TNR Gold NSR Royalty Update – Los Azules Copper, Gold & Silver Project – McEwen Copper Reports More Post-PEA Assay Results
NEWS RELEASE
TNR Gold NSR Royalty Update – Los Azules Copper, Gold &
Silver Project – McEwen Copper Reports More Post-PEA Assay
Results
Vancouver, British Columbia – August 3, 2023: 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 on August 1, 2023, by McEwen Mining stated:
“TORONTO, Aug. 01, 2023 (GLOBE NEWSWIRE) -- McEwen Copper Inc., 52% owned
by McEwen Mining Inc. (NYSE: MUX) (TSX: MUX), today reports additional assay results of the recently
completed drilling season at its Los Azules project, located in San Juan, Argentina.
Significant Intercept:
386 m of 0.66% Cu, including 196 m of 0.99% Cu (Hole GTK2320)
“These assay results include significant copper values over wide intercepts and demonstrate very
good agreement between these new assay results and those predicted by the resource block model
used in the 2023 Preliminary Economic Assessment,” said Rob McEwen, Chairman & Chief Owner.
Los Azules is a large copper porphyry deposit with growth potential, it has many features co mparable
to world-class copper-gold deposits in South America and its depth and lateral extent have yet to be
determined. Infill drilling serves several purposes, including providing better data density to increase
confidence in the mineral resources, alon g with providing material and data for metallurgical,
geotechnical, and hydrological studies.
Table 1 provides an overview of the new assay results. This infill drilling has been designed to upgrade
the copper resource estimate classification from Inferred to Measured or Indicated.
Highlights
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• Hole GTK2320 intercepted an Enriched zone of 386 meters (m) grading 0.66% Cu (est. true thickness)
and includes a sub-interval of 196 m grading 0.99% Cu. (Figure 2)
• Hole GTK2319 intercepted an Enriched zone of 383.5 m grading 0.50% Cu (est. true thickness) and
includes a sub-interval of 120 m grading 0.67% Cu. (Figure 3)
• Hole AZ23237 intercepted an Enriched zone of 308 m grading 0.69% Cu (est. true thickness) and
includes a sub-interval of 142 m grading 0.82% Cu. (Figure 4)
• Hole AZ23233 returned an Enriched zone of 374 m grading 0.50% Cu including an Enriched zone
intercept of 206 m grading 0.65% Cu. (Figure 5)
This recently completed phase of drilling occurred between October 2022 and June 2023 and used up
to 15 rigs to complete 39,900 m of drilling in 138 holes, to evaluate geotechnical, hydrological, resource
and exploration-related parameters and opportunities. The Los Azules drill hole database now totals
126,000 m.
To test the performance of the resource m odel copper grades versus actual drilling results, some 30
infill holes completed subsequent to the data cut-off on December 31, 2022, for the updated PEA model
(released June 20, 2023) were utilized. The length -weighted average grade of the new drilling w as
0.553% Cu compared to a resource model prediction of 0.515% Cu. This limited test of the resource
model’s predictive capacity is encouraging, with actual grades 7.5% higher than the model prediction.
Over time, we anticipate the local sensitivity of the model’s predictive capacity to improve, as drilling
increases the geologic confidence required to delineate a Measured and Indicated mineral resource
estimate.
Table 1 - Los Azules Drilling Results, May-June 2023
Hole-ID Section Predominant
Mineral Zone
From
(m)
To
(m)
Length
(m)
Cu
%
Au
(g/t)
Ag
(g/t) Comment
GTK2320 44 Total 126.0 515.0 389.0 0.65 0.05 1.94
Enriched 126.0 512.0 386.0 0.66 0.05 1.95 Incl. 196m of 0.99% Cu
Primary 512.0 515.0 3.0 0.16 0.01 0.96
GTK2319 46 Total 110.5 507.4 396.9 0.49 0.07 1.62
Enriched 110.5 494.0 383.5 0.50 0.07 1.64 Incl. 120m of 0.67% Cu
Primary 494.0 507.4 13.4 0.24 0.04 1.09
AZ23237 48 Total 110.0 446.0 336.0 0.66 0.07 1.86
Enriched 110.0 418.0 308.0 0.69 0.07 1.86 Incl. 142m of 0.82% Cu
Primary 418.0 446.0 28.0 0.37 0.09 1.82 Incl. 10m of 0.44% Cu
AZ23233 50 Total 70.0 510.0 440.0 0.47 0.06 1.93
Enriched 70.0 444.0 374.0 0.50 0.07 1.99 Incl. 206m of 0.65% Cu
Primary 444.0 510.0 66.0 0.35 0.05 1.62
AZ23236 52 Total 88.0 417.7 329.7 0.23 0.01 0.83
Enriched 88.0 374.0 286.0 0.23 0.01 0.87 Incl. 12m of 0.56% Cu
Primary 374.0 417.7 43.7 0.22 0.00 0.58
AZ23225 65 Total 60.0 900.7 840.7 0.24 0.03 1.74
Enriched 60.0 206.0 146.0 0.32 0.06 2.06 Incl. 16m of 0.51% Cu
Primary 206.0 900.7 694.7 0.22 0.03 1.67
AZ23231 71 Total 48.0 701.0 653.0 0.10 0.01 0.59
Enriched 48.0 288.0 240.0 0.07 0.01 0.84
Primary 288.0 701.0 413.0 0.12 0.01 0.44
Description of Results
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Figure 1 shows a plan view of 2023 PEA mineable Indicated and Inferred resources, with pit wall shown
as a black trace at surface and gray shading. Drill holes and cross-section locations relevant to today’s
release are also shown.
