TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) provided a positive progress update regarding drilling at the Los Azules copper project, which is part of TNR’s royalty portfolio.
Earlier in August, project owner and operator McEwen Copper Inc reported long intercepts with good copper grades at the Argentina-based project.
Intercepts included 222 metres (m) of 0.95% copper (Cu), including 44.0m of 1.38% Cu; 238m of 0.58% Cu, including 10.0 m of 1.10% Cu; and 194m of 0.56% Cu, including 8.0 m of 1.04% Cu.
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McEwen is planning to use results from the current drilling program to update the 2017 preliminary economic assessment.
TNR Gold holds a 0.4% net smelter return (NSR) royalty on Los Azules, of which 0.04% of the 0.4% NSR royalty is held on behalf of a shareholder.
In a statement, TNR Gold CEO Kiril Klip told shareholders that the company is pleased to see significant developments on the Los Azules project and continued support by Rob McEwen of McEwen Copper.
"It's very encouraging to see the opportunity to expand the deposit,” Klip said. “These new positive results are demonstrating the continued success of a major drilling program on this copper, gold and silver project.”
McEwen Copper has increased the drilling program to 59,000m, with 13,500m completed so far in 2022, Klip noted. Drilling resumes in October, and the plan is to complete 44,500m.
Mining magnate Rob McEwen has invested US$40 million to enable the rapid advancement of the project, while McEwen Copper raised an additional US$15 million earlier this year. TNR Gold said the structure allows continued financing and further stages of development of the project.
TNR Gold does not have to contribute any capital for the development of Los Azules.
“The essence of our business model is to have industry leaders like McEwen Mining as operators on the projects that will potentially generate royalty cash flows to contribute significant value for our shareholders,” Klip added.
Vancouver-based TNR Gold’s business model provides a unique entry point in the creation of supply chains for critical materials like energy metals that are powering the energy revolution, and the gold industry that is providing a hedge for this stage of the economic cycle.
Contact Angela at angela@proactiveinvestors.com
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