North Vancouver’s Lion One Metals Limited (TSX-V: LIO) (OTCQX: LOMLF) (ASX: LLO) has discovered a new mineralized structure containing bonanza-grade gold north of its flagship Tuvatu project in Fiji and added it to the company’s list of high-priority targets.
The junior explorer announced the Lumuni occurrence discovery on Thursday, which has yielded surface samples containing up to 92.5 g/t gold.
“What makes this discovery so outstanding is the continuity of the high-grade material. It is not a single bonanza-grade sample, but rather a traceable lode of high to very-high grade material that can be followed along at surface,” said Lion One’s CEO Walter Berukoff.
The mineralized strike length of the Lumuni structure hosting the discovery is over 150 metres and Lion One’s assessments have indicated that it may be a deep-rooted underground deposit. The Tuvatu project is situated on the country’s Viti Levu island.
“The fact that these high-grade samples coincide with a steeply dipping resistivity low is even more compelling as it provides us with immediate drill targets to pursue,” he added.
Sampling highlights from Lumuni include the following:
- 66.83 g/t Au over 0.7 metres
- 48.45 g/t Au over 0.7 metres, including 92.55 g/t Au over 0.3 metres
- 15.18 g/t Au over 1.1 metres, including 31.25 g/t Au over 0.3 metres
Channel samples indicated by red lines. Photo via Lion One Metals
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The Tuvatu alkaline gold project currently has a mill under construction that is expected to be capable of processing 300 tonnes of ore per day by the end of the year and 500 by 2025 once the company declares commercial production at the site.
“I believe we will be in at least the top three or four high-grade mines in the world,” said Berukoff.
The company is aiming to have its first gold pour at Tuvatu by Q4 this year and the operation has created over 250 local jobs.
Lion One has 206 million outstanding shares with a market capitalization of $150 million.
The company’s shares rose by 4.35 per cent Thursday to $0.96 on the TSX Venture Exchange and have risen by over 23 per cent in the past six months.
Other gold mining companies operating in Fiji include Kalo Gold Corp (TSX-V: KALO), owner of the country’s Vatu Aurum gold project and Thunderstruck Resources (TSX-V: AWE) (OTC: THURF), owner and operator of the Korokayiu, Liwa, Rama and Nikoru mining operations on the Viti Levu island.
rowan@mugglehead.com
