of copper ore. Initial results show promising recoveries and reduced acid consumption, McEwen added.
Encouraged by developments
Meanwhile, Klip and his team at TNR Gold are encouraged by the positive developments at their royalty project.
"It's very encouraging to see the opportunity to expand the deposit, and the involvement of Rio Tinto, which may accelerate realizing the enormous potential of the Los Azules project with Rio Tinto's innovative technology,” Klip said. “Together with Nuton, McEwen Copper is exploring new technologies that save energy, water, time and capital, advancing Los Azules towards the goal of the leading environmental performance.”
Los Azules was ranked in the top 10 largest undeveloped copper deposits in the world by Mining Intelligence in 2022.
"TNR Gold does not have to contribute any capital for the development of the Los Azules project,” Klip noted.
“The essence of our business model is to have industry leaders like McEwen Mining as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders.”
TNR’s business model provides a unique entry point in the creation of supply chains for critical materials like energy metals that are powering the energy revolution, which Klip terms the energy “rEVolution.”
"Green energy rEVolution relies on the supply of critical metals like copper; delivering 'green copper' to Argentina and the world will contribute to the clean energy transition and electrification of transportation and energy industries.”
Contact Angela at angela@proactiveinvestors.com
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