One other analyst initiated protection on the well-positioned and -managed Lion One Metals Ltd, growing an alkaline epithermal gold deposit in Fiji, famous a ROTH Capital Companions report.
Lion One Metals Ltd.’s (LIO:TSX.V; LOMLF:OTCQX; LLO:ASX; LY1:FSE) current discovery of a high-grade feeder at its Tuvatu venture led ROTH Capital Companions to provoke protection on the junior miner with a Purchase score and a CA$2.50 per share worth goal, reported analyst Mike Niehuser in a June 17 analysis word. As compared, Lion One’s present share worth is round CA$1.41.
“Lion One is advancing its near-surface, high-grade gold deposit to manufacturing, drilling the underlying feeder zone and exploring the Navilawa caldera with the potential to exceed 10,000,000 ounces (10 Moz),” Niehuser wrote. The corporate is now finishing the underground growth of a low-cost mine at Tuvatu.
The analyst shared the three main elements that make Lion One a compelling firm by which to take a position.
Tuvatu, a high-grade alkaline epithermal gold deposit, has the potential to develop right into a multimillion-ounce gold useful resource. This sediment kind, Niehuser indicated, tends to host high-grade mineralization in mineable widths and with vertical continuity to greater than 1 kilometer (1 km) in depth.
Niehuser cited Vatukoula as the same kind of venture positioned on the identical development in Fiji as Tuvatu. It’s giant with 7–11 Moz and excessive grade and has an 85-year working historical past. Porgera, with 16–35 Moz, is one other instance. These two initiatives and Tuvatu all are on the Pacific’s Ring of Hearth.
“Given the proximity and quite a few constructive traits, Lion One’s place within the Navilawa Caldera may match or higher Vatukoula,” Niehuser wrote.
The present useful resource at Tuvatu, calculated in January 2018 utilizing a 3 grams per ton (g/t) cutoff grade for underground growth, includes 1,007,000 tons at 8.48 g/t gold for 274,600 ounces within the Indicated class and 1,325,000 tons at 9 g/t gold for 384,000 ounces within the Inferred class.
Not too long ago, Lion One accomplished a gap (TUG-141) that encountered 20.86 g/t gold over 75.9 meters (75.9m), beginning at solely 443.4m downhole.
“This means that Tuvatu is heading in the right direction to change into one of many world’s subsequent deep, high-grade gold mines,” Niehuser commented.
The up to date Tuvatu preliminary financial evaluation (PEA) outlines a five-year mine plan at a base case gold worth of $1,400 per ounce. It reveals an after-tax internet current worth discounted at 5% of $121.7 million ($121.7M) and inner charge of return of fifty.9%.
“The up to date PEA outlines a conservative ‘starter’ operation for an economically viable, modest-scale underground gold mine,” Niehuser wrote. “Nonetheless, the PEA has strong economics that we predict are sure to be refined at a better confidence degree given subsequent growth.”
Together with Tuvatu, exploration upside exists for the corporate elsewhere within the Navilawa caldera, the place the strike of the mineralized system extends 7 kilometers. Already, Lion One has recognized extra prospects within the caldera, akin to Banana Creek and Jomaki-Ura-Kubu.
“Past Tuvatu, given early exploration outcomes inside the Navilawa caldera, we imagine that there’s the potential for an extra three to 4 Tuvatu-like prospects,” Niehuser wrote.
Niehuser famous Lion One is well-positioned financially, with greater than sufficient money to fund continued exploration and tender growth of Tuvatu and the Navilawa caldera for at the very least a yr, Niehuser identified. On the finish of March 31, 2022, the corporate had about CA$32.9M in money and CA$10M in short-term investments.
Together with a doubtlessly world-class mining venture, Lion One has ample infrastructure, which affords it a aggressive benefit, famous Niehuser. When it comes to entry, a community of roads to Tuvatu and all through the caldera exists, and the airport is close by. Firm-owned property supporting exploration efforts are the on-site assay laboratory and the fleet of seven drill rigs.
An extra benefit to Lion One is its sturdy administration group, wrote Niehuser, made up of completed and skilled mining trade professionals, and their relationships with the Fijian authorities and native service suppliers, together with geologists and drillers.
On the helm of Lion One is CEO and Founder Walter Berukoff, who has been lively in Fiji for over a decade. His resume contains being the founder and CEO of Miramar Mining Corp., Northern Orion Assets, and La Mancha Assets and working or commissioning gold mines in seven international locations. Additionally presently, Berukoff is the managing director of Pink Lion Administration, a service provider banking agency.
Additionally of word, Quinton Hennigh, internationally famend geologist, is and has been the technical adviser for Tuvatu since 2019. His 25-year exploration expertise contains having labored with gold majors akin to Homestake Mining Co., Newcrest Mining Ltd., and Newmont Corp.
“It seems that the present group is working in concord to take Lion One and the Tuvatu venture within the Navilawa caldera to the following degree,” Niehuser added.
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