Lion One Announces Record Gold Production at Tuvatu, Increases Plant Expansion, Expands Surface Footprint South of Tuvatu, Updates Technical Report
Lion One Announces Record Gold Production
at Tuvatu, Increases Plant Expansion, Expands
Surface Footprint South of Tuvatu, Updates
Technical Report
North Vancouver, British Columbia--(Newsfile Corp. - June 26, 2024) -
Lion One Metals Limited
(TSXV: LIO) (OTCQX: LOMLF) (ASX: LLO)
("Lion One" or the "Company")
is pleased to report
record preliminary gold production at Tuvatu for the month of June and significantly expands the surface
gold-in-soil anomaly to the south of Tuvatu. The company also announces an increase in the planned mill
expansion to 600-700 TPD, and files an updated NI43-101 compliant Technical Report with an effective
date of June 24, 2024.
Gold production at Tuvatu has steadily increased since the completion of mill commissioning in
December 2023/January 2024. A step change in production occurred in June following the
commencement of mechanized production. The total gold recovered for the month of June up to and
including June 24
th
is approximately 1370 oz of gold, with projected gold recovered of approximately
1700 oz for the month.
Soil sampling to the south of Tuvatu has revealed a 650 m extension of anomalous gold at surface. High-
grade gold in soil results were recovered along a north-south corridor directly south of and along strike
from the known deposit at Tuvatu. The gold anomaly is coincident with wider arsenic, lead, and zinc
anomalies, which are known pathfinders for gold, thereby widening the potential footprint of the gold
mineralization. The Tuvatu deposit has a north-south strike length of approximately 950 m. The southern
soil extension therefore represents a potential 70% increase in the overall strike length of Tuvatu. These
soil results are a significant discovery at Tuvatu and represent a prime target for near-mine exploration
and resource expansion. They highlight the potential for more discovery both near-mine at Tuvatu and
regionally throughout the Navilawa Caldera.
The planned mill expansion has been increased to 600-700 TPD. The current pilot plant operation has a
name plate capacity of 300 TPD, and the originally planned expansion was to 500 TPD. The expansion
has now been increased to 600-700 TPD, which represents a doubling of the name plate capacity at
Tuvatu. The expansion is expected to be complete in mid-2025.
Highlights:
Record gold production for the month of June
Consistent month-over-month increase in gold production since January 2024
650 m high-grade gold-in-soil anomaly extension to the south of Tuvatu
Coincident arsenic-, lead-, and zinc-in-soil anomalies
Potential 70% increase in strike length of Tuvatu
Increased planned mill expansion to 600-700 TPD
Figure 1. Gold Dore Bars Poured at Tuvatu.
Gold doré bars poured for the June 25
th
, 2024 gold
sale.
To view an enhanced version of this graphic, please visit:
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Gold Production
Figure 2. Tuvatu Monthly Gold Production.
Gold recovery and production has increased steadily at
Tuvatu as mining and processing activities have ramped up during the pilot plant phase of operations.
Projected gold recovery for June is approximately 1700 oz with approximately 1370 oz recovered as of
June 24
th
.
To view an enhanced version of this graphic, please visit:
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Gold production at Tuvatu has steadily increased since the first gold pour in October 2023 and the
completion of mill commissioning in December 2023/January 2024. Record gold production of
approximately 1700 oz is projected for June 2024, with 1370 oz of gold already recovered as of June
24
th
, 2024. This is a step change increase in production from previous months and is a result of the
onset of mechanized production mining at Tuvatu.
During the period from October 2023 to May 2024, the majority of the material mined at Tuvatu was
development material, with limited production material resulting from handheld mining methods.
Mechanized production mining commenced in mid-May with the first long hole stope blast occurring on
May 18
th
, as reported in the
June 5, 2024
news release. The proportion of production material being
processed at Tuvatu has therefore increased in May and June, with further increases expected as the
mine continues to develop.
