Lion One Provides Update on Tuvatu Operations in Fiji, Grants Options
Lion One Provides Update on Tuvatu
Operations in Fiji, Grants Options
North Vancouver, British Columbia--(Newsfile Corp. - January 18, 2024) - Lion One Metals Limited
(TSXV: LIO) (OTCQX: LOMLF) (ASX: LLO)
("Lion One" or the "Company")
is pleased to provide
an update on ongoing operations at the company's 100% owned Tuvatu Alkaline Gold Project in Fiji.
Lion One Metals' Chairman and CEO Walter Berukoff stated:
"2023 was a year of noteworthy
accomplishments for Lion One Metals. Within one year we have gone from pouring concrete to
pouring gold. We built the entire processing plant at Tuvatu within one year, completed over 2,000 m
of underground mine development, drilled over 40,000 m of core, completed Stage 1 of our Tailings
Storage Facility, and on October 10
th
we celebrated with over 1,000 community members, employees,
and government officials as we poured our first gold at Tuvatu. We're very proud of our technical
team's ability to achieve these significant milestones, especially in such a short period of time."
"In 2024 we expect another watershed year for Lion One Metals. During the 300 TPD pilot plant phase
of operations we will be focusing on the development of the mine and the expansion of the processing
plant to 500 TPD. We are pursuing a staged increase in development and the 300 TPD pilot plant
stage is a critical step in the continuous improvement of mining and milling at Tuvatu. The knowledge
and experience gained during the pilot plant stage of operations will be crucial in achieving long-term
success and in optimizing performance at the 500 TPD stage. The goal for 2024 is to have the 500
TPD processing plant in operation by the end of Q3. We will then use the cash flow from our 500 TPD
operations to fund the next stage of growth for Lion One, which includes the development of the 500
Zone at Tuvatu, and the advancement of our regional exploration program throughout the Navilawa
Caldera, where we intend to discover and develop the next Tuvatu."
Mine Operations
The focus of mining activities during the 300 TPD pilot plant phase of operations is the development of
the underground mine, with the goal of advancing the main decline to the 500 Zone as quickly as is
safely possible. A secondary goal during this phase of operations is the development of as many stope
access points as feasible in advance of the plant expansion to 500 TPD. A significant portion of the
material mined during the 300 TPD pilot plant phase of operations is therefore expected to be
development material.
As mine development has progressed at Tuvatu, additional mineralization has been discovered in areas
in Zone 2 that were not previously expected to be mineralized. This includes mineralization associated
with stockwork veining as well as entirely new mineralized lodes. Many of the development headings at
Tuvatu have been found to contain low-grade gold mineralization. This low-grade development material
is ideal for use as feed stock to test the different gold recovery circuits during the initial stages of plant
operation. Processing the development material also serves to offset costs during mine development as
this material needs to be removed regardless of whether it is mineralized. Most of the mill feed during
the start-up of the 300 TPD pilot plant has therefore consisted of low-grade development material. The
first production material was extracted on December 13
th
, 2023, from the URW1 leading edge stope in
Zone 2. This stope is located outside the original PEA resource and represents an expansion of the
resource.
Mining activities at Tuvatu in 2024 will consist of a mix of handheld and mechanized mining methods.
Handheld mining is ideal for narrow vein mining as it is precise and enables the effective development of
narrow drives, thereby minimizing dilution. Mechanized mining produces wider voids and results in a
considerably higher production rate. It is therefore the preferred alternative for wider zones of
mineralization that are not sensitive to dilution. At Tuvatu there are areas more suitable for handheld
mining and others more suitable for mechanized mining. The mining method employed will be tailored to
the style of mineralization being extracted. Mine development is proceeding in a manner designed to
preserve the optionality of switching between mining methods as appropriate. To date, development
mining at Tuvatu has progressed using both handheld and mechanized mining, yet production mining
has been limited to handheld methods. Mechanized production is scheduled to start in Q1 2024.
Production mining refers to the mining of production stopes through which most of the mineralized
material will be extracted, whereas development mining refers to all the supporting development
required to access the production stopes, such as the declines, access drives, crosscuts, ventilation
rises, and so on. While the primary mining objective during the 300 TPD pilot plant stage is
development, mine production is anticipated to steadily increase as production mining is introduced and
as the number of available production areas increases ahead of the plant expansion to 500 TPD.
Mill Operations
The focus of mill operations during the 300 TPD pilot plant stage is on determining the best methods and
parameters required to maximize gold recovery from each type of gold mineralization at Tuvatu. Mill
operations to date have consisted of a start-up period and a campaign period with feed from different
areas within Zone 2 and Zone 5.
