LION One Announces Drilling and Development Update FOR the Tuvatu GOLD Project IN Fiji
311 West 1
st
Street, North Vancouver, BC, V7M 1B5
Tel: 604-998-1250 fax: 604-998-1253 NA toll-free: 1-855-805-1250
email: info (@) liononemetals.com web: www.liononemetals.com
LION ONE ANNOUNCES DRILLING AND DEVELOPMENT
UPDATE FOR THE TUVATU GOLD PROJECT IN FIJI
North Vancouver, B.C., May 9, 2017. Lion One Metals Limited (TSX-V: LIO) (ASX: LLO) (OTCQX: LOMLF)
(FSX: LY1) (the “Company”) is pleased to announce the following drilling and development update for its
100% owned and fully permitted high grade undergro und Tuvatu Gold Project located near Nadi on the
island of Viti Levu in the Republic of Fiji.
About Tuvatu
The Tuvatu Gold Project is located 17 km from the Nadi International Airport on the main island of Viti
Levu in Fiji. Discovered in 1987, Tuvatu is a high grad e, low sulphidation, epithermal gold deposit hosted
inside a South Pacific style volcanic caldera. The de posit occurs along the Viti Levu lineament, Fiji’s own
corridor of high grade gold deposits. Tuvatu is situat ed upon a 5 hectare footprint inside a larger 384
hectare mining lease. The project contains numerous high grade prospects proximal to Tuvatu, at depth,
and up to 1.50 km along strike from the resource area, giving near-term production potential and
further discovery upside inside of one of Fiji’s underexplored volcanic goldfields.
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 100,000 meters of drilling completed to date in addition to 1,600 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 Tec hnical Report on the Tuvatu Gold Project, the
Company envisages a low cost underground gold mini ng operation producing 352,931 ounces of gold at
head grades of 11.30 g/t Au over an initial 7 year mi ne 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.
Drilling and Development
Mine engineering and underground development is progressing alongside final detailed engineering for
the Tuvatu processing plant and site infrastruc ture. The 2016-2017 drilling program continues with one
diamond drill rig operating at surface, and one u nderground. Drilling has successfully intersected high
grade zones of mineralization proximal to, and outsid e the current resource. Consequently the Company
has appointed an independent third party engineering firm to model the incoming results. The Company
believes the drilling currently underway has the potent ial to materially increase the tonnage and grade
of the mineralized zones targeted for extraction in the initial years of the Tuvatu mine plan.
311 West 1
st
Street, North Vancouver, BC, V7M 1B5
Tel: 604-998-1250 fax: 604-998-1253 NA toll-free: 1-855-805-1250
email: info (@) liononemetals.com web: www.liononemetals.com
Drilling Results
The Company commenced dr illing at Tuvatu in October 2016 with on e surface rig, followed by the
addition of an underground rig in March 2017. A to tal of 6,493 meters of diamond drilling has been
completed to date consis ting of 5,744m from 28 surface drill hole s, and 739m from 7 underground drill
holes. An additional 520m of drilling has been completed for geotechnical purposes in the area of the
proposed processing plant, and to confirm stability of the monzonite host rock underground. High grade
highlights include the following drilling results (see Table 1 below for a summary of 2016-2017 results):
- TUDDH 406 (8.41m @ 71.41 g/t Au from 96.10m, inc. 4.56m @ 126.67 g/t Au);
- TUDDH 407 (4.05m @ 12.32 g/t Au from 53.57m);
- TUDDH 409 (3.92m @ 12.54 g/t Au from 80.78m),
- TUDDH 410 (2.42m @ 24.07 g/t Au from 86.94m),
- TUDDH 419 (9.07m @ 14.89 g/t Au from 32.83m, inc. 5.57m @ 21.04 g/t Au from 36.33m).
Current drilling is following up on several very high grade intercepts and potential extensions of zones
identified in previous campaigns:
1) TUDDH 160 (4.22m @ 252.64 g/t Au from 332m; 4.12m @ 19.61g/t Au from 403.20m)
2) TUDDH 207 (8.85m @ 14.09g/t Au from 418.90m; 1.45m @ 19.78g/t Au from 418.90m)
3) Drilling targeting the northern, shallow extensions on the Tuvatu, SKL 3-8, and UR2 lodes.