Long hole stoping is ongoing both in Zone 2 and in Zone 5. In Zone 2, where the deposit is characterized
by a large stockwork zone of mineralization, the mining widths are 10 m to 12 m wide. In Zone 5, where
the deposit is characterized by high grade narrow vein mineralization, the mining widths are 0.9 m to 1.2
m wide.
Plant Expansion
Mill throughput at Tuvatu has also increased steadily from January to June 2024. The current name plate
capacity of the Tuvatu processing plant is 300 TPD. As a result of improved efficiency initiatives, the
plant is now capable of operating sustainably at over 400 TPD. This has resulted in steadily increased
tonnage from February to May with a record throughput of over 11,000 tonnes in May. Mill throughput in
June is projected to be over 10,000 tonnes (Figure 3).
The Tuvatu processing plant is a modular processing plant that was originally planned for a staged
expansion up to 500 TPD. As a result of the successful mining operations and the increased throughput
achieved at the 300 TPD capacity, the company is now planning to expand plant operations from 300
TPD directly to 600-700 TPD. This is expected to double mill throughput and production at Tuvatu. The
plant expansion is anticipated to be complete in mid-2025.
Figure 3. Tuvatu Monthly Mill Throughput.
Mill throughput at Tuvatu has steadily increased since the
first gold pour in October 2023. A significant increase in production was achieved from February to May
as a result of the successful implementation of debottlenecking and efficiency improvement initiatives at
the plant.
To view an enhanced version of this graphic, please visit:
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Soil Sampling and Gold Extension
As part of Lion One's regional exploration program, a near-mine soil sampling program has been
completed. The soil program is divided into two halves: the West Grid and the East Grid (Figure 4). The
West Grid encompasses the area immediately to the West of Tuvatu, including the West Zone, as well
as the area immediately to the south of Tuvatu. The East Grid encompasses the area immediately to the
east of Tuvatu.
Figure 4. Tuvatu Soil Sample Locations.
The 2024 near-mine soil sample program is divided into
two sections - a West Grid and an East Grid.
To view an enhanced version of this graphic, please visit:
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The soil sampling program consisted of 25 m spacing between samples and 100 m spacing between
sample lines. Samples were collected from the B or C horizon of the soil profile by means of hand auger
with extension rod. A total of 549 samples were collected across 14 lines in the West Grid, with a total of
521 samples collected across 17 lines in the East Grid, for a total of 1070 samples across both grids.
Assay results from the West Grid have been received whereas those from the East Grid are still
outstanding. Peak gold assay results returned from the West Grid are 1.66 g/t, 0.65 g/t, 0.57 g/t, and
0.51 g/t gold, which are significantly above background values and are considered very high-grade for
soil samples. A total of 19 samples returned gold assays above 0.1 g/t gold. This compares favourably
to the Tuvatu deposit itself, which is associated with a 0.05 g/t surface gold-in-soil anomaly from historic
auger soil surveys. Soil assay results above 0.1 g/t gold are available in Table 3 in the appendix.
Assay results from the West Grid indicate a clear 650 m long north-south gold anomaly immediately to
the south of and along strike from the known mineralization at Tuvatu. The Tuvatu deposit has a known
strike length of 950 m and therefore these results indicate a potential 70% increase in the strike length of
Tuvatu. The gold-in-soil anomaly is coincident with wider arsenic, lead, and zinc anomalies, all of which
are known pathfinders for gold, thereby increasing the strength of the anomaly. These soil results are a
new discovery at Tuvatu and represent a prime target for near-mine exploration and resource expansion.
Making such a significant discovery in close proximity to Tuvatu highlights the potential for more
discovery both near-mine at Tuvatu and throughout the Navilawa Caldera. Strong gold soil assay results
were also observed in the West Zone.
In 2023 Lion One upgraded the multi-element assay capacity at its Nadi laboratory.
This increase in
capacity has enabled Lion One to incorporate widespread soil sampling into its exploration program.
