Resource World Magazine

D E C E M B E R / J A N U A R Y 2 0 2 0 www.resourceworld.com 29 Australian Update by Greg Barns F iji is a world renowned destination for tourists looking for a tropical paradise. But it is also a significant southern hemisphere gold producer and Lion One Metals Limited [LIO-TSXV; LLO-ASX; LOMLF-OTCQX] is the latest company to develop what looks like a very significant project on the Island of Viti Levu in this South Pacific nation. Lion One Metals is developing the high-grade Tuvatu Project which sits on an alkaline gold system only 40 km from the massive Vatukoula Mine (aka the Emperor Gold Mine) that was developed in 1934 and produced over 7 million ounces of gold. Tuvatu, according to Lion One's lead technical adviser, Dr. Quinton Hennigh, "has similarities not only to Vatukoula and other large alkaline systems in the South Pacific (Porgera 25 mil- lion oz and Lihir 40 million oz), but also to several multi-million oz alkaline gold systems in North America, including Newmont's Cripple Creek…". Alkaline gold deposits are noted for their very high gold grades and vertical profiles. Lion One was founded and is run by the respected Walter Berukoff, who previously ran La Mancha Resources, Miramar and Northern Orion, and who has a strong track record in developing assets. Lion One has been working in Fiji since 2008, went public in 2011 and, by late 2016, the company had cleared its environmen- tal and operation plans with the government of Fiji and obtained a 385-hectare mining lease around the drilled-off resource at Tuvatu. The company's 13,619-hectare exploration license package cov- ers the entire eroded Navilawa volcanic caldera with the Tuvatu mining lease at the centre. Tuvatu itself only represents a small portion of the 7-km diameter prospective Navilawa caldera. The project is well served for infrastructure with it being only 24 km from the town of Nadi, 20 km to the international airport and 35 km from the deep water port of Lautoka. The Tuvatu Project is 100%-owned by Lion One and fully per- mitted for construction, mining and processing operations with a 21-year surface lease. About 80% of the ore body is currently sitting within 250-300 metres of the surface and measures 600 by 200 metres. The Tuvatu resource is reported at a 3 g/t gold cut-off which represents a resource amenable to underground production. The June 2014 Tuvatu resource estimate has Indicated Resources of 1,101,000 tonnes at 8.46 g/t gold for 299,500 ounces of gold and Inferred Resources of 1,506,000 tonnes at 9.70 g/t gold for 468,000 ounces of gold. The company is looking at production of 100,000 ounces a year over 10 years. Currently, the company envisages "production based on 600 tpd CIL operation yielding recoveries of 86% with up to 40% of gold recoverable through the gravity circuit." Importantly, exploration continues and on November 7 Lion One announced first results from a series of four deep diamond drill holes. The hole, TUDDH493 is "oriented eastward at an incli- nation of 55 degrees, is nearing its target depth of approximately 600 metres after undercutting the entire Tuvatu lode network near the bottom of the current delineated resource. This hole targets a particular area where several high-grade structures appear to be converging," the company said. The company reported that multiple mineralized intercepts are apparent in core from TUDDH493, including "..a 11.3-metre interval of quartz veinlets in altered monzonite beginning at 318.6 metres. This intercept is situated approximately 7 metres from a high-grade interval in historic hole TUDDH160 that displayed assays up to 1,600 g/t gold," the company's announcement noted. The results also included "…a 4-metre interval of hydrothermal Surface drilling at the Tuvatu gold project in Fiji. Photo courtesy Lion One Metals Limited. AUSTRALIAN continued on page 76 Lion One expands Tuvatu Alkaline Gold Project in Fiji

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