TNR Gold to Transition into Cash-Flow Royalty Company with McEwen Copper's Feasibility Study Confirming Strong Economics & ESG Credentials for Los Azules Copper Project

TNR Gold Corp's executive chairman Kirill Klip discussed the feasibility study for McEwen Copper's Los Azules project, which confirms strong economics and ESG credentials. The project has a 21-year life-of-mine, with an initial five-year production plan of over 200,000 tonnes of copper annually. Klip noted low operating costs, with cash costs of $1.71 per pound and all-in sustaining costs at $2.11 per pound, based on a $4.25 copper price. The project has the potential to support a royalty valuation for TNR Gold of over $30 million.

On October 7, 2025, McEwen Inc. announced positive results from the feasibility study for its Los Azules copper project in Argentina. The study confirms the project's strong economic and environmental credentials, positioning it as a key player in the global copper market.

The feasibility study, conducted in accordance with NI 43-101 standards, highlights several key points:

1. Low-Cost, Long-Life Producer: Los Azules is confirmed as a low-cost, long-life copper producer, with an estimated life-of-mine (LOM) of 21 years and an average annual production of 148,200 tonnes of copper.
2. Strong Economics: The project has a net present value (NPV) of $2.9 billion at an 8% discount rate and an internal rate of return (IRR) of 19.8% after-tax. The initial capital expenditure is estimated at $3.17 billion, with a payback period of 3.9 years.
3. Environmental Sustainability: The project aims to achieve carbon neutrality by 2038, utilizing 100% renewable power and reducing its carbon intensity by 72%. It also plans to operate without a tailings dam, aligning with Argentina's Large Investment Incentive Regime (RIGI) standards.
4. Strategic Partnerships: McEwen has secured strategic partnerships, including a collaboration agreement with the International Finance Corporation (IFC) and potential financing proposals from Tier-1 Original Equipment Manufacturers (OEMs), YPF Luz, and European ECAs, totaling over $1.1 billion.

TNR Gold Corp (TSXV: TNR), which holds a 0.4% net smelter returns royalty (NSR) on Los Azules, has also expressed optimism about the project's potential. Executive Chairman Kirill Klip noted the project's strong economics, low operating costs, and significant royalty valuation potential. The project's initial five-year production plan is set to exceed 200,000 tonnes of copper annually, with cash costs of $1.71 per pound and all-in sustaining costs at $2.11 per pound, based on a $4.25 copper price.

The feasibility study provides a clear blueprint for the project's development, reducing risks and positioning Los Azules as a model for responsible and innovative mining. The project is set to begin construction in 2026, following the approval of environmental permits.