TNR Gold Los Azules Copper M&A: Global Copper Deficit May Support Prices – Morgan Stanley

Copper M&A in Latin America, TNR Gold And McEwen Mining With Los Azules Copper.

 "We have the great news from McEwen Mining, you can Google for the whole news release. Before the value for Los Azules was based on the acquisition price paid by US Gold for Minera Andes. After the collapse in Gold prices and Argentina troubled couple of years this accounting value has became the wishful history. Now based on the valuations of Taca Taca in First Quantum Minerals takeover of Lumina Copper McEwen Mining will make the conservative accounting valuation of Los Azules. Normally the selling price for the assets is above such an assessment. You will have to make your own numbers or contact Jim Mustard at PI Financial, who is acting on behalf of TNR Gold. Read more."

TNR Gold Investor Presentation March 2014 from Kirill Klip

TNR Gold Corp. Comments on Recent News by McEwen Mining on the Los Azules Copper Project, Argentina.

"In their press release dated 17 July 2014 Rob McEwen states, "With First Quantum acquiring Lumina Copper and their Taca Taca project, Los Azules moves to the forefront in terms of world-class, undeveloped, high-grade copper assets not owned by a major mining company. As we have said in the past, Taca Taca serves as a good proxy for the value of Los Azules and we believe this transaction demonstrates value in projects located in Argentina."  The news release is available at SEDAR http://www.sedar.com and on the McEwen Mining website http://www.mcewenmining.com.  TNR encourages its shareholders to read the press releases issued by McEwen Mining to gain a better understanding of the work performed and the potential impacts this will have on the project.

McEwen Mining's press releases appear to be prepared by Qualified Persons 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 Gold Corp. has done sufficient work to analyze, interpret, classify or verify McEwen Mining's information to determine the current mineral reserve or resource or other information referred to in the press release. Accordingly, the reader is cautioned in placing any reliance on the disclosures therein.

“Los Azules is a unique, long-life, copper mining opportunity in Argentina. Recent acquisitions that include the Las Bambas copper mining project in Peru acquired by Minmetals Group from China and the Taca Taca copper deposit in Argentina acquired by First Quantum Minerals confirm there is significant value to be realized for projects in this region. We are pleased that large-scale, capital intensive projects like Los Azules are attracting attention from global mining companies, increasing our ability to monetize our portion of the asset. In our opinion, McEwen Mining's latest analysis provides a solid base value for the asset,” commented Mr. Kirill Klip, Non-Executive Chairman of TNR. Read more."

Kitco:

Global Copper Deficit May Support Prices – Morgan Stanley

Monday August 25, 2014 8:15 AM

The global copper market is at its biggest deficit in seven years, says Morgan Stanley, citing data from the International Copper Study Group. The group says the copper deficit is 466,000 metric tons for the January-May timeframe, versus a 250,000 surplus in the same period of 2013, Morgan Stanley says, while adding its full-year forecast is for a 90,000 ton deficit. ICSG also showed global use was up 15% year-over-year, with strong demand out of China seen. “Given this wide supply shortfall, we remain comfortable with our forecast for deficit conditions this year and next, as well as progressively higher prices,” Morgan Stanley says, also forecasting London Metal Exchange copper prices to average $7,165 a metric ton in the fourth quarter. Kitco."

TNR Gold Corp. Comments on Recent News by McEwen Mining on the Los Azules Copper Project, Argentina.

Copper M&A in Latin America, TNR Gold And McEwen Mining With Los Azules Copper.

 "We have the great news from McEwen Mining, you can Google for the whole news release. Before the value for Los Azules was based on the acquisition price paid by US Gold for Minera Andes. After the collapse in Gold prices and Argentina troubled couple of years this accounting value has became the wishful history. Now based on the valuations of Taca Taca in First Quantum Minerals takeover of Lumina Copper McEwen Mining will make the conservative accounting valuation of Los Azules. Normally the selling price for the assets is above such an assessment. You will have to make your own numbers or contact Jim Mustard at PI Financial, who is acting on behalf of TNR Gold. Read more."

TNR Gold Investor Presentation March 2014 from Kirill Klip

TNR Gold:

TNR Gold Corp. Comments on Recent News by McEwen Mining on the Los Azules Copper Project, Argentina

Vancouver, B.C. August 13, 2014, TNR Gold Corp. (the "Company" or “TNR) (TSX VENTURE: TNR.V) advises that McEwen Mining Inc. (NYSE:MUX, TSX:MUX) ("McEwen Mining") has issued news releases dated 17 July, 2014 and 07 August, 2014 in relation to the Los Azules Copper Project in San Juan Province, Argentina. TNR holds a 25% back-in right, exercisable upon the completion of a feasibility study, on the northern part of the Los Azules property.

