Lion One Metals Limited (TSX VENTURE:LIO)(FRANKFURT:LY1) (the
"Company") is pleased to announce 2012 work plans for its Tuvatu
gold project ("Tuvatu") on the island of Viti Levu in Fiji.
Highlights of the 2011 work program were the discoveries of
additional high grade surface stockwork zones, and confirmation of
sufficient porphyry-style mineralization in drill core samples (see
news releases dated March 22, May 27, and July 20, 2011) for the
Company to justify commencing a work program to quantify the
disseminated gold porphyry mineralization in addition to the
currently known higher-grade epithermal resource.
The existing high grade model had historic probable reserves
drilled off by Emperor Gold Mines ("Emperor") in the late 1990's
during a period when gold was priced in the $300-$350 per ounce
range. (Current NI 43-101 resources include Indicated tonnes of
760,000 averaging 7.05 g/t Au and Inferred tonnes of 2,618,000
averaging 5.71 g/t Au). Although Emperor's exploration was focused
on high grade epithermal resources, it also identified broader
areas of lower grade disseminated mineralization with the
geological characteristics of a gold porphyry type deposit. Of the
87,000 meters of drilling by Emperor, 60,000 meters represent drill
core that currently resides on site at Tuvatu, from which 74%
remains to be sampled. In addition the historic epithermal reserves
were subject to a 3 g/t Au cutoff, consequently the potential
exists to increase both the tonnage and continuity of the resource
through the re-sampling and re-logging of drill core and by
applying lower cutoff thresholds.
The bulk work program for 2012 will continue the focus on
re-sampling and re-logging work already underway. New drilling to
increase continuity and test for new mineralized zones will be
based upon the results of the core re-logging, IP survey and the
modeling of the drill core re-sampling using the computer program
Surpac®. This is expected to commence as early as Q2 2012. To carry
out this mandate, the Resource Area has been divided into five Bulk
Development Blocks (see table below) with the objective of building
a succession of resource estimates and incremental expansion of the
resource base.
----------------------------------------------------------------------------
Drill
Samples (Drill Core
Surface Rock Samples and RC)
Maximum----------------------------------------------
Depth of Average
Minerali- Number Gold
Bulk Surface zation Number of Average of Drill Grade
Development Area Drilled Rock Gold Grade Drill Sampled (g/t)
Block (m2) (m) Samples (g/t)(1) Holes (m) (2,3)
----------------------------------------------------------------------------
Murau Area 112,121 200 97 0.59 142 8,466 0.40
----------------------------------------------------------------------------
First 97,748 250 836 1.38 116 4,551 0.69
Porphyry
Area
----------------------------------------------------------------------------
Far West 148,284 80 717 0.41 96 4,614 0.19
Area
----------------------------------------------------------------------------
Stockwork 94,908 450 1,018 1.00 135 7,656 0.34
Area 1
----------------------------------------------------------------------------
Stockwork 445,159 450 1,455 0.78 201 12,253 0.21
Area 2 (4)
----------------------------------------------------------------------------
1) Values from lab results for seven rock samples are reported as having
greater than 100 g/t gold, but for the purpose of having a gold value to
average are listed in the database as 100 g/t gold.
2) Weighted averages for core samples include numerous lengthy un-sampled
intervals for which a zero (0.00 g/t) value has been assigned. Upon
sampling and assaying these intervals, all gold values from such assays
will be included to the compute new weighted averages, which based upon
past experience have been observed to increase the overall gold grades.
3) No discernable difference exists between the average gold grade for the
drill core samples (0.48997 g/t gold) and the reverse circulation drilling
(0.49000 g/t gold).
4) The Stockwork 2 Area 2 encompasses the Stockwork 1 Area.
