Lion One Provides Clarification on Mining Methods at the Tuvatu Gold Mine Lion One Has Not Abandoned Shrinkage Stoping - Multiple Mining Methods Will Be Used as Dictated by Deposit Characteristics
Lion One Provides Clarification on Mining
Methods at the Tuvatu Gold Mine
Lion One Has Not Abandoned Shrinkage Stoping - Multiple
Mining Methods Will Be Used as Dictated by Deposit
Characteristics
North Vancouver, British Columbia--(Newsfile Corp. - March 25, 2026) - Lion One Metals Limited
(TSXV: LIO) (OTCQX: LOMLF) ("Lion One" or the "Company") wishes to address recent commentary
regarding mining methods at its 100%-owned Tuvatu Alkaline Gold Project in Fiji ("Tuvatu"). The
Company is aware that certain claims have been made suggesting that Lion One has abandoned
shrinkage stoping in favour of an alternative mining method. These claims are inaccurate.
Lion One has not moved away from shrinkage stoping. The Company's first shrinkage stope was
completed successfully in 2025 producing 5,704 tonnes at an average gold grade of 10.60 g/t.¹ A
second shrinkage stope projected to be twice the size of the first was subsequently developed in Zone 5
with a third shrinkage stope under development at the 1120 level.² Shrinkage stoping remains a core
part of the Company's mining plan.
5,704
10.60 g/t
70%
$15M
Tonnes from First
Shrinkage Stope
Average Gold Grade
Achieved
Increase in Development
Rates
Arete Capital Strategic
Investment
THE FACTS: SHRINKAGE STOPING AT TUVATU
Far from abandoning shrinkage stoping Lion One has actively developed and refined this technique
throughout 2025 and into 2026. The publicly disclosed record is clear:
First Shrinkage Stope Completed Successfully (Q3 2025): The Company's first shrinkage stope
located near surface in Zone 2 targeted a section of the Ura1 lode approximately 62 m long, 24 m
tall and 1.5 m wide. It produced 5,704 tonnes at 10.60 g/t gold.¹
"The success of the Company's first shrinkage stope is a major achievement and milestone for
the Company and confirms shrinkage mining as an optimal mining method for certain parts of
the Tuvatu gold deposit. We anticipate utilising other mining methods for other parts of the
deposit."
- Lion One Metals, News Release, October 2, 2025
Second Shrinkage Stope Developed (Q4 2025): A second significantly larger shrinkage stope
was developed in Zone 5 focused on the UR2 lode. This stope was projected at approximately 60
m long, 50 m tall and 1.5 m wide with expected production of 11,520 tonnes - roughly double the
first.¹
Third Shrinkage Stope - Design Underway (2026): Development of a third shrinkage stope
between levels 1116 and 1156 is currently underway at the design stage. The Company has
commenced additional surface drilling to tighten up the design and improve geological knowledge
of this section of the deposit before mining commences. We acknowledge that the first shrinkage
stope could have been more accurately designed with better geological data in hand, and this
programme reflects the lesson learned from that experience. The final size parameters for the third
stope are yet to be determined and will be confirmed once the additional drilling results are
received and assessed. Shareholders will be updated once a final design is established.³
WHY RESPONSIBLE OPERATORS USE MULTIPLE MINING METHODS
It is a fundamental principle of underground mine engineering that no single mining method is universally
optimal. The appropriate technique for any given section of an underground mine is dictated by the
physical characteristics of the deposit in that section - including its width, dip angle, continuity, grade
distribution and the geotechnical properties of the surrounding rock mass.
At Tuvatu the gold mineralisation occurs in steeply dipping narrow veins within a complex alkaline
geological setting. The deposit is characterised by multiple lode arrays with varying orientations, widths
and structural characteristics.⁴ This geological complexity - which is typical of high-grade narrow-vein
gold systems worldwide - means that the optimal mining method will naturally vary from one section of
the mine to another.
