Lion Copper and Gold Corp (TSX-V:LEO, OTCQB:LCGMF), formerly Quaterra Resources Inc, has released an updated resource for its MacArthur copper project in Nevada, which showed a 55% increase in the higher confidence measured and indicated (M&I) category.
The NI 43-101 compliant report, prepared by consultants IMC, pegged the M&I resource at over 1 billion pounds (1,000,383,000) of contained copper from 300.29 billion tons of material at a grade of 0.167%.
A previous resource estimate had put the M&I figure at 676 million pounds of copper.
"This substantial increase to the resource is a result of our recent drilling and an improved understanding of the MacArthur mineralization," said Travis Naugle, Lion Copper and Gold CEO in a statement.
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"We are very excited about such a significant upgrade in the mineral resource for the MacArthur copper deposit and the implications this may have on future decisions for the project. The veracity of the resource modelling approach undertaken by IMC instills confidence in these positive findings. We are intrigued by the mineralization remaining open in numerous directions and look forward to evaluating further potential resource growth in both oxide and sulphide mineralization," he added.
The new, lower confidence inferred resource was put at 466.35 million pounds of copper from around 154.8 million tons of material at a grade of 0.151%.
The MacArthur asset is interpreted as an oxidized portion of a porphyry copper system and the oxide and transition mineralized envelope of the deposit is confirmed to be open to the south-southeast, noted Lion Copper and Gold.
Additional sulfide (deeper) mineralization remains open to the north and east, it added.
The latest resource estimate used data from 747 drill holes for 299,045 feet (ft) and was based on open pit shell economics that said the project will become a heap leach, SX-EW recovery process.
It puts the copper price at US$3.75 per pound and sees 60% of the copper recovered from the leach cap; 71 % from the oxide zone; 65% from the transition zone and 40% from the sulphide zone.
Lion Copper and Gold is advancing the flagship MacArthur asset as well as its exploration projects, which include the Chaco Bear and Ashton properties in highly prospective regions in British Columbia, Canada.
Shares in the firm advanced 15% in Canada to stand at C$0.12 on the day
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Contact the author at giles@proactiveinvestors.com