TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) told shareholders it was encouraged to see the potential to expand the Los Azules copper deposit after project operator McEwen Mining released further positive drill results.
TNR holds a 0.4% net smelter returns royalty (NSR) on Los Azules, of which 0.04% of the 0.4% NSR Royalty is held on behalf of a shareholder.
Significant intercepts from the latest round of results released by McEwen include 231 metres (m) of 0.97% copper (Cu), including 188 m of 1.09% Cu, and 550 m of 0.50% Cu, including 216 m of 0.72% Cu.
McEwen has drilled 32,758 m in 125 holes, more than the 25,000 meters initially planned. The firm said in a release that it will keep drilling until the end of the field season in May and pick up again in October.
Los Azules was ranked in the top 10 largest undeveloped copper deposits in the world by Mining Intelligence. Automaker Stellantis is a strategic partner in the copper, gold and silver project, and Rio Tinto's venture Nuton has put forth an additional investment of US$30 million in McEwen Copper after an initial investment of US$25 million in 2022.
For TNR Gold CEO Kirill Klip, the latest results were very encouraging and highlighted the project’s potential.
“Strong team performance is accelerating the McEwen Copper Los Azules program in 2023,” Klip said in a statement.
“These new exploration results highlight the potential to create additional value for the Los Azules project, and continuity of mineralization in the infill program is de-risking the project.
“It's very encouraging to see the opportunity to expand the deposit,” Klip added.
“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. The involvement of Rio Tinto with its innovative technology, may also accelerate realizing the enormous potential of the Los Azules project.”
TNR Gold does not have to contribute any capital for the development of Los Azules. As a royalty company, its business model involves having industry leaders like McEwen Mining as operators on the projects that will potentially generate cashflows to contribute significant value for shareholders.
Contact Angela at angela@proactiveinvestors.com
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