UNDERSTANDING MINING METHOD SELECTION
In narrow-vein underground gold mining operators typically employ a combination of techniques including
shrinkage stoping, cut-and-fill stoping, longhole stoping and development mining. The selection of
method for each section of the mine depends on:
Deposit geometry - the width, length, height and dip angle of the vein in that section
Geotechnical conditions - the strength and stability of the surrounding rock mass
Grade distribution - where the highest-grade gold is concentrated within the vein
Safety considerations - the method that provides the safest working environment for mine
personnel
Economic efficiency - maximising gold recovery while minimising dilution and operating costs
This is standard practice across the global mining industry and is not unique to Tuvatu or Lion One. Any
suggestion that a responsible operator should commit exclusively to a single mining method, regardless
of the geological conditions encountered, reflects a fundamental misunderstanding of underground
mining.
SHRINKAGE STOPING IN CONTEXT
Shrinkage stoping is a well-established underground mining method that has been used successfully for
decades in narrow-vein gold deposits around the world. It is particularly well-suited to steeply dipping
veins where the ore body is narrow and high-grade, conditions that exist at Tuvatu.
However like all mining methods shrinkage stoping has practical limitations that experienced operators
must manage responsibly:
Cycle time: A single shrinkage stope can take several months from development to final
drawdown. The Company's first stope was developed over several months with production
occurring from July to September 2025.¹ We would reasonably allow 3 to 5 months from beginning
of stoping to processing.
Safety considerations: Shrinkage stoping requires personnel to work on top of broken ore which
presents inherent safety risks that must be carefully managed. Modern mine management
prioritises worker safety above production targets.
Capital tied up in inventory: During active mining approximately 60% of the broken ore remains in
the stope to provide a working platform. This ore is only recovered during the final drawdown
phase meaning significant value is held in inventory throughout the mining cycle.
Geological suitability: Shrinkage stoping works best in steeply dipping ore bodies with consistent
geometry. Where the vein changes dip, width or orientation, which is common in complex
geological settings, other methods may be more appropriate.
Management's position is straightforward: shrinkage stoping will continue to be used where the ore body
characteristics make it the most appropriate method. Where geological conditions call for an alternative
approach the Company will apply the safest and most economical technique available. This is exactly
what any competent underground mining operation does.
THE GEOLOGICAL REALITY AT TUVATU
The Tuvatu gold deposit occurs within the Navilawa Caldera in Fiji which is a complex alkaline
geological environment where gold mineralisation is hosted in multiple steeply dipping narrow veins
(lodes) with varying orientations and characteristics.⁴ The deposit includes multiple lode arrays across
several zones (Zone 2, Zone 5 and others) each with distinct structural and mineralogical features.
The Company has publicly noted that high-grade "blow-out" zones are produced at the intersection of
multiple structures with different orientations⁵, a characteristic that underscores the geological variability
of the deposit and the need for adaptive mining methods. Gold deposition in alkaline systems is
inherently complex and variable and the precise geometry and grade distribution of each vein section
can only be fully understood through detailed underground drilling and geological mapping as the mine
develops.
This geological complexity is precisely why Lion One conducts extensive underground infill and grade
control drilling to characterise each section of the deposit before mining commences. It would be
irresponsible to predetermine a single mining method without first understanding the geological
conditions in each area of the mine.
THE ARETE ADVANTAGE: EXPERIENCED MINING OPERATORS
The strategic transaction with Arete Capital Advisors announced on December 30, 2025 brings
significant additional mining expertise to Lion One.⁷ Arete is a specialist mining investment and
operating group with a demonstrated track record in mine management, turnaround and optimisation.
Campbell Olsen appointed CEO on February 25, 2026 brings extensive experience in international
resource investment and operational leadership within the mining sector including substantial experience
in high-grade underground gold mining.⁸ Under the Management Services Agreement Arete will provide
specialist technical engagement to systematically advance Tuvatu and build long-term value for
shareholders.
"Arete's specialist team brings deep operational, technical and financial experience in turning
high-quality mid-tier gold assets into robust cash-generative businesses... [with a] clear pathway to
unlock significant incremental value at Tuvatu through disciplined mine optimisation, targeted
capital investment and an aggressive but data-driven exploration program."
- Campbell Olsen, CEO, December 30, 2025
Decisions about mining methods at Tuvatu are and will continue to be made by qualified mining
engineers and geologists with direct knowledge of the underground conditions. These are complex
technical decisions that require hands-on operational expertise not speculation from outside parties who
do not have access to the detailed geological and geotechnical data that informs mine planning.
