McEwen Mining (NYSE: MUX)(TSX:MUX) announced a development for its Los Azules copper project on Tuesday. The Environmental Impact Assessment (EIA) for the project has been approved by the San Juan province in Argentina, moving the proposed mine closer to the construction phase, potentially as soon as 2026. The approval marks a significant milestone for the project, which is expected to become a major contributor to Argentina’s mining sector and a key player in the global copper industry.

Located 80 kilometers west-northwest of the town of Calingasta and just six kilometers from the Chilean border, Los Azules sits at an elevation of 3,500 meters in the Andes Mountains. According to a preliminary economic assessment published in 2022, the project is estimated to produce approximately 322 million pounds of copper annually in cathodes over a 27-year lifespan. The copper resources are reported at 10.9 billion pounds in ore with an average grade of 0.40% copper in the indicated category, and 26.7 billion pounds of material grading 0.31% copper in the inferred category.

McEwen Mining describes Los Azules as a “multi-generational green copper asset,” emphasizing sustainability in its design and operations. Rob McEwen, the company’s executive chairman, has previously articulated a vision for Los Azules as a model of sustainability, innovation, and economic efficiency.

The project is set to adopt cutting-edge technology to minimize environmental impact. It plans to use less than 25% of the water required by conventional copper processing methods, reduce carbon emissions by more than half, and consume less than half the energy typically needed. Power for the site will come entirely from renewable energy sources supplied by the Argentine state-owned company YPF Luz.

An important component of the project’s technological edge is the involvement of Nuton, a venture by Rio Tinto (NYSE: RIO; LSE: RIO; ASX: RIO). Nuton specializes in proprietary heap leaching technology, which could enhance efficiency and reduce environmental impacts. Nuton recently reinforced its support for Los Azules by investing $35 million, increasing its stake in McEwen Copper, the subsidiary managing the project.

The EIA approval underscores the San Juan province’s support for mining initiatives and copper extraction. McEwen Mining submitted the EIA in April 2023, with the document prepared by engineering firm Knight Piesold and a team of 22 experts.

Michael Meding, Vice President and General Manager of McEwen Copper, commented in a press release: “This milestone propels Los Azules forward and highlights its transformative potential for the province and Argentina’s mining industry.”

San Juan’s government has expressed consistent support for mining projects, seeing them as opportunities to enhance economic development in the region. The province has established itself as a significant hub for Argentina’s mining activities, and the approval of Los Azules aligns with its strategic goals.

With the EIA approved, McEwen Mining is preparing for the definitive feasibility study, expected in the first half of 2025. This study will determine the precise technical and economic parameters for the project. Construction is anticipated to begin by late 2025 or early 2026, provided the project clears additional regulatory and financial hurdles.

The company plans to raise $2.5 billion to fund construction. Speaking to Reuters recently, Meding confirmed that the EIA approval was a key step toward this fundraising effort, enabling McEwen Mining to engage with investors with greater confidence.

McEwen Mining (TSX:MUX) (NYSE:MUX), a gold mining company based in Canada, reported new assays from its Stock West target within the Fox Complex. The site, situated about 45 km east of Timmins, has been the flagship project for the company for some time, and comprises multiple drill testing sites. 

This venture aims to expand the company’s reach in the project and create new drill sites for future production. The reported assays are the result of drilling less than 500 metres west of the mill. 

Highlights at Stock West Drilling 2020-2021:

• 8.43 g/t Au over 14.3 m, including 23.68 g/t Au over 1.1 m – hole S20-138a
• 6.76 g/t Au over 15.6 m, including 43.00 g/t Au over 0.4 m – hole S20-148
• 6.08 g/t Au over 25.7 m including 28.30 g/t Au over 0.6 m – hole S20-149
• 6.21 g/t Au over 19.0 m – hole S20-154
• 3.80 g/t Au over 7.3 m – hole S21-157

The company’s modeling efforts have shown that there is continuous mineralization, hinting at a potentially attractive mineable area. 

