TNR Gold Update - NSR Royalty on McEwen Mining's Los Azules Copper, Gold and Silver Project
NEWS RELEASE
TNR Gold Update - NSR Royalty on McEwen Mining's Los Azules Copper, Gold and
Silver Project
Vancouver, British Columbia – June 24, 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 May 9,
2022, McEwen Mining Inc. (“McEwen Mining”) provided a financing update and 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 June 21, 2022, stated:
“McEwen Copper Inc., a subsidiary of McEwen Mining Inc. (NYSE: MUX) (TSX: MUX), is pleased to
announce the closing of the second tranche of the previously announced private placement offering (the
“Offering”) of up to 8,000,000 common shares of McEwen Copper Inc. priced at US$10.00 per common
share. The second tranche is comprised of a $10 million investment by the Victor Smorgon Group advised
by Arete Capital Partners, both of Australia, and $5 million from other investors, for total gross proceeds of
$15.0 million. The amounts raised in the first and second t ranches of the private placement now stand at
$55.0 million. The Offering remains open until July 6, 2022.”
The news release issued by McEwen Mining on June 23, 2022, stated:
“McEwen Copper: Los Azules Progress Report #3
Drilling returns:
330.0 m of 0.83% Cu including 103.4 m of 1.31% Cu (AZ22146)
298.0 m of 0.55% Cu including 54.0 m of 1.38% Cu (AZ22149)
176.0 m of 1.00% Cu including 44.0 m of 1.38% Cu (AZ22158)
McEwen Copper Inc., a subsidiary of McEwen Mining Inc. (NYSE: MUX) (TSX: MUX), is pleased to provide
its 3rdprogress report on the advancement of its large Los Azules copper project located in the San Juan
province, Argentina.
Improving Our Knowledge & Confidence of This Copper Resource
The objectives of our 59,000-meter (m) drilling program at Los Azules are to:
• upgrade the Inferred mineral resources to Indicated;
• conduct metallurgical, hydrological and geotechnical drilling to accelerate our study work; and
• selectively test high value exploration targets.
#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
2
This program will almost double the historic database of 66,000 m of drilling from 202 holes. So far in 2022,
some 13,500 m have been drilled in 29 holes and assays have been returned for 6,035 m of drilling from
15 holes, which are designed to improve confidence and increase our Indicated resource category. Figure
4 profiles the sections and hole locations relevant to this update.
The cross -sections in Figures 1 to 3 are displaying current inclined and historic vertical holes, with
histograms of total copper content along their length, overlayed on a simplified interpretation of overburden,
leached, enriched and primary mineral zones, and the 30-year pit shell (shown by blue line), as defined by
the 2017 Preliminary Economic Assessment (PEA).
Figure 1 – Cross-section B-B’
Section B-B', shown in Figure 1, includes hole AZ22146, which produced an attractive intercept of 0.83%
Cu over 330.0 m, and included an interval of 103.4 m grading 1.31% Cu. This result correlates well with
hole AZ22142 (Figure 2) on section A -A' which intersected 419.1 m of 0.79% Cu and includes 104.0
m of 1.00% Cu in the enriched supergene zone. This r epresents 200 m of continuity of mineralization,
consistent with the lithological and structural features that control the distribution of copper and gold at Los
Azules.
Holes AZ22145 (181.0 m of 0.18% Cu) and AZ22148 (239.0 m of 0.26% Cu) located on the southwest
flank of the deposit returned grades within the expected ranges for the flanks of the deposit. Results from
both holes compare favourably to AZ0618(228.4 m of 0.21% Cu) from an early drill program. It is notable
that many of the holes ended in mineralization.
2
Figure 2 – Cross-section A-A’
Hole AZ22144 (Figure 2) was drilled in the area of Inferred mineralization, as classified in the 2017
Preliminary Economic Assessment (PEA) and returned 448.6 m of 0.30% Cu. The drill hole ended in visible
copper mineralization 294 m below the 30 -year pit limit from the 2017 study, indicating potential at depth.
