Lion One Announces Further High Grade Drill Results from the Tuvatu Gold Project in Fiji Extensions of High Grade Mineralization Confirmed Through Further Drilling and Geological Mapping Results include:
Lion One Announces Further High Grade Drill Results
from the Tuvatu Gold Project in Fiji
Extensions of High Grade Mineralization Confirmed Through Further Drilling
and Geological Mapping
Results include:
1.45m @ 26.02 g/t Au from 418.25 meters
3.55m @ 12.09 g/t Au from 218.80 meters
5.80m @ 5.93 g/t Au from 63.00 meters
12.55m @ 2.73 g/t Au from 70.30 meters
3.90m @ 9.55 g/t Au from 75.65 meters
2.30m @ 20.70 g/t Au from 17.15 meters
2.40m @ 11.88 g/t Au from 30.40 meters
2.40m @ 23.47 g/t Au from 6.00 meters
North Vancouver, British Columbia--(Newsfile Corp. - September 15, 2017) -
Lion One Metals Limited
(TSXV: LIO) (ASX:
LLO) (OTCQX: LOMLF) (FSE: LY1)
(the "Company")
is pleased to announce further drill results from the current diamond
drilling program 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 phase of drilling targeted both the new zone of shallow mineralization reported on
in the previous news release dated 22
nd
August 2017 (Drilling Identifies New Zone of High-Grade Mineralization at Tuvatu Gold
Project in Fiji), as well as infill and follow up drilling of the existing resource area from both the surface and underground.
Diamond drilling
Results have been received from a number of additional diamond drill holes completed at Tuvatu gold project in Fiji. The focus of
the drilling of this program of work was threefold; firstly to extend the new zone of mineralization reported in the recent news
release (22
nd
August 2017), secondly to infill inferred zones of mineralization targeted for early development, and thirdly to
undertake a first pass review of the target horizons striking south of the known mineralization. (Figure 1)
Surface diamond drill holes TUDDH 452 - 462 are further holes targeting the new zone of mineralization reported on in the last
news release dated 22
nd
August 2017. (Figure 2, 3).
This new mineralized zone is adjacent, but separate, to mineralization previously outlined in the Tuvatu resource, and to the north
of any previously defined planned ore blocks for mining, as can be seen in Figure 2. 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 has identified limited and
generally lower grade mineralization. The recent drilling has helped tie together these previous results and extend the known
mineralization further north, and with higher-grade results than previous work had indicated. Although drilling on this target has
focused on those areas north of the Core Shed Fault, this zone of mineralization is open to the northwest, southeast and at
depth. Drilling has continued in an effort to determine the extent of mineralization in both directions along strike, and down-dip.
All intersections to date are shallow, and all indications are that the mineralization will continue down dip and along strike.
Figure 1: Tuvatu Gold Project - 2016/7 Diamond Drilling Program
To view an enhanced version of Figure 1, please visit:
http://orders.newsfilecorp.com/files/2178/29071_figure1.jpg
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.
Underground collared diamond drill holes TUG 114 - 129 (Figure 4), in addition to surface diamond drill holes TUDDH 429 -
431, TUDDH 434 - 441, and 443 - 447, (Figure 5) are infill holes targeting inferred areas of the existing resource at Tuvatu.
Additionally, surface diamond drill holes TUDDH 432 - 433, and TUDDH 443 - 447 (Figure 6) were completed further to the
south of the existing resource as a first pass examination of the extent of the mineralized structures in that area.
Results from a number of diamond drill holes which have recently been received (see Table 1), are reported in this release. The
detailed logistics 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 Figures 1-6.
Table 1: Diamond Drill Results reported on in this News Release
Drill Hole
From
(m)
To
(m)
Interval
(m)
True Width
(m)
Au
(g/t)
Lode
Surface Drilling
TUDDH 429
303.25
306.30
3.05
2.12
6.49
URW3
418.25
419.70
1.45
1.01
26.02
URW1
TUDDH 430
199.22
200.30
1.08
0.94
8.84
UR1
TUDDH 431
218.80
222.35
3.55
2.85
12.09
URW3
TUDDH 434
191.8
195.95
4.15
3.82
2.19
GRF2
TUDDH 436
140.55
142.1
1.55
1.31
9.64
UR2
TUDDH 438
35.8
36.33
0.53
0.41
11.15
URW2
TUDDH 443
52.26
53.33
1.07
0.80
3.74
UR4
TUDDH 452
26.96
31.73
4.77
3.65
2.14
T1
incl
31.38
31.73
0.35
0.27
15.40
T1
39.23
44.10
4.87
3.73
1.13
T2
TUDDH 453
63.00
68.80
5.80
1.98
5.93
H
63.25
65.25
2.00
0.68
13.40
H
70.30
82.85
12.55
4.29
2.73
H
incl
80.40
82.85
2.45
0.84
6.02
H
88.05
90.50
2.45
0.84
5.27
H
TUDDH 454
62.10
67.90
5.80
5.02
1.39
West
75.67
76.38
0.71
0.61
5.73
T2
TUDDH 455
38.80
39.50
0.70
0.24
6.17
T2
TUDDH 459
75.65
79.55
3.90
2.99
9.55
H?
