TNR Gold: Los Azules Copper Project Shows Strong Economics & ESG Credentials

TNR Gold Corp executive chairman Kirill Klip discussed the feasibility study for McEwen Copper's Los Azules project, which confirms strong economics and ESG credentials. The study outlines a five-year production plan of over 200,000 tonnes of copper annually, with low operating costs. Klip noted the project's ESG design uses less water and renewable energy, and could support a royalty valuation for TNR Gold of over $30 million.

TNR Gold Corp executive chairman Kirill Klip recently discussed the feasibility study for McEwen Copper's Los Azules project in Argentina, which confirms strong economic and ESG credentials. The study outlines a five-year production plan of over 200,000 tonnes of copper annually, with low operating costs.

The Los Azules project is located in the Calingasta District of San Juan Province, Argentina, and is a classic Andean-style porphyry copper deposit. Key metrics, according to the Los Azules feasibility study, include an after-tax NPV of $2.9 billion at an 8% discount rate, an IRR of 19.8%, a payback period of 3.9 years, and an initial capital expenditure of $3.17 billion. The project is expected to have a life of mine of 21 years, with an average production of 148,200 tonnes per year after the initial five years.

The study also highlights the project's strong ESG credentials. It targets 100% renewable power, a 72% reduction in carbon intensity, and no tailings dam. The project is designed to be one of the world's first regenerative copper mines and carbon neutral by 2038. Additionally, the project has secured regulatory approvals with RIGI incentives, further reducing its environmental footprint.

TNR Gold holds a 0.4% NSR royalty on the Los Azules project. Given the strong economic and ESG credentials of the project, Klip noted that the royalty valuation for TNR Gold could be over $30 million. The feasibility study also outlines a strategic collaboration agreement with the International Finance Corporation (IFC) to potentially lead debt financing and additional funding proposals for infrastructure and construction. Preliminary financing proposals from Tier-1 OEMs, YPF Luz, and European ECAs could provide $1.1 billion or more in equipment and infrastructure support, the study notes.

The Los Azules project is designed to provide a model for a more sustainable, low-carbon future and to improve public perception of mining. The project is being designed to substantially reduce water consumption and carbon emissions and operate on 100% renewable electricity once in production. With these results, Los Azules is positioned to become a supplier of responsibly produced copper, critical to the global energy transition towards a low-carbon sustainable future.