The grade and extent of mineralization compares well to historic hole AZ1297 (911.0 m of 0.34% Cu) and
to previously released hole AZ22143 (310.5 m of 0.20% Cu).
Assay results are now being returned for Section C -C’ (Figure 3) completed 400 m north of Section B.
Hole AZ22149 drilled within an area classified as Indicated (2017 PEA) returned 298.0 m of 0.55% Cu and
included 54.0 m of 1.38% Cu beginning at 376.0 m down -hole. Hole AZ22147, drilled along the far
southwest flank of the deposit, returned low -grade mineralization in an area classified as Inferred
mineralization in the 2017 PEA.
Partial assay results have been returned for hole AZ22158 (Figure 4). located 300 meters south of section
A. It correlates well with the high -grade mineralization in hole AZ22142. Results to -date for this hole
are 176.0 m grading 1.00% Cu in the enriched mineralization zone and includes an interval of 44
m grading 1.38% Cu.
2
Figure 3 - Cross-section C-C’
Figure 4 - Sections A-A', B-B', C-C' shown relative to the 2017 PEA pit shell and Indicated and Inferred
Resources
2
Hyperspectral Scanning
Two geoLOGr hyperspectral rock analyzers are being used to guide and improve the robustness of the
geological and metallurgical modelling and further our knowledge of the deposit and potentially revealing
additional exploration targets.
Roads
Los Azules is no longer remote as a result of our work this year. We have constructed a lower altitude road
access that provides us with the opportunity for year-round work at the site. The diagram below illustrates
the important elevation difference between our exploration road (shown in blue) that allowed 5 to 6-month
access to site and our new road access (shown in orange) that, in combination, will provide 12 -month
access. Having two roads into Los Azules represents an important development and safety feature for the
project.
Figure 5 – Los Azules Road Access
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 industry standards. Drill core samples
usually taken at 2 m intervals are split and submitted to Alex Stewart International laboratory in Mendoza,
Argentina for the following assays: gold det ermination 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
determination using a sequential copper analysis (Cu-Sequential). An additional 19-element analysis (ICP-
ORE) was performed for samples with high sulfide content.
2
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 approximate ly one in every 25
samples. Results are monitored as the final certificates 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 pul ps are sent to a secondary laboratory for check assays. In addition, the
assay lab performs its own internal QAQC checks with results available in the certificates for review by the
Company.”
Table 1 – Drill Results April-May 2022 at Los Azules
Hole-ID Section Predominant
Mineral
Zone
From
(m)
To
(m)
Length
(m)
Cu
%
Au
(g/t)
Ag
(g/t)
Comment
AZ22144 A Total 58.0 506.6 448.6 0.30 0.02 0.84
incl Enriched 58.0 204.0 146.0 0.31 0.01 0.52
and Primary 204.0 506.6 302.6 0.29 0.02 1.00 incl 104.6m of 0.48% Cu
AZ22145 B Total 76.0 257.0 181.0 0.18 0.02 1.90
incl Enriched 76.0 194.0 118.0 0.16 0.03 2.25
and Primary 194.0 257.0 63.0 0.21 0.01 1.26
AZ22146 B Total 91.0 421.5 330.0 0.83 0.11 2.30
incl Enriched 91.0 394.0 303.0 0.86 0.11 2.26 incl. 103.4m of 1.31% Cu
and Primary 394.0 421.5 27.0 0.50 0.10 2.76
AZ22147 C Total 60.0 240.8 180.8 0.03 0.02 0.50
incl Enriched 60.0 67.0 7.0 0.10 0.08 1.27
AZ22148 B Total 76.0 315.0 239.0 0.26 0.02 1.01
incl Enriched 76.0 212.0 136.0 0.33 0.02 0.85
and Primary 212.0 315.0 103.0 0.16 0.02 1.23
AZ22149 C Total 130.0 428.0 298.0 0.55 0.04 1.62
incl Enriched 130.0 278.0 148.0 0.34 0.02 0.32
and Primary 278.0 428.0 150.0 0.76 0.06 2.91
incl. 54m of 1.38% Cu from
376m
AZ22150 Total 78.0 257.4 179.4 0.14 0.01 0.53
incl Enriched 78.0 126.0 48.0 0.04 0.01 0.25
