Up to 46.3 g/t gold in rock-chips and anomalism over 500 metres x 750 metres
North Vancouver, British Columbia–(Newsfile Corp. – November 30, 2017) – Lion One Metals Limited (TSXV: LIO) (ASX: LLO) (OTCQX: LOMLF) (FSE: LY1) (the “Company”) is pleased to announce that following the recently announced award of the Navilawa Special Prospecting Licence (SPL 1412) it has completed a first-pass compilation of data over the Banana Creek Target adjoining the Company’s fully permitted high grade underground Tuvatu Gold Project located on the island of Viti Levu in the Republic of Fiji.
The Banana Creek Target
- Located only 3 kilometres northeast of the Tuvatu Gold Project
- Accessible by roads and tracks
- 114 selective rock chip samples >1g/t gold
- 46.3 g/t gold peak value in selective rock sample results
- 160 g/t silver, 2.1% lead, 0.33% zinc peak values in selective rock sample results
- 1.6 x 0.6 kilometre hydrothermal alteration system defined by radiometric data
- 750 x 500 metre gold in soil anomaly
- 6 individual mineralised lodes identified in previous surface work
- 19.5 g/t gold over 0.4 metres in previous reconnaissance drilling
- Presents a target for exploration work and to potentially enhance the Tuvatu Gold Project
- One of eleven exploration targets in the recently acquired Navilawa License
| Historic Results
The samples in this press-release are compiled from reports and data provided by the Fiji Government Mineral Resources Department and contain information reported by previous explorers in the area. Whilst every effort has been made to review historic reports and check the data, the samples were collected by previous explorers and cannot be fully verified. Company geologists have visited the project and reported lode style of mineralisation visually similar to Tuvatu, however, the original sample security, laboratory, and assay method cannot be fully verified by the Qualified Person / Competent Person other than disclosure taken from previous company reports. These results are hence considered ‘historic’ and are presented as a guideline only. As a result, the assays reported in this release are not to be considered necessarily representative of the overall system. The Company intends to collect new data in this area, and all historic results will not be used in mineral resource estimation or economic decisions other than to advance exploration. Refer to Appendix 1 for further details.
The Banana Creek Target and its relevance to enhancing Tuvatu
The Banana Creek Target is one of eleven exploration targets recently acquired by the Company in an award of tenure from the Mineral Resources Department, Ministry of Lands and Mineral Resources, Government of Fiji (news release November 20, 2017). The Banana Creek Target has been subject to several generations of superficial surface exploration by previous explorers (Appendix 1) which has included geological mapping, soil sampling and rock-chip sampling. The Banana Creek Target is located 3 kilometres northeast of the Company’s fully permitted Tuvatu Gold Project, and hence presents an exploration target within a credible potential trucking distance to the milling operations to be constructed at Tuvatu. As a result, Lion One considers Banana Creek as a clear focus with several mineralised structures potentially capable of complimenting and enhancing production scenarios at the Tuvatu Gold Project.
Previous sample collection
The samples in this press-release are compiled from reports and data provided by the Fiji Government by previous explorers in the area.
Figure 1 Gold in Soil sampling at the Banana Creek Target (background = shaded terrain model).
To view an enhanced version of Figure 1, please visit:
More than 500 soil samples have been collected by previous explorers in the Banana Creek area. This work was principally conducted by Oribi Resources in 1999 to 2001 and consists of ‘C’ horizon soils collected using a 50mm augur and is principally ridge and spur soil sampling. The soil sampling indicates a gold in soil anomaly of >100ppb gold (0.1ppm / 0.1g/t) over an area greater than 500 metres by 750 metres (Figure 1, Appendix 1).
More than 800 rock samples have been collected in the Banana Creek area and are a combination of channel sampling, float (loose material at surface) and rock-chips. Of these 114 samples were greater than 1g/t gold with a peak value of 46.3g/t gold (Figure 2, Appendix 1).
Figure 2 Banana Creek Rock Chip Samples with samples >5g/t labelled (background = shaded terrain model). (samples rounded to 1 decimal place)
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Previous drilling at Banana Creek consists of 5 diamond core holes drilled by Oribi Resources in joint-venture with Mincor Resources between 1999 to 2001 for a total of 531 metres drilling (average depth = 104 metres). Three of these holes (BCDH001, 002, 003) were drilled away from or parallel to the main structural trends and did not intersect appreciable mineralisation. Holes BCDH004 and 005 respectively were drilled in the central portion of the Banana Creek Target and intersected peak values of 19.5g/t gold and 2.2g/t gold respectively (Figure 3, Appendix 1).
