Issue link: http://resourceworld.uberflip.com/i/460990
40 www.resourceworld.com F E B R U A R Y / M A R C H 2 0 1 5 Diamond drilling on the UR Lode at the Lion One Metals Tuvatu Project on the island of Viti Levu, Fiji, South Pacific. Photo courtesy Lion One Metals Ltd. MINING F iji is a group of islands in the South Pacific Ocean that that gained inde- pendence from Britain in 1970. While the country has seen some civil unrest and suffered through two coups in the past decade, it is still one of the most eco- nomically developed of the Pacific island economies. Fiji had its first election in September 2014 since the coup of 2006. Voreqe Bainimarama's Fiji First Party was endorsed by 59% of the voters, taking 32 out of 50 seats, with a voter turnout of 84%. Stable diplomatic relations with New Zealand and Australia have resumed. In addition to natural resources as well as sugar exports, Fiji is a popular tour- ist destination and also receives foreign exchange from Fijians working abroad. As far as minerals are concerned, gold, silver, bauxite and alumina as well as cement are the main commodities produced in the island nation. Vatukoula Gold Mines plc, which became a private company last year, oper- ates the Vatukoula gold mine that has been in production for 75 years. The largest gold mine in Fiji, the underground opera- tion has produced over 7 million ounces of gold and still hosts over 4 million ounces of gold resources and 750,000 ounces of reserves. The mine, located on the island of Viti Levu, is being updated in order to restore production to the historical rates of 100,000 ounces of gold per year. There is a 700,000 tonne-per-year processing facility. The Vatukoula gold mine's biggest share- holder is China's Zhongrun International Mining co. With such gold resources, it might be expected that other companies are explor- ing and developing gold projects on Viti Levu. Lion One Metals ltd. [LIO-TSXV; LLO-ASX; LOMLF-OTCQX] has received crucial environmental approvals from the Fiji Government for its Environmental Impact Assessment and Environment Management Plans for its 100%-owned Tuvatu gold project near Nadi on Viti Levu. These approvals, granted by Fiji's Department of Environment, provide the development guidelines for the construc- tion and management of potential open pit and underground mining operations, pro- cessing facilities, tailings storage facilities, and related infrastructure. The company has also secured a 21-year surface lease agreement for Tuvatu following extensive consultations with local landowner groups and Fiji's iTaukei Land Trust Board. The company has applied for a Special Mining Lease. Lion One is focused on the continued exploration, permitting, and development of Tuvatu towards production. In a similar geological environment as the Vatukoula gold mine (historic gold production of over 7 million ounces) approximately 35 km along trend to the north, Tuvatu is a high-grade, low sul- phidation, vein-hosted epithermal gold deposit. Indicated resources are pegged at 1,101,000 tonnes grading 8.46 g/t gold with inferred resources standing at 1,506,000 tonnes grading 9.70 g/t gold at a cut- off grade of 3.0 g/t gold. Lion One is currently con- ducting processing plant studies and developing mine plans and related infrastruc- ture. AMC Mining Consultants, Knight Piésold, assisted by Fiji-based Entec Limited, is carrying out much of this work. Gold mineralization at the Tuvatu deposit occurs as free gold or is hosted in quartz or pyrite. These styles of mineralization can be processed by gravity methods or flotation followed by leaching. In addition to the Tuvatu Project, Lion One has two prospecting licenses on the Fijian island of Vanua Levu. Geopacifc resources ltd. [GPR-ASX] is exploring four projects on Viti Levu: the gold-copper Sabeto/Vuda porphyry proj- ect; the gold Rakiraki Project; the Nabila gold project (with 15K non-compliant oz); and the Nuku Project. The company also has the Cakaudrove copper-gold porphyry project on Vanua Leva. thunderstruck resources ltd. [AWE- TSXV] can earn a 100% interest in a portfolio of base and precious metal prop- erties that have been previously drilled by Anglo american plc [AAL-LSE; AGLJ- Jo'burg; AAUKY-OTC]. Thunderstruck can earn its interest from Aljen (Pacific) Limited by spending AUS $1.5 million on explo- ration, paying Aljen AUS $600,000 and issuing 1.5 million shares, all over three years. The mineral properties include the Fiji islands mining and exploration by Ellsworth Dickson