Thursday, 16 January 2020

Powered By Tesla Energy rEVolution: TNR Gold Los Azules Copper NSR Royalty Holding With McEwen Mining Presentation.

We have been talking about these megatrends, tectonic shifts in our society and signs for years, now it is finally happening. Talk is cheap, the money will tell all the story when they will take the position and only after that you will start hearing about "the next unbelievable opportunity". You know, what I am talking about here - I will provide the road maps and a lot of charts, as usual, but you will have to Do Your Own Research and pick up the winners. I know mine.

We have been discussing the very small and interconnected mining world here a lot, it helps us to manage our development risk and to navigate between booms and busts of the commodity cycles:

"For all our followers it will be a very interesting situation. TNR Gold is holding NSR Royalty on the entire Los Azules Copper in San Juan, Argentina. The "sleeping giant" - as Rob McEwen calls it - is being developed by McEwen Mining. Rob McEwen has partnered with Eric Sprott and Electrum Group in the quest for the next Donlin Gold in Alaska - the giant gold project which is being developed by JV between Nova Gold and Barrick Gold. The new venture is making waves in the industry after first drilling results and bought financing last week. TNR Gold is advancing Shotgun Gold near the Donlin Gold in Alaska and looking for a strategic partner to grow together and now Barrick Gold is looking for strategic copper for growth. The mining world is really small once you start counting respectable people with money."

Please always read legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blog. Always consult a qualified financial adviser before any investment decisions. 
Do Your Own Research.

TNR Gold GEM Royalty Company Powered By Energy rEVolution: Rob McEwen Talks About Gold, Silver And Giant Los Azules Copper Project.

As we have discussed here, the total global mutual annihilation during the Mexican standoff was avoided and algos are driving market crazy to the all-time highs every other day based on the coming headlines. Yield curves are "uninverted" again, "Nothing's gonna stop us now" is blasting off and Gold was smacked on its head but with great difficulty this time. You remember: "fool me once ... and mission accomplished." 

Ray Dalio is throwing into the towel and just calling it as we all have been feeling for a very long time: "The world has gone mad and the system is broken". I would presume that this headline is not the breaking news for us here, but as usual, it is very important who is talking about it this time.

Our brave scientific thesis that QE is back is confirmed now, floodgates are wide open and election cycle pumping machine is blowing hot air in every bubble algos can find. POTUS has got his 3 FED rate cuts and is making his best "Chinese Salami Deal" possible to keep the Titanic Party going. The deal is coming one piece at the time and is all over the place, but as we have noted before: even the absence of war can ignite metals' rally. Copper is cooperating even if still quite hesitantly with our observations and invitation to participate in the fireworks as the main treat for the festive season. 

Social media, AI and algos are driving and following all this exercise at the same time, they can do a lot of things, but solid values are still out of their reach before robots will take over. (Hopefully, by that time we will be really filthy rich with our lithium holdings residing on a secluded island and it all will be not so important.) You cannot code Gold 2.0, print Copper and Lithium. I will throw for your judgement in a couple of years time another brave idea. 

I think that a lot of people will be very surprised how they could miss a generational opportunity of the unique entry point in the best Copper plays they can find now.  

As usual, please never be too excited by the headlines to be carried away from your money, do your own research and you will have to pick the winners. In our particular case, TNR Gold is building The Green Energy Metals Royalty and Gold Company and we have a very interesting update from Rob McEwen himself on Gold and giant Los Azules Copper project. GEM Royalty is holding 0.36% NSR Royalty on the entire Los Azules project and we are ready to meet "The Perfect Storm" in Copper with the blessing of Rob McEwen and his Midas touch this time. 

Tesla Energy rEVolution And The Golden Age For Copper: Kirill Klip GEM Royalty TNR Gold Copper Presentation November 2019.

"Always do your own research - I do not honestly know how to prepare to that sad end. In all other potential cases, I can only point out to my personal experience of making the best investments by buying when "blood was almost literally on the streets" like with Tenke Mining starting my acquisitions at CAD 40 cents during the civil war in DRC and following Lukas Lundin with his motto: "politics will change, resources in the best projects will stay". Later, Lukas made a lot of investors of Tenke Mining very happy during his buy out by Lundin Mining at CAD$20 dollars. I have followed him and found TNR Gold many years ago - now we have Los Azules Copper NSR Royalty among our other assets and building The Green Energy Metals Royalty and Gold Company."

From McEwen Mining Q3 report:

Los Azules Project, Argentina (100% Interest)
During Q3, we continued to advance permitting efforts, preliminary engineering and cost estimating for the proposed low altitude all year access route.
From McEwen Mining Q3 CC transcript:

Christopher Stewart -- President and Chief Operating Officer

At our Los Azules copper project in Argentina our activity is focused on technical site investigations and permitting work. During the third quarter of 2019 we continued on preliminary engineering and developing cost estimates to advance the proposed low-altitude all-year-around Northern access route for Los Azules. The environmental baseline monitoring work continued along with other items which were identified as necessary to develop a conforming environmental impact assessment submission. The environmental work included geological mapping of the tailings to Amazon.

