TNR Gold Reports on Mariana Lithium Royalty Holding
NEWS RELEASE
TNR Gold Reports on Mariana Lithium Royalty Holding
Vancouver B.C. January 28, 201 9: TNR Gold Corp. (TSX-V: TNR) (“TNR” or the “ Company”)
advises that further to the Company’s news release dated December 12, 2018, International Lithium
Corp. (TSX-V: ILC) ("ILC") has issued a news release dated January 22, 2019 in relation to the Mariana
Lithium project in Salta Province, Argentina. TNR holds a 1.8 % Net Smelter Returns (“NSR”) Royalty
on the Mariana project.
The news release issued by ILC states that a technical report “Preliminary Economic Assessment of
the Mariana Lithium Brine Project,“ or “PEA” with an effective date of November 15, 2018, is now
available under ILC’s profile on SEDAR, http://www.sedar.com.
The Mariana Lithium project is owned 82.754% by Ganfeng Lithium and 17.246% by ILC.
Highlighted results of the PEA as reported by ILC:
• 25-year mine life producing 10,000 tonnes per year (“TPY”) Lithium Carbonate Equivalent
(“LCE”) plus 84,000 TPY Sulphate of Potash (“SOP”).
• The estimated CAPEX and OPEX are for a conventional brine extraction facility, solar
evaporation ponds and SOP processing with a level of accuracy of -30/+50%.
• CAPEX estimated at US $243 million for 25-year mine life.
• NPV = US $192 million after-tax at 10% discount rate, IRR = 20% post-tax.
• Project results remain positive, even with important negative variations on the driver variables,
indicating project strength and resilience; thus, the PEA study indicates Mariana’s proposed
10,000 TPY LCE concentrated brine and 84,000 TPY SOP fertilizer operation has the potential
to generate strong economic returns.
The following table taken from ILC’s news release dated December 6, 2018 presents the Project’s base
case economic analysis results.
Description Units LCE SOP Total
Production tpy 10,000 84,000
Mine Life years 25
Capital Cost (CAPEX) US$ 243,425,000
Operating Cost (OPEX) US$ 46,666,000
Lithium Carbonate Refining Cost US$/t 2,900 N/A
Average Selling Price US$/t 9,683 550
1111 Melville Street, Suite 1100
Vancouver, British Columbia
V6E 3V6, Canada
T: +1 (604) 229-8129
E-mail: [email protected]
Website: http://www.tnrgoldcorp.com
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Description Units LCE SOP Total
Annual Revenue US$ 96,830,000 46,200,000 143,030,000
Discount Rate % 10%
Net Present Value (NPV) Pre-Tax US$ 288,017,000
Internal Rate of Return (IRR) Pre-Tax % 23.7
Net Present Value (NPV) Post-Tax US$ 191,670,000
Internal Rate of Return (IRR) Post-Tax % 20
The technical report issued in accordance with Canadian National Instrument 43 -101 – Standards for
Disclosure of Mineral Projects (“NI 43-101”) and containing the results of the PEA, with the effective
date of November 15, 2018, is now filed on SEDAR. All information in this announcement is based on
ILC’s news release.
ILC press releases and website material appear to be prepared by Qualified Persons and the
procedures, methodology and key assumptions disclosed therein are those adopted and consistently
applied in the mining industry, but no Qualified Person engaged by TNR Gold Corp. has done sufficient
work to analyze, interpret, classify or verify ILC’s information to determine the current mineral resource
or other information referred to in their press releases. Accordingly, the reader is cautioned in placing
any reliance on the disclosures therein.”
“The Mariana Lithium PEA study for ILC is the first preliminary economic study that provides a potential
value for the total NSR Royalty from the project ’s life of mine cash flow. TNR does not have to
contribute any capital fo r development of Mariana L ithium and 1.8% NSR Royalty is an important part
of TNR’s portfolio,” stated Kirill Klip, Executive Chairman of TNR. “The essence of our business model
is to have industry leaders like Ganfeng Lithium as operators on the projects that will potentially
generate royalty cash flows to contribute significant value for our shareholders.”