The Company advises that its current mine development plan is not based on a feasibility study of
mineral reserves demonstrating economic and technical viability. As a result, there is increased
uncertainty and a higher risk of economic and technical failure associated with the development of a
commercially mineable deposit. There is no assurance that the Company will achieve anticipated levels
of mineral recovery or production costs.
WHAT SHAREHOLDERS SHOULD KNOW
Lion One has not abandoned shrinkage stoping. The Company successfully completed its first
shrinkage stope in 2025 is developing additional shrinkage stopes and will continue to use this
method where appropriate.
Multiple mining methods are standard practice. Every competent underground mining operation
adapts its methods to the geological conditions encountered. This is a strength not a weakness.
The deposit dictates the method. Geology at Tuvatu is complex and variable. The Company will
utilise the safest and most economical technique for each section of the mine as determined by the
deposit characteristics encountered during development.
Experienced operators are in charge. The Arete management team brings deep expertise in
underground gold mining. Mining method decisions will be made by qualified professionals with
direct knowledge of underground conditions.
Lion One remains focused on what matters: safely and efficiently developing Tuvatu into a robust
long-life underground gold mine. The Company will continue to provide transparent updates on its
operations, mining methods and production progress.
DEFINITIONS FOR SHAREHOLDERS
The following plain-language explanations are provided to assist shareholders in understanding the
technical terms used in this release.
Shrinkage
stoping
A mining method used in narrow steeply dipping ore bodies. Miners drill and blast
ore from the bottom of a section upward. Around 60% of the blasted rock is left
inside the stope (void) as a working platform. Miners stand on this broken rock to
continue drilling upward. At the end of the mining cycle the retained ore is drawn
out from below. The method is efficient for high-grade narrow veins but requires
careful management of the working platform and ground conditions.
Cut-and-fill
stoping
A mining method where ore is extracted in horizontal slices from the bottom
upward. After each slice is removed the void is filled with waste material or
engineered fill before the next slice is mined. This provides ground support and
allows mining in areas where the rock mass is less stable. It is slower than
shrinkage stoping but offers more control over ground conditions.
Longhole stoping
A method where long drill holes are drilled from a level above or below the ore
body and the ore is blasted in large volumes. The broken ore falls to a lower level
for collection. This is an efficient bulk mining method suited to larger ore bodies
but less selective than shrinkage or cut-and-fill in narrow veins.
Development
mining
The tunnelling and infrastructure work required to access ore bodies. This includes
driving declines (ramps), cross-cuts (horizontal tunnels) and raises (vertical or
inclined openings connecting levels). Development mining does not produce
significant ore but is essential to creating access for production mining.
Lode
A vein or zone of rock containing economically significant gold mineralisation. At
Tuvatu gold occurs in multiple lodes - narrow zones of high-grade mineralised rock
within the broader ore body.
Multiple lode
arrays
A series of individual lodes that occur in the same general area of the deposit,
often with slightly different orientations or dip angles. At Tuvatu the gold system
contains multiple lode arrays meaning the ore body is not a single continuous
sheet but a network of mineralised veins with varying characteristics.
Ore body
geometry
The three-dimensional shape of the ore body - including its length, width, height
and the angle at which it dips into the ground. Mining method selection depends
heavily on geometry: narrow steeply dipping veins suit different methods than wide
shallow-dipping ore bodies.
Dip angle
The angle at which a vein or geological structure tilts from horizontal. A steeply
dipping vein is nearly vertical. A shallowly dipping vein is nearly horizontal.
Shrinkage stoping works best in steeply dipping ore bodies.
Geotechnical
conditions
The physical properties of the rock mass surrounding the ore body including its
strength, stability and tendency to fracture or collapse. Geotechnical conditions
directly influence which mining methods can be used safely and what ground
support is required.
Grade distribution
How gold is distributed within the ore body. In some sections grade may be highly
concentrated in a narrow zone. In others it may be more evenly spread or variable.
Understanding grade distribution through drilling helps miners optimise their
method to maximise gold recovery and minimise dilution with waste rock.
Dilution
The mixing of waste rock with ore during mining which reduces the average grade
of material sent to the processing plant. Minimising dilution is a key objective in
narrow-vein mining. Poorly designed stopes or inaccurate geological knowledge
can increase dilution and reduce the gold recovered per tonne processed.
