Name of the Project
Los Azules copper project.

Location
San Juan province, Argentina. 

Project Owner/s
Copper development company 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 Copper has appointed financial services provider Societe Generale to lead the structuring and arrangement of a senior debt package to fund the construction.

Societe Generale's scope of work covers preparatory and implementation phases and includes the development of the financing strategy, preparation of the lenders' information package and assistance with the negotiation. It is also responsible for the coordination of lenders' technical, market, environmental and social, insurance, audit and tax due diligence.

The financing is expected to be assembled from a combination of export credit agency and commercial bank debt, multilateral and development finance institution facilities and potential project bond or other capital markets instruments.

McEwen Copper says Societe Generale's appointment complements the copper development company's continuing relationship with the International Finance Corporation (IFC), with which the company has a collaboration agreement to align the project with IFC’s environmental, social and governance standards in anticipation of international project financing. 

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.