PFS Reveals Robust Economics for Yerington Copper Project with $694M Post-Tax NPV
Summary
Lion Copper and Gold Corp. announced the completion of its Preliminary Feasibility Study for the Yerington Copper Project, outlining a highly economic 12-year mine plan with substantial mineral reserves and a post-tax NPV of $694 million.
Key Events
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Preliminary Feasibility Study Completed
Lion Copper and Gold Corp. has completed an S-K 1300 Preliminary Feasibility Study (PFS) for its wholly-owned Yerington Copper Project, a critical de-risking milestone.
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First Mineral Reserve Estimate Announced
The PFS includes the first-ever Mineral Reserve estimate for the project, totaling 506.6 million tons grading 0.21% copper, supporting a 12-year mine life.
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Strong Project Economics Revealed
The study projects a post-tax Net Present Value (NPV) of $694 million (at a 7% discount rate) and an Internal Rate of Return (IRR) of 14.6%, indicating robust financial viability.
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Substantial Capital Investment Outlined
The project has an estimated total capital cost of $1.732 billion, with initial capital of $724 million, reflecting the significant scale of the development.
Analysis
The completion of the S-K 1300 compliant Preliminary Feasibility Study (PFS) for the Yerington Copper Project marks a pivotal de-risking milestone for Lion Copper and Gold Corp. The study presents a robust economic outlook, with a post-tax Net Present Value (NPV) of $694 million and an Internal Rate of Return (IRR) of 14.6%, significantly exceeding the company's current market capitalization. This is the first time the project has reported Mineral Reserves, totaling 506.6 million tons grading 0.21% copper, underpinning a 12-year mine life. The project's substantial estimated total capital cost of $1.732 billion highlights its immense scale and transformational potential. The integration of Nuton™ technology for sulfide leaching, a collaboration with a Rio Tinto subsidiary, is a key strategic and technological advantage, enhancing recoveries and environmental performance. This positive development follows recent investments from Nuton LLC, signaling strong partner confidence and a clear path towards advancing the project to a Feasibility Study.
At the time of this filing, LCGMF was trading at $0.21 on OTC in the Energy & Transportation sector, with a market capitalization of approximately $86.1M. The 52-week trading range was $0.01 to $0.23. This filing was assessed with positive market sentiment and an importance score of 10 out of 10.