Name of the project
Los Azules copper project.

Location
San Juan province, Argentina.

Project Owner/s
McEwen Copper, a subsidiary of McEwen Mining.

Project Description
The large, high-grade openpit copper project has significant growth potential.

According to the  updated preliminary economic assessment (PEA), completed in 2023, Los Azules is expected to produce an average of 322-million pounds of copper cathode a year over a 27-year life-of-mine.

The 2023 PEA financial model does not include potential future development phases focused on primary copper mineralisation found beneath the supergene copper.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an estimated 8% discount rate, of $2.66-billion and an internal rate of return of 21.2%, with a payback of 3.2 years.

Capital Expenditure
Initial capital expenditure is estimated at $2.46-billion in the base case.

Planned Start/End Date
Not stated.

Latest Developments
Canadian mining entrepreneur Rob McEwen has said that he is weighing up the financing options for the Los Azules project, with an initial public offering possible as soon as November.

While McEwen Copper is funded into next year as it drills the Los Azules project, it may go public later in 2023 or early 2024 to bankroll a feasibility study. The public offering could be in the range of $100-million to $150-million, although another private financing round is also an option, McEwen and copper unit chief Michael Meding said during an interview.

The company hopes to complete the feasibility study in late 2024 or in early 2025, and start producing copper towards the end of the decade.

McEwen is talking to “various sources” about providing part of the $2.5-billion needed to build the mine. Construction financing would probably result in McEwen Mining’s 52% interest in the copper unit “reduced by some degree,” Meding has said.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
McEwen Mining +1 647 258 0395 or email info@mcewenmining.com.