TIDMLION
RNS Number : 3691Z
Lionsgold Limited
14 March 2017
14 March 2017
Lionsgold Limited
("Lionsgold" or "the Company")
India Gold Resource Upgrade and Broker Appointment
Lionsgold (LSE: LION), the India-focused gold exploration
company with additional gold assets in Finland and an interest in a
physical gold online trading platform, is pleased to announce
details of the updated resource and drilling results in relation to
the Jonnagiri gold project.
The Jonnagiri lease is held by Geomysore Services India Pvt Ltd
("Geomysore"), of which Lionsgold owns 20.5%. Jonnagiri is
currently the focus of an economic feasibility study ("EFS") in
respect of building a producing open pit gold mine, for which
Geomysore has been granted a 30-year mining lease to mine 365,000
tonnes of gold ore per year.
In addition, Lionsgold is pleased to announce the appointment of
Beaufort Securities Limited as joint broker to the Company with
immediate effect.
Cameron Parry, Chief Executive Officer, commented: "We are
delighted to be able to report a substantial increase to the
Indicated Resource at Jonnagiri. The results underpin the work and
data gathered via the current feasibility study and materially
improve the viability of a producing gold mine. Additionally, the
early test drilling results from the new South Block at Jonnagiri
are particularly encouraging and plans are being made for further
drilling on the South Block to establish an additional open
pittable gold resource.
"In line with this and our other work underway in India and
progress being made in our two other business divisions, Lionsgold
has appointed a second broker to initiate research and help expand
the Company's network and following."
India Gold Resource Update
As previously announced, Geomysore, in which Lionsgold owns
20.5%, is conducting an EFS in respect of a 'decision to mine' and
the building of an open pit gold mine at Jonnagiri in India, for
which Geomysore has been granted a 30-year mine licence to mine
365,000 tonnes of gold ore per annum.
Following the completion of drilling at Jonnagiri, Golder
Associates Pty Limited ("Golder") has upgraded the JORC compliant
resource based on the new drill results undertaken as part of the
EFS. Golder has estimated a JORC compliant gold resource (the
"Resource") of 214,000 ounces (Indicated) and 147,000 ounces
(Inferred) in total at the East and West blocks (up from 103,000
ounces Indicated and 248,000 ounces Inferred as previously
announced on 21 October 2016). Whilst the Resource increase in
aggregate is marginal (up from 351,000 ounces to 361,000 ounces),
significantly, 111,000 ounces of the Resource at the East Block (no
additional drilling was undertaken at the West Block) has
materially shifted from Inferred to Indicated category. Full
details are set out below.
In addition, Golder has reported on the test drilling results in
the South Block of Jonnagiri which demonstrate highly prospective
intersections at shallow depth.
The best drill intersections include:
-- 8m @ 2.67 g/t from surface,
-- 2m @ 6.84 g/t from 26m,
-- 5m @ 3.52 g/t from 3m,
-- 5m @ 4.24 g/t from 6m,
-- 3m @ 5.98 g/t from 3m, and
-- 3m @ 7.84 g/t from 10m.
These intersections represent both detrital and primary ore,
which is found in the vicinity of an ancient mine workings. The
next step for exploration at the South Block is a further programme
of diamond core and reverse circulation drilling (approximately
4,000 metres in aggregate) with a view to establishing a JORC
compliant resource to add to the East and West Block deposits.
