LCL Resources Secures Rio Tinto Farm-In for PNG Ono Project with High-Grade Assays and $2M Asset Sale

Rio Tinto Farm-In Validates Ono Project Potential

LCL Resources (ASX:LCL) has taken a decisive step forward in Papua New Guinea with a binding farm-in agreement that allows Rio Tinto Exploration (PNG) Limited to earn up to an 80% stake in the Ono Project. The mining giant will fund up to A$48 million in exploration, starting with a minimum A$8 million expenditure and 4,000 metres of drilling to secure an initial 51% interest. Rio Tinto’s commitment signals strong confidence in the project’s copper-gold porphyry potential and brings a heavyweight partner with deep technical expertise and financial muscle, freeing LCL from reliance on equity markets for exploration funding.

The staged farm-in also includes up to A$1.5 million in cash payments to LCL, providing immediate financial benefits alongside long-term upside. Rio Tinto’s option to increase its holding to 80% hinges on either sole funding a further A$40 million or defining a JORC-compliant Mineral Resource of at least 1.25 million tonnes of contained metal equivalent and completing a Scoping Study. This structure aligns incentives for both parties to advance the project methodically.

This agreement is a culmination of LCL’s strategy to attract major partners to its PNG portfolio, validating the geological potential of the Ono Project and setting the stage for accelerated exploration. The deal was previewed in March 2026, confirming Rio Tinto’s commitment to unlocking the project’s value Rio Tinto Commits A$48M.

High-Grade Assays Highlight Kusi Prospect’s Prospectivity

On the ground, LCL’s exploration team reported exceptional rock chip assays from the Kusi Prospect within the Ono Project, with gold grades reaching 94.4 g/t and silver soaring to 1,885 g/t. These results emanate from the Lower Limestone unit, a newly identified mineralised zone southwest of the existing Kusi Gold Resource, which already hosts 831,000 ounces at 1.41 g/t gold.

Trench sampling during the quarter confirmed mineralisation continuity, including a 20-metre interval at 2.1 g/t gold and 2.7 metres at 115.7 g/t silver, accompanied by elevated lead and zinc. The discovery of mineralised outcrop south of the Ono River expands the exploration footprint by over 2 kilometres along a second reactive limestone horizon, opening fresh avenues for resource growth. Magnetic surveys have pinpointed potential causative intrusions beneath the Lower Limestone, earmarked as priority drill targets.

The surface results reinforce the presence of a polymetallic skarn and vein system, supporting the interpretation of a mineralised hydrothermal system and highlighting the Lower Limestone as a prospective host for epithermal mineralisation. These developments build on earlier findings from trenching and sampling campaigns in PNG LCL Resources Unveils High-Grade PNG Results.

Exploration Advances at Liamu Project and Colombian Asset Sale

Elsewhere in PNG, the Liamu Project’s Dada copper-gold porphyry prospect yielded promising stream sediment sampling results, with gold anomalies up to 5.86 g/t and copper values indicating fertile ground for porphyry-style mineralisation. Notably, new target areas near Awala South, previously unprospected, have emerged for follow-up exploration, including surface sampling and prospecting.

On the corporate front, LCL received A$2 million in February 2026 from the sale of its Colombian assets under a binding option agreement with Tiger Gold Corporation. Tiger is due to pay a further A$4.5 million in June to complete the acquisition, after which it assumes full management and funding responsibilities. The transaction includes a 1% Net Smelter Royalty and a $6.5 million payment on first gold pour, providing LCL with ongoing exposure to the Colombian projects without operational risk. Tiger’s recent listing on the TSX Venture Exchange via a reverse takeover adds further credibility to the arrangement.

Financial Position and Corporate Developments

LCL ended the March quarter with a healthy cash balance of A$3.05 million, bolstered by the Colombian asset sale proceeds. The company spent A$247,000 on exploration activities during the quarter, alongside modest corporate and administration costs. A total of 2.25 million shares were issued following the conversion of vested performance rights, and a director nomination has been received ahead of the AGM scheduled for 29 May 2026.

The company continues to engage with potential partners interested in its PNG portfolio and is actively seeking assets in jurisdictions with lower sovereign risk and operating costs to diversify its growth avenues. The tenement renewal process in PNG remains underway, a common procedural hurdle that may influence project timelines. Meanwhile, regulatory uncertainties around Colombian tenement boundaries persist but are being closely monitored by management.