The news releases issued by McEwen Mining summarize the results of an impairment test conducted on Los Azules as a result of the recently announced acquisition of Lumina Copper Corp. by First Quantum Minerals Ltd. to gain ownership of the Taca Taca copper project in Salta, Argentina. McEwen Mining recognized that the similarities between Los Azules and Taca Taca in terms of project scale and location within Argentina gave sufficient cause for the impairment analysis that resulted in McEwen Mining recording an impairment charge for Los Azules in its second quarter.

The Company is of the view that the impairment recorded by McEwen Mining on Los Azules does not have an adverse affect on the Company's valuation of its back-in right in the Los Azules deposit and the ongoing evaluation of the sale of its rights to the deposit (see TNR news release May 8, 2013).

In their press release dated 17 July 2014 Rob McEwen states, "With First Quantum acquiring Lumina Copper and their Taca Taca project, Los Azules moves to the forefront in terms of world-class, undeveloped, high-grade copper assets not owned by a major mining company. As we have said in the past, Taca Taca serves as a good proxy for the value of Los Azules and we believe this transaction demonstrates value in projects located in Argentina."  The news release is available at SEDARhttp://www.sedar.com and on the McEwen Mining website http://www.mcewenmining.com.  TNR encourages its shareholders to read the press releases issued by McEwen Mining to gain a better understanding of the work performed and the potential impacts this will have on the project.

McEwen Mining's press releases appear to be prepared by Qualified Persons 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 Gold Corp. has done sufficient work to analyze, interpret, classify or verify McEwen Mining's information to determine the current mineral reserve or resource or other information referred to in the press release. Accordingly, the reader is cautioned in placing any reliance on the disclosures therein.

“Los Azules is a unique, long-life, copper mining opportunity in Argentina. Recent acquisitions that include the Las Bambas copper mining project in Peru acquired by Minmetals Group from China and the Taca Taca copper deposit in Argentina acquired by First Quantum Minerals confirm there is significant value to be realized for projects in this region. We are pleased that large-scale, capital intensive projects like Los Azules are attracting attention from global mining companies, increasing our ability to monetize our portion of the asset. In our opinion, McEwen Mining's latest analysis provides a solid base value for the asset,” commented Mr. Kirill Klip, Non-Executive Chairman of TNR.

 ABOUT LOS AZULES

The Company has a 25% back-in right in the Northern Portion of the Los Azules property which is exercisable following the completion of a feasibility study.  If the Company elects to back-in for 5% or less or has its interest diluted to 5% or less, TNR will receive a net smelter royalty of 0.6% from the Northern Portion. 

The Los Azules copper deposit is located in the San Juan province of Argentina. McEwen Mining Inc. is the current operator on the Los Azules copper deposit and the Company has previously advised that on May 15, March 28, and March 13, 2013, McEwen Mining Inc. issued press releases in relation to the deposit, which are accessible on Sedar at http://www.sedar.com and on McEwen Mining Inc’s website athttp://mcewenmining.com.

 ABOUT TNR GOLD CORP.  (www.tnrgoldcorp.com)

Over the past twenty-one 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 is well positioned to aggressively identify, source, explore, partner and continue to expand its project portfolio.

TNR Gold recently reported an inferred mineral resource at the Shotgun Gold project in Alaska containing 20,734,313 tonnes at 1.06 grams per tonne (“g/t”) gold for a total of 705,960 ounces gold (“Au”) using a 0.5 g/t Au cut-off (see news release dated 22 April 2013).

TNR is also a major shareholder of International Lithium Corp. (TSX:ILC.V) (“ILC”), a company created by TNR to advance its internationally acquired lithium prospects. TNR currently holds about 25.5% of the outstanding shares of ILC.

At its core, TNR provides significant exposure to gold and copper through its holdings in Alaska and Argentina and is committed to continued generation of in-demand projects, while diversifying its markets and building shareholder value.

John Harrop, PGeo, FGS, is a "Qualified Person" as defined under NI 43-101 and has reviewed and approved the technical content of this news release.

For further details please see our website at http://www.tnrgoldcorp.com/s/NewsReleases.asp

On behalf of the board,

Gary Schellenberg

President

Neither the 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 Q&A. Statements in this Q&A other than purely historical information, historical estimates should not be relied upon, including statements relating to the Company’s future plans and objectives or expected results, are forward-looking statements. Q&A may contain certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company’s business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

Copper M&A in Latin America, TNR Gold And McEwen Mining With Los Azules Copper.

