Lion One Metals Drilling Identifies New Zone of High-Grade Mineralization at Tuvatu Gold Project in Fiji
2.77m @ 85.42 g/t Au from 49.20 meters
3.22m @ 6.83 g/t Au from 62.55 meters
North Vancouver, British Columbia--(Newsfile Corp. - August 22, 2017) - Lion One Metals Limited (TSXV: LIO) (ASX: LLO) (OTCQX: LOMLF) (FSE: LY1) (the "Company") is pleased to announce drill results from a new zone of shallow mineralization identified at its 100% owned and fully permitted high grade underground Tuvatu Gold Project located near Nadi on the island of Viti Levu in the Republic of Fiji.
This new mineralized zone is adjacent, but separate, to mineralization previously outlined in the Tuvatu resource (see Figure 1). The grades intersected are significantly higher than other drill results in this immediate area and are located in the near-surface providing the possibility for early development. The current drill program is focused to the north of the east-west striking Core Shed Fault, a structure which bisects the northern end of the Tuvatu resource. Previous drilling to the north of the Core Shed Fault identified limited and generally lower grade mineralization. The recent drilling has tied together these previous results and extended the known mineralization further north and with higher-grade than that indicated by the previous work. This zone of mineralization is open to the northwest, southeast and at depth. Drilling will continue in an effort to determine the extent of mineralization in both directions along strike, and down-dip. All intersections to date are very shallow, but depth extensions will be targeted as the program continues.
The new drilling is characterized by fine quartz veins, pyrite rich, vuggy, bleached monzonite, with zones of intense, very coarse grained biotite and potassium feldspar alteration. The zone is characterized by intense fractures, breccia and minor faults.
To date, this new zone of mineralization is confined to the area north of the Core Shed Fault, and has already shown the potential to extend much farther north from the area previously drilled at Tuvatu.
Results from six diamond drill holes have recently been received (see Table 1), and are reported in this release. The details of each hole are included in Table 2. The drill program is continuing with results from a number of additional holes still outstanding. The location of these drill holes is outlined in Figure 2.
Table 1: Diamond Drill Results from CurrentProgram
|Drill Hole||From (m) ||To (m) ||Interval (m) ||Au (g/t) |
Table 2: Drill hole details
|Hole number||northing||easting ||depth ||RL ||dip||azimuth|
Previous results in this area have included diamond drill holes:
|TUDDH004: ||4.30m @ 2.55 g/t Au from 33.00 meter|
3.80m @ 2.98 g/t Au from 61.20 meters
|TUDDH049: ||1.55m @ 6.16 g/t Au from 55.45 meters|
1.00m @ 10.34 g/t Au from 64.50 meters
1.35m @ 11.40 g/t Au from 71.65 meters
As well as the following previously completed reverse circulation drill holes which have returned significant results including:
|TURC014||3.00m @ 8.25 g/t Au from 0 meters|
3.00m @ 2.70 g/t Au from 4 meters
|TURC 015 ||7.00m @ 5.09 g/t Au from 0 meters |
|TURC017 ||4.00m @ 1.46 g/t Au from 12 meters |
Extensional Exploration at Tuvatu
The Tuvatu Gold Project consists of multiple high-grade structures drilled over a strike-length of approximately 900 meters. Several of the mineralized zones are open along-strike and down-dip and, as noted in this release, there are potential new target areas in the immediate vicinity of the known mineral resource. Tuvatu sits within an extensive mineralized district with gold occurrences and geochemistry anomalies extending over an area 6 kilometers by 3 kilometers with several district prospects yet to be adequately tested. The Company is developing an exploration strategy that focuses on new mineralization within the current mineralized envelope, immediate extensional targets and other targets in the district. The aim is to expand the resource base to continue to support long-term sustainable mining operations at Tuvatu.
About Tuvatu / Lion One / Fiji Gold
Lion One is aggressively advancing its 100% owned Tuvatu Gold Project as a world class discovery and near-term production opportunity in the southwest Pacific Ring of Fire. Tuvatu is modeled for exploration after regional giants in the low sulphidation family of high grade epithermal gold deposits such as Porgera and Lihir in PNG, and Vatukoula in Fiji. These spectacular discoveries have produced over 35 million ounces of gold in similar alkaline volcanic settings. Tuvatu has been fully permitted by the Government of Fiji for operations startup and has a dual-track strategy of production development and resource expansion inside its 385 hectare mining lease.