During the start-up period of operations from late October to early December 2023, predominantly low-
grade material was put through the mill. This is typical of mill start-ups and is done while identifying and
resolving any start-up issues that may be present before ramping up production. It also serves to build
the in-process store of gold that is retained within the plant. During the subsequent campaign periods of
operation, the focus changed to the metallurgical variability of the gold mineralization. Several different
types of mineralization have been identified at Tuvatu, including three different types within Zone 2 and
Zone 5. Due to the complexity of the deposit, additional variability in mineralization is anticipated as
development progresses deeper into the mine. The campaign period of operations, which began in mid-
December, has consisted of processing separate batches of material from specific parts of Zone 2 and
Zone 5 to determine how the plant responds in each case. The knowledge gained from these campaigns
will be applied to maximize gold recovery from the larger production stopes in these areas. Gold
recovery rates during the start-up and campaign periods have been in line with expectations.
In addition to the start-up and campaign activities, mill commissioning and upgrading has been carried
out. Commissioning of both the continuous gravity concentrator and the intensive leach circuit has been
on hold due to a delayed shipment of component parts from suppliers. Both circuits are expected to be
brought on-line by early February. Similarly, the blowers supplied to aerate the CIL tanks and cyanide
detoxification circuit were found to be undersized by the supplier. New blowers will be installed, along
with new air spargers and diffusion cones to improve the performance of the CIL circuit.
The mill expansion to 500 TPD is scheduled to be complete by the end of Q3 2024. The expansion
consists of three main components: a tower mill, a flotation circuit, and a third ball mill. The purpose of
the tower mill is to produce a finer grind of concentrates from the continuous gravity concentrator, thereby
further increasing recoveries. The tower mill is expected to be on site in February. The flotation circuit is
also being added to maximize recoveries, while the third ball mill is required to increase the milling
capacity of the plant. Site preparations for both the flotation circuit and the third ball mill are already
complete and construction is pending. All three mill components are on schedule for completion and
commissioning by the end of Q3 2024, which is a year ahead of the originally scheduled completion date
of Q3 2025.
Figure 1. Aerial Views of Tuvatu Processing Plant and Mine Portal, December 2022 and
January 2024.
Top image: Aerial view in December 2022 shortly after plant construction started.
Bottom image: Aerial view in January 2024 after construction is complete and the 300 TPD pilot plant is
in operation. These views highlight some of the substantial progress made at Tuvatu throughout 2023.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/2178/194707_liononeimage.jpg
Options
The Company also announces it has granted stock options pursuant to its 10% rolling stock option plan
to an officer of the Company to purchase up to an aggregate of 500,000 common shares of the
Company. The stock options are exercisable at $1.00 per share and expire 5 years from the date of
grant.
Qualified Person (NI43-101)
In accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-
101"), Alex Nichol, MAIG, VP Geology and Exploration, is the Qualified Person for the Company, and
has reviewed, validated, and approved the technical and scientific content of this news release.
About Lion One Metals Limited
Lion One Metals is an emerging Canadian gold producer headquartered in North Vancouver BC, with
new operations established in late 2023 at its 100% owned Tuvatu Alkaline Gold Project in Fiji. The
Tuvatu project comprises the high-grade Tuvatu Alkaline Gold Deposit, the Underground Gold Mine, the
Pilot Plant, and the Assay Lab. The Company also has an extensive exploration license covering the
entire Navilawa Caldera, which is host to multiple mineralized zones and highly prospective exploration
targets.
As disclosed in its "Technical Report and PEA Update for the Tuvatu Gold Project" dated April 29, 2022,
the 2018 Tuvatu resource estimate comprises 1,007,000 tonnes indicated at 8.50 g/t Au (274,600 oz.
Au) and 1,325,000 tonnes inferred at 9.0 g/t Au (384,000 oz. Au) at a cut-off grade of 3.0 g/t Au.
The
technical report is available on the Lion One website at
www.liononemetals.com
and under the Lion One
profile on the SEDAR+ website at
www.sedarplus.ca
.
On behalf of the Board of Directors,
Walter Berukoff, Chairman & CEO
Contact Information
Investor inquiries:
Phone:1-855-805-1250 (toll free North America)
Website:
www.liononemetals.com
Neither the TSX-V nor its Regulation Service Provider accepts responsibility or the adequacy or
accuracy of this release
This press release may contain statements that may be deemed to be "forward-looking statements"
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 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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/194707