Name of the Project
Los Azules copper project.

Location
San Juan province, Argentina. 

Project Owner/s
McEwen Copper Inc owns 100% of the Los Azules project.

McEwen Copper's shareholding structure comprises McEwen Inc 46.3%, Stellantis 18.2%, Nuton/Rio Tinto Venture 17.2%, Rob McEwen 13%, Victor Smorgon Group 3% and other shareholders 2.3%.

Project Description
Los Azules is a large-scale, advanced-stage openpit copper development in one of Argentina's main copper districts.

The project has proven and probable reserves of 10.2-billion pounds of copper, comprising 1.02-billion tonnes grading 0.45% copper. Mineral resources, exclusive of reserves, comprise 5.4-billion pounds of copper in the measured and indicated category and 20-billion pounds of copper in the inferred category.

A feasibility study, completed in 2025, outlines a 21-year life-of-mine (LoM) operation using heap-leach processing and solvent extraction/electrowinning to produce LME Grade A copper cathodes on site. The design does not include a conventional concentrator or tailings dam.

The feasibility study base case provides for average yearly production of 327-million pounds, or 148 200 t, of copper cathode over the LoM. Production is expected to average about 451-million pounds, or 204 800 t, of copper cathode a year during the first five years.

The base-case development strategy uses 100% renewable power and is expected to use 74% less fresh water and 48% less electricity than a conventional concentrator. McEwen Copper is targeting carbon neutrality for Scope 1 and 2 emissions by 2038.

Future growth opportunities not included in the feasibility study base case include the potential use of Nuton leaching technology to process primary mineralisation using the existing infrastructure, which could extend the mine life by more than 30 years, subject to further technical and economic work.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The feasibility study base case, using a copper price of $4.35/lb, estimates an after-tax net present value (NPV), at an 8% discount rate, of $2.9-billion and an internal rate of return (IRR) of 19.8%, with a payback period of 3.9 years.

At a copper price of $5.80/lb, the sensitivity case estimates an after-tax NPV, at an 8% discount rate, of $6.3-billion and an IRR of 30%, with a payback period of 2.7 years.

Capital Expenditure
Initial capital is estimated at $3.17-billion.

Planned Start/End Date
McEwen's current objective is to advance Los Azules towards a final investment decision targeted for the end of 2026, with construction targeted to start in early 2027 and production targeted for 2030, subject to project financing and customary approvals.

Latest Developments
McEwen reported on May 6, 2026, that Los Azules had advanced significantly in 2025 through the approval of its application under Argentina's Large Investment Incentive Regime, which provides 30 years of legal, fiscal and customs stability, and the publication of the 2025 feasibility study.

During the first quarter of 2026, McEwen Copper invested $16.5-million in Los Azules to advance detailed engineering in preparation for a final investment decision. McEwen said the 2026 focus is to progress the project towards a year-end final investment decision, with construction targeted for early 2027 and production in 2030.

Meanwhile, Rio Tinto is reportedly assessing the potential of Los Azules, as it considers increasing its 17.2% interest in the project through its copper technology venture Nuton.

The evaluation includes technical work on Los Azules’ economics and testing of Nuton’s proprietary leaching technology at site. McEwen Copper MD Michael Meding has indicated that discussions with Nuton are continuing, noting that the technology could be well suited to the project.

Key Contracts, Suppliers and Consultants
Samuel Engineering Inc, with contributions from Knight Piésold Consulting, Stantec Consulting International, McLennan Design, Whittle Consulting and SRK Consulting UK (feasibility study).

Strategic project agreements include Nuton (Rio Tinto venture) (evaluation of leaching technology); Stellantis (equity investment and copper purchase rights); YPF Luz (renewable power supply) and the International Finance Corporation (alignment with environmental and social performance standards and potential financing).

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