Tuvatu is located 17 km from the international airport in Nadi, on the west coast of Viti Levu in the Republic of Fiji. Lion One's CEO Walter Berukoff is leading an experienced team of mine builders, and has owned or operated over 20 mines in 7 countries. As the founder and former CEO of Miramar Mines, Northern Orion, and La Mancha Resources, Walter is credited with building over $3 billion of value for shareholders.
Tuvatu was advanced by previous owners through underground exploration and development from 1997 through to the completion of a feasibility study in 2000. Acquired by Lion One in 2011, the project has over 110,000 meters of drilling completed to date in addition to 1,430 meters of underground development.
In January 2016 the Hon. Prime Minister of Fiji, Mr. V. Bainimarama, formally presented the previously granted Tuvatu Mining Lease to Lion One. This concluded the permitting process for the development of an underground gold mine and processing plant at Tuvatu, demonstrating strong government support for Fiji's 85 year-old gold mining industry.
As per its independent June 1, 2015 NI 43-101 PEA Technical Report on the Tuvatu Gold Project, the Company envisages a low cost underground gold mining operation producing 352,931 ounces of gold at head grades of 11.30 g/t Au over an initial 7 year mine life. This includes production of 262,000 ounces at 15.30 g/t through to the end of year three. Estimated cash cost is US$567 per ounce with all-in sustaining cost of US$779 per ounce. Total capex of US$48.6 million includes a contingency of US$6.1 million with an 18 month preproduction schedule and 18 month payback on capital. At a US$1,200 gold price, the project generates net cash flow of US$112.66 million and an IRR of 52% (after tax). The Company is not basing its production decision on a feasibility study of mineral reserves demonstrating economic and technical viability; as a result there is increased uncertainty and economic and technical risks associated with its production decision.
Mine engineering and underground development is progressing alongside final detailed engineering for the Tuvatu processing plant and site infrastructure. The Company has now dewatered the existing Tuvatu exploration decline to 560 meters from the portal down the decline. The decline was completed in the year 2000 by Emperor Gold Mines, comprising 1,430 meters of underground development including drives, cross cuts and raises. In conjunction with the dewatering, ventilation fans and lighting have been installed and are running 24 hours per day. The rehabilitation of the decline is ongoing as dewatering progresses, but in general the stability and ground conditions have been shown to be very good. The areas of rehabilitation and regularly reviewed and approved by Mine Inspectors from Fiji's Mineral Resource Department.
Stephen Mann, Managing Director, member of The Australasian Institute of Mining and Metallurgy, is the Qualified Person ("QP") responsible for the Tuvatu Mine exploration and delineation programs.
On behalf of Lion One Metals Limited
"Walter H. Berukoff"
Chief Executive Officer
For further information please contact:
Stephen Mann, Managing Director (Perth, Australia) Tel: 604-973-3007
Hamish Greig, Vice President (North Vancouver, BC) Tel: 604-973-3008
Joe Gray, Investor Relations (North Vancouver, BC) Tel: 604-973-3004
Toll Free IR Line (North America) Tel: 1-855-805-1250
Neither the TSX Venture Exchange nor its Regulation Service Provider accepts responsibility for the adequacy or accuracy of this release.
This press release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "proposed", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. This forward-looking information reflects Lion One Metals Limited's current beliefs and is based on information currently available to Lion One Metals Limited and on assumptions Lion One Metals Limited believes are reasonable. These assumptions include, but are not limited to, the actual results of exploration projects being equivalent to or better than estimated results in technical reports, assessment reports, and other geological reports or prior exploration results. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Lion One Metals Limited or its subsidiaries to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the early stage development of Lion One Metals Limited, general business, economic, competitive, political and social uncertainties; the actual results of current research and development or operational activities; competition; uncertainty as to patent applications and intellectual property rights; product liability and lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting mining, timing and availability of external financing on acceptable terms; not realizing on the potential benefits of technology; conclusions of economic evaluations; and lack of qualified, skilled labor or loss of key individuals. Although Lion One Metals Limited has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Lion One Metals Limited does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Figure 1: Plan View of Tuvatu Gold DepositDrillingTarget Area
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Figure 2: Drill Plan with Resultsfrom Drilling Target area receivedto Date
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Source: Newsfile Corp.