Lion One Goes Deep Into Gold Feeder Zone at Tuvatu

One junior explorer has outlined a gold useful resource alongside the “Rim of Hearth,” a rift between tectonic plates within the South Pacific. Current drilling has proven there may be much more gold at depth. Perhaps much more.

Drilling by Vancouver-based Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX; LLO:ASX; LY1:FSE) has discovered high-grade mineralization some 300 meters beneath the present useful resource at its steadily-growing Tuvatu alkaline gold mission in Fiji.

In reality, two holes in an space referred to as the Deep Feeder Zone 500 at Tuvatu, hit mineralization 350 meters beneath the mineralized envelope that comprises the present useful resource.

The corporate additionally accomplished re-entry gap TUDDH-494, a type of pilot gap the place the drill continued deeper in an current gap in an try to search out further mineralization. It hit 0.3 meter of 12.2 grams per tonne gold (12.2 g/t Au) and 0.39% copper at 1,106 meters down-hole.

Deep drill core from Tuvatu

Gap TUDDH494 at 1,106 meters depth that returned 12.2 g/t Au and 0.39% copper. Supply: Lion One Metals Ltd.

TUDDH-494 is what’s known as a “skinny interval” however nonetheless the opening demonstrates that mineralization extends greater than 650 meters vertically beneath the bottom (1,150 meters whole) of the present useful resource.

Denver, Colo.-based Crescat Capital is a big shareholder in Lion One and Crescat Geologic and Technical Director Quinton Hennigh says the image is forming at Tuvatu.

“(Lion One) hit a complete bunch of high-grade intervals down deep on the five hundred zone and the opposite related lodes down there. (The corporate is) beginning to develop an image of what is going on on. They see 4 lodes all tied collectively, like a community of high-grade lodes. After which they’ve additionally hit high-grade gold all the way down to 1,150 meters beneath floor — a thin interval, however it tells you there’s excessive grade down there,” Hennigh advised Streetwise Experiences.

He added: “My hunch is that if there’s pops and whistles of excessive grade like that at depth, it is actually only a matter of discovering that root feeder zone and focusing on it at depth and that ought to ship good massive widths (of gold mineralization).”

The drill program consisted of 11 drill holes for a complete of 9,113 meters.

Some drilling highlights are as follows:

  • Gap 138 hit 23.14 grams per tonne gold (23.24 g/t Au) over 3 meters, together with a candy spot of 118.60 g/t Au over 0.3 meter from 571.5 meters down-hole.
  • Gap 136 hit 87.83 g/t Au over 1.5 meters, together with 108.41 g/t Au over 0.6 meter from 445 meters down-hole.
  • And gap 573W1 returned 25.83 g/t Au over 2.7 meters, together with 43.64 g/t Au over 0.3 meter from 582 meters down-hole.
A map of the drill holes at Tuvatu. Supply: Lion One Metals Ltd.

A fast back-of-the-napkin calculation means that the corporate is getting between 2,000-3000 ouncesgold per vertical meter. So if the mineralization goes down 1,000 meters, the useful resource, hypothetically talking, might attain as excessive as 3 million oz (there has not been a examine confirming this quantity).

Hennigh, a geologist by coaching, explains that alkaline gold methods are usually deep-rooted, pushed by magmas (liquid rock) which have cooled someplace round two to a few kilometers beneath the Earth’s crust. The gold veins kind when tectonic forces push gold-bearing fluids up from the father or mother magma chamber into the rock fractures and funky there.

“That is what makes these items so particular. You’ll be able to find yourself with these very deep-rooted methods, like Vatukoula, which is a close-by. I believe they’ve mined down in extra of 1,200 meters (beneath floor) there or like Porgera in Papua New Guinea, the place they’ve mined down nearer to 1,500 meters,” Hennigh mentioned.

The Vatukoula underground gold mine is on Viti Levu, Fiji’s most important island, and is operated by London-based Vatukoula Gold Mines (VGM). VGM is managed by Chinese language pursuits.

The final accessible report on manufacturing from Vatukoula mentioned the corporate mined 522,769 tonnes in 2019 at a median head grade of two.95 g/t Au for 35,560 oz. The corporate has since undergone a restructuring.

The Porgera gold mine, in the meantime, has been on care and upkeep since 2020 when a dispute with Papua New Guinea’s nationwide authorities led to the cancellation of a mining allow held by Barrick Niugini Ltd. (BNL), the corporate working the mine. BNL is held equally between Barrick Gold Corp. (ABX:TSX; GOLD:NYSE) and Chinese language agency, Zijin Mining Group Co. Ltd., which purchased a stake in Porgera in 2015.

Following a settlement signed in early April, the federal government of Papua Guinea (and different PNG-based events) now personal 49% of the Porgera Joint Enterprise (PJV), with the choice to purchase out Barrick and Zijin for “truthful market worth” after 10 years. Barrick and Zijin personal 51% of PJV.

Porgera produced 20 million oz (20 Moz) gold between 1990 and 2017.

The Tuvatu gold mission is on the island of Viti Levu, one of many many islands within the South Pacific Archipelago that make up Fiji.

A September 2020 Preliminary Financial Evaluation on the 100% owned Tuvatu outlined an indicated useful resource of 1,007,000 tonnes grading 8.48 g/t Au for 274.6 Koz Au and an inferred useful resource of 1,325,000 tonnes grading 9 g/t Au for 384,000 Koz Au. The examine used a cut-off grade of three g/t Au.

Lion One CEO Walter Berukoff as soon as based Miramar Mining, which developed the ten Moz Hope Bay gold mission in Canada’s Arctic. Berukoff offered Miramar to Newmont Corp. (NEM:NYSE) in 2007 for CA$1.5 billion in money. That deal got here on the heels of Berukoff and his staff promoting Northern Orion Sources to Yamana Gold Inc. (YRI:TSX; AUY:NYSE; YAU:LSE) for CA$1.07 billion earlier that yr.

Lion One has about 166 million shares totally diluted. It trades in a 52-week vary of CA$0.97 and CA$1.42.

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1) Brian Sylvester compiled this text for Streetwise Experiences LLC and offers providers to Streetwise Experiences as an impartial contractor. He or members of his family personal securities of the next corporations talked about within the article: None. He and members of his family are paid by the next corporations talked about on this article: None. His firm has a monetary relationship with the next corporations referred to on this article: None.

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