TNR Gold Corp (CVE:TNR) (OTCMKTS:TRRXF) (FRA:TNW), which holds a 1.8% net smelter return royalty on the Mariana Lithium Brine Project in Argentina, says International Lithium Corp (ILC) has released an apparent upbeat resource estimate for the project.
According to TNR, ILC has received a 300-page report from its strategic partner Ganfeng Lithium Co Ltd (GFL) that contains an updated mineral resource estimate for the project.
TNR said the report states:
- 6,854,000 tonnes of lithium carbonate (Li2CO3) equivalent (LCE) in the Measured and Indicated Resource categories, an increase of 55% over the 2019 estimate of 4,410,000 tonnes.
- An additional 1,267,000 tonnes of Li2CO3 in the Inferred Resource category.
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TNR said these amounts are also now stated as 7,863,000 tonnes of lithium chloride equivalent in the Measured and Indicated Resource categories, and an additional 1,454,000 tonnes of lithium chloride equivalent in the Inferred Resource category.
ILC cautioned that the report was not prepared for public NI43-101 reporting standards, and therefore the company is unable to disclose it fully.
However, ILC said Ganfeng Lithium and the Salta regional government in Argentina have both issued public news releases citing the report, thus compelling ILC to release some key details “in the interests of investor transparency and to avoid selective disclosure.”
TNR said that Ganfeng reported that an Environmental Impact Report approval has been received from the Salta regional government for the construction of a plant with a designed annualized capacity of 20,000 tonnes per annum of lithium chloride.
And the Salta regional government disclosed in its news release following its discussions with Ganfeng that the likely project expenditure from now to bring the Mariana Project to full production is around US$600 million.
"I am very pleased to see this 55% increase in measured and indicated resources after the previously announced in 2020 increase of more than 250% in measured and indicated resources from the 2017 resource estimate at Mariana Lithium Project,” said Kirill Klip, executive chairman of TNR, in a statement.
"We are very pleased to see that this new plan represents a 100% increase of previously planned lithium annual production rate presented in the Mariana Project preliminary economic assessment ("PEA"), announced in our news release of January 28, 2019. It was the first PEA on the project that provided a potential value for the total NSR Royalty from Mariana's life of mine cashflow, which has now been very significantly increased."
Klip commented further: "We welcome the news from the Salta regional government disclosed in a news release following its discussions with Ganfeng that the likely project expenditure from now to bring the Mariana Project to full production is around US$600 million."
He added: "TNR Gold does not have to contribute any capital for the development of Mariana and our NSR Royalty does not depend on the size of ILC's potentially diluted ownership in the Mariana Project. The 1.8% Mariana NSR Royalty is a very important part of TNR Gold's portfolio. The essence of our business model is to have industry leaders like Ganfeng Lithium as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders."
TNR said it does not have to contribute any capital for the development of Mariana and its NSR does not depend on the size of ILC's potentially diluted ownership in the Mariana Project.
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