Afzaal Pirzada , a “Qualified Person” for the purposes of National Instrument 43 -101 - Standards of
Disclosure for Mineral Projects , has reviewed and approved the scientific and technical information
contained in this news release
ABOUT TNR GOLD CORP.
TNR Gold Corp. is working to become the green energy metals royalty company.
Over the past twenty -three years, TNR, through its lead generator business model, has been
successful in generating high -quality exploration projects around the globe. With the Company’s
expertise, resources and industry network, it identified the potential of the Los Azules copper project in
Argentina and now holds a 0.36% NSR royalty on the entire project, which is being developed by
McEwen Mining Inc.
TNR holds a strategic stake in International Lithium Corp. (“ILC”), a green energy metals company that
was created through the spin-out of TNR’s energy metals portfolio in 2011. ILC holds interests in lithium
projects in Argentina, Ireland and Canada.
TNR retains a 1.8% NSR royalty on the Mariana Lit hium property in Argentina. ILC has a right to
repurchase 1.0% of the NSR royalty on the Mariana Lithium property of which 0.9% relates to the
Company’s NSR interest. The Company would receive $900,000 on the execution of the repurchase.
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The project is cur rently being advanced in a joint venture between ILC and Ganfeng Lithium
International Co. Ltd.
TNR provides significant exposure to gold through its 90% holding in the Shotgun gold porphyry project
in Alaska. The project is located in South -Western Alaska near the Donlin Gold project, which is being
developed by Barrick Gold and Novagold Resources Inc.
The Company’s strategy with Shotgun is to attract a joint venture partner with one of the gold major
mining companies. The Company is actively introducing the project to interested parties.
At its core, TNR provides significant exposure to gold, copper and lithium through its holdings in Alaska
(the Shotgun gold porphyry project) and Argentina, and is committed to the continued generation of in -
demand projects, while diversifying its markets and building shareholder value.
On behalf of the Company,
Kirill Klip
Executive Chairman
www.tnrgoldcorp.com
For further information concerning this news release please contact +1 604-229-8129
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
Except for statements of historical fact, this ne ws release contains certain “forward -looking
information” within the meaning of applicable securities law. Forward -looking information is
frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”,
“anticipate”, “estimate”, “will”, “could” and other similar words, or statements that certain events
or conditions “may” or “could” occur, although not all forward-looking statements contain these
identifying words. Specifically, forward-looking statements in this news release incl ude, but are
not limited to, statements made in relation to: TNR’s corporate objectives, changes in share
capital, market conditions for energy commodities, the results of McEwen Mining’s and ILC’s
PEAs, and improvements in the financial performance of the Company. Such forward -looking
information is based on a number of assumptions and subject to a variety of risks and
uncertainties, including but not limited to those discussed in the sections entitled “Risks” and
“Forward-Looking Statements” in the Company’s interim and annual Management’s Discussion
and Analysis which are available under the Company’s profile on www.sedar.com. While
management believes that the assumptions made and reflected in this news release are
reasonable, should one or more of the r isks, uncertainties or other factors materialize, or
should underlying assumptions prove incorrect, actual results may vary materially from those
described in forward -looking information. In particular, there can be no assurance that: TNR
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will be able to r epay its loans or complete any further royalty acquisitions or sales; debt or
other financing will be available to TNR; or that TNR will be able to achieve any of its corporate
objectives. Given these uncertainties, readers are cautioned that forward -looking statements
included herein are not guarantees of future performance, and such forward -looking
statements should not be unduly relied on.
In formulating the forward -looking statements contained herein, management has assumed
that business and economic co nditions affecting TNR and its royalty partners, McEwen Mining
Inc. and International Lithium Corp. will continue substantially in the ordinary course, including
without limitation with respect to general industry conditions, general levels of economic
activity and regulations. These assumptions, although considered reasonable by management
at the time of preparation, may prove to be incorrect.
Forward-looking information herein and all subsequent written and oral forward -looking
information are based on es timates and opinions of management on the dates they are made
and are expressly qualified in their entirety by this cautionary statement. Except as required by
law, the Company assumes no obligation to update forward -looking information should
circumstances or management’s estimates or opinions change.