SUNBIZ

Lion One Plans Further Mine Investment Of Over $140 Million

Lion One Metals Limited plans to invest in excess of a further $140 million in the Tuvatu Gold Mine Project over the next 18 months. The company’s managing director Stephan
16 Jun 2018 11:00
Lion One Plans Further Mine Investment Of Over $140 Million
A tunnel at Tuvatu Gold Mines

Lion One Metals Limited plans to invest in excess of a further $140 million in the Tuvatu Gold Mine Project over the next 18 months.

The company’s managing director Stephan Mann said Lion One has planned to continue its investment in mineral exploration and mining in Fiji.

He said although the extended 2017- 2018 wet season in Fiji slowed down the current development work on site, work has nevertheless progressed.

“The building of the company’s new state of the art geochemical and metallurgical laboratory in Nadi is well underway and will be completed later in 2018,” Mr Mann said.

“Civil earthwork, ground preparation for the process plant site and surface infrastructure on site at Tuvatu commenced late in 2017, and is progressing well.”

Mr Mann also announced the appointment of Darren Holden as the company’s new Vice-President of Exploration.

“We realise that the long term future of the Tuvatu gold project will rely on further discoveries and subsequent development.”

“The employment of a Vice President Exploration recognises our commitment to discover and develop further resources.”

The Tuvatu Gold Project is located 24 km northeast of Nadi and lies in the southern reaches of the Navilawa volcano, overlooking the Sabeto River valley and town of Nadi.

Following the discovery of a new mineralised lode from benching that returned a (non-representative) select sample of 502 g/t gold over 0.70 m on March 5, 2018, Lion One’s Fiji exploration team has mapped more than 20 previously undefined mineralised structures at the Jomaki-Ura Creek prospect areas and identified potential geological extensions on the main mineralised zones inside the Tuvatu Mining Lease.

“We are currently undertaking an extensive surface geological mapping and sampling programmes.”

“To date these programmes have identified many new mineralised lodes away from the existing gold resource at Tuvatu.

Further surface work will be undertaken to further delineate these areas, and upon the completion of that work, a drilling programme will be planned.”

As for the discovery of new areas, Mr Mann said both new areas and extensions to previously known, but poorly explored or understood zones of gold mineralisation have been targeted.

“Lion One was notified that it was the successful tenderer for the Navilawa tenement, immediately north and adjacent to the Tuvatu project.

“The processing of that tenement application is still underway.”

“That area will greatly increase the area of highly prospective tenure we have in the area.”

He said Lion One’s current mining lease was approximately 380 hectares in size and contains many additional exploration targets for future development

“Lion One finished a very successful drilling programme late last year, but it was well into 2018 before all the geochemical results for that drilling were received.

Since that time, the Company has been reviewing and interpreting the results from that work, and also undertaking a lot of preliminary work in preparation for the next phase of drilling later in the year.”

“The Company continues to employ local contractors and direct employees for its activities in Fiji.”

He said all the contracts which have currently been let, and amounted to several million dollars, have been let to local companies.

“Many of the Lion One employees on site are sourced from the local communities.”

Tuvatu is the largest undeveloped gold project in Fiji and one of highest grade gold projects anywhere in the world; focused on building production of 100,000 oz. per year over 10 years. Envisaged production based on 600 tpd CIL operation yielding recoveries of 86 per cent with up to 40 per cent of gold recoverable through the gravity circuit.

The Tuvatu gold project is 100 per cent owned by Lion One Limited, fully permitted for construction, mining and processing operations with 21-year surface lease, subject to a five pe rcent Government royalty and three per cent export tax.

Feedback:  maraia.vula@fijisun.com.fj

 



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