Vancouver B.C., November 16, 2007: TNR Gold Corp. (“TNR”) is pleased to report that Minera Andes Inc. (“MAI”), the operator on the Los Azules property, plans to start its next phase of drilling within 30 days. MAI has also executed a definitive option agreement with Xstrata Copper covering the Los Azules porphyry copper project in San Juan province, Argentina. This information has been derived from a news release issued by MAI, the project operator, on November 14, 2007.
TNR’s option with Xstrata consists of approximately 20,000 acres located adjacent to the northern border of MAI’s Los Azules property. TNR granted Xstrata Copper an option over 100% of the property, subject to a 25% back-in right in favour of TNR. To earn the 100% option, Xstrata agreed to cash payments totaling US$560,000 and incur exploration expenditures totaling US$1,000,000 by May 15, 2008. In 2005 Xstrata optioned its 100% interest to MAI in exchange for making all the cash payments required and incurring $3,000,000 in exploration expenditures by May 15, 2008. All cash payments due to TNR by May 15, 2008 have now been received. All exploration expenditures have also been incurred and the properties have been transferred to Xstrata.
Drill results from MAI’s 2006 campaign at Los Azules confirmed significant high-grade copper on the property. An 11-hole drill program returned intervals up to 1.62% copper over 221 metres and 1% copper over 173 metres in separate holes, both of which are on the Xstrata optioned property.
TNR has a 25% back in clause on the property if a feasibility study is completed within 3 years of the exercise of the option, subject to payback of two times the expenditures on the property. If TNR backs in for 5% or less then its interest will convert to a 1% net smelter royalty. TNR maintains a strategic land position in the area.
Gary Schellenberg, Chief Executive Officer comments:
“We are very pleased to see an agreement in place between Minera Andes and Xstrata and the announcement by Minera Andes of the next phase of drilling on the property and will monitor the advancement of the property closely”
This agreement with Xstrata continues TNR’s strategy of identifying new prospective projects as well as fostering work on its large portfolio of base and precious metal properties in the Americas, with special emphasis on Argentina and Alaska.
On behalf of the board,
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release. Statements in this press release 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. News release contains 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.