TNR Gold Update - NSR Royalty on Los Azules Copper, Gold and Silver Project with McEwen Mining
NEWS RELEASE
TNR Gold Update - NSR Royalty on Los Azules Copper, Gold and Silver Project with
McEwen Mining
Vancouver, British Columbia – May 9, 2022: TNR Gold Corp. (TSX-V: TNR) (“TNR”, “TNR Gold” or
the “Company”) is pleased to announce that, further to the Company’s news release dated November
10, 2021, McEwen Mining Inc. (“McEwen Mining”) provided a progress report on the Los Azules Copper
Project in San Juan, Argentina. TNR holds a 0.4% net smelter returns royalty (“NSR Royalty”) (including
a 0.04% NSR held on behalf of a shareholder) on the Los Azules Copper Project. The Los Azules Copper
Project is held by McEwen Copper Inc., a subsidiary of McEwen Mining.
The news release issued by McEwen Mining on May 4, 2022, stated:
“Timing is everything and now appears to be a time for copper to shine. According to Goldman Sachs’ (GS)
research1, copper is the new oil. A growth sector with supply constraints, GS forecasts that copper has only
two years of supply growth left, 2022 and 2023, and an open-ended supply decline starting from 2024. They
see copper playing a big, critical role as an essential component in the global push to electrify transportation
and to contain/reverse global warming. They are not alone in thinking about cop per this way. McKinsey’s
research2 is estimating that by 2030 copper demand will be outstripping supply by five to eight million tons
per year.
Executive Summary
An Attractive Copper Development Story
As you have seen above, Los Azules compares very well to many other copper development stories, given
its size, life, location and economics.
Designing for Positive Impact
Working to create a net positive impact on the world over the life of the project - McLennan Design,
architects at the forefront of the green sustainable buildings movement, are assisting our team in designing
systems and selecting innovative technologies and approaches for making our project
regenerative. http://mclennan-design.com
Los Azules Is No Longer Remote!
The critical issue of road access to the site has been resolved! We have developed a second road at a
lower altitude that will allow us year-round access to the site. Our access will be extended, making it safer,
less expensive and faster to advance and complete our fieldwork.
Drilling Confirming Size and Grade
Additional drilling is confirming the mineralization size and grade compared to historic intercepts
used to estimate the 2017 PEA mineral resource estimate. To date, the results from core logging and
sample analysis are very encouraging. In many holes, drilling was allowed to continue beyond the planned
#1120, 789 West Pender Street,
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E-mail: [email protected]
Website: http://www.tnrgoldcorp.com
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length where visible copper mineralization was observed. Often, primary mineralization in the hole was still
apparent when drilling was stopped due to drill equipment limitations. Hole AZ22142 intersected 419.1
meters of 0.79% copper including an interval 104.0 m of 1.00% copper in the supergene enriched zone
and 46 m of 1.59% copper in the pr imary copper zone. Importantly, our updated geological model will
reflect the sub -vertical structures and rock types that are thought to be key features controlling the
distribution of mineralization. This points directly to the potential for significant m ineralization to be
discovered with additional drilling to depth.
Link to Table of Drilling Results for January to April 2022 at Los Azules:
https://mcewenmining.com/files/doc_news/archive/2022/20220500_copper/20220500_LA_results.xlsx
Community Engagement
Our sustainability efforts are currently focused on systems relating to local procurement and employment,
environment, health, education, training and security. We employ a local workforce and invest in projects
such as the construction of medical outposts, sponsoring education, and installing low -energy street
lighting.
Bigger & Better
Whittle Consulting’s Enterprise Optimization work, which will be outlined in our forthcoming updated PEA
expected in Q1 2023, suggests that both the size and value of the Los Azules project have the potential to
be significantly larger than was described in the 2017 PEA. Their analysis has provided important focus
and direction for the detailed work underway, including g uidance for drilling programs, metallurgical test
work and trade-off studies for mining, processing and infrastructure.
Link to Whittle Consulting: https://www.whittleconsulting.com.au
Link to the Whittle Enterprise Optimization Methodology:
https://mcewenmining.com/files/doc_news/archive/2022/20220500_copper/20220500_whittle_methodology.pdf
PEA to be Updated – 2017 Highlights
The Preliminary Economic Assessment (PEA) base case assumed a $3/lb copper price, and the economics
were robust. Today copper is above $4/lb. Summary results of the 2017 PEA available on the Company’s
website:
Avg. annual production 1 st 13 years 415 Million lbs Cu @ $1.14/ lb cash cost
Mine life 36 years
Initial capex $2.4 Billion
Base case Cu price $3.00/ lb
Payback 3.6 years
After-tax IRR 20.1 %
After-tax NPV(8%) $2.2 Billion
Timetable of Planned Events
Private placement financing – 2022
Updated Preliminary Economic Assessment (PEA) - Q1 2023
Initial public offering (IPO) – post updated PEA
Prefeasibility Study (PFS) – H1 2024
One of our key goals is to improve the perception, and reality, of mining by employing innovative
solutions to reduce our environmental impact, such as reducing our carbon footprint.
