Lone Mountain
Project
Lone Mountain
Commodity
Zinc-Lead-Silver-Gold
Location
Nevada
Nearest City
28 kms northwest of the historic Eureka Mining District, Nevada
Nearest Mining Projects
Barrick Gold’s Goldstrike and Carlin mines
Nevada Gold Mines
Pine Valley mine
Cortez Hills mine
McEwen Mining’s Gold Bar mine
i80’s Ruby Hill project
Development Stage
Historic resource and PEA
Geology
Carbonate Replacement Deposit (CRD)
Land Package
1,850 has
Exploration Highlights
118.87 m of 9.58% Zn and 0.74% Pb (hole LM-15- 27)
24.7 m grading 23.06% Zn (hole NLM-17-08)
Access & Infrastructure
The region supports an active mining workforce with significant resources for mineral exploration, mine development, and mine operations
Project Interest
100% Owned
Project
Lone Mountain is a high-grade CRD project comprised of a single patented mining claim and 203 unpatented mining claims that cover 1,850 hectares. The Project lies 28 kms northwest of the historic Eureka Mining District, which anchors one end of the Battle Mountain-Eureka trend in Nevada, USA (Figure 1). The region supports an active mining workforce with significant resources for mineral exploration, mine development, and mine operations. Major mines in the region include Barrick Gold’s Goldstrike and Carlin mines, Nevada Gold Mines, Pine Valley mine, Cortez Hills mine, McEwen Mining’s Gold Bar mine and i80’s Ruby Hill project, amongst others.
The Project includes the historical Mountain View Mine which produced almost 5 million pounds of zinc, 650,000 pounds of lead and 4,000 pounds of silver between 1942 and 1968 (Paterson (2005 & 2007) and Gow (2007)). Zinc-lead mineralization at Lone Mountain is hosted by Paleozoic limestone and dolomite in the lower plate of the Roberts Mountain thrust fault. Mineralization produced from shallow workings and drilled so far is nearly entirely oxidized, but Minaurum geologists believe that sulphide mineralization may lie at depth below.
In accordance with the disclosure in the PEA, the Project is a brownfields project with a historic inferred mineral resource estimate of 3,257,000 tonnes grading 7.57% zinc and 0.70% lead. Select drilling highlights include 118.87 m of 9.58% Zn and 0.74% Pb (hole LM-15- 27); and 24.7 m grading 23.06% Zn (hole NLM-17-08). The PEA also demonstrated a 35% after tax internal rate of return ("IRR"). See below for further details on the Mineral Resource Estimate Report and the PEA.
Nevada Zinc completed a Preliminary Economic Assessment of the viability of potentially mining the zinc mineralization at the Project in June 2019 (NI 43-101 Preliminary Economic Assessment and Technical Report, Peimen Ling & Associates Limited, June 27, 2019 or see Nevada Zinc news release dated June 27, 2019 (the “PEA”).
Project terms include cash and share payments including i) issue Nevada Zinc a number of common shares of the Company (the “Payment Shares”) having an aggregate value of $1,000,000 based on the 10-day volume weighted average trading price of the common shares on the TSX Venture Exchange (“TSXV”) for the 10 trading days immediately preceding the date of issuance; and ii) pay Nevada Zinc a cash fee in the amount of $100,000. Please see news release dated October 2, 2024 and June 3, 2025 for more information.
Historical Resource Estimate and PEA
Lone Mountain is a brownfields project with a historical inferred mineral resource estimate of 3,257,000 tonnes grading 7.57% Zn and 0.70% Pb (Table 1).
Table 1. Historic Lone Mountain Inferred Mineral Resources
Inferred Mineral Resources
Cut-Off Zn%
Tonnage (1,000 t)
Zn (%)
Pb (%)
Zn (M lb)
2.0
3,257
7.57
0.7
543
- Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues.
- Mineral Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
- The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
- Contained metal may differ due to rounding.
- Inferred Mineral Resources are reported within an optimized pit shell.
Minaurum believes that the PEA highlights strong potential economics for a low-cost, relatively simple, open pit zinc mine and flotation plant operating, producing, and selling zinc concentrate for 12 years based on the historic mineral resources and a proposed nominal operating rate of 800 tonnes per day ("tpd"). The PEA summarizes the following cash flow forecast: using a long-term average zinc price of US $1.13 per pound and an 8% discount rate, and was estimated to generate a pre-tax Net Present Value ("NPV") of US $56.4 M (CDN $75.2 M) and a pre-tax 40% IRR (Table 2).
Table 2. Historic PEA Summary
Parameters
USD
CAD
Pre-Tax IRR
40%
Pre-Tax NPV8%
$56.4 M
$75.2
After Tax IRR
35%
After Tax NPV8%
$43.2 M
$57.6 M
Payback Period (After Tax), (years)
2.7
Average Annual Zinc Production (lbs. contained)
35.2 M
Average Annual Zinc Payable (85%) (lbs. payable)
30.0 M
Pre-production Capex
$25.7 M
$34.3 M
Mine Life (years)
12
Anticipated Mill Throughput (Average tpd)
800
Operating Days per Year
347
Mineral Resource Tonnage (tonnes)
3,257,000
Mineral Resource Grade
7.57%
Anticipated Process plant Recovery
80%
Anticipated Grade of Concentrate Produced
45%
Zinc Price for PEA Study (per pound)
$1.13
Foreign Exchange Rate (CAD/USD)
0.75
- There is no certainty the results of the PEA as presented will ever be realized.