The drilling results are summarized on four schematic cross sections that include interpretations of
Overburden, Leached, Enriched (also called Supergene) and Primary (also called Hypogene) mineral
zones. The green line on each section indicates the wall of the Base Case 27-year pit outline according
to the updated PEA. Adjacent cross sections occur every 50 m, with the lowest section numbers located
at the southern end of the field and increasing northwards.
Figure 1 – Cross Sections and Recent Drill Holes on the 2023 Base Case Mineable Resource Pit Plan
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Figure 2 - Section 44 - Drilling, Mineral Zones & 2023 Base Case Mineable Resource Pit (Looking
North)
Hole GTK2320, shown in the center of Figure 2, has been added to section 44 to infill a 200 m gap in
drilling between holes AZ23218 and AZ22170. The hole returned an Enriched zone intercept higher than
either of those holes, with 386 m of 0.66% Cu, including a sub-interval of 196 m of 0.99% Cu. Overall,
the cross section is characterized by a 200-300 m flat-lying Enriched zone located immediately below a
thin Leached zone horizon. Locally, the significant vertical extent exceeding 350 m reflects the favorable
structural environment commonly found in the core of the deposit.
Figure 3 - Section 46 - Drilling, Mineral Zones & 2023 Base Case Mineable Resource Pit (Looking
North)
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Hole GTK2319, shown on section 46 in Figure 3, returned outstanding Enriched zone results of 383.5
m grading 0.50% Cu, including a sub-interval of 120 m grading 0.67% Cu. The hole highlights changes
to grade and width toward the flank of the deposit. The mineralization and lithology are consistent
with the previously released drilled hole AZ17126, which supports our view that continuity within the
deposit is very good.
Figure 4 - Section 48 - Drilling, Mineral Zones & 2023 Base Case Mineable Resource Pit (Looking
North)
Hole AZ23237 shown on section 48 in Figure 4, highlights a 308 m Enriched zone intercept
grading 0.69% Cu, including a 142 m intercept of 0.82% Cu. The grade has increased toward the center
of the section compared to hole AZ22161 immediately to the east. This is consistent with the overall
trend of increasing grade from the flanks of the deposit toward its center.
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Figure 5 - Section 50 - Drilling, Mineral Zones & 2023 Base Case Mineable Resource Pit (Looking
North)
Hole AZ23233 shown on section 50 in Figure 5 intersected 374 m of Enriched zone mineralization
grading 0.50% Cu and includes a 206 m section of 0.65% Cu. Mineralization continues at depth where
the Primary zone was intersected over 66 m grading 0.35% Cu.
Technical information
The technical content of this press release has been reviewed and approved by Stephen McGibbon, P.
Geo., McEwen Mining's Senior Consulting Geologist, and a qualified person as defined by NI 43-101.
All samples were collected in accordance with generally accepted industry standards. Drill core
samples, usually taken at 2 m intervals, were split and submitted to the Alex Stewart Internati onal
laboratory located in the Province of Mendoza, Argentina, for the following assays: gold determination
using fire fusion assay and an atomic absorption spectroscopy finish (Au4-30); a 39 multi-element suite
using ICP-OES analysis (ICP-AR 39); copper c ontent determination using a sequential copper analysis
(Cu-Sequential LM-140). An additional 19-element analysis (ICP-ORE) was performed for samples with
high sulphide content.
The company conducts a Quality Assurance/Quality Control 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 are received, and any re-assay requests are sent
back immediately. Pulp and pr eparation sample analyses are also performed as part of the QAQC
process. Approximately 5% of the sample pulps are sent to a secondary laboratory for control purposes.
In addition, the laboratory performs its own internal QAQC checks, with results made ava ilable on
certificates for Company review.
