Formation and Investments
On July 6, 2021 McEwen announced the creation of the wholly-owned subsidiary, McEwen Copper Inc., which holds 100% interests in the Los Azules project in Argentina and in the Elder Creek exploration property in Nevada. Both assets are subject to a 1.25% net smelter return (NSR) royalty payable to McEwen.
McEwen Copper launched with 17.5 million shares, seeing substantial financial growth through private placements and significant investments from entities such as Rob McEwen, Nuton (a venture of Rio Tinto, 2nd global mining company), and Stellantis, 4th global automaker. Four financing rounds completed at $10, $18, $26 and $30 per share raised $453 million, with the last one giving McEwen Copper an implied market value of $984 million.
Strategic Partnerships
McEwen Copper entered a collaboration agreement with Nuton to evaluate the potential application of heap leaching at Los Azules, involving the testing of Nuton® Technologies for compatibility with Los Azules copper mineralization. Heap leaching offers numerous promising economic and environmental benefits over the conventional milling methods. These include reduced water and energy consumption, elimination of large tailings storage facilities or dams and their associated environmental risks, and typically lower capital and operational costs.
Stellantis and McEwen Copper have entered a Copper Cathodes and Concentrates Purchase Rights Agreement (CCCPRA), under which Stellantis and its affiliates have the option to purchase a portion of the copper cathodes or concentrates produced from Los Azules, proportionate to their equity ownership percentage in McEwen Copper. The two companies are also committed to achieving net-zero carbon emissions by 2038.
Infrastructure Advancements
In 2022 we have resolved the critical issue of road access to Los Azules by the development of a lower altitude access road that provides us with the opportunity for year-round work at the site. The diagram below illustrates the elevation difference between our exploration road (shown in blue) that allows a 5 to 6-month access to site and our new access road (shown in orange) that, in combination, provide year-round access at Los Azules. This represents an important development for the project, making it safer, less expensive and faster to advance and complete our fieldwork.
Our Los Azules offices in Argentina are a visible token of our commitment to sustainability. Completely powered by renewable energy, with an estimated annual production of 50 megawatt hours and consumption of 45.8 megawatt hours, we expect an annual injection to the grid of about 4.2 megawatt hours.
Drilling Campaigns
Our aggressive drilling strategy has dramatically expanded our understanding of the deposit, with ongoing drilling campaigns significantly increasing the mineral resource database.
The first season of the 2022 surface drilling at Los Azules took place from January to May, with 54 holes drilled using 11 rigs, for a total of 13,500 meters. The second drilling season, from October 2022 to June 2023, completed 138 holes using 15 drill rigs, for a total of 39,900 meters. F
The third drilling season, from October 2023 to June 2024, completed 70,400 meters of drilling, using 23 rigs, bringing the Los Azules drill hole database to 193,600 meters and marking the largest drilling campaign in the history of Los Azules and one of the largest in Argentina. From 2024, drilling was aimed at the completion of 7,700 meters for complementing the geophysical, geological and hydrogeological work required for the Feasibility Study.
Primary objectives of the drilling programs include:
- Improving the confidence in the resource by converting Inferred mineral resources to the Indicated category
- Accelerating project advancement with metallurgical, hydrological and geotechnical drilling and
- Confirming the size and grade of the deposit as compared to the 2023 PEA estimate and upgrading the resource categories for the upcoming feasibility study
- Testing for extensions of mineralization beyond the current pit shell and
- Exploring our large property package for other mineralized areas.
Results from the recent drilling programs can be seen in our Los Azules progress reports press releases from 2022 (dated
May 4,
June 23 and
August 4),
from 2023 (dated
January 26,
March 6,
April 5,
May 5,
July 12 and
August 1)
and from 2024 (dated
February 26,
May 16) and
August 8).
While the median depth of drill holes within the Los Azules resource database is 175 meters, it is not uncommon for porphyry copper mineralization to extend well beyond 1,000 meters of depth. Numerous drill holes at Los Azules have encountered strong copper grades below the 2023 PEA pit bottom. All three holes drilled to a depth of over one kilometer are ending in copper mineralization. Testing for extensions beyond the planned pit has successfully encountered mineralization 400 meters to the north and 700 meters to the south.
Based on the assay results received to date, initial interpretation suggests that our infill drilling will result in an increase in Measured and Indicated resources and an overall mineral inventory within 5% of the PEA estimate.
Late in 2024 exploration over our property has produced an intriguing target. Initial results of a concession-wide regional mapping and sampling campaign have identified strong evidence of a large porphyry system named Tango, located 3 kilometers east of the Los Azules deposit. Porphyry-style veining and quartz vein stockworks with copper oxide mineralization have been recognized within this area and will continue to be explored in the following exploration campaign.
Recent and Upcoming Milestones
McEwen Copper has built an experienced management team that facilitated the submission in April 2023 of the Environmental Impact Assessment for Construction and Exploitation to the San Juan regulator and the successful completion in June 2023 of the updated Preliminary Economic Assessment (PEA) for Los Azules.
McEwen Copper has built an experienced management team that facilitated the successful completion in June 2023 of the updated Preliminary Economic Assessment (PEA) for Los Azules and the submission in April 2023 of the Environmental Impact Assessment for Construction and Exploitation, which was approved by the San Juan regulator in December 2024. Furthermore, in February 2025, Los Azules has applied for admission to Argentina's Large Investment Incentive Regime (“RIGI”). If admitted, Los Azules will have access to various benefits, which include a 10% drop in the corporate income tax rate, relief from value added tax payment during construction and exemption from export duties.
Our team continues to commit to growth and advancement as we move forward with a Feasibility Study for mid-2025.
For further information on McEwen Copper, the latest company presentation can be accessed
here.