Throughout 2024 and 2025 further soil sampling campaigns will be completed targeting extensions of
Tuvatu, as well as gold only and copper-gold targets throughout the Navilawa caldera.
Figure 5. Gold Soil Assay Results, West Grid.
The gold assay results from the West Grid soil
sampling program reveal a clear 650 m long north-south anomaly directly south of and along strike from
the Tuvatu deposit. This represents a potential 70% increase in the strike length of Tuvatu and is a prime
target for near-mine exploration and resource expansion. Strong gold results are also observed in the
West Zone.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/2178/214384_65febadf542ae8d4_005full.jpg
Figure 6. Arsenic, Lead, and Zinc Soil Assay Results, West Grid.
The arsenic, lead, and zinc assay
results from the West Grid soil sampling program also reveal a strong north-south anomaly directly south
of and along strike from the know deposit at Tuvatu.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/2178/214384_65febadf542ae8d4_006full.jpg
It is important to note that the gold assays reported here exhibit a binary grade distribution whereas a
bell curve distribution would be expected to result from a soil sample grid. Low grade gold assay results
appear to be under-represented in the soil survey and an investigation is underway to determine if this is
due to higher than expected detection limits in the lab. The under-representation of gold assays has
been highlighted by the failed detection of low grade QAQC Samples (0.016 and 0.049 g/t Certified
Reference Material). Higher grade QAQC samples performed successfully with respect to accuracy and
precision indicating that the high gold in soil values are valid. Duplicate samples will be sent to ALS
Australia to determine the low-grade gold results. With a bell curve distribution of gold assay results it
would be expected that the gold anomalies presented in Figure 5 would broaden out with low grade
results, similar to the arsenic, lead, and zinc anomalies seen in Figure 6.
NI 43-101 Technical Report
Lion One Metals has SEDAR-filed an updated NI 43-101 Technical Report for Tuvatu with an effective
date of June 24, 2024.
An independent mineral resource estimate (MRE) has been carried out for gold
contained in the portion of the Tuvatu Property that is currently being developed and mined. The effective
date of the MRE is March 25, 2024, and is based on a drillhole dataset in csv format, 69 wireframes
representing mineralized veins and zones in the Tuvatu deposit, as well as underground development as
of March 24, 2024, all in dxf format and all provided by Lion One. Two wireframes representing satellite
mineralization around Zones Two and Five that were not captured by the wireframes for those zones
were provided by Lion One on April 05, 2024.
The drillhole database, including pre-Lion One drilling, contained 7,592 collar locations and 240,002
assays for gold. Some samples fall outside the limits of the MRE, and their exclusion resulted in a
useable data set of 233,703 assays. Assays for sludge (69) and face (channel) samples (6,205) were
removed from the data set. The sludge samples were removed because the source location of their
assay values cannot be established with sufficient accuracy for use in an MRE. The face samples were
removed because attempts to reconcile estimated resources against mined resources within Zone Two
resulted in an overestimation of gold present when face samples were included in the dataset. A further
30 samples were removed because they had anomalously long lengths and were either of unidentified
source or had not been sampled. The resultant imported dataset included 1,288 collars and 233,703
gold assays. All sample data used for the MRE was obtained from drill core samples (85%) and reverse
circulation cuttings (15%).
The estimated tonnes and ounces of gold represented by the Underground Development were
subtracted from the estimated tonnes and ounces of gold estimated for the 69 Domains and the net
(depleted) resource within the 69 Domains is reported as the current MRE. The resource within the
Outside Domains is reported separately. Blocks were classified as Indicated or Inferred. For the 69
Domains, classification was carried out using all composites for all 69 domains. Classification of the
Underground Development was carried out using composites for only that domain. In both cases,
interpolation was by ID². The Outside Domains were classified as Inferred. The search ellipse for the
Indicated class is of the same dimensions as that used for the first interpolation pass for most domains.
The Inferred classification was designed to capture all blocks in each domain that fall outside the
Indicated category.
