TNR Gold Corp. (CVE:TNR) has advised investors that McEwen Mining (TSE:MUX) (NYSE:MUX) has issued an updated preliminary economic assessment on the Los Azules copper project in San Juan, Argentina, on which TNR holds a 25 per cent back-in right for the northern portion, exercisable upon completion of a feasibility study.
"The new PEA includes plans for producing copper cathode at site, which will greatly reduce export taxes and project risk by eliminating the need for a slurry pipeline," said Rob McEwen, chief owner of McEwen Mining, in a statement accompanying the news released Monday.
In the release, McEwen said the results show the potential for the property to become one of the largest, lowest cost copper mines in the world, with "excellent exploration potential" remaining to further expand the resource. 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.
Earlier this year, TNR hired PI Financial as a financial advisor in an effort to monetize its back-in right to the northern portion of Los Azules, which will help give it the necessary cash to further develop its Shotgun project in Alaska.
TNR, which has no ownership of Los Azules prior to the exercise of its back-in right, encouraged its shareholders to read the news release and report issued by McEwen Mining to gain a better understanding of the project. The company also cautioned that no "Qualified Person" engaged by TNR has done sufficient work to analyze McEwen's information to determine the current mineral reserve or resource referred to in the press release.
In other news, as TNR continues to cut costs and focus on its core mineral properties, it says it has relinquished the mineral rights to the Iliamna project in Alaska and the Soule's Bay project in Ontario.