Link to drill results, locations and lengths of drill hole collars corresponding to June 2023 at Los
Azules:
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https://www.mcewenmining.com/files/doc_news/archive/2023/2023_07LA/2023_06_DrillResults_L
A.xls
Link to drill results, locations and lengths of drill hole collars corresponding to the October 2022 to
June 2023 drilling campaign at Los Azules :
https://www.mcewenmining.com/files/doc_news/archive/2023/2023_07LA/2022_10-
2023_06_DrillResults_LA-2.xls
Table 2 – Hole Locations and Lengths for Los Azules Drilling Results
HOLE-ID Azimuth Dip Length Loc X Loc Y Loc Z
GTK2320 70 -73 515.0 2383040 6559496 3628
GTK2319 62 -78 507.4 2383242 6559676 3637
AZ23225 250 -75 900.7 2382804 6560524 3615
AZ23233 250 -77 510.0 2383158 6559861 3628
AZ23236 250 -70 417.7 2382596 6559760 3614
AZ23237 250 -81 446.0 2383225 6559776 3633
AZ23231 70 -75 701.0 2382671 6560817 3647
Coordinates listed in Table 2 based on Gauss Kruger - POSGAR 94 Zone 2
ABOUT MCEWEN COPPER
McEwen Copper is a well-funded, private company which owns 100% of the large, advanced-stage Los
Azules copper project, located in San Juan province, Argentina. McEwen Copper is a 52% owned private
subsidiary of McEwen Mining, which has the ticker MUX on NYSE and TSX.
Los Azules is being designed to be distinctly different from a co nventional copper mine, consuming
significantly less water, emitting much lower carbon and progressing to be carbon neutral by 2038,
being powered by 100% renewable energy sources once in operation. It recently released an updated
PEA (preliminary economic assessment) which projects a long life of mine, low production cost/lb, short
payback period, 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, Mexic o and
Argentina. In addition, it has significant exposure to copper through its 52% ownership of McEwen
Copper. The Company’s goal is to improve productivity and extend the life of its mines with the objective
of increasing its share value and price and providing a yield. Rob McEwen, Chairman and Chief Owner,
has a personal investment in the company of US$220 million. His annual salary is US$1.”
The McEwen Mining press release appears to be reviewed and verified by a Qualified Person (as that
term is defined by National Instrument 43 -101 – Standards of Disclosure for Mineral Projects ) and the
procedures, methodology and key assumptions disclosed therein are those adopted and consistently
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applied in the mining industry, but no Qualified Person engaged by TN R has done sufficient work to
analyze, interpret, classify or verify McEwen Mining’s information to determine the current mineral
resource or other information referred to in its press releases. Accordingly, the reader is cautioned in
placing any reliance on the disclosures therein.
“We are pleased that significant developments on the advancement of the Los Azules Copper Project
towards feasibility have brought Stellantis as a strategic partner in the future development of this giant
copper, gold and silver project. An additional investment of US $30 million in McEwen Copper was also
invested by Rio Tinto's Venture Nuton in 2023 after its initial investment of US $25 million in 2022,” stated
Kirill Klip, TNR’s Chief Executive Officer. “TNR Gold's vision is aligned with the leaders of innovation
among automakers like Stellantis, with the aim of decarbonizing mobility, and our mining industry leaders
like Rob McEwen’s vision ‘to build a mine for the future, based on regenerative principles that can achieve
net zero carbon emissions by 2038’.
The green energy rEVolution relies on the supply of critical metals like copper; delivering "green copper"
to Argentina and the world will contribute to the clean energy transition and electrification of transportation
and energy industries.
Strong team performance is accelerating the McEwen Copper Los Azules program in 2023. The 2023
Los Azules Project PEA results highlighted the potential to create very robust leach project, while
reducing environmental footprint and greater environmental and social stewardship sets the Project apart
from other potential mine developments.
It’s very encouraging to see an updated independent mineral resource estimate that has increased
significantly. Reported by McEwen Copper infill and other resource drilling completed since the PEA
model data cut-off date results include significant copper values over wide intercepts and confirm very
good alignment of new assay results to the resource model prediction for the same area.
Together with Nuton, McEwen Copper is exploring new technologies that save energy, water, time and
capital, advancing Los Azules towards the goal of the leading environmental performance. The
involvement of Rio Tinto with its innovative technology, may also accelerate realizing the enormous
potential of the Los Azules Project.
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. 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.”
ABOUT TNR GOLD CORP.
TNR Gold Corp. is working to become the green energy metals royalty and gold company.
Our 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.
Our portfolio provides a unique combination of assets with exposure to multiple aspects of the mining
cycle: the power of blue-sky discovery and important partnerships with industry leaders as operators on
the projects that have the potential to generate royalty cashflows that will contribute significant value for
our shareholders.