Lion One Drills Further Wide and High Grade Intersections and Continues to Extend HT Corridor at Tuvatu in Fiji
Lion One Drills Further Wide and High Grade
Intersections and Continues to Extend HT Corridor at
Tuvatu in Fiji
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 Highlights
1
Drill results continue to
expand the HT Corridor mineralisation with wider
(up to ~8 meters true width) and
high-
grade intersections
11
meters
averaging 9.1g/t gold from 80.8
meters
including:
5.2
meters
averaging 15.3g/t gold
4.8
meters
averaging 20.3g/t gold from 21.5
meters
including:
1.8
meters
averaging 51.8g/t gold
4.5
meters
averaging 7.1g/t gold from 214.5
meters
including:
1.8
meters
averaging 15.0g/t gold
Mineralisation extends from surface
and in close proximity to current decline
with potential to add
to the initial
early
mine-p
lan
Current Drill Program
Drill results have been received from a further three diamond drill holes (TUDDH463, 467 and 469) completed on extensions to
the Tuvatu Gold Project. These drill holes targeted the individual mineralised lodes within the recently recognised and potentially
significant HT Corridor mineralisation. Please refer to Figures 1 and 2, and Tables 1, 2 and 3 for drill hole details.
HT Corridor Mineralisation
: a zone of growing significance
The previous resource estimate for Tuvatu included generally lower grade mineralisation in lodes named T1, T2, H1 and H2 and
as announced in the NI43-101 resource estimate on 4 June 2014.
Prompted by a reinterpretation and the recognition of high-
grade mineralisation at surface, the Company returned to this area for further drilling in 2017. Other results from this current
program have included
2.77
meters
averaging
35.08g
/t
,
3.4
meters
averaging 23.2g/t
gold
and refer to releases dated 22
August 2017 and 15 September 2017 for further details.
Figure 1: Tuvatu Gold
Project
2016/7 Diamond Drilling Program with Current Drilling Target Area
To view an enhanced version of Figure 1, please visit:
http://orders.newsfilecorp.com/files/2178/29696_a1508124335513_8.jpg
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
To view an enhanced version of Figure 2, please
visit:
http://orders.newsfilecorp.com/files/2178/29696_a1508124335856_15.jpg
Mining significance
The contribution of the T and H lodes to the current mine-plan is minimal due to the 2014 modelled grades in this area,
However,
with the new higher-grade and wider mineralisation intersections, the Company expects that the overall grade and tonnage of the
mineralisation in this area will increase. Furthermore, these mineralized zones extend from surface and crosscut the existing
decline and hence have the potential to be exploited early in the mine-plan.
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
Drill Hole
From (m)
To
(m)
Interval
(m)
True Width
(m)
Au
(g/t)
Lode
TUDDH 463
3.34
3.70
0.36
0.25
8.01
UR2
80.79
91.80
11.01
7.79
9.08
T1
incl
81.42
86.60
5.18
3.66
15.30
T1
116.70
118.40
1.70
1.20
1.57
T2
127.35
130.02
2.67
1.89
3.12
T2
TUDDH 467
124.60
125.10
0.50
0.33
6.91
H1
133.80
134.05
0.25
0.17
26.36
H1
191.70
199.45
7.75
5.19
1.19
T1
214.45
218.90
4.45
2.98
7.13
T2
incl
216.15
217.90
1.75
1.17
14.96
T2
TUDDH 469
16.05
18.64
2.59
0.89
4.42
T2
incl
16.80
17.80
1.00
0.34
10.40
T2
21.50
26.27
4.77
1.63
20.29
T1
incl
22.95
24.78
1.83
0.63
51.84
T1
50.82
51.05
0.23
0.08
11.53
H1
53.60
55.57
1.97
0.67
3.47
H1
88.90
90.60
1.70
0.58
1.49
H2
88.90
90.60
1.70
0.58
1.49
H2
Notes
:
Intersections reported here are often composite samples.
Results reported here only include those which returned single intervals or composited intervals of
> 2 gram.meters.
T
hose intervals highlighted have returned results of
>15gram.meters
TUDDH prefix denotes diamond drill holes drilled from the surface.
Table 2:
Drill Hole Logistics from the Current Reported Holes
Hole Number
Northing
Easting
Depth
RL
Azimuth
Dip
TUDDH 463
3921005.94
1876503.13
137.60
227.7
234
-65.0
TUDDH 467
3921031.86
1876516.43
230.60
216.31
234
-68.0
TUDDH 469
3921069.33
1876363.29
190.60
184.41
095
-65.0
Notes:
For surface diamond drill holes, up to 26 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.
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.
Table
3
: Diamond Drill Results
from this mineralized zone reported in Previous News Releases
Drill Hole
From (m)
To
(m)
Interval
(m)
True Width
(m)
Au
(g/t)
Lode
TUDDH 442
42.59
46.25
3.66
3.00
1.74
H1
49.20
51.97
2.77
2.27
35.08
H2
57.13
59.70
2.57
2.11
2.02
T1
62.55
65.77
3.22
2.64
6.83
T2
TUDDH 448
8.60
9.40
0.80
0.27
8.27
H2
13.43
14.20
0.77
0.26
4.08
H2
20.80
21.23
0.43
0.15
6.48
H2
24.95
30.22
5.27
1.80
2.54
H2
41.70
42.30
0.60
0.21
2.32
H2
50.80
53.37
2.57
0.88
2.69
H2
TUDDH 449
15.10
18.60
3.50
2.68
6.00
T1
33.64
34.45
0.81
0.62
2.26
T2
TUDDH 450
70.54
72.00
1.46
1.26
1.41
H2
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
H1
63.25
65.25
2.00
0.68
13.40
H1
70.30
82.85
12.55
4.29
2.73
H1
incl
80.40
82.85
2.45
0.84
6.02
H1
88.05
90.50
2.45
0.84
5.27
H1
TUDDH 454
62.10
67.90
5.80
5.02
1.39
T2
TUDDH 455
38.80
39.50
0.70
0.24
6.17
T2
TUDDH 458
80.20
82.70
2.50
1.92
1.39
H1
89.70
90.9
1.20
0.92
10.17
H2
TUDDH 459
75.65
79.55
3.90
2.99
9.55
H1
incl
76.70
78.65
1.95
1.49
14.97
H1
TUDDH 461
58.90
62.30
3.40
2.4
23.24
T1
68.60
69.28
0.68
0.48
2.10
T1
78.97
80.30
1.33
0.94
4.37
T2
82.20
82.85
0.65
0.46
2.72
T2
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
Notes:
This Table includes results from diamond drill holes reported on in previous Lion One news releases from the same
mineralized zone
.
For these diamond drill holes, up to 26 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. 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.
About Tuvatu | Lion One |
Fiji Gold
Lion One is advancing its 100% owned Tuvatu Gold Project as a near-term production opportunity in Fiji. Tuvatu is a low-
sulphidation epithermal gold system and has a comparable footprint and geological analogies to other high grade epithermal
gold deposits in the Pacific Ring of Fire such as Porgera and Lihir in PNG, and Vatukoula in Fiji. Tuvatu has been fully permitted
by the Government of Fiji for operations start-up and has a dual-track strategy of production development and resource
expansion inside its 385 hectare mining lease and on its wider extensive land-holdings in the area.
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 4
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
"Walter H. Berukoff"
Chief Executive Officer
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.
1
Intersections rounded to nearest 0.1 meter and 0.1g/t. Refer to Table 1 for full details.