  

  We have the great news from McEwen Mining, you can Google for the whole news release. Before the value for Los Azules was based on the acquisition price paid by US Gold for Minera Andes. After the collapse in Gold prices and Argentina troubled couple of years this accounting value has became the wishful history. Now based on the valuations of Taca Taca in First Quantum Minerals takeover of Lumina Copper McEwen Mining will make the conservative accounting valuation of Los Azules. Normally the selling price for the assets is above such an assessment. You will have to make your own numbers or contact Jim Mustard at PI Financial, who is acting on behalf of TNR Gold.

McEwen Mining:

"We are conducting an impairment test of our Los Azules project in Argentina as a result of the recently announced acquisition of Lumina Copper Corp. by First Quantum Minerals Ltd., for approximately C$470 million. Lumina's only significant asset is the Taca Taca copper project located in Salta, Argentina. While there are some notable differences between Taca Taca and Los Azules, we believe the similarities in project scale and location within Argentina warrant consideration for the Lumina transaction to be a triggering event for impairment analysis. Our preliminary analysis, which places a substantial weighting on the announcement day value of the Lumina transaction to value Los Azules, indicates a pre-tax asset impairment charge in the range of approximately $90-135 million⁽¹⁾. The actual amount, when we have completed the final impairment assessment, will be reported in our quarterly 10-Q which is due to be filed on August 7, 2014.

"With First Quantum acquiring Lumina Copper and their Taca Taca project, Los Azules moves to the forefront in terms of world-class, undeveloped, high-grade copper assets not owned by a major mining company. As we have said in the past, Taca Taca serves as a good proxy for the value of Los Azules and we believe this transaction demonstrates value in projects located in Argentina", said Rob McEwen , Chief Owner, Chairman and CEO.

(1) This is a preliminary estimate range and the impairment testing work, both internally and in collaboration with our external valuation consultants is ongoing, including with respect to various underlying assumptions and comparable transaction analysis. We note that the Lumina/First Quantum transaction is not scheduled to close until approximately August 30, 2014. As of March 31, 2014, we carried the Los Azules project at a pre-tax net book value of approximately $431 million."

Mining M&A in Latin America, China And Prospects For Copper Supply.

  "Chile, Indonesia, USA, Australia and Canada together account for 80% of the world’s copper supply, and with the revived interest in the metal, many national companies are now making headlines with plans of acting to relieve demand pressures and ease supply shortfalls, signalling the potential turnaround and the major bottom in this mining cycle anticipated in the copper market. Read more." 

All slides in this part of the post are from McEwen Mining presentations.

Please Note that TNR Gold Qualified Person - as it is defined by NI 43-101, was NOT able to Verify and Confirm Any Provided Information by The Third Parties; you must NOT rely in any sense on any of this information in order to make any Resource or Value Calculation, or attribute any particular Value or Price Target to any Discussed Securities.

  Please find more information on TNR Gold website.

End of slides from McEwen Mining presentations.

Mining M&A: China's Top Gold Firm Talking To Barrick And Friedland As Copper Rallies.

    

  As we have discussed before, we have really Hot Winter In Argentina for mining M&A. Now Frik Els confirms "China's Top Gold Firm Talking to Barrick Gold, Has Friedland "hotline":

"China's largest gold mining company, China National Gold, is officially setting up shop in junior mining hub Vancouver this week as part of a push into new markets and its global acquisition strategy.

President Xin Song told the Wall Street Journal ahead of Wednesday's event, the Beijing-based firm is on the hunt for global acquisitions and partnerships in gold, silver and copper:

"The growing strategy is very clear, we are going out looking at things globally. On our hands we have a few opportunities, at different stages."

Song, who also chairs the China Gold Association, has not ruled out acquisitions in developed countries, such as Canada, Australia and the US, but the main focus of its expansion strategy is assets in the region including in Mongolia, Russia and countries in central Asia.

Investments in "politically stable" countries in Latin America and Africa are also being considered Song said. Mining.com"

TNR Gold Los Azules Copper: Chinese M&A - Watch Out For Las Bambas Effect.

  

  "Frik Els provides a very good insight into the Chinese deal culture and mining M&A particularly. Las Bambas deal is not only the very good indicator of the turning mining cycle, but also provides guidance for the smaller companies in China to go on The Hunt For Copper and other commodities. You can witness this approach in our particular case of Strategic Commodities with International Lithium and Ganfeng Lithium as well. Read more."

TNR Gold Investor Presentation March 2014 from Kirill Klip

TNR Gold: Los Azules Copper And M&A in Argentina - First Quantum Minerals to Acquire Lumina Copper For $470 Million.