TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) shared an update from McEwen Mining on the Los Azules project in Argentina, where TNR holds a 0.4% net smelter returns royalty (NSR).
McEwen Mining has reported enhanced copper recovery rates from recent metallurgical tests, potentially bolstering project economics.
Phase 1 testing demonstrated an average copper recovery of 76%, a 3.2% increase over previous estimates, with reduced net acid consumption.
These improvements may significantly impact the project's financials, suggesting increased copper cathode production and enhanced after-tax net present value (NPV), McEwen said in a statement.
Additional testing phases are ongoing to support feasibility studies, with Phase 2 focusing on deposit-wide variability and scalability, and Phase 3 examining material from the initial five-year mine plan.
Kirill Klip, CEO of TNR Gold, expressed satisfaction with the progress of the Los Azules copper project, highlighting increased investments from strategic partners like Stellantis and Rio Tinto's Venture Nuton.
"TNR Gold's vision is aligned with the leaders of innovation among automakers like Stellantis, whose aim is decarbonizing mobility, and mining industry leaders such as Rob McEwen, whose vision is 'to build a mine for the future, based on regenerative principles that can achieve net zero carbon emissions by 2038',” Klip said in a statement.
"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 also welcomed the involvement of Rio Tinto in exploring innovative technologies to enhance the project's environmental performance.
Los Azules is ranked among the top 10 largest undeveloped copper deposits globally.
TNR Gold's business model involves working with industry leaders like McEwen Mining to potentially generate royalty cashflows and deliver value to shareholders without contributing capital to the project's development.