Lion One reports milestone Q2 at gold mine in Fiji
Lion One Metals [LIO-TSXV, LOMLF-OTCQX, LLO-ASX] said the second quarter of 2024 was a milestone for its Tuvatu Alkaline Gold project in Fiji, where it recovered 3,551 ounces of gold in the quarter. That’s up from 1,394 ounces in the first quarter, representing a ramp-up of mining and processing activity during the pilot plant phase of the operation.
“This quarter represents a milestone for the company as it is the first quarter in which the plant has been operating at full capacity,’’ said Lion One Chairman and CEO Walter Berukoff. “It is also the first quarter in which we have had mechanized production,’’ he said. “We are just beginning to see the potential for Tuvatu and we’re excited as we look forward to doubling the plant capacity from 300 tons per day to 600-700 tons per day and advancing towards the ultra-high-grade Zone 500.’’
Meanwhile, the company said the rise in production during the second quarter is due to the introduction of mechanized production in May and June, as well as increased mill throughput from February to May. A total of 32,100 tonnes of mineralized material was processed during the second quarter, compared to 20,751 tonnes in the first quarter.
“Commissioning of the processing plant was only completed in January, with some components only installed in April and May,’’ Berukoff said.
Lion One shares advanced on the news, rising 1.12% or $0.005 to 45 cents. The shares currently trade in a 52-week range of $1.04 and 37.5 cents.
The Tuvatu project covers approximately 200 square kilometres and is located in the upper Sabeto Valley on the main island of Viti Levu in Fiji, 24 kilometres northeast of the town of Nadi (population 42,284) and 17.0 kilometres by road from an international airport.
The property is a high-grade, narrow vein, alkaline-hosted gold deposit located on five tenements held by Lion One. The project area is on a small part of the Navilawa Caldera, a 7.0-kilometre diameter geological occurrence hosting a mineral system associated with widespread alkaline magmatism. Tuvatu sits on one of the only large alkaline gold systems not owned by a major mining company.
Lion One is proceeding with development in the belief that the Navilawa Caldera hosts a very large alkaline gold system. This variety of gold system is not prolific in number globally, but ranks among the largest producers of gold in the world, with notable examples in the South Pacific including the Porgera and Lihir gold mines in Papua New Guinea and Vatukoula in Fiji. Navilawa is located 45 kilometres from the high grade Vatokoula gold mine, which hosts in an alkaline system that is similar in scale, and has produced over 7.0 million ounces of gold over the past 85 years. A North American example is the Cripple Creek gold mine in Colorado by Newmont Corp. [NGT-TSX, NEM-NYSE].