Lion One Metals Limited (TSX VENTURE: LIO)(FRANKFURT: LY1) (the
"Company") is pleased to announce exploration plans for 2011 for
the Tuvatu High-Grade Gold Project ("Tuvatu" or the "Project")
located on the island of Viti Levu in the Fijian Islands. The
project is located less than 20 kilometers and a half hour commute
from the international airport in Nadi. High voltage power lines
dissect the property.
The Tuvatu deposit is a very young (i.e. 4 to 5 million year),
high grade, low sulphidation, epithermal deposit hosted in a
volcanic-intrusive sequence within a postulated collapsed caldera
setting. After the nearby Vatukoula Mine (Proven and Probable
Mineral Reserves of 190,000 (0.4 Mt @ 15.2 g) and 490,000 oz Au
(1.5 Mt @ 9.8 g/t) respectively and Measured, Indicated and
Inferred Mineral Resources of 1.6 million (8.5 Mt @ 6.0 g/t Au),
1.4 million (5.0 Mt @ 8.7 g/t Au) and 1.3 million oz Au (4.7 Mt @
8.6 g/t) respectively plus over 7 million ounces Au produced to
date, Tuvatu is the largest known gold deposit in the Fijian
Islands. In addition to epithermal mineralization, porphyry style
mineralization is also evident on the property. In excess of US$23
million has been expended on the property to date by Lion One
Metals and previous operators including Emperor Gold Mines.
A mineral resource estimate completed by Fred Brown, CPG,
Pr.Sci.Nat., (independent Qualified Person) and disclosed in the
report Technical Report and Resource Estimate on the Tuvatu Gold
Property, Viti Levu, Fiji, by P&E Mining Consultants Inc. dated
October 1, 2010, reported Indicated Mineral Resources of 172,000
oz. Au (760,000 tonnes @ 7.05 g/t Au) and Inferred Resources of
480,000 oz. Au (2,618,000 tonnes @ 5.71 g/t Au), at 2.00 g/t Au
cut-off. Approximately 60,000 meters of core remain in storage
onsite at Tuvatu.
PHASE I EXPLORATION PROGRAM
Cambria Geosciences ("Cambria") of Vancouver BC has been
contracted to assist in managing the program at Tuvatu on behalf of
the Company and mobilized a field team to the site on January 15th
to initiate a program of surface mapping, trenching and core
re-logging and re-sampling of 7,500 to 10,000 meters of the total
60,000 meters of core. This first phase field program will focus on
both new and previously identified targets recognized during
management's and Cambria's comprehensive review of historic data
that began in August 2010. In addition to several high-grade grade
targets identified at depth and along strike from the existing
lodes that comprise the existing resource base, this review, along
with ongoing mapping and prospecting programs conducted by our
local geologists, resulted in the discovery of several near surface
drill targets that are the focus of the current trenching and
surface mapping programs. This 1,000 meter trenching program was
commissioned to test the surface expressions of the Tuvatu Lode and
the Core Shed Fault; zones that Management believes are potentially
amenable to surface mining methods. A 1,500 to 2,000 meter first
phase drill program consisting of several 100 to 200 meter diamond
drill holes is expected to commence in late March, near the end of
the local wet season. The first batch of samples from the trenching
program has been forwarded to ALS Chemex Laboratories in Brisbane,
Queensland for analysis. Results are pending.
In addition to the ongoing program of mapping, core re-logging
and re-sampling, trenching and diamond drilling, this first phase
exploration program will also include reconnaissance mapping,
prospecting, high energy stream sediment sampling, geophysical
surveying, deposit modeling and dewatering of the decline that was
constructed by Emperor to conduct underground exploration and test
the mining of the veins previously identified. An environmental
baseline study has been initiated and permit applications have been
submitted with the Mineral Resource Department and the
Environmental Review Agency of Fiji to initiate the dewatering
process. Dewatering is expected to commence in April. Management
believes that access to the decline is fundamental in understanding
the controls on mineralization within the individual lodes that
comprise the deposit.
HISTORY
Discovered in 1987, the Tuvatu gold deposit was "fast-tracked"
to development in the late 1990's by the Emperor Gold Mining
Company as an additional source of high-grade feed for its mill at
its nearby Vatukoula Mine. Over US$20 million in expenditures were
incurred in the initial exploration and development of the deposit.
