TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) executive chairman, Kirill Klip, shared promising updates on the Los Azules project in Argentina with Proactive in a recent interview.
TNR Gold holds a 0.4% net smelter returns royalty on this project, which has shown promising assay results from the recent 70,000-meter drilling season.
Highlights include intervals of 349 meters of 0.77% copper and 382.5 meters of 0.54% copper, indicating potential for resource expansion beyond current estimates.
These developments could suggest significant growth opportunities for TNR Gold Corp (TSX-V:TNR, OTC:TRRXF). Here’s what Klip had to say about the new developments in Argentina.
Proactive: There's a lot to talk about with you today. A release just came out about the completion of the drilling program. It's an exciting time to have that all completed. Can you give us an overview?
Kirill Klip: Yes, absolutely. Rob McEwen (CEO of McEwen Mining) is doing a wonderful job in Argentina. They have released very impressive exploration results. To give investors a clear picture, McEwen Copper reported drilling 349 meters of 0.77% copper, including an intersection of 232 meters with over 0.86% copper. These are very impressive results. TNR Gold holds a royalty on the entire Los Azules project, and now we can start talking about this deposit growing even larger.
With 70,000 meters completed in drilling, there's talk about the potential for further growth. Can you elaborate?
Exactly. The company is now working on a feasibility study, which McEwen Copper expects to release in the first quarter of next year. Already, we can discuss this giant copper, gold, and silver deposit in Argentina. In the preliminary economic assessment last year, Rob McEwen reported almost 11 billion pounds of copper in the indicated category and almost 28 billion pounds in the inferred category. It's already among the 10 largest copper projects and can grow even more with the upcoming feasibility study results.
The news release also mentioned another porphyry system nearby. Can you tell us more about that?
Yes, that's another very positive surprise for McEwen Mining, McEwen Copper, and TNR Gold shareholders. This new porphyry system could indicate another copper deposit within the Los Azules copper concession. We are building our goals as a green energy metals royalty and gold company, so our royalty potential can grow even more.
The more they uncover, the more it adds value to your company, especially with the royalty you hold, right?
Yes, exactly. Rob McEwen's own estimation values his royalty on Los Azules, based on comparisons with other significant projects like the SolGold deal in Ecuador, at over US$100 million. This valuation brings our portion of the royalty to over $30 million. The project economics easily justify these numbers, with potential pre-tax revenue of $6 million per year from our royalty holding. We're looking at a 27-year mine life producing over 180,000 tons of copper annually. As discussed, this deposit has the potential to grow even further, adding more value.
This sounds like a very promising development. Any final thoughts?
It's indeed a very exciting time with many positive developments. Rob McEwen's Green Copper project in Argentina is advancing well, and we expect to hear more good news in the near future.
Quotes have been edited for style and clarity