McEwen considers selling the Los Azules Project in Argentina

Cecilia Jamasmie | May 18, 2012 | 5:22 pm Base Metals Precious Metals Canada Latin America Copper Gold Silver 

McEwen Mining (TSX and NYSE:MUX) President and CEO Rob McEwen on Thursday cautioned shareholders that recent energy-industry expropriation and Argentina government policy decrees augured negatively for its San José silver/gold mine and other development projects.

According to one of our MINING.com correspondents who attended the general meeting yesterday, McEwen plans to divest or joint-venture its Los Azules Argentinean copper asset once ownership of the disputed project is resolved next year.

The Toronto-based company is currently involved in litigation with TNR Gold (CVE:TNR), a Vancouver-based junior miner that is challenging title to the northern half of Los Azules. TNR is seeking, among other things, recognition of a right to a 25% interest in the property.

On top of all this, a study published this month by the non-profit organization Center for Human Rights and Environment (CEDHA) of Cordoba, Argentina, claims Los Azules will affect nearly 200 glaciers. If true, McEwen will face serious legal troubles, as Argentina has a law that prohibits mining activities in glacier areas, protecting them as water reservoirs for human consumption and agriculture, as well as maintaining biodiversity and serving as tourist attractions.

In a press release, the Canadian miner said the company’s goal is to qualify for inclusion in the S&P 500 by 2015 by creating a high growth, low-cost, mid-tier silver and gold producer focused in the Americas.

McEwen Mining’s principal assets consist of the San José mine in Santa Cruz, Argentina (49% interest); the El Gallo Complex in Sinaloa, Mexico; the Gold Bar Project in Nevada, US; the Los Azules Project in San Juan, Argentina and a large portfolio of exploration properties in Argentina, Nevada and Mexico. In 2012, McEwen.

McEwen will invest about $40 million on exploration this year.

(image: Glacier in Argentina, Wikipedia)

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2 Comments

  • bob

    WHY ARE THE CHINESE SO INTERESTED IN OPENING SEVERAL MINES IN ARGINTINA ? ROB NOT TRYING TO GET PEOPLE OUT OF MUX AT THIS LOW PRICE ON TENTITIVE PROBLEMS ??

  • Sufiy

    TNR Gold Receives Third Party Proposal and Provides Los Azules Project Update

    Kirill Klip, Chairman of TNR commented that: “The Los Azules project is
    considered to represent one of the largest undeveloped copper projects in
    the world but the current legal uncertainty over its legal ownership is
    detracting from the value of the project for shareholders of both TNR and
    McEwen Mining. The third party proposal which we have received to
    purchase TNR, together with the fact that McEwen Mining has decided to
    limit its drilling activity to non-disputed mineral claims only are
    further validation of the value of TNR, its title claims and its
    prospects for success in the upcoming Los Azules litigation.”

    http://sufiy.blogspot.co.uk/2012/05/tnr-gold-los-azules-litigation-mcewen.html#

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