Table 1 summarizes the Tuvatu MRE for the 69 Domains by Class. The left-hand columns of the table
show the gross tonnes and ounces within the 69 Domains, the central columns show the tonnes and
ounces in the Underground Development, and the right-hand columns show the resources in the 69
Domains net of the tonnes and ounces in the Underground Development. The base case is taken as 3
g/t and is highlighted. Table 2 shows the resource in the Outside Domains. The 3 g/t base case is
highlighted.
Table 1. Tuvatu 69 Domains Mineral Resource Estimate Summary Net of Underground
Development
CutOff Au g/t
Classification
69 Domains Gross
Underground Development
69 Domains Net
Au g/t
Tonnes
Ounces
Au g/t
Tonnes
Ounces
Au g/t
Net Tonnes
Net Ounces
4
Indicated
9.95
500,000
160,000
5.00
8,000
1,300
10.05
492,000
159,000
4
Inferred
9.47
958,000
292,000
5.22
2,000
300
9.50
956,000
292,000
3
Indicated
8.41
655,000
177,000
4.44
14,000
2,000
8.48
642,000
175,000
3
Inferred
7.61
1,388,000
340,000
4.43
3,000
500
7.62
1,384,000
339,000
2
Indicated
6.89
880,000
195,000
3.84
19,000
2,300
6.97
861,000
193,000
2
Inferred
5.99
2,023,000
389,000
4.23
4,000
500
5.99
2,019,000
389,000
Table 2. Tuvatu Mineral Resource Summary for Outside Domains
CutOff Au g/t
Classification
Aug/t
Tonnes
Ounces
Au
4
Inferred
11.72
8,000
3,000
3
Inferred
9.32
11,000
3,000
2
Inferred
7.47
15,000
4,000
a)
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
b)
There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves.
c)
Mineral Resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to
rounding.
d)
The base case is based on a 3 g/t Au cutoff and cost estimates for mining of US$56/tonne, processing of US$56/tonne and G&A of US$25/tonne; gold
recovery of 80%; and a three-year trailing gold price of US$1,973/ounce.
e)
Mineral Resource tonnage and grades are reported as undiluted.
f)
The effective date of the mineral resource estimate is March 25, 2024
The MRE in the NI 43-101 Technical Report was prepared independently by Gregory Z. Mosher, P. Geo.
with cooperation and information from Lion One geologists.
Other portions of the Technical Report were
prepared by Darren Holden, Ph.D., FAusIMM and William J. Witte, P.Eng.
Messrs. Mosher, Holden and
Witte have read and approved this news release, and consent to the inclusion in this news release of the
matters based on form and context of the June 24, 2024 "NI 43-101 Technical Report and Mineral
Estimate Tuvatu Gold Project."
The Technical Report is available for download from SEDAR and from the company's website.
Competent Persons Statement
The information in this report that relates to mineral exploration at the Tuvatu Gold Project is based on
information compiled by the Lion One team and reviewed by Alex Nichol, who is the company's Vice
President of Geology and Exploration.
Mr Nichol is a Member of the Australian Institute of Geoscientists
and has sufficient experience that is relevant to the style of mineralisation and type of deposit under
consideration, and to the activity being undertaken, to qualify as a Competent Person as defined in the
2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves' (JORC code).
Mr Nichol has read and approved this news release and consents to the
inclusion in this report of the matters based on the information in the form and context in which it
appears.
Lion One Laboratories / QAQC
Lion One adheres to rigorous QAQC procedures above and beyond basic regulatory guidelines in
conducting its drilling, sampling, testing, and analyses. The Company operates its own geochemical
assay laboratory and its own fleet of diamond drill rigs using PQ, HQ and NQ sized drill rods.
Diamond drill core samples are logged and split by Lion One personnel on site and delivered to the Lion
One Laboratory for preparation and analysis. All drill samples are pulverized at the Lion One lab to 85%