By mid-2000, work completed included over 80,000 meters of drilling
(60,000 meters of core and over 20,000 meters of reverse
circulation), completion of a 1,630 meter decline, bulk sampling
and test mining, metallurgical testing, reserve and resource
estimation, mine design and optimization, and completion of a
feasibility study (FS or historical feasibility study) in
conjunction with Bateman Engineering. A preliminary mine plan was
developed based upon production of 80,000 oz. Au per annum at a
rate of 400,000 tonnes per annum, with overall operating cost
estimates of A$67.81 (US$37.47) per tonne or A$317.91 (US$185.02)
per oz. (based on year 2000 average conversion rates of US$0.582 to
A$1.00 and average gold prices of US$279.11 or A$480.06). The FS
concluded that the project was profitable, even at what was then a
challenging economic environment for commodities. Further
deterioration of gold prices however, led to the project being
placed into care and maintenance in late 2000.
Underground development on the Tuvatu deposit began as part of
the FS in 1997 with the excavation of the decline accessing over
eighteen mineralized structures to a depth of 240 meters below
surface. Information gained from excavation of the decline and the
drilling program led to the completion of a reserve and resource
estimate prepared in accordance with then current, AusIMM,
JORC-code. Mineral reserves and resources at that time totaled:
Probable Reserves of 269,000 oz. Au (1,262,000 tonnes @ 6.63 g/t
Au), Indicated Resources of 289,000 oz. Au (1,065,000 tonnes @ 8.45
g/t Au) and Inferred Resources of 251,000 oz. Au (757,000 tonnes @
10.31 g/t Au) (resources inclusive of reserves). This historic
resource was reported based on seventeen mineralized lodes and
three stockwork zones, using a cutoff grade of 3 g/t Au. No
oxidized material was reported, with capping values ranging between
8.7 g/t and 121.7 g/t applied on an individual lode basis.
Please note that the above historical mineral estimate should
not be relied upon as a qualified person has not completed
sufficient work to classify the historical estimate as either a
current mineral reserve or resource. The Company has included the
information from the historical feasibility study for information
purposes only and does not imply that economic viability of the
project has been established.
ADVANTAGES & OPPORTUNITIES
The Tuvatu Deposit lies along the Viti Levu trend, 35 kilometers
from the Vatakuola Deposit, one of the first "world class"
epithermal deposits identified in the Pacific Rim. Both deposits
are hosted in postulated collapsed caldera structures in similar
suites of rocks with similar ages attributed to the mineralizing
events. Metallurgical studies completed to support the Emperor
Feasibility Study concluded that a gravity circuit followed by
conventional flotation would yield gold recoveries in excess of
90%.
Lion One Metals management believes that possessing an
established high-grade mineral resource supported by information
and data gained from over US$23 million in exploration and
development expenditures provides it with a unique opportunity to
create value and opportunities for all stakeholders. Having the
advantage of record or near record high commodity prices has
allowed the Lion One technical team to reconsider the constraints
formerly placed on the deposit and reassess its economic potential.
In particular, management believes the tasks being completed during
the first phase of exploration, including surface mapping,
re-sampling and re-assaying not just for gold but also for copper
and silver, re-logging of significant intervals within the over
60,000 meters of drill core and the re-mapping of the mineralized
zones exposed in the decline, will lead to a significantly better
understanding of structural and other geological controls on the
mineralization. Management believes that this program will also
help target other areas and styles of mineralization, including
those commonly associated with copper-gold porphyry and VMS
systems. Better understanding of the deposit model and the
opportunity to reduce cut-off grades will not only further refine
and expand the established underground resources but also allow for
the assessment of the near surface mineralization that may be
amenable to open pit mining methods.
The company also announces that its shares have begun trading on
the Second Quotation Board (Open Market) of the Frankfurt Stock
Exchange under the trading symbol LY1.
QUALIFIED PERSON
Darcy Krohman, P.Geo, C.A., CFO and VP Exploration for the
Company and a Qualified Person pursuant to National Instrument
43-101, has reviewed the technical information in this news
release.
ON BEHALF OF THE BOARD OF DIRECTORS
Walter H. Berukoff, Chairman
Lion One Metals Limited
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, 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.
Neither the TSX Venture Exchange nor its Regulation Service
Provider accepts responsibility for the adequacy or accuracy of
this release.
Contacts: Lion One Metals Limited Investor Relations
604-998-1250 604-998-1253 (FAX) info@liononemetals.com
www.liononemetals.com
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