Los Azules Feasibility Study Confirms Economically Robust Copper Project

It also confirms Leading ESG Performance.

By Panorama Minero

McEwen Copper Inc., 46.4% owned by McEwen Inc. announced positive results from the independent Feasibility Study (FS) for its 100%-owned Los Azules copper project in San Juan province.

The FS confirms Los Azules as a long-life, low-cost producer of high-purity copper cathodes with strong economic returns and sustainability. The project design advances Los Azules toward construction readiness within a framework that reduces its environmental footprint. Project risk has been further reduced through a strategic collaboration agreement with IFC to potentially lead debt financing and additional funding proposals for infrastructure and construction.

“The Los Azules Feasibility Study is more than a technical milestone - it’s a blueprint for the future of copper mining. We have delivered a plan for a long-life asset that will play a role in the world’s clean-energy transition. Copper is the foundation of electrification and the modern world, and Los Azules is ready to contribute to that global supply chain - responsibly, efficiently, and profitably,” said Rob McEwen, Chairman and Chief Owner of McEwen Inc.

“With this Feasibility Study, our team has transformed the geological potential of Los Azules into a clear, actionable development plan. This work gives us confidence in the project’s design, costs, and schedule, providing the foundation for the next stage of growth.”

“Having significant experience with large-scale construction and mining operations in Argentina, I am confident that we have the right plan, the right team, and the right partnerships to develop Los Azules. Together with our local communities and government partners, we aim to create Argentina’s first regenerative copper mine - a model for responsible and innovative mining,” said Michael Meding, Vice President of McEwen Copper and General Manager of Los Azules.

FS Highlights

Economics After-tax:

• NPV(8%) $2.9B

• IRR 19.8%

• Payback Period 3.9 yrs

• Initial Capital $3.17B

Copper Cathode Production:

• Average Years 1–5 204,800 tonnes per year (451M lbs/yr)

• Life of Mine 21 years

• Average Production 148,200 t/yr (327M lbs/yr)

Costs:

• C1 cash cost $1.71/lb

• AISC $2.11/lb

Scale – Reserves and Resources:

Mineral Reserves

• Proven & Probable 10.2B lbs Cu (1.02 B tonnes at 0.45% Cu)

Mineral Resources (exclusive of Reserves)

• Measured & Indicated 5.4B lbs Cu (0.97 B tonnes at 0.26% Cu)

• Inferred 20.0B lbs Cu (4.24 B tonnes at 0.21% Cu)

Designed for Low Impact

• Leach + SX/EW process produces 99.99% copper cathodes (LME Grade A) on site (no smelter required).

• Project design provides:

• 72% lower mine-to-metal carbon intensity than industry average for mine-to-metal

• 100% renewable power(4) (wind, hydro, solar)

• 74% less water use than conventional milling

• No tailings dam

• Carbon-neutral (Scopes 1 & 2) goal by 2038.

De-risked Regulatory Status

• Environmental Impact Statement EIA (Environmental Permit) for construction and operation was approved by the San Juan Provincial Government's Ministry of Mines in December, 2024.

• Accepted into Argentina’s Large Investment Incentive Regime (RIGI) in September, 2025, providing tax, foreign exchange and customs stability for 30 years, legal certainty, foreign exchange regulations allowing to leave export proceeds abroad in increasing steps that will reach 100% by the time the project starts exports and access to international arbitration in case of disputes.

Ownership & Partners

Ownership: McEwen Inc. 46.4%, Stellantis 18.3%, Nuton (Rio Tinto) 17.2%, Rob McEwen 12.7%, Victor Smorgon Grp 3%, Others 2.4%.

• Preliminary finance proposals from Tier-1 OEMs (Komatsu, Sandvik & others), YPF Luz, European ECAs, and a collaboration agreement with IFC(5) to align with IFC’s ESG standards and for potential financing. Indicative proposals could support $1.1B+(6) in equipment and infrastructure financing.

Future Growth Opportunities Beyond the FS

• Nuton® leaching technology (Rio Tinto venture) could allow processing of primary ores with the existing infrastructure (indicative recoveries >76%), or a Conventional Concentrator could also provide higher copper recoveries, plus recover gold and silver as well. Either process could extend mine life by 30+ years by economically treating primary sulfides. Neither of these opportunities are included in the FS base case.

• Exploration has shown that there are four porphyry targets near the Los Azules deposit that could provide further extension to the mine life. Exploration of the newly identified targets will start in Q4 2025. High-priority targets near Los Azules include Tango, Porfido Norte, Franca, and Mercedes.

Timeline & Next Steps

• FS NI 43-101 Technical Report to be filed: within 45 days.

• Water concession: application under review.

• Construction target: 2026 → SX/EW startup: 2029 → First copper: 2030.