incl
76.70
78.65
1.95
1.49
14.97
H
TUDDH 462
67.50
71.10
3.60
2.55
1.95
T1
87.60
93.33
5.73
4.05
3.21
T1
incl
92.50
93.33
0.83
0.59
10.71
T2
95.60
97.00
1.40
0.99
3.42
T2
Underground Drilling
TUG 115
29.70
32.10
2.40
2.10
2.33
GRF2
TUG 124
1.38
4.27
2.89
2.80
6.68
SKL
11.48
12.25
0.77
0.72
6.72
GR1?
14.48
14.75
0.27
0.25
23.62
GRF2
TUG 125
35.33
37.78
2.45
2.44
2.39
SKL1
39.30
42.05
2.75
2.74
2.89
SKL1
incl
41.74
42.05
0.31
0.31
14.83
SKL6
48.24
48.95
0.71
0.70
6.87
SKL2
TUG 126
17.15
19.45
2.30
1.51
20.70
SKL6
30.40
32.80
2.40
1.35
11.88
SKL3
45.95
47.20
1.25
0.49
3.41
SKL3
TUG 127
6.00
8.40
2.40
1.70
23.47
GRF h/w
incl
6.00
7.40
1.40
1.00
39.71
GRF h/w
28.38
28.63
0.25
0.10
20.48
SKL7
TUG 128
17.80
18.50
0.70
0.70
6.69
UR2 f/w
34.90
36.75
1.85
1.84
5.36
UR2
TUG 129
10.94
12.27
1.33
0.40
8.11
GRF
37.25
37.82
0.57
0.53
15.66
UR2
Notes
:
Intersections reported here are often composite samples.
Results reported here only include those which returned single intervals or composited intervals of > 4gram meters.
Those intervals highlighted have returned results >20 gram.meters of drill width
TUDDH prefix denotes diamond drill holes drilled from the surface, whilst TUG prefix denotes those holes drilled from
underground.
Table 2: Drill Hole Logistics from the Current Reported Holes
Hole Number
Northing
Easting
Depth
RL
Azimuth
Dip
Surface Drilling
TUDDH 429
3920656.12
1876595.79
437.80
283.0
275
-66.0
TUDDH 430
3920656.08
1876596.45
350.80
283.0
282
-47.8
TUDDH 431
3920656.08
1876597.65
371.8
283.0
255
-56.5
TUDDH 432
3920262.96
1876455.17
148.50
400.7
237
-62.0
TUDDH 433
3920262.55
1876455.51
121.80
400.7
216
-69.6
TUDDH 434
3920857.29
1876591.04
209.60
254.1
253
-42.5
TUDDH 435
3920857.37
1876590.99
200.70
254.1
270
-51.3
TUDDH 436
3920858.83
1876592.16
200.70
254.1
294
-52.3
TUDDH 437
3920884.15
1876382.26
173.80
215.9
274
-50.2
TUDDH 438
3920882.00
1876382.69
185.80
215.9
254
-60.0
TUDDH 439
3920998.96
1876490.06
212.80
200.0
090
-61.8
TUDDH 440
3921037.32
1876495.78
137.80
211.5
074
-60.0
TUDDH 441
3921026.04
1876471.63
47.80
163.7
090
-90.0
TUDDH 442*
3921025.77
1876470.70
71.70
211.5
250
-55.0
TUDDH 443
3920219.819
1876335.001
170.80
352.9
077
-57.1
TUDDH 444
3920219.81
1876335.569
176.80
352.9
103
-57.1
TUDDH 445A
3920258.784
1876361.283
131.70
352.9
084
-49.3
TUDDH 446
3920257.839
1876365.118
71.70
352.9
270
-69.8
TUDDH 447
3920122.337
1876412.098
173.80
351.0
086
-49.8
TUDDH 448*
3921028.389
1876434.836
92.80
207.7
111
-89.0
TUDDH 449*
3921028.265
1876433.658
62.70
207.6
251
-59.6
TUDDH 450*
3921050.009
1876444.491
77.60
192.2
259
-49.0
TUDDH 451
3921046.647
1876420.049
71.80
192.6
207
-88.8
TUDDH 452
3921046.647
1876418.825
92.50
192.6
253
-60.3
TUDDH 453
3921066.633
1876409.061
110.70
179.3
118
-88.7
TUDDH 454
3921066.752
1876407.371
92.70
179.4
259
-50.4
TUDDH 455
3921013.26
1876431.926
101.10
213.0
158
-89.0
TUDDH 456
3921013.277
1876430.75
155.80
213.1
256
-59.5
TUDDH 457
3921097.38
1876401.17
122.70
168.0
199
-89.0
TUDDH 458*
3921033.39
1876484.53
125.70
207.3
235
-58.9
TUDDH 459
3921037.96
1876495.40
161.70
208.1
235
-60.5
TUDDH 460
3921037.85
1876495.83
176.70
208.1
248
-68.0
TUDDH 461*
3921011.90
1876480.68
98.60
219.5
248
-65.0
TUDDH 462
3921012.77
1876490.64
110.60
219.5
248
-65.0
Underground Drilling
TUG 114
3920950.63
1876451.52
124.30
166.3
052
+1.2
TUG 115
3920951.23
1876451.53
32.10
165.3
039
-39.0
TUG 116
3920948.38
1876451.75
50.30
166.1
076
-01.9
TUG 117
3920946.91
1876445.33
167.10
165.0
284
-21.0
TUG 118
3920947.84
1876452.31
88.50
164.7
080
-30.8
TUG 119A
3920946.69
1876445.06
165.51
164.2
265
-33.2
TUG 120
3920943.61
1876451.57
75.93
164.9
109
-35.0
TUG 121
3920948.30
1876452.15
100.89
164.6
074
-33.8
TUG 122
3920946.29
1876444.80
184.20
164.2
284
-36.0
TUG 123
3920857.58
1876443.77
140.28
153.9
276
-30.0
TUG 124
