TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) announced an update from McEwen Mining regarding the Los Azules copper, gold, and silver project in San Juan, Argentina.
TNR Gold holds a 0.4% net smelter returns royalty (NSR) on the project, which is operated by McEwen Copper, a subsidiary of McEwen Mining.
According to the release from McEwen Mining, recent infill drilling results at Los Azules have reinforced the project's resource potential.
Highlights include a 217-meter intercept grading 1.11% copper, with a higher-grade section of 1.32% copper over 100 meters. Another notable drill hole returned 276 meters of 0.86% copper, including 160 meters at 0.96% copper.
McEwen Mining reported that the infill drilling during the 2023-24 season, which totaled over 70,000 meters, has successfully upgraded resource categories, validated the geological model, and confirmed the high-grade copper zone. The resource drilling is now complete, with the feasibility study on track for delivery in early 2025.
The update also highlighted Argentina's new legislation, which encourages large-scale investments in the mining sector, and a recent US$4.4 billion transaction by BHP and Lundin Mining to acquire two copper deposits in the same province as Los Azules.
Kirill Klip, CEO of TNR Gold, expressed optimism about the project's progress, noting the alignment with global efforts to decarbonize and the potential of Los Azules to contribute to the clean energy transition.
"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 in a statement.
"The new president of Argentina introduced important government policies aimed at supporting business and unlocking the country's economic potential. Mining is being recognized as an integral part of this economic development plan, providing jobs and enriching local communities.”
TNR Gold does not have to contribute any capital for the development of Los Azules, positioning the company to benefit from future royalty cashflows.