Vancouver-based junior Lion Copper and Gold has entered into an option to earn-in agreement with Rio Tinto to advance studies and exploration at Lion’s copper assets in Mason Valley, Nevada.
Rio Tinto will have the option to earn a 65% interest in the assets, including 13 900 ha of land, the historic Yerington mine, greenfield McArthur project, Wassuk property, the Bear deposit and associated water rights.
“The agreement offers the potential to both increase the scope and scale of our development and accelerate the path to first production,” comments Lion CEO Travis Naugle.
Rio Tinto will also evaluate the potential commercial deployment of its Nuton technologies at the site. Nuton offers copper heap leaching technologies to deliver greater recovery from mined ore and access new sources of copper, such as low-grade sulphide resources and reprocessing of stockpiled mineralised waste.
“These technologies not only offer Rio Tinto the potential to unlock additional copper, but to also deliver low carbon production with significant environmental benefits through reprocessing old stockpiles and tailings, and reducing waste from new and ongoing operations,” says Rio Tinto Copper CEO Bold Baatar.
Rio Tinto will pay up to $4-million for an exclusive earn-in option and agreed-upon Mason Valley study and evaluation works to be completed by Lion by the end of December. Should Rio Tinto elect to proceed with Stage 2, it has to pay up to $5-million for agreed-upon Mason Valley study and evaluation works over the next 12 months.
In the third stage, Rio Tinto will fully fund the feasibility study and ancillary work completed by Lion CG for up to $50-million.