- Mineral Resources are not mineral reserves and do not have demonstrated economic viability.
- Additional work is required to upgrade the inferred mineral resources to mineral reserves.
Historical Drilling
Historical drilling was concentrated around the historical Mountain View mine and included 85 reverse-circulation and 13 core holes totaling 14,407 meters carried out 2014-2017. Drill highlights are summarized in Table 3. Zinc-rich carbonate-oxide mineralization is well-defined to 250 m. However, drilling did not test the deeper potential oxide or sulphide zinc potential which is open along strike and to depth.
Table 3. Lone Mountain drill highlights summary.
Hole ID
From (m)
To (m)
Length (m)
Zn (%)
LM-14-01
114.30
204.22
89.92
6.22
LM-14-04
121.92
167.03
45.11
11.62
LM-15-16
33.53
44.20
10.67
11.05
LM-15-27
126.49
245.36
118.87
9.58
LM-15-36
146.30
297.74
91.44
9.49
LM-16-38
41.15
65.53
24.38
7.70
LM-16-48
10.67
114.30
103.63
2.78
including
19.87
35.05
15.24
11.89
LM-16-56
164.59
265.18
100.58
6.58
NLM-17-08
143.05
167.75
24.70
23.06
including
152.81
167.75
14.94
29.38
Please see news release dated October 2, 2024 and June 3, 2025 for more information. Nevada Zinc completed a Preliminary Economic Assessment of the viability of potentially mining the zinc mineralization at the Project in June 2019 (NI 43-101 Preliminary Economic Assessment and Technical Report, Peimen Ling & Associates Limited, June 27, 2019 or see Nevada Zinc news release dated June 27, 2019 (the “PEA”). Please see the Mineral Resource Estimate Report available on Nevada Zinc’s SEDAR+ profile.
-
| Project | Lone Mountain |
| Commodity | Zinc-Lead-Silver-Gold |
| Location | Nevada |
| Nearest City | 28 kms northwest of the historic Eureka Mining District, Nevada |
| Nearest Mining Projects |
Barrick Gold’s Goldstrike and Carlin mines Nevada Gold Mines Pine Valley mine Cortez Hills mine McEwen Mining’s Gold Bar mine i80’s Ruby Hill project |
| Development Stage | Historic resource and PEA |
| Geology | Carbonate Replacement Deposit (CRD) |
| Land Package | 1,850 has |
| Exploration Highlights |
118.87 m of 9.58% Zn and 0.74% Pb (hole LM-15- 27) 24.7 m grading 23.06% Zn (hole NLM-17-08) |
| Access & Infrastructure | The region supports an active mining workforce with significant resources for mineral exploration, mine development, and mine operations |
| Project Interest | 100% Owned |
Project
Lone Mountain is a high-grade CRD project comprised of a single patented mining claim and 203 unpatented mining claims that cover 1,850 hectares. The Project lies 28 kms northwest of the historic Eureka Mining District, which anchors one end of the Battle Mountain-Eureka trend in Nevada, USA (Figure 1). The region supports an active mining workforce with significant resources for mineral exploration, mine development, and mine operations. Major mines in the region include Barrick Gold’s Goldstrike and Carlin mines, Nevada Gold Mines, Pine Valley mine, Cortez Hills mine, McEwen Mining’s Gold Bar mine and i80’s Ruby Hill project, amongst others.
The Project includes the historical Mountain View Mine which produced almost 5 million pounds of zinc, 650,000 pounds of lead and 4,000 pounds of silver between 1942 and 1968 (Paterson (2005 & 2007) and Gow (2007)). Zinc-lead mineralization at Lone Mountain is hosted by Paleozoic limestone and dolomite in the lower plate of the Roberts Mountain thrust fault. Mineralization produced from shallow workings and drilled so far is nearly entirely oxidized, but Minaurum geologists believe that sulphide mineralization may lie at depth below.
In accordance with the disclosure in the PEA, the Project is a brownfields project with a historic inferred mineral resource estimate of 3,257,000 tonnes grading 7.57% zinc and 0.70% lead. Select drilling highlights include 118.87 m of 9.58% Zn and 0.74% Pb (hole LM-15- 27); and 24.7 m grading 23.06% Zn (hole NLM-17-08). The PEA also demonstrated a 35% after tax internal rate of return ("IRR"). See below for further details on the Mineral Resource Estimate Report and the PEA.
Nevada Zinc completed a Preliminary Economic Assessment of the viability of potentially mining the zinc mineralization at the Project in June 2019 (NI 43-101 Preliminary Economic Assessment and Technical Report, Peimen Ling & Associates Limited, June 27, 2019 or see Nevada Zinc news release dated June 27, 2019 (the “PEA”).