Minimal diamond drilling has been undertaken on these lodes in the northern part of the
deposit and as such, there remains a high probability of extending mineralized lodes into these
areas. This area includes three reverse circul ation drill holes which had previously not been
followed up including TURC 142 ( 5m @ 22.5g/t Au) , TURC 156,(2m @ 11g/t Au) and TURC 171,
(6m @ 6.3 g/t Au)
4) Follow up of extensions of the east-west oriented Snake and Murau lodes to the west of the
exploration decline.
Plan and section views of the reported drilli ng areas are located on the Company website
https://liononemetals.com/news-media/image-gallery/.
The underground diamond drill rig has targeted the area north of the Core Shed Fault, where very little
previous drilling has been undertaken. Surface mapping and sampling has highlighted continuation of
those mineralized lodes to the north, in addition to a number of other zones of mineralization previously
untested. The main known lodes being tested include the UR2, Tuvatu and H lodes.
The current drilling program has identified a number of very high grade intercepts from outside the
proposed ore stopes planned in the 2015 Preliminary Ec onomic Assessment. In particular, the intercepts
in TUDDH 408, 419 and 425 fall well outside exis ting stopes, whilst TUDDH407, 409, 410 and others,
returned intersection on the ma rgins of existing planned stopes. Other diamond drill holes have
confirmed the existing mineralization in many of the other proposed stopes.
The most significant results received from all drilling to date have previously been reported (see news
releases dated November 28, 2016, December 21, 2016, February 14 2017, and in the Management
Discussion and Analysis for Period Ending March 31 st 2017. Below is a summary of select results from
the drilling undertaken in the 2016-2017 drill programs (Table 1):
311 West 1
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Street, North Vancouver, BC, V7M 1B5
Tel: 604-998-1250 fax: 604-998-1253 NA toll-free: 1-855-805-1250
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Table 1: Select Tuvatu Drilling Results, May 2017
Drill Hole From (m) To (m) Interval
(m) Au (g/t) Zone
TUDDH 406 48.42 51.30 2.88 5.30 GRF/ SKL 2
70.93 71.23 0.30 23.30 SKL 4
72.30 73.55 1.25 10.16 SKL 4
96.10 104.51 8.41 71.41 UR 2
including 96.10 100.66 4.56 126.67 UR 2
and 102.71 104.51 1.80 12.58 UR 2
116.55 117.27 0.72 36.20 SKL 8?
TUDDH 407 53.57 61.60 8.03 4.68 SKL 3/4
including 55.76 61.60 5.84 6.26 SKL 3/4
71.43 75.48 4.05 12.32 SKL 6
TUDDH 408 41.60 41.90 0.30 76.60 SKL 4/ Snake
63.49 63.80 0.31 6.69 Nasivi
88.04 91.07 3.03 3.35 Murau 2
TUDDH 409 78.93 85.70 6.77 7.83 Murau 1
including 80.78 84.70 3.92 12.54 Murau 1
91.40 94.80 3.40 4.59 Murau 1 split
TUDDH410 86.94 89.36 2.42 24.07 Murau 1 HW
124.20 125.70 1.50 9.16 Murau 1 FW2
TUDDH 412 48.46 49.85 1.39 8.46 Tuvatu 2
TUDDH 418 201.30 202.60 1.30 13.02 Murau 3
171.20 171.49 0.29 16.60 URW 3
TUDDH 419 32.83 41.90 9.07 14.89 UR 2
including 36.33 41.90 5.57 21.04 UR 2
71.36 72.80 1.44 19.65 SKL 3
83.66 85.78 2.12 14.28 SKL 5
103.18 103.64 0.46 14.00 SKL 7
TUDDH 420 75.19 76.50 1.31 11.57 SKL 3
TUDDH 421 115.23 117.15 1.92 16.89 UR 4
TUDDH 425 46.35 49.20 2.85 19.78 UR 2
TUDDH 427 64.67 65.11 0.44 48.00 SKL 4
TUDDH 428 191.96 195.64 3.68 5.86 UR 2
* True widths of the drill hole intersection have not been determined from the information available.