Discovered in late 2019, Stock West is now being drill tested in a fully funded $20 million program at the Fox Complex that includes exploration and delineation. Seven drills are active at the Fox Complex, with four of them being at Stock West, Stock Main hosting one (500 east of Stock West), and two at Grey Fox. Due to its potentially high mineralization results and ease of integration into other operations at the Fox Complex, Stock West is being seriously evaluated as a potential mining operation along with the Grey Fox deposit at the Fox Complex, about 32 km east of the site.

The company acquired the Fox Complex in 2017 from Primero Mining for US$35 million. At the time, it included the Black Fox underground gold mine, producing 2,400 tonnes per day, Stock gold mine (producing in the past), a tailings facility, and Grey Fox and Froome (two development projects). Exploration was launched at Stock in 2018, during which it identified and defined deposits east and west of the mine. 

McEwen Mining (TSX:MUX) (NYSE:MUX) has also committed $5 million toward drilling at its Gold Bar project in central Nevada, about 48 kilometres northwest of Eureka. RGM044M intersected 24.3 metres, grading 3.4 grams gold from 68 metres. The investment in the project will be used to delineate new resources, replace mining depletion, and further de-risk the geological and metallurgical models that will form the basis on which to build for future production planning. 

With a $716.3 million market capitalization, McEwen Mining (TSX:MUX) (NYSE:MUX) continues to grow and consolidate much of the gains of the investments being poured into exploration right now. Its joint venture partner Hochschild Mining is beginning a $9.3 million drill program in 2021 at its San Jose mine in Argentina. The majority of that investment is earmarked for exploration drilling of priority targets, including the mine’s Escondida Vein and the Telken target. With a 49% interest in the project, McEwen Mining (TSX:MUX) (NYSE:MUX) is set up to see continued growth in its gold portfolio, share price, and market cap. 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above. 

I recently returned from a hectic trip to Toronto for an annual mining industry investment conference known as PDAC.  I met with 28 companies and spoke to dozens of investors.  I expected to talk a lot about Lithium & Cobalt— how the sell-off in those sectors could be close to over, how demand forecasts keep rising in the face of uncertain long-term supply, etc.

Although there were plenty of discussions on the, “battery metals,” I was surprised by the universal excitement over a metal that’s old school, but also indispensable to the future of electric vehicles & renewable energies….  A metal that needs no further introduction…. #Copper. 

One of the best stories I heard at PDAC was an update from Keith Henderson M.Sc., CEO & Director of Centenera Mining Corp. [TSX-V: CT / OTC: CTMIF], an Argentina-focused company with attractive Copper (“Cu”) & Gold (“Au”) exploration projects.  Upon a positive change in Argentina’s government in 2015, Centenera was quick to move more actively into the country. 

Drilling is underway at the Company’s flagship project, and management believes that it’s going quite well.  The first assay is expected around the end of March.  

The crown jewel asset and primary focus of Centenera this year is the 100% controlled, near-surface Esperanza copper-gold project — (formerly known as the Huachi project) — an outcropping Cu–Au porphyry system with a blockbuster discovery that included a drill hole intersection of 353 meters grading 0.49% Cu Eq., (incl. 243 m at 0.57% Cu Eq. & 88 m at 0.69% Cu Eq.).  Mineralization outlined at surface and found in shallow drilling is open in all directions and at depth.  {see Corporate Presentation}

Assays from the discovery drill campaign included:

Esperanza is in San Juan province in northwestern Argentina, sitting at an elevation of between 2,800 and 3,250 meters.  That’s relatively low compared to work being done in the high Andes.  The project is 35 km from existing power lines.  Proximity to key infrastructure is absolutely critical for mining bulk tonnage porphyry deposits.  

Exploration can be performed year-round in San Juan, ranked in the 2017 Fraser Institute of Mining Survey as the #1 province in Argentina, and 3rd best mining jurisdiction in all of South America.  Despite well-known players like Barrick (Veladero mine in San Juan) & Yamana Gold (Gualcamayo mine in San Juan) being active in the Province, the Esperanza project remains remarkably under-explored.  Only 7 drill holes (2,011 m) have tested this extensive, outcropping copper-gold porphyry system.