Project terms include cash and share payments including i) issue Nevada Zinc a number of common shares of the Company (the “Payment Shares”) having an aggregate value of $1,000,000 based on the 10-day volume weighted average trading price of the common shares on the TSX Venture Exchange (“TSXV”) for the 10 trading days immediately preceding the date of issuance; and ii) pay Nevada Zinc a cash fee in the amount of $100,000. Please see news release dated October 2, 2024 and June 3, 2025 for more information.
Historical Resource Estimate and PEA
Lone Mountain is a brownfields project with a historical inferred mineral resource estimate of 3,257,000 tonnes grading 7.57% Zn and 0.70% Pb (Table 1).
Table 1. Historic Lone Mountain Inferred Mineral Resources
| Inferred Mineral Resources | ||||
|
Cut-Off Zn% |
Tonnage (1,000 t) |
Zn (%) |
Pb (%) |
Zn (M lb) |
|
2.0 |
3,257 |
7.57 |
0.7 |
543 |
- Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues.
- Mineral Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
- The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
- Contained metal may differ due to rounding.
- Inferred Mineral Resources are reported within an optimized pit shell.
Minaurum believes that the PEA highlights strong potential economics for a low-cost, relatively simple, open pit zinc mine and flotation plant operating, producing, and selling zinc concentrate for 12 years based on the historic mineral resources and a proposed nominal operating rate of 800 tonnes per day ("tpd"). The PEA summarizes the following cash flow forecast: using a long-term average zinc price of US $1.13 per pound and an 8% discount rate, and was estimated to generate a pre-tax Net Present Value ("NPV") of US $56.4 M (CDN $75.2 M) and a pre-tax 40% IRR (Table 2).
Table 2. Historic PEA Summary
| Parameters |
USD |
CAD |
|
Pre-Tax IRR |
40% |
|
|
Pre-Tax NPV8% |
$56.4 M |
$75.2 |
|
After Tax IRR |
35% |
|
|
After Tax NPV8% |
$43.2 M |
$57.6 M |
|
Payback Period (After Tax), (years) |
2.7 |
|
|
Average Annual Zinc Production (lbs. contained) |
35.2 M |
|
|
Average Annual Zinc Payable (85%) (lbs. payable) |
30.0 M |
|
|
Pre-production Capex |
$25.7 M |
$34.3 M |
|
Mine Life (years) |
12 |
|
|
Anticipated Mill Throughput (Average tpd) |
800 |
|
|
Operating Days per Year |
347 |
|
|
Mineral Resource Tonnage (tonnes) |
3,257,000 |
|
|
Mineral Resource Grade |
7.57% |
|
|
Anticipated Process plant Recovery |
80% |
|
|
Anticipated Grade of Concentrate Produced |
45% |
|
|
Zinc Price for PEA Study (per pound) |
$1.13 |
|
|
Foreign Exchange Rate (CAD/USD) |
0.75 |
|
- There is no certainty the results of the PEA as presented will ever be realized.
- Mineral Resources are not mineral reserves and do not have demonstrated economic viability.
- Additional work is required to upgrade the inferred mineral resources to mineral reserves.
Historical Drilling
Historical drilling was concentrated around the historical Mountain View mine and included 85 reverse-circulation and 13 core holes totaling 14,407 meters carried out 2014-2017. Drill highlights are summarized in Table 3. Zinc-rich carbonate-oxide mineralization is well-defined to 250 m. However, drilling did not test the deeper potential oxide or sulphide zinc potential which is open along strike and to depth.
Table 3. Lone Mountain drill highlights summary.
Hole ID |
From (m) |
To (m) |
Length (m) |
Zn (%) |
|
LM-14-01 |
114.30 |
204.22 |
89.92 |
6.22 |
|
LM-14-04 |
121.92 |
167.03 |
45.11 |
11.62 |
|
LM-15-16 |
33.53 |
44.20 |
10.67 |
11.05 |
|
LM-15-27 |
126.49 |
245.36 |
118.87 |
9.58 |
|
LM-15-36 |
146.30 |
297.74 |
91.44 |
9.49 |
|
LM-16-38 |
41.15 |
65.53 |
24.38 |
7.70 |
|
LM-16-48 |
10.67 |
114.30 |
103.63 |
2.78 |
|
including |
19.87 |
35.05 |
15.24 |
11.89 |
|
LM-16-56 |
164.59 |
265.18 |
100.58 |
6.58 |
|
NLM-17-08 |
143.05 |
167.75 |
24.70 |
23.06 |
|
including |
152.81 |
167.75 |
14.94 |
29.38 |
Please see news release dated October 2, 2024 and June 3, 2025 for more information. Nevada Zinc completed a Preliminary Economic Assessment of the viability of potentially mining the zinc mineralization at the Project in June 2019 (NI 43-101 Preliminary Economic Assessment and Technical Report, Peimen Ling & Associates Limited, June 27, 2019 or see Nevada Zinc news release dated June 27, 2019 (the “PEA”). Please see the Mineral Resource Estimate Report available on Nevada Zinc’s SEDAR+ profile.
