TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) announced that McEwen Inc has released a positive Feasibility Study for the Los Azules copper, gold, and silver project in San Juan, Argentina.
TNR holds a 0.4% net smelter returns royalty (NSR royalty) on the project, including 0.04% on behalf of a shareholder.
The study confirms Los Azules as a long-life, low-cost producer of high-purity copper cathodes, the company reported on Friday.
After-tax net present value at an 8% discount rate is US$2.9 billion, with an internal rate of return of 19.8% and a payback period of 3.9 years.
Initial capital is estimated at US$3.17 billion, with average copper cathode production of 204,800 tonnes per year in the first five years and 148,200 tonnes per year over a 21-year mine life.
Costs are projected at US$1.71 per pound (C1) and US$2.11 per pound (AISC).
The project is designed to produce 99.99% copper cathodes on site with no smelter, using 100% renewable power, 74% less water than conventional milling, and 72% lower mine-to-metal carbon intensity than the industry average.
The Environmental Impact Statement was approved in December 2024, and the project was accepted into Argentina’s Large Investment Incentive Regime in September 2025, providing long-term regulatory and financial stability.
Ownership includes McEwen Inc (46.4%), Stellantis (18.3%), Nuton (17.2%), Rob McEwen (12.7%), Victor Smorgon Group (3%), and others (2.4%).
Exploration of nearby porphyry targets is planned for Q4 2025, and construction is targeted for 2026, with SX/EW startup in 2029 and first copper expected in 2030.
TNR Gold said it continues to benefit from its royalty as the project advances toward potential production.
"We are pleased that McEwen Copper has reached this major milestone releasing the feasibility study after it secured an environmental permit for the construction and operation of the Los Azules copper project,” TNR Gold CEO Kirill Klip said in a statement.
“Feasibility study confirms that Los Azules copper is economically robust project with leading ESG performance. The collaboration between McEwen Copper and IFC, and admission to the Argentina Regime of Incentives for Investment (RIGI) could move the Los Azules copper project development closer to a construction decision.”
He noted that Los Azules was ranked in the top 10 largest undeveloped copper deposits in the world by Mining Intelligence (2022).
“TNR Gold does not have to contribute any capital for the development of the Los Azules Project,” Klip said.
“The essence of our business model is to have industry leaders like McEwen as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders.”
Klip added that the company has repaid its investment loan in full and believes the recent market prices of its shares do not reflect the underlying value of TNR’s assets.
“Our transformation from a project generation junior mining company into a cashflow-generating royalty company may bring the necessary catalyst for improved market valuation of our assets,” he said.