Thursday, May 09, 2013

TNR Gold - McEwen Mining: "Los Azules Copper final bids are due late Q2" MUX, TNR.v

  Now you can slice and dice it: what will be the price for Los Azules and what will be the effect on McEwen Mining and, particularly, TNR Gold valuations and market caps. All slides are from McEwen Mining presentations.

From McEwen Mining:

"The Company has been exploring options to finance construction of El Gallo 2. The preferred alternative is a sale of Los Azules. The sales process began mid-January and final bids are due late Q2. The Company has investigated other alternatives should the sale Los Azules not proceed. This includes debt, equity and equipment leasing. An update will be provided in Q2."

Los Azules Copper ProjectArgentina (100%)
Los Azules is one of the world's largest and highest grade undeveloped copper porphyry deposits. This drill seasons exploration program, with a budget of $25 million, was completed in April.McEwen Mining has begun work on an updated Preliminary Economic Assessment (PEA), which is expected to be completed in Q3 this year. The updated PEA will be based on a significantly larger mineral resource. It will evaluate the possibility of (1) increasing the daily throughput; (2) producing copper cathode instead of a concentrate and (3) processing low-grade mineralized material not previously considered, via a heap leach. The advantage of being able to produce a copper cathode is that it would eliminate the contemplated slurry pipeline through Chile and would reduce Argentina's current export tax on concentrate."
In a separate release of Q-10 McEwen Mining has confirmed that new resource estimate on Los Azules will be released by the end of May 2013.

PI Financial Corp. Engaged as Financial Advisor for Sale of TNR Gold's Back-in Right to the Los Azules Copper Project, Argentina TNR.v, MUX

"Vancouver B.C., May 08, 2013: TNR Gold Corp. (the "Company" or "TNR") Is pleased to announce that it has retained the services of PI Financial Corp. to provide financial advice regarding the sale of its back-in right to the northern portion of the Los Azules copper project in Argentina.  TNR has a back-in right (TNR press release February 5, 2013) allowing it to acquire a 25% interest in certain mineral concessions at Los Azules that includes the northern portion of the deposit (the "Northern Portion")."

McEwen Mining Provides Q1 2013 Operational and Development Update

TORONTO, ONTARIO--(Marketwired - May 9, 2013) - McEwen Mining Inc. (NYSE:MUX)(TSX:MUX) is pleased to provide a summary of significant developments and first quarter operating results during Q1, 2013. (All Amounts in US Dollars Unless Otherwise Stated)
Q1 Highlights
  • El Gallo 1, our 2nd mine began commercial production.
  • Gold equivalent production increased by 31% to 29,839 ounces (17,001 gold ounces and 667,555 silver ounces) versus Q1, 2012.
  • On target to produce 130,000 gold equivalent ounces this year.
  • Cash costs totaled $885 per gold equivalent ounce. Costs increased due to the work stoppage at San José (which added $55 per ounce) and inventory adjustments (which added $60 per ounce). Lower costs are expected for the remainder of the year.
  • Total sustaining costs totaled $1,507 per gold equivalent ounce. Costs increased due to development being ahead of schedule (which added $90 per ounce), additional exploration drilling at El Gallo 1 (which added $35 per ounce), timing of sales (which added $40 per ounce) and the items outlined in the bullet above (which added $115 per ounce). Lower costs are expected for the remainder of the year.
  • Increased the mineral reserve and resources, including grade, at San José. Mineral resources are at record levels.
  • At March 31, 2013 Financials: $50.6 million in liquid assets and no debt.
  • El Gallo 2 received its Municipal construction permit. Targeting end of Q3 for remaining approvals."
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