Dec 21 2012
Lion One Metals Limited is pleased to announce the following exploration and development update for its Tuvatu Gold Project ("Tuvatu") located near Nadi on the island of Viti Levu, Fiji.
"The Company's geological and metallurgical programs carried out during 2012 overwhelmingly support the continued advancement of Tuvatu," said Mr. Walter H. Berukoff, Chairman and Chief Executive Officer of the Company. "In conjunction with further engineering and environmental studies, our objective for 2013 is to build a robust economic model and complete the permitting process for a high-grade gold mining operation in Fiji."
The Company will continue to test, confirm, and substantially expand historic exploration, 80,000 meters of previous drilling, and metallurgical data from previous feasibility studies. Management believes that the 12,166 hectare Tuvatu property has further resource potential beyond the resource area drilled to date (a surface area measuring 600x200 meters drilled to depths of 300 meters). Tuvatu's geological setting and location in the Navilawa Caldera draws scale comparisons and geological similarities with the Vatukoula gold deposit in the neighboring Tavua Caldera, recognized as one of the giant gold deposits of the SW Pacific.
2012 Drilling Program Overview
The Company commenced its diamond drill program in June 2012, with a total of 3,003 meters of core recovered from 15 diamond drill holes completed to date. Drilling is targeting western extensions of the mineralized structures in the Tuvatu Resource Area, which have now been mapped at surface over a distance of 1km along strike west of the Resource Area, displaying consistent lateral continuity typical of many epithermal lode systems.
The current program has three objectives: (i) infill drilling to increase the confidence level of the existing resource; (ii) step out drilling to expand the resource base; and (iii) exploratory drilling to test additional targets. Initial results confirmed high grades including the following significant intersections:
TUDDH-347: intersected 3.78 m @ 16.15 g/t gold from 122 to 125.77 m (including 0.09 m @ 248 g/t gold)
TUDDH-348: intersected 7.49 m @ 23.03 g/t gold from 155.05 to 162.54 m (including 0.11 m @ 855 g/t gold)
TUDDH-349: intersected 11.9 m @ 11.77 g/t gold from 128.55 to 140 m (including 0.03 m @ 37.7 g/t gold)
The Company expects to increase the resource base through continued drilling and is confident that additional near-surface resources identified to date can also be converted to mineral resources with additional drilling and Management believes the addition of lower-cost oxide resources near surface will significantly enhance the economics of the project in the initial years of development. Drilling is expected to lead to an updated resource estimate in preparation for taking the project into production.
Metallurgical Test Results
Metallurgical studies performed in 2012 confirmed robust gold recoveries from the principal rock types hosting the Tuvatu resource. Recoveries from standard flotation tests ranged up to 94 percent. Because of the coarse nature of some of the mineralization, the study program included gravity tests to determine the amount of recoverable free gold. In addition two mill flow sheets for processing the gravity tailing were also completed. Significant conclusions of the study include:
- Gold is free-milling by conventional gravity and flotation processing at reasonable grind sizes
- Gravity recoveries averaged over 40%, and combined gravity and flotation ranged up to 94%
- Mineralization is clean with respect to deleterious elements such as arsenic, selenium, and uranium
- Testing indicates conventional crushing, two-stage ball milling and three points of gravity concentration in the crushing and milling circuits, followed by conventional flotation and CIL leaching or direct sale of concentrates will produce optimum recoveries.
Environmental Impact Assessment
An independent consultant approved by Fiji's Mineral Resources Department (MRD) is currently conducting an Environmental Impact Assessment (EIA) on Tuvatu. The findings of the EIA will be reported to the MRD and will be included in the filing of the mining license application that the company expects to file with the MRD in Q2 2013.
Fiji Survives Level 4 Cyclone Evan
The government of Fiji declared a State of Natural Disaster for parts of the island nation in the wake of Cyclone Evan, the largest and strongest cyclone to hit the country in over 20 years. The Company is pleased to report that all of its employees and their families are safe and that the Company's operations have not been jeopardized. Apart from damage to the Company's workshop in its Nadi head office compound and to the Tuvatu site mess hall the head office and Tuvatu site camp facilities are intact.
Results of AGM
The Company's Audited Consolidated Financial Statements for the year ended June 30, 2012 were received and considered at its Annual and Special Meeting held on December 12, 2012. Shareholders of the Company also considered and approved resolutions in favor of the:
- Re-election of the Directors of the Company: Walter H. Berukoff, George S. Young, David Duval, Richard Meli, Stephen Mann, and Hamish Greig
- Re-appointment of Ernst & Young, chartered Accountants, as Auditor of the Company, and
- Approval and ratifications of the Company's "Rolling 10%" Stock Option Plan