Resource Update Details
The JORC Resource at Jonnagiri has been estimated using a 0.5
g/t cut off for potential open pit activities and a 2 g/t cut off
for potential underground activities at the West Block. Golder also
provided Geomysore with the West Block model to assess the
underground viability at lower cut off grades in the context of the
Indian cost structure. The summary of the resource estimate,
updated from the summary released 21 October 2016, is as
follows:
Gross (1) Net attributable
(1) (2)
---------------- ----------- -------- -------------------------- -------------------------
Deposit Class Cut-off Tonnes Au Ounces Tonnes Au Ounces
(g/t (Kt) (g/t) (Kt) (g/t)
Au)
---------------- ----------- -------- ------- ------- -------- ------- ------- -------
East Block Indicated 0.5 4,200 1.45 196,000 861 1.45 40,180
---------------- ----------- -------- ------- ------- -------- ------- ------- -------
Inferred 0.5 1,300 1.18 47,000 267 1.18 9,635
---------------------------- -------- ------- ------- -------- ------- ------- -------
Sub-total 0.5 5,500 1.39 244,000 1,128 1.39 50,020
---------------------------- -------- ------- ------- -------- ------- ------- -------
West Block
(Temple)
- Open
Pit Indicated 0.5 500 1.05 18,000 102 1.05 3,690
---------------- ----------- -------- ------- ------- -------- ------- ------- -------
Inferred 0.5 300 1.13 9,000 61.5 1.13 1845
---------------------------- -------- ------- ------- -------- ------- ------- -------
Sub-total 0.5 800 1.08 27,000 164 1.08 5,535
---------------------------- -------- ------- ------- -------- ------- ------- -------
Jonnagiri
Total
- Open
Pit Indicated 0.5 4,700 1.40 214,000 964 1.40 43,870
---------------- ----------- -------- ------- ------- -------- ------- ------- -------
Inferred 0.5 1,500 1.17 57,000 308 1.17 11,685
---------------------------- -------- ------- ------- -------- ------- ------- -------
Total 0.5 6,200 1.35 271,000 1,271 1.35 55,555
---------------------------- -------- ------- ------- -------- ------- ------- -------
West Block
- Underground Inferred 2.0 800 3.52 90,000 164 3.52 18,450
---------------- ----------- -------- ------- ------- -------- ------- ------- -------
Jonnagiri
Total
- Combined Total - 7,000 1.59 361,000 1,435 1.59 74,005
---------------- ----------- -------- ------- ------- -------- ------- ------- -------
(1) Columns may not total exactly due to rounding
(2) The Net Attributable resource is for illustrative purposes
only and calculated by reference to Lionsgold's equity interest in
Geomysore, in compliance with the Note for Mining and Oil and Gas
Companies 2009.
The information in this statement which relates Mineral Resource
estimation and classification of Mineral Resources is based on
information compiled by Mr. Andrew Weeks who is a full-time
employee of Golder Associates Pty Ltd, and a Fellow of the
Australasian Institute of Mining and Metallurgy. Mr. Weeks has
sufficient relevant experience to the style of mineralisation and
type of deposit under consideration and to the activity for which
he is undertaking to qualify as a Competent Person as defined in
the JORC Code (2012 Edition). Mr. Weeks consents to the publishing
of Mineral Resources in the form and context in which it
appears.
For further information, please contact:
Lionsgold Limited Tel: +44 (0) 20 7397 2880
Cameron Parry (Chief Executive Officer)
Luke Cairns (Executive Director)
WH Ireland Limited (Nominated Adviser) Tel: +44 (0) 113 394 6600
Tim Feather
Ed Allsopp
Smaller Company Capital Limited (Joint Broker) Tel: +44 (0) 20 3651 2911
Rupert Williams
Jeremy Woodgate
Beaufort Securities Limited (Joint Broker) Tel: +44 (0) 20 7382 8300
Gavin Burnell
Zoe Alexander
Tavistock (Financial PR) Tel: +44 (0) 20 7920 3150
Emily Fenton
Edward Lee
GLOSSARY
"g/t" grammes per tonne
"Indicated" an 'Indicated Mineral Resource'
is that part of a mineral resource
for which quantity, grade or
quality, densities, shape and
physical characteristics, can
be estimated with a level of
confidence sufficient to allow
the appropriate application
of technical and economic parameters,
to support mine planning and
evaluation of the economic viability
of the deposit. The estimate
is based on detailed and reliable
exploration and testing information
gathered through appropriate
techniques from locations such
as outcrops, trenches, pits,
workings and drill holes that
are spaced closely enough for
geological and grade continuity
to be reasonably assumed
"Inferred" an 'Inferred Mineral Resource'
is that the part of a mineral
resource for which tonnage,
grade and mineral content can
be estimated with a low level
of confidence. It is inferred
from geological evidence and
assumed but not verified geological
or grade continuity. It is based
on information gathered through
appropriate techniques from
locations such as outcrops,
trenches, pits, workings and
drill holes which may be of
limited or uncertain quality
and reliability.
"JORC" the Australasian Joint Ore Reserves
Committee Code
"kT" thousands of tonnes
"m" metres
"resource" the calculated amount of material
in a mineral deposit, based
on limited drill information.
About LIONSGOLD
Lionsgold is an AIM-quoted India-focused gold exploration
company, with complementary gold assets in Finland and an interest
in an online exchange targeting the India market for retail users
to directly own and trade physical gold.
Lionsgold's three core focuses are:
-- Strategic partnership with leading India gold exploration and
mine development company, Geomysore, in which Lionsgold owns
20.5%;
-- Physical gold holding and trading fintech platform for the Indian market; and
-- Gold exploration and production in Finland.
This information is provided by RNS
The company news service from the London Stock Exchange
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