TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) updated its shareholders on positive new drill results released by McEwen Copper Inc at its Los Azules project in Argentina.
McEwen Copper, which is majority-owned by McEwen Mining Inc (TSX:MUX, NYSE:MUX), had undergone a recent drilling program involved 15 rigs and covered 39,900 meters in 138 holes at Los Azules.
Results included significant intercepts, such as a 398-meter section grading 0.75% copper, including a sub-interval of 124 meters grading 1.43% copper.
According to McEwen, the results demonstrate the continuity of copper grades in the core of the deposit, supported by core logging and new assay data.
An upcoming phase of drilling slated to begin in October aims to further increase geological certainty by delineating a measured mineral resource estimate for the first five years of operation.
For TNR Gold, which holds a 0.4% net smelter returns royalty (of which 0.04% of the 0.4% is held on behalf of a shareholder) on the Los Azules project, the results help demonstrate the potential of the copper project.
Los Azules was ranked in the top 10 largest undeveloped copper deposits in the world by Mining Intelligence in 2022.
"Strong team performance is accelerating the McEwen Copper Los Azules program in 2023,” TNR CEO Kirill Klip said in a statement.
Klip noted that a recent PEA on Los Azules highlighted the potential to create a robust leach project, while reducing its environmental footprint.
"The 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,” Klip said.
Klip also expressed satisfaction with the significant developments surrounding the copper project, which has attracted Stellantis as a strategic partner.
The collaboration, in addition to Rio Tinto’s Nuton investment of $55 million, will play a crucial role in the future development of the massive copper, gold, and silver project.
TNR Gold does not have to contribute any capital for the development of Los Azules.
The company’s 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 shareholders.
Contact Angela at angela@proactiveinvestors.com
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