Tiernan Signs Non-Binding MoU to Evaluate Alternative Water Supply for Volcan
Tiernan advances the Volcan project’s Water MoU to support a PFS targeting H1 2027.
Tiernan Gold Corp. announced a non-binding Memorandum of Understanding (MoU) to evaluate a potential desalinated water supply of up to 120 litres per second for its Volcan Gold Project in Chile's Atacama Region. The evaluation period spans nine months, with an option to extend for a further nine months by mutual agreement.
The company clarified that the 120 L/s figure represents a maximum potential for evaluation, not a committed or reserved volume. The MoU is non-exclusive and carries no obligation to enter a definitive supply agreement. Commercial terms, including pricing, delivery start dates, and take-or-pay mechanisms, have not yet been negotiated.
The Environmental Impact Assessment (EIA) base case remains anchored to continental groundwater from existing permitted wells, with the desalination option running in parallel.
Tiernan Gold Corp. (TNGD) has announced a standard operational measure to de-risk its Tier 1 asset located in a water-stressed jurisdiction. The company clarified that the announcement does not alter the project's financial model, Preliminary Economic Assessment (PEA) economics, or base-case engineering assumptions, as existing groundwater rights authorizing 170 L/s remain the primary supply.
The arrangement is non-binding and part of a parallel evaluation framework, meaning there is no immediate capital expenditure, dilution, or operational disruption. This development aligns with the company's stated strategy of advancing parallel workstreams for engineering, metallurgy, and environmental baseline studies ahead of the H1 2027 Preliminary Feasibility Study (PFS) target. The market impact is expected to be limited, as water supply diversification is a routine expectation for advanced-stage projects in northern Chile and does not introduce new financial obligations.
Tiernan Gold Corp. (TNGD) is a pre-revenue exploration and development company focused on the 100%-owned Volcan Gold Project in Chile's Maricunga Gold Belt. The project hosts 9.8 million ounces of Measured and Indicated gold resources, with an additional 1.2 million ounces in Inferred resources.
A Preliminary Economic Assessment (PEA) outlines a large-scale heap-leach operation targeting approximately 330,000 ounces of gold per year over the first 10 years. The assessment projects an All-In Sustaining Cost (AISC) under $1,100/oz and an internal rate of return (IRR) of 29% at a gold price of $2,400/oz.
The company is currently advancing a Pre-Feasibility Study (PFS), updated geological modeling, metallurgical testwork, and environmental baseline studies. Tiernan Gold targets a PFS publication in the first half of 2027 and an Environmental Impact Assessment (EIA) submission in the second half of 2027.