TNR Gold Corp. Advises of McEwen Mining's Updated Preliminary Economic Assessment for the Los Azules Copper Project TNR.v, MUX
TNR Gold: McEwen Mining Announces Updated Preliminary Economic Assessment for the Los Azules Copper Project TNR.v, MUX
"As we have written extensively before, the coming Catalyst for McEwen Mining and, particularly, for TNR Gold will be the new PEA on Los Azules Copper.
Rick Rule On Gold & Resources: "The Stage Is Set For An Absolutely Dramatic Recovery" TNR.v, MUX
"TNR Gold provides even more risky and leveraged special situation play and now depends on Rob McEwen's Midas Touch - company holds 1 million shares of McEwen Mining and have back-in right into the part of Los Azules project. Insiders are accumulating the company shares, holding the majority stake in the company and provided long term debt which has financed Shotgun Gold project 43-101 resource estimate in Alaska this year."
Rob McEwen is on the road now promoting his company and moving fast forward. Ian Ball was nominated as the new President of the company and Craig Stanley joined the team as VP of Corporate Development from Stifel Nicolaus. Company is very well positioned now for the higher Gold and Silver prices and should Eric Sprott happen to be right again we have found how to run this new Gold Bull market. Janet Yellen's nomination to the FED Chair will help Gold miners as well, if Jim Puplava's tea leaves reading is right.
With Craig Stanley in charge we can expect M&A activity on behalf of McEwen Mining in the Gold and Silver sector and more active promoting of Los Azules Copper after PEA will put the new valuation on the project:"
All slides are from McEwen Mining Denver presentation.
Proactive Investors:
TNR Gold says updated McEwen PEA on Los Azules shows enhanced economics
"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.
TNR Gold Corp. (CVE:TNR) has advised investors thatMcEwen 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. "
Copper Investing News:
McEwen Mining Inc. (TSX:MUX,NYSE:MUX) announced the results of an updated preliminary economic assessment (PEA) for its Argentina-based Los Azules copper project, commenting that the results show that the project has the potential to become one of the world’s biggest and lowest-cost copper mines.
PEA highlights include:
- Pre-tax Net Present Value (“NPV”) of $3.0 billion (8% discount rate) and an Internal Rate of Return (“IRR”) of 17.6%.
- After-tax NPV of $1.7 billion (8% discount rate) and an IRR of 14.3%.
- Annual copper production during years 1-5 to average 255,000 tonnes (563 million lbs), which would have placed it in the top 3%1 of copper mines in the world during 2012. Life of mine (“LOM”) annual copper production to average 171,000 tonnes (377 million lbs) over 35 years.
- Cash operating costs during years 1-5 to average $0.87/lb copper (net of gold by-product), placing it in the bottom 14%1 in the world during 2012. Cash operating costs over entire mine life to average $1.08/lb copper (net of gold by-product).
- Indicated resource of 5.4 billion pounds of copper and 0.8 million ounces of gold and Inferred resource of 14.3 billion pounds of copper and 2.6 million ounces of gold (please see Table 2 below for resource details).
- Initial capital costs to construct the mine and a 120,000 tonnes per day (“tpd”) process plant have been estimated at $3.9 billion.
- Capital payback on a pre-tax basis has been estimated at 3.8 years at $3.00/lb copper and $1,300/oz gold.
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