Thursday, 11 July 2019

TNR Gold Los Azules Copper Royalty Holding With McEwen Mining: PAE Granted - Chile And Argentina Strengthen Protocols For Binational Projects.

We have more details and good news coming from Argentina and Chile for Los Azules Copper - "Our sleeping giant" as McEwen Mining describes it. BN Americas provides more details about the magnitude of this project, ratification of the mining treaty and cooperation between both countries: Argentina and Chile - in order to provide the necessary support for the development of Los Azules. McEwen Mining is positioning Los Azules for the Join Venture and this deal will be the next step to de-risk this project and provide the new boost to its valuation. 

This very important project for San Juan and the whole of Argentina is ready to wake up. The higher copper prices are only the matter of time now with FED stepping on the accelerator again. Inflation is already raising its head thanks to the tariffs and the real future prices for commodities are only masqueraded by the trade war's headlines - but not for long anymore. The best cure for low prices is the low price. 

New copper mines are not coming online with copper prices below $3/lb. Just note on the chart below how projects NPV and IRR are vaporising with copper prices below $3/lb. 

The coming gaps between the copper demand which is driven by the exponential growth in sales of electric cars and renewable energy installations and supply which is still coming mostly from major copper mines which are more than 75 years old will shock the system. Price shocks are imminent. 

Needless to say that smart money (yes, this definition includes Central Banks now) is accumulating gold and all the best copper projects they can find in order to build the secure supply of critical metals for the Energy rEVolution which is gaining momentum with every new electric car on our streets. And this wonderful chart below demonstrates perfectly how investors are sceptical to this gold rally and commodities which are set for "The Perfect Storm". 

TNR Gold Copper Royalty Holding: McEwen Mining Was Awarded The PAE For The Los Azules Mining Project, Approved By Argentina And Chile, To Facilitate Mining Activity Between Both Countries.

Today our congratulations go to Rob McEwen and all the McEwen Mining Team! The giant Los Azules Copper project has received another validation from Argentina and Chile. Legendary Rob McEwen is developing this very important project and McEwen Mining was awarded the PAE (additional specific protocol) for the Los Azules project, approved by Argentina and Chile, to facilitate mining activity between both countries. It is our core royalty holding for TNR Gold and you can find more information about it on my blog and TNR Gold website.

PDAC 2019: TNR Gold Updates On Copper & Lithium Royalties And Shotgun Gold Project.

"Los Azules Copper Project NSR Royalty Holding 
In a news release dated February 21, 2019, McEwen Mining Inc. ("McEwen Mining") stated: "Our focus is on delivering near-term production growth from our projects in the United States and Canada, and on advancing Los Azules." The statement gives TNR confidence that McEwen Mining is keen to move the Los Azules project forward. 
In addition, McEwen Mining stated the following on its 100% owned Los Azules project: "We spent $6 million at Los Azules during 2018. The activities performed were mainly technical site investigations and environmental baseline monitoring work, to advance permitting efforts. We are currently investigating a new access route to the project that, if developed into a road, could provide year-round access to Los Azules, greatly accelerating the potential development of the project and reducing operating costs. Our 2019 exploration budget for Los Azules is $3 million." 
McEwen Mining's press releases and website material appear to be prepared by "Qualified Persons" (as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101")) and the procedures, methodology and key assumptions disclosed by McEwen Mining 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, nor to determine the current mineral reserve or resource or any other information referred to in their press releases. Accordingly, the reader is cautioned in placing any reliance on these disclosures. 
The Company holds a 0.36% royalty on the net smelter return ("NSR") royalty of the entire Los Azules copper project in Argentina. TNR summarized the PEA results in a news release issued on October 10, 2017."

Building The Green Energy Metals Royalty Company: TNR Gold Los Azules Copper NSR Royalty Holding Presentation April 2019.

100% owned by McEwen Mining, TNR holds a 0.36% net smelter return (NSR) royalty on the Project. The Los Azules Preliminary Economic Assessment (PEA) uses commodity price assumptions of $3.00/lb copper, $1,300/oz gold, and $17/oz silver, resulting in an un-discounted net smelter return over the life of the mining project of $35.2 billion, and $10.6 billion using an 8% discount rate. This means TNR’s 0.36% NSR royalty equates to ~$38m life of mine value after applying the 8% discount rate, based on the PEA’s assumptions."


Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.

BN Americas:

Published: Wednesday, July 10, 2019

Chile and Argentina strengthen protocols for binational projects

"Representatives of the Chilean and Argentine governments recently met to ratify collaborative efforts between the two countries to implement and promote their 22-year-old mining integration treaty.
The administration committee for the treaty, including the mining and foreign affairs ministries of both countries, met on June 26 to move forward with the administration of two specific protocols for two binational projects.
The integration treaty between Argentina and Chile has been in force since 1997 and its aim is to boost physical integration and economic cooperation for the development of mining activity along the border between the two nations.
The specific protocols are mechanisms within the treaty that allow the development of binational mining projects and are related to facilitation of border controls between the two countries. Up to now, two projects have been benefited from these protocols – McEwen'Los Azules project in Argentina and NGEx Resources's Vicuña project in Chile.
“It's highly remarkable that two countries have agreed to collaborate in different ways with projects that they have in common. This is a true reflection of the mature relationship that we have cultivated with Argentina” Chile's mining undersecretary, Pablo Terrazas, told BNamericas.
During the meeting, a protocol was outlined for McEwen’s project in Argentina's San Juan province. This is a porphyry copper project that comprises 18,000ha and envisions a mine and conventional concentrator (flotation circuit) producing copper concentrate for export.
The US$2.6bn project is currently accessed by mountain passes but which are usually blocked by snow during the winter and are only passable for five months of the year. The project can be accessed more easily from Chile's Coquimbo region since there is a route that receives less snow than the Argentine side of the border.
“This [the protocol] allows the exploration season to be extended, including the winter months. A PAE [Specific Additional Protocol] also allows the company to access the Chilean power grid and goods, services and suppliers from Chile, which have vast experience in the exploration and exploitation of these types of projects,” said Terrazas in an emailed response to BNamericas.
In the future, if the project is carried out and begins operations, the company can also ask for a PAE to export through Chilean ports, he added..."

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