TNR Gold NSR Royalty Update - Los Azules Copper, Gold and Silver Project: Los Azules Infill Drilling Confirmed High-Grade Copper Zone
NEWS RELEASE
TNR Gold NSR Royalty Update - Los Azules Copper, Gold and
Silver Project: Los Azules Infill Drilling Confirmed High-Grade
Copper Zone
Vancouver, British Columbia – August 14, 2024: TNR Gold Corp. (TSX-V: TNR) (“TNR”, “TNR Gold”
or the “Company”) is pleased to announce that McEwen Mining Inc. (“McEwen Mining”) has provided
an update on the Los Azules copper, gold and silver project in San Juan, Argentina. TNR holds a 0.4%
net smelter returns royalty (“NSR Royalty”) (of which 0.04% of the 0.4% NSR Royalty is held on behalf
of a shareholder) on the Los Azules Copper Project. The Los Azules project is held by McEwen Copper
Inc. (“McEwen Copper”), a subsidiary of McEwen Mining.
The news release issued by McEwen Mining on August 8, 2024, stated:
“McEwen Copper Inc., 48.3% owned by McEwen Mining Inc. (NYSE, TSX), is pleased to comment
on the excitement in Argentina that includes:
Infill Drill Highlights:
AZ24375: 217 meters of 1.11 % Cu, incl. 100 meters of 1.32 % Cu
AZ24335: 158 meters of 0.84 % Cu, incl. 78.5 meters of 1.10 % Cu
AZ24403: 276 meters of 0.86 % Cu, incl. 160 meters of 0.96 % Cu
AZ24320: 146 meters of 0.89 % Cu
AZ24332: 119.6 meters of 0.72 % Cu
• Remarkable new legislation introduced by President Milei to encourage large domestic
and foreign investments in the country;
• A US$4.4 Billion transaction led by BHP, the world’s largest mining company, and Lundin
Mining to acquire two copper deposits located in the same province in Argentina as Los
Azules;
• At Los Azules, infill drilling during the 2023 -24 season upgraded the resource categories,
validated the geological model and confirmed the high -grade zone. Resource drilling for
the Los Azules Feasibility Study is now complete, and the study remains on tr ack for
delivery in early 2025.
Remarkable and Welcoming Legislation – Milei Magic
President Milei’s government introduced legislation that has rolled out the welcome mat
for large-scale domestic and foreign direct investments in Argentina.
#1120, 789 West Pender Street,
Vancouver, B.C.
V6C 1H2, Canada
T: +1 (604) 229-8129
E-mail: [email protected]
Website: http://www.tnrgoldcorp.com
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This legislation recently approved by Argentina’s government is called "Bases and
Starting Points for the Freedom of Argentines" and includes the Incentive Regime for
Large Investors (RIGI), offering significant tax and foreign exchange incentives to
encourage domestic and direct foreign investment in key sectors of the economy,
including mining.
This program addresses most of all past stumbling blocks for sustained development of
the mining sector in Argentina, and it's a huge step in the right direction.
We are excited about these changes as they open the door for many infrastructure
investments in Argentina and significantly improve the economics of the Los Azules
project and lower risks for investors. Details of the legislation are found in Appendix A - More
Information on RIGI and you can click here for the official summary.
US$4.4 Billion Copper Transaction
Last week, BHP, the world’s largest mining company, and Lundin Mining announced a
US$4.4 Billion transaction through which they have agreed to jointly acquire the two
copper deposits Filo del Sol and Josemaria located in the same San Juan province of
Argentina as Los Azules.
We believe that this transaction is a convincing demonstration of San Juan and
Argentina´s attractiveness for large-scale mining projects and evidence of Argentina
moving towards becoming a Tier 1 mining jurisdiction. Click on these links to read details
of the transaction, in press releases by BHP, Lundin Mining, and Filo Corp.
Los Azules Infill Drilling Highlights Confirming High Grade Copper Zone
At Los Azules, infill drilling upgraded the resource categories, validated the geological
model and confirmed the high-grade zone. During the 2023-24 drilling season over
70,000 meters (m) were completed, that have strengthened the interpretation of the
geological model in addition to extending the supergene enrichment zone
mineralization, both at the edges and to depth.
Resource drilling for the Los Azules Feasibility Study is now complete, and the study
remains on track for delivery in early 2025.
Drilling Highlights
• Hole AZ24375, drilled to a depth of 369 m, returned 217 m of 1.11 % Cu in the enriched
zone, including 100 m of 1.32 % Cu.