Jared Chase -- Private Investor -- Analyst
Good morning, Rob.
Robert McEwen -- Chairman and Chief Owner
Good morning, Jared.
Jared Chase -- Private Investor -- Analyst
I have been following you since Gold Corp, and the Timmins area reminds me a great deal of Red Lake. And since we had a nonrecurring problem this year, it will not be repeated. But my interest right now is Los Azules in Argentina, the 26th largest copper mine in the world. Now I didn't know, did you have any assessment of how much silver is in that mine? And to a lesser extent, gold? Because as you know that now, silver is a bi-product of other mines, like copper, lead, zinc, etc. Do you have an assessment how much silver is in that Los Azules mine?
Robert McEwen -- Chairman and Chief Owner
Yes, Jared. There's -- the resources are in the indicated and inferred category, and there's approximately 190 million ounces of silver, albeit it's low grade. There's 5.5 million ounces of gold, again, low grade. And then there is just under 30 billion pounds of copper.
Jared Chase -- Private Investor -- Analyst
That's a lot.
Robert McEwen -- Chairman and Chief Owner
It is a lot.
Jared Chase -- Private Investor -- Analyst
Robert McEwen -- Chairman and Chief Owner
Jared Chase -- Private Investor -- Analyst
As you said, Rob, it's a wild card. But the other question is that these individuals that have been asking is operational. Now as a market person I'm interested in what you've done regarding a $300 million expense from Primero of $35 million CAD 167000 for a great deal in Timmins. That's what impresses me. Okay? Now based on Los Azules there's a few hungry people out there with a lot of money like China and Chile whose demands are adequated and even your partner of many years Hocschild have you been approached by these people? And secondly, could you really state the criteria that you require when you do a deal?
Robert McEwen -- Chairman and Chief Owner
Happy to. We had past discussions with a senior base metal producer. What we were looking for was recovering part of the cash we put in. We were looking for $100 million upfront that the partner would advance the project to feasibility and then into production and we would continue with an interest of 20% or 25% of the property going forward. The PEA that we prepared in 2015 with Hatch engineering envisioned a mine with a 36-year life. This deposit isn't in production. You mentioned the 26th largest. If it were to be in production today it would rank as the 26th largest. And based on the preliminary economic assessment, it would be producing in the first 13 years 415 million pounds of copper a year at $1.14 a pound which would put it in the lowest cost quartile for the industry globally. If -- I heard some projections yesterday about the growth of the Southeast Asian countries, which have a population of aggregate of about 2.4 billion people and China is about 1.3 billion. And at least this forecaster was looking and saying that in the next 10 years Southeast Asia, the Southeast Asian countries will have a GDP equal to China, even if they grow at half the rate China has been growing at. They're urbanizing. They're electrifying. They're going to be needing lots of base metals. Copper is going to be [Indecipherable]. So, I think the outlook for copper is good and China and the Southeast Asian countries are developing their own markets and it's no longer just the place where the Western world outsourced manufacturing. They have their own demands and their societies and economies are growing.
So Los Azules we advanced a lot this year. We got an agreement between Chile and Argentina. It's across the border. We've mapped out roots and had conversations with communities on either side of the border, one going out through Chile to the Pacific. The Northern route would -- dramatic that we've mapped out and are going to begin construction on either late this year or the beginning of next year will permit us to get in on a low-altitude -- lower-altitude route that would be opened 12 months of the year as opposed to what we currently have is a four to five-month window and then extremely expensive snow clearing and probably a very dangerous route in if we were to go in the existing way. So roots, we'll have a video out shortly, showing the mine and how it's going to develop the access. Happy to provide you with an update that we've provided. You want to send me an email or provide your email now? We'll put it up on the web, so that all can see it. And they can see how much work has been done there. What we've been doing is trying to take steps that would de-risk the project and make it more attractive to a potential joint venture partner.
Jared Chase -- Private Investor -- Analyst
Robert McEwen -- Chairman and Chief Owner
A larger balance sheet than we have.

James Elkins -- Private investor -- Analyst
Hi, Rob. This is Carl [Phonetic]. I haven't spoken to you for a couple of years but I've been with the company since it was called US Gold and I participated in the rights offering. And boy I'll tell you what, it's just us slicing down deals in 2011. I don't think I've ever been as worried about the finances to-date. Question for you, as last time we had the Argentina upset regarding the capital control. So we couldn't get money out. So I'm wondering if you're anticipating that to happen again. And secondly, most importantly, I want to know if you've changed your outlook for 5,000 ounces of gold or moved your timetable up a little bit that might help me our a lot. I'll listen for Rob sakes.
Robert McEwen -- Chairman and Chief Owner
Thank you. The Argentina -- currently, we're getting money out of Argentina. The election has just occurred. The new government will go in take power in January. The country is desperate for foreign currency, foreign reserves. They have an export tax on right now. They've been changing some of the banking rules. It hasn't restricted the outflow of cash at this point. I think the government is going to have to show signs and take steps to encourage foreign investment, which the country desperately needs. I'm hoping there's a -- and maybe it's a false hope, but a change in the approach of the government. The government that was defeated was pro-business, but they just found themselves. There was a slight of capital from the country and they had to grab export dollars wherever they could. It's difficult to predict what Argentina is going to do, but looking at their financial situation there, our Los Azules property is one of the large copper deposits -- one of the few large copper deposits, they want to see developed there.
If they're going to attract any foreign capital, they're going to have to be much more accommodating. And in terms of $5,000 yes. I still believe in that. You just look around the world, the amount of debt that's been put in place, the amount of money floating around. The -- if you want to call it, there's a bubble in everything right now, except for the precious metals. And it's coming."

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