Lion Copper PEA outlines use of Nuton tech at Rio Tinto-backed project

Nevada-focused junior Lion Copper and Gold (TSXV: LEO; US-OTC: LCGMF) has released a preliminary economic assessment (PEA) for its Yerington copper project that envisions using Rio Tinto‘s (NYSE: RIO; LSE: RIO; ASX: RIO) Nuton technology as well entering an option to earn-in deal with that venture.

The PEA outlines an open pit copper mine followed by a heap-leach operation, enhanced by the application of Nuton’s technologies to process primary sulphide materials. According to Lion Copper, the leaching process using Nuton’s methods can deliver recovery rates of 74% and eliminate the need for a concentrator, tailings impoundment and resource-intense smelter operations.

Given the advantages offered by Nuton compared to conventional sulphide processing, it serves as the project’s preferred and foundational approach, the company said.

“We are very pleased with the results of this preliminary economic assessment, which outlines a compelling path forward for advancing the integrated Yerington copper project. The projected economics showcase the tremendous value that can be unlocked by adopting an innovative and sustainable approach centered around Nuton technologies for primary sulphide processing,” Lion Copper CEO Travis Naugle said.

“The minimal footprint of our optimized strategy, with its consolidated infrastructure sited within the brownfield Yerington area, exemplifies our commitment to sustainable development that benefits all stakeholders,” he added.

Momentum continues to build for copper projects as companies such as Barrick Gold (TSX: ABX; NYSE: GOLD) seek to increase their copper output with mergers and acquisitions on expectations the metal becomes more valuable as part of the green energy transition. 

Lion Copper’s PEA estimates copper production over an estimated 12-year life will reach 1.4 billion lb. or 117 million lb. annually, encompassing operations at Yerington and, at a later phase, the MacArthur project, a large oxide copper deposit that was previously active in the 1990s.

Tailings reprocessing strategy

The development strategy begins with the reprocessing of legacy rock stockpiles and tailings at Yerington, followed by mining activities within the base of the legacy Yerington pit once it’s been dewatered.

To facilitate the processing, the oxide and sulphide materials will be mined and transported to separate lined heap leach pads to be located at the legacy Yerington mine. Material from the MacArthur mine will also be transported to this site, using existing infrastructure set up during the initial Yerington phase.

According to the company, by merging the two projects with co-location of processing facilities and a single legacy-affected site, the environmental impacts of the operation would effectively be minimized. Unlike Yerington, the MacArthur project is situated exclusively on federal lands, so it will be subjected to certain permitting requirements.

The integrated Yerington project has a post-tax net present value (at 7% discount) of US$356 million and an internal rate of return of 17.4%, calculated at a copper price of US$3.85 per lb. Initial capital expenditure is estimated at US$413 million, with a payback period of five years.

The project is located in western Nevada, about 80 km northwest of Reno. 

In late 2023, Rio Tinto formally opted into Stage 2b of the option to earn-in agreement, which provides for full funding of US$10 million for completion of a pre-feasibility study on the Yerington project, anticipated to be completed later this year. The Australian miner also provided a further US$1.5 million advance on Stage 3 funding for exploration on certain portions of the Bear deposit.

Lion Copper shares were down 6.2% to 7¢ on Tuesday afternoon, valuing the company at $23.2 million. Its shares traded in a 52-week range of 6¢ and 11¢.