Infill drilling
Diamond drilling conducted within a known mineralised zone to increase the
density of geological data and improve the accuracy of the ore body model. Infill
drilling reduces geological uncertainty and allows more accurate mine design. The
Company conducts infill drilling prior to stope design specifically to reduce the risk
of the kind of design inaccuracies acknowledged in this release.
Grade control
drilling
Closely spaced drilling conducted in active mining areas to accurately define ore
and waste boundaries before and during mining. Grade control data guides
miners on exactly where to mine and where to stop to maximise ore recovery and
minimise dilution.
Drawdown
The final phase of shrinkage stoping where the retained broken ore platform is
extracted from below. During active shrinkage mining approximately 60% of
blasted ore is held inside the stope. Drawdown recovers this retained material at
the end of the mining cycle.
Alkaline
geological setting
A geological environment associated with alkaline igneous rocks such as the
monzonites and syenites of the Navilawa Caldera at Tuvatu. Alkaline gold systems
are a specific class of epithermal gold deposit associated with this rock type.
They are relatively rare globally but include some of the world's highest-grade and
largest gold deposits including Porgera in Papua New Guinea and Emperor in
Fiji.
Navilawa Caldera
The ancient volcanic collapse structure within which the Tuvatu gold deposit is
located on the island of Viti Levu in Fiji. The caldera hosts the mineralised system
that produced the gold veins now being mined. Lion One holds exploration rights
over the broader caldera area providing significant potential for the discovery of
additional gold and copper mineralisation.
Blow-out zone
A localised area within a vein system where the ore body expands in width and
grade as a result of the intersection of multiple structures. Blow-out zones are
typically high-value areas within the mine. At Tuvatu they occur where multiple
lodes converge or intersect at different orientations.
Stope
The underground void created by the removal of ore during mining. A stope is the
productive working space from which gold-bearing rock is extracted. Multiple
stopes may be active simultaneously in different parts of the mine.
QUALIFIED PERSON
In accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-
101"), Stephen Jeffers, FAusIMM, an employee of the Company, is the Head of Mining Operations and
Qualified Person for the Company and has approved the technical and scientific content of this news
release.
On behalf of the Board of Directors,
Campbell Olsen
Chief Executive Officer
Contact Information
Lion One Metals Limited
|
|
1-855-805-1250 (toll free North America)
|
liononemetals.com
This summary is for informational purposes only and does not constitute investment advice. Neither
the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the
adequacy or accuracy of this release.
This media release may contain forward-looking statements within the meaning of applicable
securities legislation. Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results to be materially different from those
expressed or implied by such forward-looking statements. Lion One does not undertake to update any
forward-looking information except in accordance with applicable securities laws. Readers should not
place undue reliance on forward-looking information.
Sources and Citations
All statements in this release are supported by publicly disclosed news releases issued by Lion One Metals Limited. No non-public or material
information has been disclosed.
1
.
Lion One Metals Limited, "Lion One Produces 5,704 Tonnes at 10.60 g/t Gold from First Shrinkage Stope at Tuvatu and Increases
Underground Development Rates by 70%," October 2, 2025.
2
.
Lion One Metals Limited, "Lion One Drills 728.56 g/t Gold over 0.7 m, 25 m Below Current Mine Development at Tuvatu Gold Mine in Fiji,"
November 18, 2025.
3
.
Lion One Metals Limited, "Lion One Drills 54.16 g/t Gold over 1.9 m Including 156.55 g/t Gold over 0.6 m at Tuvatu Gold Mine in Fiji," May 12,
2025.
4
.
Lion One Metals Limited, "Lion One Announces Mine Ventilation Upgrade, Reports Preliminary Gold Results," April 17, 2025.
5
.
Lion One Metals Limited, "Lion One Intensifies Roscoelite Focus and Enhances Fiji Gold Team with Addition of Two Ex-Newmont Geologists,"
November 19, 2024.
6
.
Lion One Metals Limited, "Lion One Drills 236.00 g/t Gold over 0.4 m Near Mine Underground at Tuvatu Gold Mine in Fiji," May 1, 2025.
7
.
Lion One Metals Limited, "Lion One Announces Strategic Investment by Arete Capital," December 30, 2025.
8
.
Lion One Metals Limited, "Lion One Announces CEO Appointment, Arete Transaction Update, and Credit Facility Update," February 25, 2026.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/289954