Positive PEA For Yerington Copper Project

Positive PEA For Yerington Copper Project

VANCOUVER – Lion Copper and Gold Corp. reported on the Preliminary Economic Assessment (PEA) on its Yerington Copper Projectlocated in Lyon County, Nevada. The PEA envisions an open pit mining strategy followed by a heap leach operation, enhanced by the application of Rio Tinto’s Nuton technologies to process primary sulfide copper materials.

Given the multitude of advantages offered by Nuton compared to conventional sulfide processing, it serves as the Project’s preferred and foundational approach, forming the cornerstone of this PEA. The PEA was completed with funding in accordance with the agreement between the Company and Nuton LLC, a wholly-owned subsidiary of Rio Tinto.

A technical report on the PEA will be filed by the Company. Highlights: 1) Post-tax NPV7% of $356 million and IRR of 17.4%, calculated at a copper price of $3.85/lb. 2) Utilization of cutting-edge Nuton technologies for recovering cathode copper from primary sulfide materials, negating the need for concentrator, tailings impoundment and smelter operations. 3) 12-year open pit mine life encompassing operations at Yerington and MacArthur, with projected lifetime copper (Cu) production of 1.4 billion pounds, averaging 117 million pounds per year. 4) Initial capital expenditure (“CAPEX”) of $413 million including all mine pre-production costs, with sustaining capital of $653 million. 5) Post-tax payback period of 5.0 years. 6) Average cash operating costs of $2.20/lb copper payable. 7) Cumulative cashflow of $1.00 billion post-tax and $1.24 billion pre-tax on base case assumptions. 8) Exceptionally low overall open pit strip ratio at 0.3:1.0 (waste:feed). 9) Synergistic co-location of processing facilities within a single legacy-affected site, servicing both the Yerington Mine and the MacArthur Mine, effectively minimizing environmental impacts in the region. 10) Dewatering of the Yerington pit lake, involving the pumping of approximately 43,000 acre-feet of water at a cost of $50 million, which not only facilitates pit expansion but also unlocks water for alternative beneficial use in Mason Valley.

Travis Naugle, CEO, 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 sulfide processing. We are dedicated to advancing the Yerington Copper Project in a positive manner that prioritizes environmental stewardship, water conservation, and benefits for tribal and local communities. 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. This PEA marks an important milestone, and we look forward to advancing the Yerington Copper Project with Nuton in a manner aligned with our ethos of creating shared value.”