3920857.61
1876443.76
184.20
155.7
276
-40.0
TUG 125
3920852.61
1876441.52
170.86
153.2
220
-40.0
TUG 126
3920858.02
1876451.60
59.16
155.4
090
+30.0
TUG 127
3920857.89
1876451.64
57.23
153.0
090
-35.0
TUG 128
3920857.93
1876451.63
40.64
154.6
080
+5.0
TUG 129
3920854.74
1876451.60
80.42
152.9
137
-65.0
Notes:
*
Denotes
diamond drill holes previously reported in News Releases dated 22
nd
August 2017
For surface diamond drill holes, 10 to 20 meters of the poorly consolidated surface material was drilled using PQ3 (83.0mm
core diameter) diamond core with remainder of the hole drilled with HQ3 (61.1mm core diameter) diamond core. For
underground diamond drill holes, the entire hole was drilled in NQ3 core (47.6mm)
Downhole surveys are carried out using a Ranger Explorer Mark 2 electronic multi-shot camera.
Downhole surveys are taken at least once every 30 m.
Geological Mapping
Geological mapping along the HT Mineralized Structure along strike to both the north-west and southeast of this current new
zone of drilling has highlighted the potential significant extent of the target zone. The prospective horizon has been mapped for
over 1 km to the north-west, and in excess of 2 km southeast of the Core Shed Fault. The figure (Figure 2) below demonstrates
the area which has been drilled to date, and the extensions to the area which have now been mapped, and highlights the very
significant exploration upside this new zone has bought to the already high grade Tuvatu project area.
Geological mapping and trenching will continue along strike in both directions to more accurately determine the location and
gold tenor of this structure in this rugged terrain.
Figure 2: HT Zone of Mineralization outlined by Drilling and Mapping
To view an enhanced version of Figure 2, please visit:
http://orders.newsfilecorp.com/files/2178/29071_figure2.jpg
Figure 3: Drill Hole Location and Results from HT Mineralized Zone
To view an enhanced version of Figure 3, please visit:
http://orders.newsfilecorp.com/files/2178/29071_figure3.jpg
Figure 4: Location of 2017 Underground Diamond Drill Holes
To view an enhanced version of Figure 4, please visit:
http://orders.newsfilecorp.com/files/2178/29071_figure4.jpg
Figure 5: Drill Hole Location Plan of Infill Holes into
Existing Resource
To view an enhanced version of Figure 5, please visit:
http://orders.newsfilecorp.com/files/2178/29071_figure5.jpg
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. The first target area for these extensions has highlighted the
mineralization identified in Figure 3. The second extensional zone targeted includes the confluence of structures to the south of
the existing resource with the holes highlighted in Figure 6. 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.
Figure 6: Drill Hole Location Plan targeting southern extensions at Tuvatu
To view an enhanced version of Figure 6, please visit:
http://orders.newsfilecorp.com/files/2178/29071_figure6.jpg
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 of Lion One Metals and member of The Australasian Institute of Mining and Metallurgy, is the
Qualified Person ("QP") responsible for the Tuvatu Mine exploration and delineation programs. Mr. Mann has prepared and
approved the scientific and technical disclosure in the news release.
Competent Persons 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 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 4
th
June 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
"Stephen Mann"
Managing Director
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
Email:
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.
JORC Code 2012 Table 1
The following extract from the JORC Code 2012 Table 1 is provided for compliance with the Code requirements for the reporting
of Mineral Resources: