TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) announced significant progress at the Los Azules copper, gold, and silver project in San Juan, Argentina, as detailed in a recent update from McEwen Mining Inc (TSX:MUX, NYSE:MUX).
TNR holds a 0.4% net smelter returns royalty on the Los Azules project, managed by McEwen Copper, a subsidiary of McEwen Mining.
McEwen Mining reported the completion of 70,000 meters of drilling, with notable highlights including 349 meters of 0.77% copper, including 232.0 meters of 0.86% copper.
Another hole returned 382.5 meters of 0.54% copper, including 74 meters of 0.86% copper.
The infill drilling campaign aimed to confirm the deposit size and grade, aligning with the 2023 preliminary economic assessment estimates. Initial interpretations suggest an increase in Measured and Indicated resources, with mineralization extensions confirmed north and south of the current pit shell.
Notably, one hole intercepted 202.0 meters of 0.20% copper, extending primary mineralization significantly north of previous drill sites.
Exploration has also identified a potential new porphyry system three kilometers east of Los Azules, featuring porphyry-style veining and copper oxide mineralization, with assay results pending.
McEwen reported that the ongoing drilling campaign supports the completion of a feasibility study by early 2025, focusing on converting early-stage mineralization to Measured and Indicated resources to ensure confidence during the initial production years.
The project has garnered significant investments, including ARS$72 billion from Stellantis and US$65 million from Rio Tinto's Venture Nuton, underscoring its strategic importance.
Kirill Klip, CEO of TNR Gold, emphasized the strategic alignment with industry leaders aiming for innovation and environmental sustainability.
"Strong team performance of McEwen Copper is advancing the Los Azules project towards a feasibility study,” Klip said in a statement.
“The Los Azules Project PEA results highlight the potential to create a very robust leach project while reducing the environmental footprint, and greater environmental and social stewardship sets the project apart from other potential mine developments.
“It's also very encouraging to see an updated independent mineral resource estimate that has increased the resource significantly. These assay results not only validate previous drilling results but also confirm the continuity of, and extend the mineralization.”
The Los Azules project, ranked among the top ten largest undeveloped copper deposits globally, continues to demonstrate robust potential.
TNR Gold's royalty model ensures value generation for shareholders without capital contributions to project development, leveraging industry expertise for potential royalty cash flows.