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Vancouver, British Columbia--(Newsfile Corp. - November 29, 2023) - Lion Copper and Gold Corp. (TSXV: LEO) (OTCQB: LCGMF) ("Lion CG") announced today that its controlled subsidiary, Falcon Copper Corp. ("Falcon Copper"), has signed an Option to Joint Venture Agreement with Kennecott Exploration Company ("Kennecott"), a subsidiary of Rio Tinto plc, to advance exploration on Falcon's Cabin property and Kennecott's contiguous Muncy Creek property, collectively called the Schell Creek Project, located in White Pine County, Nevada.
The 9,000-acre Cabin property covers a prospective porphyry copper target. Historical drilling by Combined Metals Reduction Company in the first half of the 20th century intersected copper mineralization that provides evidence of a significant copper system extending under alluvial cover. More recent airborne magnetics, supporting geochemistry and favorable structural setting further indicate the potential for a major concealed copper deposit.
The 6,000-acre Muncy Creek property contains zones of known high-grade copper-silver-lead-zinc carbonate replacement mineralization that may overlie a larger concealed copper porphyry system, as suggested by sampling, geophysical anomalies and limited past production from the Aurum Mining District.
Neither the Cabin nor Muncy Creek properties have been drilled with modern techniques in recent decades. Upon Falcon Copper completing $2.5 million of exploration expenditures within two years, Kennecott will have the right to vest.
Should Kennecott elect to vest, Falcon Copper would hold a 60% participating interest and Kennecott would hold a 40% participating interest in a joint venture formed between the companies on the Schell Creek Project. If Kennecott does not vest, Falcon Copper would retain 100% ownership over the entire land package, subject to a 2.0% net smelter return royalty in favor of Kennecott on the Muncy Creek property, which Falcon Copper will have the right to buy-down to 1.0% by paying Kennecott $10,000,000.
Exploration plans for the Schell Creek Project are being immediately prepared and include geophysical surveys, geologic mapping, geochemical sampling and exploration drilling of identified targets.
Travis Naugle, co-chairman and CEO of Lion CG, states, "This agreement provides a clear path for Falcon Copper to maximize value of these two exciting eastern Nevada copper porphyry targets through diligent exploration over the next two years. Kennecott's option to then earn-in to a minority interest, or receive a royalty, underscores the potential they see at both Muncy Creek and Cabin. We eagerly anticipate collaborating with the Rio Tinto exploration team as we pursue these copper systems."