The following workflow for the 2012 work program prioritizes an
orderly and rapid re-sampling of the remaining 35,000 meters of
drill core that will ultimately lead to resource estimates for the
different Development Blocks using a statistical approach:
1. Sample and Re-log Existing Drill Core
2. Expand the current Drill Database
3. Create a 3D Computer Model using Surpac®
4. Calculate an Initial NI 43-101 Resource using a Statistical Approach
5. Conduct additional Drilling for Resource Expansion & Continuity
6. Log & Sample New Drill Core
7. Update Drill Database, Create a final 3D model using Surpac®
8. Calculate a final NI 43-101 Resource Estimate
The Murau Development Area will be first to undergo this
treatment. Once the re-sampling and re-logging for gold
porphyry-type features has been completed this data will be entered
into a computerized data base. It is expected that the initial
computer modeling using the computer program Surpac® and initial
resource calculations for the Murau Development Block will be
completed in the summer of 2012. Upon receipt of this information a
drill program (if deemed necessary) will commence for the Murau
Development Block in order to provide any additional validation and
continuity of the resource. Furthermore this modeling should also
point out other areas within this Development Area in which
additional resources can be defined through this drilling program.
The Company expects to complete resource calculations and resource
modeling for a NI 43-101 compliant Resource Estimate for the Murau
Development Block inclusive of any additional drilling as early as
Q3 2012.
A similar work program for the First Porphyry Development Block
will run concurrently focusing upon unsampled portions of the drill
core. It is expected that the initial resource calculations and
Surpac resource modeling for the First Porphyry Development Block
will also be completed as early as Q3 2012, with final NI 43-101
complaint Resource Estimates expected to be completed as early as
Q4 2012. Similar work flows for the Stockwork Development Blocks
and Far West Development Block will continue into 2013.
In addition the Company has commenced line cutting and an
Induced Polarization ("IP") survey to test a relatively large area
(6.5 square kilometers) of known gold mineralization within the
Tuvatu Project Area, of which only 0.9 square kilometers are
covered by the five proposed Development Areas. Concurrent with
this IP survey will be a soil sampling program using the same cut
lines for the IP Survey. Prospecting, geological mapping, and rock
sampling will follow for any new areas of interest outlined by the
IP and soil sampling surveys. In this manner new Development Areas
for drilling can then be inserted into the work flow for the Tuvatu
Project.
"We now have sufficient confidence in the Tuvatu exploration
database to justify commencing a work flow designed to build the
resource base in rapid increments." said Lion One Metals Chairman
Walter H. Berukoff, "We have the rare opportunity to advance a
project that shows evidence of being a large porphyry and
disseminated epithermal gold system and to leverage upon the
significant amounts of risk capital previously invested in an era
at much lower gold prices."
Lion One's management has approved an expenditure of $4,200,000
for the 2012 program, which includes $1,000,000 for new drilling.
Management believes that the Company is sufficiently capitalized to
generate new resource estimates without having to finance or create
dilution to shareholders. The Company has 48,581,586 shares
outstanding with $19,000,000 in working capital.
The Company also announces the appointment of Mr. Brian V. Hall,
M.Sc. Geo, and Kelly Fielder to the Company's Board of Directors.
Mr. Hall is a Fellow of the Society of Economic Geologists, a
Fellow of the Geological Association of Canada, with forty years'
experience in mineral exploration and geoscience. Mr. Fielder has
extensive experience in capital markets and operations and in
addition to being appointed Director of the Company is also
appointed VP Operations and Corporate Secretary. Hamish Greig
resigns as Corporate Secretary and is appointed VP Investor
Relations, and Stephanie Martel is appointed VP Administration. The
Company further wishes to report that Darcy Krohman has resigned as
both Chief Financial Officer and VP Exploration. Although Mr.
Krohman will continue to act as an Advisor to the Company, the
Board wishes to thank Mr. Krohman for his past service in his
previous capacities. Mr. John Burghout, CA, CPA, has been appointed
Interim Chief Financial Officer.
The Company has granted an aggregate of 600,000 incentive stock
options (the "Options") to certain directors, officers,
consultants, and employees. The Options are exercisable for a five
year period expiring November 2, 2016 at a price of $1.40 per
common share. The Options vest over a three year period and are
subject to applicable policies of the TSX Venture Exchange.