After several weeks of delay due to unseasonal storms and flash flooding across multiple northern provinces, drilling is well underway at Esperanza.  Interestingly, while repairing road access to site, new mineralization was exposed at surface in an area thought to be barren.  Mineralization is now interpreted to extend significantly further to the southeast than previously known.  Some of the best mineralization to date has been intersected in this area.

The Phase I drill program is investigating the potential for a bulk-tonnage copper-gold porphyry-style deposit.  Management is currently drilling 4 step-out holes, ~2,000 m in total, of at least 100 m away from historical holes, aiming to reach deeper, (500 – 600 m), than prior efforts.  Deeper drilling was called for because several assays from 2006-7 showed grade increasing at depth. 

Some drill core from the first hole is about to be sent out for assay.  I’m told that upon visual inspection, the technical team felt that the core looked really good, but readers will have to wait along with management until the end of March for lab results.

Upon success in Phase I, a Phase II program would include 4 additional step-outs of 100 – 150 m, plus 2 IP targets 500 m to the east, for a total of 6 holes. 

Based on exploration to date, the significant grade, and thickness of reported intervals, management believes there could be hundred(s) of millions of metric tonnes of mineralization.  The area of interest is already 1,400 m by 850 m.  If strong grade and wide intervals continue to be found, the deposit could host billion(s) of Copper Equivalent (“Cu Eq.“) pounds.  Make no mistake, it’s still early days, but there’s a real possibility for substantial scale to be unearthed here.  

It’s worth reminding readers that McEwen Mining’s (NYSE: MUX) Los Azules project is also in San Juan province.  McEwen’s website describes Los Azules as follows; 962 million tonnes containing 10.2 billion pounds Cu in the Indicated category, plus 2.666 billion tonnes containing 19.3 billion pounds Cu Inferred, with (Cu only) grades of 0.48% & 0.33%, respectively.  That’s a combined 3.6 billion tonnes of mineralization, containing 29.6 billion pounds Indicated & Inferred Cu, at an average grade of 0.37%. 

Delineating hundred(s) of millions of tonnes is not a sure thing, and it won’t necessarily come in the maiden mineral resource estimate.  However, historical exploration, combined with the current drill program, could provide further evidence of grade, scale & continuity that attracts considerable attention.  

Centenera has a tremendous management, Board & technical team for a company its size {72.4 M shares outstanding x C$0.165 = C$12.0 M = US$9.3 M market cap}.

 Centenera Mining Corp. [TSX-V: CT / OTC: CTMIF] is sitting on what could be a major copper-gold asset in San Juan, with important drill results coming out soon.  It also holds a portfolio of promising projects, also in Argentina, including a high sulphidation epithermal gold mineralization project and a hard rock lithium play, both in Salta province. 

Here’s a very good 4-minute video clip of CEO Henderson from PDAC in early March.

Readers would benefit from reading the March 2017 Esperanza Technical Report

Recent press release: February 21, 2018    Website    Twitter    Corporate Presentation

Disclosures: The content of this article is for information purposes only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein, about Centenera Mining, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered, in any way whatsoever, implicit or explicit investment advice. Further, nothing contained herein is a recommendation or solicitation to buy, hold or sell any security. The content contained herein is not directed at any individual or group. Peter Epstein and Epstein Research [ER] are not responsible, under any circumstances whatsoever, for investment actions taken by the reader. Peter Epstein and  [ER] have never been, and are not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and they do not perform market making activities. Peter Epstein and [ER] are not directly employed by any company, group, organization, party or person. The shares of Centenera Mining are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making any investment decisions.

At the time this article was posted, Peter Epstein owned shares and stock options of Centenera Mining and the Company was a sponsor of Epstein Research. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he’s diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. Mr. Epstein & [ER] are not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Mr. Epstein & [ER] are not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Mr. Epstein and [ER] are not experts in any company, industry sector or investment topic.