1 https://www.goldmansachs.com/insights/podcasts/episodes/05-18-2021-nick-snowdon.html
2 https://www.mckinsey.com/industries/metals-and-mining/our-insights/the-raw-materials-challenge-how-
the-metals-and-mining-sector-will-be-at-the-core-of-enabling-the-energy-transition
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TECHNICAL INFORMATION
The technical content of this news release has been reviewed and approved by Stephen McGibbon, P.Geo,
SVP Exploration of McEwen Mining and a Qualified Person as defined by NI 43 -101.
All samples were collected in accordance with generally accepted industr y standards. Drill core samples
usually taken at 2m intervals are split and submitted to Alex Stewart International laboratory in Mendoza,
Argentina for the following assays: gold determination using fire assay fusion and an atomic absorption
spectroscopy finish (Au4-30); a 39 multi-element suite using ICP-OES analysis (ICP-AR 39); copper content
was determined using a sequential copper analysis (Cu -Sequential). An additional 19 -element analysis
(ICP-ORE) was performed for samples with high sulfide content.
The Company carries out a Quality Assurance / Quality Control program consistent with NI 43 -101 and
industry best practices utilising a combination of standards and blanks approximately one in every 25
samples. Results are monitored as the final certific ates are received and any re -assay requests are sent
back immediately. Pulp and prep duplicate sample analyses are also taken as part of the QAQC process.
Approximately 5% of sample pulps are sent to a secondary laboratory for check assays. In addition, th e
assay lab performs its own internal QAQC checks with results available in the certificates for review by the
Company.
ABOUT MCEWEN MINING
McEwen Mining is a diversified gold and silver producer and explorer focused in the Americas with
operating mines in Nevada, Canada, and Argentina. It also has a large exposure to copper through its
subsidiary McEwen Copper, owner of the Los Azules copper deposit in Argentina.”
The McEwen Mining press release appears to be prepared by Qualified Persons (as that term is defined
by National Instrument 43 -101 – Standards of Disclosure for Mineral Projects ) and the procedures,
methodology and key assumptions d isclosed therein are those adopted and consistently applied in the
mining industry, but no Qualified Person engaged by TNR has done sufficient work to analyze, interpret,
classify or verify McEwen Mining’s information to determine the current mineral resou rce or other
information referred to in its press releases. Accordingly, the reader is cautioned in placing any reliance
on the disclosures therein.
“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,” stated Kirill Klip,
TNR’s Executive Chairman. “It’s very encouraging to see the first results and success of a major 10-drill,
53,000-metre drilling program on this copper, gold and silver project. The personal commitment from Rob
McEwen and his investment of US$40 million enabled the rapid advancement for this 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 holds a 0.4% NSR royalty on the Los Azules Copper Project, including a 0.04% held on behalf
of a shareholder. 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 cas hflows 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.
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Over the past twenty-six 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, which is
being developed by McEwen Mining Inc. now. TNR Gold holds a 0.4% NSR Royalty on the Los Azules
Copper Project, including a 0.04% held on behalf of a shareholder.
TNR retains a 2.0% NSR Royalty on the Mariana Lithium Project in Argentina with Ganfeng Lithium ,
including a 0.2% NSR held on behalf of a shareholder. Ganfeng’s subsidiary, Litio Minera Argentina, has
a right to repurchase 1.0% of the NSR Royalty on the Mariana Project, of which 0.9% relates to the
Company’s NSR Royalty interest. The Company would receive $900,000 on the completion of the
repurchase. The project is currently being advanced by Ganfeng Lithium International Co. Ltd.
TNR also holds a 7% NPR holding on the Batidero I and II properties of the Josemaria Project, which is
being developed by Lundin Mining. Lundin Mining is part of the Lundin Group, a portfolio of companies
producing a variety of commodities in several countries worldwide.
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 Gold Project is to attract a joint venture partner ship with one of
the gold major mining companies. The Company is actively introducing the project to interested parties.
At its core, TNR provides a wide scope of exposure to gold, copper, silver and lithium through its holdings
in Alaska (the Shotgun Gold porphyry project) and Argentina ( the Los Azules Copper and the Mariana
Lithium projects) and is committed to the continued generation of in-demand projects, while diversifying
its markets and building shareholder value.
On behalf of the Board of Directors,
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 news 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
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in th is news release include, 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, Ganfeng Lithium ’s, Josemaria Resources’ and Lun din Mining’s preliminary economic
assessments, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, life of mine
estimates, and mine and mine closure plans 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 new s release are reasonable,
should one or more of the risks, 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 will be able to repay 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. TNR relies on the confirmation of its ownership for
mining claims from the appropriate government agencies when paying rental payments for such mining
claims requested by these agencies. There could be a risk in the future of the changing internal policies
of such government agencies or risk related to the third parties challenging in the future the ownership of
such mining claims. 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 conditions affecting TNR and its royalty partners, McEwen Mining Inc. , Ganfeng Lithium,
Josemaria Resources and Lundin Mining 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, althoug h 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 estimates 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.