QA/QC
Samples are analyzed at Australian Laboratory Services (ALS)
Pty. Ltd. an independent and qualified analytical laboratory in
Brisbane, Australia. Samples are first prepared and crushed at the
ALS facility in Suva, Fiji. Samples are subjected to fire assay
with atomic absorption finish for gold and 33 elements, four acids,
Inductively Coupled Plasma Spectrometry (ICP-AES). Consistent with
industry standard QA/QC protocols, sample standards and blanks are
inserted to ensure quality control.
To view the presentation that accompanies the following diagrams
please visit the Company website at www.liononemetals.com.
To view Diagrams 1 and 2, click on the following link:
http://media3.marketwire.com/docs/l111m.pdf
THE TUVATU GOLD DEPOSIT
The Tuvatu property lies within Viti Levu Lineament, a
north-west trending belt that hosts a number of alkaline volcanic
centers. These include the Vatukoula Gold Mine, which lies
approximately 50 km to the north east. Low sulphidation, epithermal
gold veins at Tuvatu occur along the margins of the eroded Navilawa
volcanic center in a multi-phase geologic environment that also
hosts porphyry gold style mineralization. The Fijian Islands
themselves are situated along the margins of the SW Pacific Rim
regional tectonic plate, the host of a number of world class
epithermal gold-silver and porphyry copper-gold deposits that
include Lihir, Porgera, Wafi-Golpu (Papua New Guinea), and Lepanto
(Philippines).
QUALIFIED PERSON
Helen Grond, P.Geo, Senior Geologist with Lion One and Brian
Hall, P.Geo are Qualified Persons for the Company for purposes of
National Instrument 43-101 has reviewed the technical information
in this news release.
ON BEHALF OF THE BOARD OF DIRECTORS
Walter H. Berukoff, Chairman of the Board
Lion One Metals Limited
This press release may contain "forward-looking information"
within the meaning of applicable Canadian securities legislation.
All statements, other than statements of historical fact, included
herein are forward looking information. Generally, forward-looking
information may be identified by the use of forward-looking
terminology such as "plans", "expects" or "does not expect",
"proposed", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases, or by the use
of words or phrases which state that certain actions, events or
results may, could, would, or might occur or be achieved. This
forward-looking information reflects Lion One Metals Limited's
current beliefs and is based on information currently available to
Lion One Metals Limited and on assumptions Lion One Metals Limited
believes are reasonable. These assumptions include, but are not
limited to, the actual results of exploration projects being
equivalent to or better than estimated results in technical
reports, assessment reports, and other geological reports or prior
exploration results. Forward-looking information is subject to
known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or
achievements of Lion One Metals Limited or its subsidiaries to be
materially different from those expressed or implied by such
forward-looking information. Such risks and other factors may
include, but are not limited to: the early stage development of
Lion One Metals Limited, general business, economic, competitive,
political and social uncertainties; the actual results of current
research and development or operational activities; competition;
uncertainty as to patent applications and intellectual property
rights; product liability and lack of insurance; delay or failure
to receive board or regulatory approvals; changes in legislation,
including environmental legislation, affecting mining, timing and
availability of external financing on acceptable terms; not
realizing on the potential benefits of technology; conclusions of
economic evaluations; and lack of qualified, skilled labor or loss
of key individuals. Although Lion One Metals Limited has attempted
to identify important factors that could cause actual results to
differ materially from those contained in forward-looking
information, there may be other factors that cause results not to
be as anticipated, estimated or intended. Accordingly, readers
should not place undue reliance on forward-looking information.
Lion One Metals Limited does not undertake to update any
forward-looking information, except in accordance with applicable
securities laws.
Neither the TSX Venture Exchange nor its Regulation Service
Provider accepts responsibility for the adequacy or accuracy of
this release.
Contacts: Lion One Metals Limited Investor Relations
604-998-1250 or NA Toll Free: 1-855-805-1250 604-998-1253
(FAX)info@liononemetals.comwww.liononemetals.com
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