Lion Copper and Gold Corp (TSX-V:LEO, OTCQB:LCGMF) said it has reached an agreement with Rio Tinto America Inc on the scope of the stage 2 program of work with Nuton, a Rio Tinto venture, after completing the stage 1 program.
The parties have also agreed to advance early the stage 3 program of work for exploration activities, the company said.
"We appreciate having attained stage 2 agreement with Rio Tinto's Nuton team and look forward to further advancing the Yerington projects. Our emphasis this year will be a proactive approach in stakeholder engagement including our local native American tribes and other local communities, and the rational and sustainable use of water resources by using Nuton technologies,” Travis Naugle, Lion Copper and Gold's co-chairman and CEO said in a statement.
READ: Lion Copper and Gold says ‘very encouraged’ by results from Mason Pass trenching program
“We value Rio Tinto's support of our goal to advance our projects with the use of Nuton technologies toward the domestic production of copper with low carbon impact," he added.
The company said that Rio Tinto will provide financing totaling US$7.5 million, consisting of stage 2 financing of US$5 million and an immediate advance of US$2.5 million on part of the stage 3 financing.
The funds are for the development of the Mason Valley project, exploration efforts and other agreed-upon corporate purposes which include without limitation:
- Project permit applications and baseline studies
- Exploration plan of operations;
- Surface and groundwater characterization;
- Geochemical characterization;
- Wildlife survey;
- Stakeholder engagement;
- Permitting/strategy development;
- Mine plan of operations.
- Yerington site engineering studies
- Application of Nuton technologies;
- Yerington pit dewatering study;
- Water rights permitting;
- Preliminary economic assessment;
- Front-end design, permitting.
The stage 1 program of work, meanwhile, identified nearly 1,600 foot of continuous copper mineralization beneath the Yerington pit while two new high-grade copper-bearing veins at the Reno prospect including deep sulphide mineralization which may be related to Ann Mason, were discovered. Additionally, new ore-grade copper oxide mineralization through surface trenching at the Mason Pass prospect was identified and there was further confirmation of ore-grade surface oxide mineralization at the MacArthur deposit.
On the engineering side, a concept-level study for the Yerington project to include Nuton technologies was completed. Additionally, a scoping level study for the MacArthur project to include Nuton technologies was completed.
Lion Copper and Gold is a Canadian-based company advancing its flagship copper projects at Yerington, Nevada, through an option to earn-in agreement with Rio Tinto.
Contact the author at jon.hopkins@proactiveinvestors.com