and Primary 126.0 257.4 131.4 0.17 0.01 0.63
AZ22158 Enriched 76.0 252.0 176.0 1.00 0.09 1.46
incl 144.0 188.0 44.0 1.38 0.11 2.36
Table 2 - Hole Collar Locations and Lengths for April-May 2022 Drill Results at Los Azules
HOLE-ID Azimuth Dip Length Loc X Loc Y Loc Z
AZ22144 250 -70 507 2382889 6559204 3688
AZ22145 250 -73 257 2382912 6559411 3628
AZ22146 250 -75 422 2383406 6559591 3644
AZ22147 250 -68 241 2382558 6559708 3642
AZ22148 250 -75 315 2383106 6559482 3647
AZ22149 70 -77 428 2382879 6559875 3618
AZ22150 70 -82 257 2382670 6559536 3661
AZ22158 250 -65 300 2383561 6559115 3627
Coordinates listed in Table 2 based on Gauss Kruger - Campo Inchauspe Zone 2
2
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 disclosed 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 Minin g’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 to see these significant developments on the Los Azules Copper Project and continued
support by Rob McEwen of the newly created McEwen Copper,” stated Kirill Klip, TNR’s Chief Executive
Officer. “It’s very encouraging to see that McEwen Copper raised additional US$15 million and these new
positive results which demonstrate continued success of a major 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 enable d the rapid advancement for this deposit t o 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 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 cashflows to contribute significant value for our shareholders.”
Private Placement Update
The Company also announces that, further to its news release dated April 4, 2022, the Company has
closed the non-brokered private placement (the “ Private Placement”) of up to 5,000,000 units (each a
“Unit”). On closing of the first tranche on May 19, 2022, the Company issued 1,250,000 Units at $0.05
per Unit for proceeds of $62,500. Each Unit consists of one common share of the Company and one half
of a non -transferable common share purchase warrant ( each a “Warrant”) with e ach whole Warrant
exercisable into one common share of the Company at an exercise price of $0. 075 per share for two
years from the date of issue. No further tranches will be issued.
The proceeds of the Private Placement will be used for exploration, maintenance of the Shotgun Gold
project and for general working capital purposes. All Private Placement securities will be restricted from
trading for a period of four months plus one day from the date of closing.
The Company paid cash finder’s fee of 5% of the gross proceeds sourced by the finder.
Kirill Klip, Executive Chairman of the Company, a n on-arms’ length part y, participated in this Private
Placement. The issuance of private placement securities to a non-arms’ length party constitutes related-
party transaction s under Multilateral Instrument 61 -101 - Protection of Minority Security Holders in
Special Transactions (“MI 61 -101”). Because the Company’s shares trade only on the TSX Venture
Exchange, the issuance of securities is exempt from the formal valuation requirements of Section 5.4 of
MI 61 -101 pursuant to Subsection 5.5(b) of MI 61 -101 and exempt f rom the minority approval
requirements of Section 5.6 of MI 61-101 pursuant to Section 5.7(b). The Company did not file a material
change report 21 days prior to the closing of the private placement as the details of the participation of
insiders of the Company had not been confirmed at that time.
ABOUT TNR GOLD CORP.
TNR Gold Corp. is working to become the green energy metals royalty and gold company.
2
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
Chief Executive Officer
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 applica ble 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 condition s “may” or “could” occur, although not
all forward-looking statements contain these identifying words. Specifically, forward -looking statements