• Hole AZ24335, drilled to a depth of 227.5 m, returned a 158 m intercept of 0.84%
Cu within the enriched zone, including 78.5 m of 1.10 % Cu.
• Hole AZ24403, drilled to a depth of 427 m, returned a 276 m intercept of 0.86% Cu within
the enriched zone, including 160 m of 0.96 % Cu.
• Hole AZ24320, drilled to a depth of 204 m, returned 146 m of 0.89% Cu in the enriched
zone.
• Hole AZ24332, drilled to a depth of 255.6 m, returned 119.6 m of 0.72% Cu in the enriched
zone.
The 2023-2024 drill campaign successfully achieved its objective of infilling existing drill
hole data to support the conversion of resources to Measured or Indicated Mineral
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Resources to include in the Los Azules Feasibility Study. In addition, geotechnical,
metallurgical, hydrogeological and condemnation drilling was carried out.
The locations of the highlighted results are presented in 8 figures. A plan or aerial view of
the resources and the outline of the PEA pit are shown in Figure 1. Figures 2 to 7 show
recent drilling in relation to the overburden, the leached, enriched and primary zones,
and the 30-year pit shell of the 2023 Preliminary Economic Assessment (PEA) (marked by
the green line in the sections). Figure 8 represents a cross section with recent drill data
and inferred geology.
Drill results and location information for this press release are available in Appendix B -
Detailed Data From the 2023-2024 Drilling Campaign at Los Azules.
Figure 1 shows a plan view of the location of the sections and drill holes reported in this
press release. All cross sections are 50 m equidistant from each other, with the lowest
numbered section starting from the southern end of the deposit. Shown in blue are the
collars of the drill holes included in this news release.
Figure 1 – Plan View Location of Cross-sections and Drill Holes Reported in This News
Release
The section marked on Figure 1 by the red dashed line is presented in Figure 2 as the
longitudinal view looking northeast and indicating the location of the reported holes.
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Note the position of the highlighted holes within the zone of enriched (or supergene)
mineralization and how they mostly ended in mineralized material, indicating the
potential for mineralization to continue at depth. The length of the enriched zone on thi s
section is 3.9 kilometers. The enriched zone now continues beyond the southern limit of
the PEA mineable pit shell.
Figure 2 - Longitudinal Section (Looking Northeast)
Figure 3 shows a 217 m intercept of 1.11 % Cu (AZ24375) and includes a 100 m interval
of 1.32% Cu within the enriched zone. This hole infills a data gap within the center of the
deposit and confirms the continuity of higher-grade mineralization.
Figure 3 - Section 45 - Drilling, Mineralized Zones and 30-Year PEA Pitshell (Looking
Northwest)
Figure 4 shows an intercept of 276 m of 0.86 % Cu (AZ24403) that includes 160 m of 0.96% Cu in
the enriched zone. This hole also infills a drilling gap in the center of the deposit with
higher grade mineralization.
Figure 4 - Section 43 - Drilling, Mineralized Zones and 30-Year PEA Pitshell (Looking
Northwest)
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Figure 5 shows a 146 m intercept of 0.89 % Cu (AZ24320). The drill hole extends high grade
mineralization to the west of a previously drilled hole (AZ22152MET).
Figure 5 - Section 32 - Drilling, Mineralized Zones and 30-Year PEA Pitshell (Looking
Northwest)
Figure 6 shows an intercept of 158 m of 0.84 % Cu (AZ24335) that includes 78.5 m of 1.10%
Cu within the enriched zone. The drill hole ended in mineralized material, indicating the
potential for mineralization to continue at depth within the enriched zone, as indicated
by previously released drill holes.
Figure 6 - Section 31 - Drilling, Mineralized Zones and 30-Year PEA Pitshell (Looking
Northwest)
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Figure 7 shows a 119.6 m intercept of 0.72 % Cu (AZ24332) in the enriched zone. This hole
extends the higher-grade mineralization seen previously in AZ23309 in the central portion
of the enriched zone towards the east and at depth.
Figure 7 - Section 28 - Drilling, Mineralized Zones and 30-Year PEA Pitshell (Looking
Northwest)
Geological Model - Interpretation and Its Relationship with the Copper Mineralization
Geological understanding of the Los Azules deposit has increased significantly with the
drilling performed from 2022 to 2024. A series of copper-bearing early and inter-mineral
porphyry dikes and hydrothermal magmatic breccias are cutting across a pre -mineral
diorite intrusive. The dikes dip steeply to the east in their northwest -southeast
orientations.
