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ANALYSIS: Lion One Advances Towards Production In Tuvatu Project

Lion One Metals Limited has announced it is excited to continue to advance its 100 per cent-owned Tuvatu Gold Project in Fiji towards production. This follows the filing of the
20 Jul 2015 11:03
ANALYSIS: Lion One Advances Towards Production In Tuvatu Project

Lion One Metals Limited has announced it is excited to continue to advance its 100 per cent-owned Tuvatu Gold Project in Fiji towards production.

This follows the filing of the positive Preliminary Economic Assessment of the project which is in Sabeto, north of Nadi.

Lion One managing director, Stephen Mann, said: “The Tuvatu Preliminary Economic Assessment demonstrates robust economics for an underground mining operation.”

He said the assessment showed the mine could produce 352,931 ounces of gold over the first seven years at an average grade of 11.31 g/t, at cash costs of US$567 per ounce.

“The project delivers a robust internal rate of return and rapid payback on initial capital of US$48.6 million,” he said.

“We are excited to continue to advance Tuvatu towards production, and believe it represents a very valuable asset that fits with current market conditions.”

 

First phase of works

Meanwhile, the company a month ago announced the first phase of underground work programmes.

This first phase of work includes both dewatering and refurbishment of the existing decline.

It accesses mineralisation targeted for development in the initial years of the proposed mine plan in the 2015 Preliminary Economic Assessment.

The second phase of the proposed underground work includes the development of a new western portal and 500-metres decline to be driven into the central mineralised zone of the Tuvatu resource.

Mr Mann said: “The existing underground infrastructure saves the company considerable time and capital expense.

He said it also provides a great opportunity to extend mineralised zones, increase levels of confidence in the resource and identify future underground drill targets.

“This short work programme expedites site preparation and gives us a tremendous head start in the advancement of Tuvatu towards development and production,” he said.

Tuvatu Gold Project being located along the mineralised gold zone places it along the same zone as the Vatukoula Gold Mine as well as Mount Kasi on Vanua Levu (as shown in the diagram).

The project might not be as big as the ones being undertaken in Papua New Guinea, but if all goes well, for Fiji it will surely mean more revenue.

 

Some background on Tuvatu

Prior to Lion One’s involvement in the Tuvatu project, Emperor Gold Mines of Australia undertook  technical studies in an effort to advance the development of Tuvatu.

During this same period Emperor Gold Mines was the owner and operator of the Vatukoula Gold Mine.

Emperor commissioned numerous engineering studies utilising its own expertise and that of recognised consulting firms.

In 2007, following the closure of the Vatukoula Gold Mine, Emperor Gold Mines sold its Fijian assets including the Tuvatu property to Westech Gold Pty Ltd and Red Lion Management Ltd.

Licenses covering the Tuvatu property were re-issued in the name of Lion One by the Fijian Government.

Subsequently American Eagle Resources gained control of Lion One Limited, the holder of the Tuvatu project.

Lion One Metals is the product of the reverse takeover in January 2011 of X-Tal by American Eagle Resources.

Feedback:  rachnal@fijisun.com.fj

 



Laybuy it 5squares


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