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”).
Los Azules is an advanced stage copper porphyry project owned and operated by McEwen Mining Inc. (TSX:MUX; NYSE:MUX) (“McEwen Mining” or “McEwen”), who describe the project in news releases as “one the world’s largest, highest copper grade, undeveloped porphyry deposits not controlled by a major base metal mining company.” The Company advises that McEwen has published news releases and reports, which are filed on SEDAR at http://www.sedar.com, that describe a resource both on and adjacent to the area subject to TNR’s back-in right. The total published resource, for which TNR’s back-in right includes an undetermined portion, consists of an indicated resource of 310 million tonnes grading 0.65% Cu and an inferred resource of 1,302 million tones grading 0.49% Cu (using a 0.35% Cu cut off grade).
“I welcome the opportunity to monetize our back-in right. We have an asset portfolio that will greatly benefit from the sale of the Los Azules asset. For example, the development of our Shotgun project which our team is ready to further develop and explore the gold resources upon,” states Mr. Kirill Klip, Non-Executive Chairman of TNR. “It was for the potential of the Los Azules project and TNR’s ability to identify top quality projects at an early stage of development, that I became involved in the company.”
TNR has no ownership of the Los Azules Project prior to exercise of the back-in Right and as such presents information about the project as that of independently published information regarding the entire property. TNR encourages its shareholders to read news releases and reports issued by McEwen Mining to gain a better understanding of the Los Azules Project. McEwen Mining’s news releases and reports appear to have been 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 news releases and reports. Accordingly, the reader is cautioned in placing any reliance on the disclosure herein.
The Company is also pleased to announce that as part of the settlement terms with McEwen Mining, (TNR press release February 5, 2013) the transfer of the Escorpio IV mineral rights to McEwen Mining Inc. is now complete and TNR has received the certificates representing 1 million shares of McEwen Mining Inc. (information about McEwen Mining can be found at http://www.mcewenmining.com and on Sedar at http://www.sedar.com). The shares are subject to the minimum statutory hold period.
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 advises that on March 13 and March 28, 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.
The press release issued by McEwen Mining Inc. dated March 28, 2013 includes preliminary results from drilling operations on the Los Azules copper deposit for the current exploration season. McEwen Mining Inc’s press release appears to be prepared by qualified persons, but no independent qualified person engaged by TNR Gold Corp. has done sufficient work to analyze, interpret, classify or verify McEwen Mining Inc’s information to determine the accuracy of 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 subject results and estimates.
McEwen Mining is completing a drilling program to further expand the resource to the west and to depth. McEwen Mining has also stated that an updated preliminary economic assessment (“PEA”) will be completed later this year that will utilize the expanded resource (expected by the end May 2013) and will incorporate results of recent metallurgical work focused on floatation optimization and copper leaching (see MUX press release of March 13, 2013).
ABOUT PI FINANCIAL
Established in 1982, PI Financial, is a leading, full-service, independent investment dealer, providing a full range of investment products and services to corporate and institutional investors. PI has been advising and servicing the capital needs of the global mining industry for over 30 years with its very specialized and focused group of professionals.
ABOUT TNR GOLD
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.
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 commited 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 https://tnrgoldcorp.com///s/NewsReleases.asp
On behalf of the board,
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.