311 West 1
st
Street, North Vancouver, BC, V7M 1B5
Tel: 604-998-1250 fax: 604-998-1253 NA toll-free: 1-855-805-1250
email: info (@) liononemetals.com web: www.liononemetals.com
Quality Control (QAQC)
All samples for this drilling program is marked, logged, and cut with a diamond saw onsite, placed in
sealed bags and sent to the Company’s Nadi office. Following inspection by the regulators in Fiji and
receipt of an export license, samples are then ship ped to Brisbane, Queensland for customs clearance,
and then couriered to the facilities of ALS Chemex in Townsville, also in Queensland, for sample
preparation and gold analysis by fire assay and mu lti-element ICP analysis. A Quality Control/Quality
Assurance program, including the insertion of standards, blanks and duplicates is ongoing.
Development Update
The Company continues to work alongside its EPC part ner Ansteel to complete the design and financing
of the Tuvatu Gold Project (see “Ansteel MOU” news release dated Augu st 24, 2016). Under mutual
agreement with Ansteel, The Company has contracted Yantai Jinpeng Mining Machinery Co Ltd, based in
Shandong Province, PRC, to complete the final detailed engineering design plans for the Tuvatu
processing plant, tailings dam, and surface infrastructure. The detailed design plans include the
laboratory, office complex, dry area, workshop fo r light vehicles and heavy underground machinery,
warehouse, conference facilities and mine site offices. The detailed engineering design is nearing
completion with site plans scheduled for delivery to Lion One in June 2017.
The Company has also contracted Canenco Consulti ng Corp., a Vancouver based process engineering
company, to manage Front End Engineering Design (FEED), including equipment specifications,
engineering plans, and design documentation for the processing plant to be constructed in the PRC to
North American standards. The procurement proc ess of mining equipment and processing plant
components is progressing with all equipment and long term lead items having been identified and
priced.
The Company has now dewatered the existing Tuvatu exploration decline past the 375m mark from the
portal down the decline. The decline was completed in the year 2000 by Emperor Gold Mines,
comprising 1,430 meters of underground developmen t 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. Minor slippage inside the Core Shed Fault area 140m inside the decline has now been
cleared and reinforced to ensure permanent and safe access past that area to areas further down the
decline for future drilling programs. The rehabilitat ion of this area has been approved by Mine
Inspectors from Fiji’s Mineral Resource Department.
Ian Chang, M.A.Sc., P.Eng., Chief Development Office r, is the Qualified Person ("QP") responsible for
Tuvatu Mine development. Stephen Mann, Managing Director, member of The Australasian Institute of
Mining and Metallurgy, is the Qualified Person (“QP”) responsible for the Tuvatu Mine exploration
program.
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
“Walter H. Berukoff”
Chief Executive Officer
For further information please contact
Stephen Mann, Managing Director (Perth, Australia) Tel: 604-973-3007
311 West 1
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Street, North Vancouver, BC, V7M 1B5
Tel: 604-998-1250 fax: 604-998-1253 NA toll-free: 1-855-805-1250
email: info (@) liononemetals.com web: www.liononemetals.com
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
Email: [email protected]
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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 actu al results of
exploration projects being equivalent to or better than estimated results in technical reports, assessment reports, and other g eological reports or
prior exploration results. Forward-looking information is subject to known and unknown risks, uncertainties and other factors t hat may cause
the actual results, level of activity, performance or achievements of Lion One Metals Limited or its subsidiaries to be materia lly different from
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research and development or operational activities; competition; uncertainty as to patent applications and intellectual propert y rights; product
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legislation, affecting mining, tim ing and availability of external financing on ac ceptable terms; not re alizing on the potentia l 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 forwar d-looking
information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, reader s should not place
undue reliance on forward-looking information. Lion One Metals Limited does not undertake to update any forward-looking informa tion, except
in accordance with applicable securities laws.