8-K: Lion Copper and Gold Corp. Issues Technical Report Summary for Yerington Copper Project

Lion Copper and Gold Corp. released a technical report summary for its Yerington Copper Project, outlining mineral resource estimates for the Yerington Deposit, W-3 stockpile, Vat Leach Tailings, and MacArthur Deposit.

Summary

• Lion Copper and Gold Corp. has issued a technical report summary (TRS) for the Yerington Copper Project in Nevada, prepared in accordance with SEC S-K 1300 regulations.
• The TRS presents mineral resource estimates for the Yerington Deposit, W-3 stockpile, Vat Leach Tailings (VLT) stockpile, and MacArthur Deposit.
• The Yerington Deposit has measured resources of 62.9 million tons at 0.30% TCu, indicated resources of 94.7 million tons at 0.27% TCu, and inferred resources of 113.2 million tons at 0.22% TCu.
• The W-3 Stockpile has an inferred mineral resource of 14.1 million tons at 0.11% TCu.
• The VLT stockpile has an inferred mineral resource of 33.2 million tons at 0.09% TCu.
• The MacArthur Deposit has measured resources of 116.7 million tons at 0.18 TCu%, indicated resources of 183.7 million tons at 0.158 TCu%, and inferred resources of 156.5 million tons at 0.151 TCu%.
• The report recommends advancing to a Prefeasibility Study (PFS) with a total budget estimate of $12.5 million.

Sentiment

Score: 7

Explanation: The document presents a positive outlook on the Yerington Copper Project, highlighting significant mineral resources and potential for further development. While there are risks and challenges, the overall tone is optimistic, supported by ongoing exploration and metallurgical testing.

Positives

• The Yerington Copper Project has significant mineral resources across multiple deposits.
• Metallurgical testing indicates that Yerington and MacArthur oxide materials are well-suited to standard heap leaching.
• Primary sulfide materials at Yerington will be processed using BioHeap technologies, which comprise a suite of copper heap leaching technologies that improve recovery from primary copper sulfides.
• The project benefits from existing infrastructure, including roads and power to the site.
• Lion CG has secured all necessary permits to proceed with site exploration and design activities.

Negatives

• The Yerington Property has soil and groundwater contamination from former mining operations.
• There are 3,453 ac-ft of primary water rights that have been declared forfeited by the Nevada Division of Water Resources (NDWR).
• The Extension of Time for 1,629 ac-ft of primary water rights is subject to a non-renewal notice by the NDWR.
• The outcome of Lion CG's appeal of the State's forfeiture notice is uncertain.
• Additional metallurgical testing is required to improve understanding of copper recovery and sulfuric acid consumption at the MacArthur Deposit.

Risks

• Changes in metal price and exchange rate assumptions could impact the economic viability of the project.
• Changes to the assumptions used to generate the copper grade cut-off grade could impact the mineral resource estimates.
• Changes in local interpretations of mineralization geometry and continuity of mineralized zones could impact the mineral resource estimates.
• Changes to interpretation of the contact between the redox surfaces could impact the mineral resource estimates.
• Changes to geotechnical, mining, and metallurgical performance assumptions could impact the mineral resource estimates.
• Assumptions as to the continued ability to access the site, retain mineral and surface rights titles, maintain and acquire future environment and other regulatory permits, and maintain the social license to operate could impact the mineral resource estimates.

Future Outlook

The Yerington Copper Project illustrates a mineral resource that warrants further technical evaluation and study, including additional drilling and metallurgical testwork to upgrade the resources to reserves and increase their confidence.

Industry Context

The Yerington Copper Project is located in the Walker Lane trend, a region known for major precious metal and porphyry copper deposits. The project is near other significant projects like the Mason Project and Pumpkin Hollow Project, indicating a favorable geological setting for copper mineralization.

Comparison to Industry Standards

• The Mason Project, held by Hudbay Minerals Inc., is located approximately 3 miles (5 km) west of the Yerington pit and is a comparable copper-molybdenum porphyry system.
• The Pumpkin Hollow Project, held by Southwest Critical Materials (Nevada Copper), is located about 10 miles southeast of the Yerington pit and is a copper and magnetite skarn deposit.

Stakeholder Impact

• The project has the potential to create jobs and economic opportunities in the local community.
• The project will require ongoing engagement with local stakeholders and regulatory agencies to address any potential concerns.

Next Steps

• Conduct core drilling and associated testing beneath the Yerington pit.
• Execute core and reverse circulation (RC) drilling alongside associated testing to enhance the classification of MacArthur's Inferred resources to Measured and Indicated.
• Implement a sonic or hollow stem auger (HSA) drilling program for the VLT and W-3 stockpile.
• Update the Yerington Copper deposit redox surfaces to characterize material types.
• Collect additional density samples for the MacArthur Copper deposits.
• Conduct pit drilling to inform pit slope stability analyses at both the Yerington and MacArthur pits.
• Conduct Seismic Cone Penetration Testing (SCPTu) at the existing Yerington sulfide tailings.
• Conduct geotechnical drilling utilizing methods such as solid stem, hollow stem auger, wireline coring, and sonic drilling.
• Conduct test pits and sample collection for the identification of potential borrow sources for construction materials.
• Apply IP Geophysics over the Yerington sulfide tailings to refine the characterization of a chargeability high.
• Evaluate mining throughput to enhance efficiency.
• Optimize the design of waste storage facilities.
• Conduct a comprehensive assessment of equipment selection and compare it with contract mining options.
• Develop a Geo-metallurgical Model for both the Yerington and MacArthur deposits.
• Continue and expand optimization column testing, encompassing both oxide and sulfide materials in accordance with the geometallurgical model.
• Assess potential synergies between various possible heap leach facilities for oxide and sulfides materials.
• Conduct comprehensive characterization work for heap leach residuals and waste rock from previous mining operations.
• Execute size versus recovery testing for MacArthur materials to support a trade-off study.
• Evaluate potential methods for the recovery of 'spent acid' for use at Yerington.
• Investigate the feasibility of recovering precious metals from spent inoculum build-up residues.
• Further design detailing of the processing flowsheet, material stacking, and agglomeration approaches in the next stage of the Project.
• Thoroughly design HLFs to meet PFS standards.
• Conduct a comprehensive electrical study and cost analysis for the site.
• Investigate the feasibility and cost-effectiveness of solar power generation and exploring other environmentally friendly energy alternatives.
• Complete a trade-off on the use of a rail spur to avoid traffic through Yerington and if appropriate to develop detailed designs and cost estimates for the rail spur.
• Conduct detailed site surveys with an appropriate level of accuracy to produce topographical maps featuring a minimum 5-foot contour interval.
• Design ancillary facilities and estimating associated costs.
• Design road layouts within the site.
• Identify suitable sources for borrow materials.
• Conduct drilling and install instrumentation for groundwater monitoring in the MacArthur mine area.
• Assess the necessity for water treatment and explore suitable methods if required.
• Carry on with the hydrogeological modeling.
• Continue analyzing the results of the geochemical study.
• Develop a water balance model for the Yerington and MacArthur Properties to a level of detail appropriate for a PFS.
• Estimate the costs associated with Project closure.

Key Dates

Keywords

Copper, Yerington, Mineral Resources, Technical Report Summary, Exploration, Mining, Lion Copper and Gold