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All rock types contain variable copper mineralization, depending on their position within
the deposit’s vertical profile. From top to bottom, the zoning includes leached, supergene
(enriched) and primary (hypogene), which are characteristic of many porphyr y copper
deposits worldwide.
Hypogene mineralization, associated with the early mineral porphyry and proximal host
rock, is characterized by a stockwork of abundant type A veinlets containing quartz,
pyrite, and chalcopyrite. In much of the deposit’s footprint, mineralization encounte red at
depth strongly indicates the potential to extend further, beyond 1,000 meters.
The supergene copper enrichment process created higher grades in the early mineral
porphyry and associated hydrothermal magmatic breccias, and lower grades in the less
permeable pre-mineral pluton and inter-mineral porphyries. The supergene
mineralization will be the principal mineral feed for the leach pad for the Feasibility
Study.
In Figure 8 Section 29 shows, in its central part, the early mineral porphyry (purple
color) intruding or cutting the pre-mineral diorite (light green color). To a lesser extent, thin
inter-mineral porphyry dikes (light blue color), affect both the early mineral porphyry and
the pre-mineral diorite. The early mineral porphyry is the primary source of copper
mineralization in the deposit.
Figure 8 - Recent Drill Data and Inferred Geology in Cross Section 29
Technical Information
The technical content of this press release has been reviewed and approved by Darren
King, Director of Exploration of McEwen Copper, who serves as the qualified person (QP)
under the definitions of National Instrument 43-101.
All tasks, including the collection of samples for geochemical analysis, were carried out in
accordance with generally accepted mining industry standards. Drill core samples were
analyzed by Alex Stewart International laboratory, located in the Province of Mendoza,
Argentina, whose assays consisted of: gold analysis by fire fusion assay and an atomic
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absorption spectroscopy finish (Au4-30); multiple element studies by ICP-OES analysis
(ICP-AR 39); determination of copper content by sequential copper analysis (Cu -
Sequential LMC-140). In addition, and for samples with high sulfide content (Cu, Ag, Pb
and Zn) and exceeding the limits of analysis, an ICP-ORE type analysis was performed.
The company is conducting a quality control/assurance program in accordance with NI
43-101, and industry best practices, using a combination of standards and blanks on
approximately one out of every 25 samples. Results are monitored as final certificates a re
received and any re-assay requests are sent immediately. Analysis of pulp and
preparation samples is also performed as part of the quality control process.
Approximately 5% of the sample pulps are sent to a secondary laboratory for control
purposes. In addition, the laboratory performs its own internal quality control checks, and
the results are made available on certificates for company review.
ABOUT MCEWEN COPPER
McEwen Copper is a well-funded, private company that owns 100% of the large,
advanced-stage Los Azules copper project, located in the San Juan province, Argentina.
McEwen Copper is a 48.3%-owned private subsidiary of McEwen Mining, which trades
under the ticker MUX on NYSE and TSX.
Los Azules is being designed to be distinctly different from a conventional copper mine by
consuming significantly less water, emitting much lower carbon, progressing towards
carbon neutral by 2038, and being powered by 100% renewable electricity once in
operation. The updated Preliminary Economic Assessment (PEA) released in June 2023
projects a long life of mine, short payback period, low production cost per pound, high
annual copper production, and a 21.2% after-tax IRR.
ABOUT MCEWEN MINING
McEwen Mining is a gold and silver producer with operations in Nevada, Canada, Mexico,
and Argentina. McEwen Mining also owns a 48.3% interest in McEwen Copper, which is
developing the large, advanced-stage Los Azules copper project in Argentina. The
Company’s objective is to improve the productivity and life of its assets with the goal of
increasing the share price and providing investor yield. Rob McEwen, Chairman and Chief
Owner, has a personal investment in the companies of US$225 million. His annual sa lary
is US$1.
Appendix A
- More Information on RIGI -
The RIGI grants a series of benefits in tax, customs and foreign exchange regulations for
investment projects in the mining sector that comply with the requirements set up by the law.
The main requirements for beneficiaries of RIGI are as follows:
• The amount for an investment to qualify within the regime will be >US$200 million, as determined
for different industries by the regulations.
• Export projects with investments greater than US$1 billion are considered strategic and have
additional benefits.
• At least 40% of the minimum amount must be invested in the first two years.