TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) said Monday that McEwen Mining has made further progress on the development of the Los Azules copper project in Argentina, where TNR holds a 0.4% net smelter returns royalty.
In its quarterly earnings update, McEwen Mining reported that its subsidiary, McEwen Copper, invested $21.3 million in the first quarter of 2025 to advance a feasibility study for the Los Azules project, one of the world’s largest undeveloped copper deposits.
Total investment in the project has now exceeded $400 million, the company said.
Drilling efforts during the current campaign, which began in November 2024, have already covered 11,000 meters and focused on geotechnical, hydrological, and exploration work.
McEwen Copper expects to complete a definitive feasibility study by July 2025, following the approval of the project’s Environmental Impact Assessment in December 2024.
McEwen Copper has also submitted an application to Argentina’s Regime of Incentives for Investment (RIGI), which could offer significant tax and regulatory benefits if approved. These include a reduction in corporate tax rates, elimination of export duties, and long-term fiscal stability.
Robust copper project
TNR Gold CEO Kirill Klip welcomed the milestones achieved, noting the significance of the environmental permit and the potential benefits of RIGI approval.
"The 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 preliminary economic assessment (PEA) results highlight the potential to create a robust leach project while reducing the environmental footprint, and greater environmental and social stewardship sets the project apart from other potential mine developments.”
Strategic investors in McEwen Copper include automaker Stellantis and Rio Tinto’s technology venture Nuton. Stellantis has invested 72 billion Argentine pesos, while Nuton contributed an additional $100 million, according to TNR.
Klip emphasized that TNR does not need to contribute capital toward the development of Los Azules and stands to benefit from future royalty cash flows.
“Delivering ‘green copper’ to Argentina and the world will contribute to the clean energy transition and electrification of transportation and energy industries,” he said.
TNR said the updated resource estimate for Los Azules confirmed a high-grade zone and upgraded resource categories, with the feasibility study remaining on track for 2025.
Los Azules was ranked among the top 10 largest undeveloped copper deposits globally by Mining Intelligence in 2022.