Lion One Metals Limited
Lion One Drills Further Wide and High Grade Intersections and Continues to Extend HT Corridor at Tuvatu in Fiji
DGAP-News: Lion One Metals Limited / Key word(s): Miscellaneous North Vancouver, British Columbia–(Newsfile Corp. – October 16, 2017) – Lion One Metals Limited (TSX-V: LIO) (ASX: LLO) (OTCQX: LOMLF) (FSE: LY1) (the ‘Company’) is pleased to announce that its ongoing diamond drilling program has returned further high grade gold intersections 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. Recent Drill Highlights1
Current Drill Program HT Corridor Mineralisation: a zone of growing significance Figure 1: Tuvatu Gold Project
The current mine plan derives most of its inventory from the UR lodes which are narrow high-grade structures oriented north-south and form along cracks in the host monzonite rock. The zone hosting the T and H lodes has been named the HT Corridor. The HT Corridor mineralization is of a different nature to the UR lodes and includes highly fractured, brecciated and wider zones of mineralisation striking northwest-southeast and dipping steeply to the northeast. The HT Corridor is characterised by a distinct biotite and potassium feldspar alteration which has enabled mapping of the corridor for over a kilometers to the northwest and 2 kilometers to the southeast of the existing drilling. The mineralisation identified in the 2017 drilling to date remains open in both directions along strike and also down dip. Figure 2: HT Zone of Mineralization outlined by Drilling, Mapping and Trenching
Mining significance The Company looks forward to announcing further drill results as and when they are received and compiled from the current drill program and, in time, a revised mine plan and mining inventory that includes this new discovery. Table 1: Diamond Drill Results reported on in this News Release
Notes: Table 2: Drill Hole Logistics from the Current Reported Holes
Notes: Table 3: Diamond Drill Results from this mineralized zone reported in Previous News Releases
Notes: About Tuvatu | Lion One | Fiji Gold 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, Mr Berukoff 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 an initial estimate of ~353,000 ounces of gold at head grades of 11.3 g/t Au over an initial 7 year mine life. 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$112.6 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 were installed early in 2017 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. Competent Persons and QP Statement Information in this announcement relating to exploration drilling at the Tuvatu project is based on data compiled by Lion One’s Managing Director, Mr Stephen Mann, who is a member of The Australasian Institute of Mining and Metallurgy. Mr. Mann is the Qualified Person (‘QP’) responsible for the Tuvatu exploration program and has prepared and approved the technical information in this news release. Mr. Mann has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons under the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Mann consents to the inclusion of the data in the form and context in which it appears. The Tuvatu Mineral Resources have been estimated by Mining Associates, an external consultancy, and are previously reported under the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves (see LOL -ASX announcement 4June 2014 titled ‘Lion One Announces Revised NI 43-101 Resource Estimate: Increased Tonnage and Grade at the Tuvatu Gold Project, Fiji’). The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral Resources that all material assumptions and technical parameters underpinning the estimate in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not materially modified from the original market announcements. The Tuvatu historical exploration results have been sourced from data collected by previously listed companies which have undergone a number of peer reviews by qualified consultants, who conclude that the resources comply with the JORC code and are suitable for public reporting. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. For more information on Lion One including technical reports please visit the Company’s website at www.liononemetals.com or the SEDAR website at www.sedar.com . On behalf of Lion One Metals Limited For further information please contact 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. 1 Intersections rounded to nearest 0.1 meter and 0.1g/t. Refer to Table 1 for full details. Click on, or paste the following link into your web browser, to view the associated documents http://www.newsfilecorp.com/release/29696
16.10.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | Lion One Metals Limited |
Canada | |
ISIN: | CA5362161047 |
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