TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) revealed new details about ongoing work at the Los Azules copper project in Argentina, where it holds a 0.4% NSR royalty.
According to a news release from the project’s operator, McEwen Mining Inc (NYSE:MUX), activity at the project is “moving ahead quickly.”
The exploration road is reopened, three work camp sites are established, an expanded local labor force and preparations are underway for starting a 10-drill, 53,000 metre drilling program, McEwen stated in the release.
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The firm is aiming to convert inferred mineral resources to the higher-confidence indicated category. The program will also focus on deeper exploration targets, where previous drilling ended in strong copper mineralization.
Drills are expected to turn towards the end of November and continue through the end of Q2 2022, McEwen stated.
Additionally, the firm said that construction of the new access road for providing the necessary year-round access to the project is advancing as planned with the company sourcing local contractors for construction.
McEwen is preparing to initiate work for a prefeasibility study that is expected to start in 4Q.
The developments are positive news for TNR Gold, a Vancouver-based royalty company.
"We are very pleased to see this very exciting and significant development for the Los Azules Copper Project and continued support by Rob McEwen of the newly created McEwen Copper," executive chair Kirill Klip said in a statement.
"It's very encouraging to see a start of a major 10-drill, 53,000-metre drilling program on this giant copper, gold and silver project. The personal commitment from Rob McEwen and his investment of US$40 million enables the rapid advancement for this major deposit to this new phase of development in an appropriate corporate structure which will allow financing and further stages of development of the Los Azules copper project.”
TNR Gold does not have to contribute any capital for the development of Los Azules, Klip highlighted.
“The essence of our business model is to have industry leaders like McEwen Mining as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders."
TNR provides significant exposure to gold, copper, silver and lithium through its holdings in Alaska and Argentina.
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