McEwen Copper has completed drilling for the feasibility study of the Loz Azules mine in Argentina, confirming a high-grade copper zone. The feasibility study is on track for completion in early 2025, it said.
The 2023–24 drilling marked the largest campaign in the history of Los Azules and one of the largest in Argentina. It covered 70,400m and used 23 rigs, bringing the Los Azules drill hole database to 193,600m.
McEwen Copper’s study found that in much of the deposit’s footprint, mineralisation encountered at depth indicates the potential to extend further, beyond 1,000m.
Testing for extensions beyond the planned pit saw mineralisation 400m to the north and 700m to the south.
According to an updated Preliminary Economic Assessment (PEA) completed in 2023, Los Azules is expected to produce an average of 322 million pounds of copper cathode annually over a 27-year lifespan.
The project is located approximately 6km east of Argentina’s border with Chile, at 3,500m elevation in the Andes Mountains.
McEwen Copper, a 48.3%-owned private subsidiary of McEwen Mining, owns 100% of Loz Azules and is subject to a 1.25% net smelter return royalty payable to McEwen Mining.
Increased investment in Argentina’s mining sector
McEwen Copper has praised the Argentinian Government for its recent legislation, Bases and Starting Points for the Freedom of Argentines.
The legislation includes the Incentive Regime for Large Investors (RIGI), which offers tax and foreign exchange incentives to encourage domestic and FDI in key sectors of the economy, including mining.
Requirements for beneficiaries of RIGI are a qualifying investment of more than $200m (187.25bn pesos) with at least 40% invested within two years and export projects with investments greater than $1bn.
McEwen Copper expects that the economics of the Loz Azules project will be improved by meeting the criteria to be designated as a strategic project under RIGI.
More broadly, RIGI will allow for the sustained development of Argentina’s mining industry with lowered risks for investors, said McEwen Copper.
The company also cited a recent deal between BHP and Lunden Mining that includes the joint acquisition of the Filo del Sol and Josemaria copper deposits in San Juan, the same province as Los Azules.
According to McEwen Copper, this $4.4bn transaction demonstrates the attractiveness of the region for large-scale mining projects and the country’s evolution into a ‘tier one’ mining jurisdiction.
Mining Technology’s parent company, GlobalData, finds that Argentina possesses significant potential in its mining sector as despite active sector engagement and numerous upcoming projects such as Los Azules, the nation’s natural resources remain largely untapped.