Geology of Banana Creek
The Banana Creek Target consists of altered Navilawa monzonite intrusive flanked by Nadele volcanic breccia and intruded by micromonzonite dykes. The mineralisation has been mapped at surface on lodes that strike NNW-SSE and cross-structures oriented NE-SW. Previous Fiji Government reported airborne surveys indicate that the Banana Creek Target has an elevated potassium signature in radiometrics indicating a zone of hydrothermal alteration approximately 1.6 kilometres by 600 metres and is comparable to the anomaly at the Tuvatu Gold Project (Figure 4). With both gold and base-metal anomalism, the mineralisation may be of a style comparable to the HT Corridor mineralisation at Tuvatu previously announced by the Company.
Figure 3 Banana Creek Drill Hole locations (on soil sampling, background = shaded terrain model)
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Figure 4 Government airborne potassium radiometric image. Hot colours red->purple->white indicate increasing potassium and is an indication of increasing hydrothermal alteration.
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Figure 5 The Tuvatu Project Area Schematic Project Map
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About Tuvatu / Lion One
Lion One is advancing its 100% owned Tuvatu Gold Project as a world class discovery and near-term production opportunity in the southwest Pacific Ring of Fire. Tuvatu is modelled for exploration after regional giants in the low sulphidation family of high grade epithermal gold deposits such as Porgera and Lihir in PNG, and Vatukoula in Fiji. These spectacular discoveries have produced over 35 million ounces of gold in similar alkaline volcanic settings. Tuvatu has been fully permitted by the Government of Fiji for operations start-up and has a dual-track strategy of production development and resource expansion inside its 385 hectare mining lease.
Tuvatu is located 17 km from the international airport in Nadi, on the west coast of Viti Levu in the Republic of Fiji. Lion One’s CEO Walter Berukoff is leading an experienced team of mine builders, and has owned or operated over 20 mines in 7 countries. As the founder and former CEO of Miramar Mines, Northern Orion, and La Mancha Resources, Walter is credited with building over $3 billion of value for shareholders.
Tuvatu was advanced by previous owners through underground exploration and development from 1997 through to the completion of a feasibility study in 2000. Acquired by Lion One in 2011, the project has over 110,000 meters of drilling completed to date in addition to 1,430 meters of underground development.
In January 2016 the Hon. Prime Minister of Fiji, Mr. V. Bainimarama, formally presented the previously granted Tuvatu Mining Lease to Lion One. This concluded the permitting process for the development of an underground gold mine and processing plant at Tuvatu, demonstrating strong government support for Fiji’s 85 year-old gold mining industry.
Stephen Mann, Managing Director, member of The Australasian Institute of Mining and Metallurgy, is the Qualified Person (“QP”) responsible for the Tuvatu Mine exploration and delineation programs.
The information in this report that relates to the Banana Creek Target is based on information supplied by the Fiji Government to Lion One Limited and reviewed by Darren Holden who is an employee of GeoSpy Pty Ltd, an Advisor to Lion One Ltd, and a member of the Australasian Institute of Mining and Metallurgy (MAusIMM). Mr Holden has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the ‘Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves’ (JORC code) and National Instrument 43-101 in Canada. Mr Holden consents to the inclusion in this report of the matters based on this information in the form and context in which it appears. Refer to Appendix 1 for sample detail disclosure.
On behalf of Lion One Metals Limited
“Walter H. Berukoff”
Chief Executive Officer
For further information please contact
Stephen Mann, Managing Director (Perth, Australia) Tel: 604-973-3007
Hamish Greig, Vice President (North Vancouver, BC) Tel: 604-973-3008
Joe Gray, Investor Relations (North Vancouver, BC) Tel: 604-973-3004
Toll Free IR Line (North America) Tel: 1-855-805-1250
Email: [email protected]
Neither the TSX Venture Exchange nor its Regulation Service Provider accepts responsibility for the adequacy or accuracy of this release.
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.
Appendix 1: Banana Creek Data
Table A1.1. Past ownership, report sources and sample details.
|Company||Report Title / Date||Sample Type / Detail||Laboratory / Assay Details|
|Pan Continental Mining||Reported as historic results compiled in database from Fiji Government 1986-1993 Reported by Alcaston in 2003 annual report and compiled in databases from Golden Rim mining (2010).||Rock and soil samples. Techniques not disclosed.||Not disclosed in reports|
|CRAE||Reported as historic results compiled in database from Fiji Government 1994-1998 Reported by Alcaston in 2003 annual report and compiled in databases from Golden Rim mining (2010).||Rock and soil samples. Techniques not disclosed.||Not disclosed in reports|
|Oribi Resources NL / Mincor Resources NL||Reported as historic results compiled in database from Fiji Government 1999-2002 Reported by Alcaston in 2003 annual report and compiled in databases from Golden Rim mining (2010).||5 diamond drill holes, HQ size core. Soil sampling using 50mm Augur Samples. ‘C’ Horizon Soil. Rock channel sampling||ALS Chemex Laboratory in Brisbane. Gold: Fire Assay 50g charge (AA26); Multi-element: Aqua regia digestion / atomic emission spectroscopy MEICP-41|
|Alcaston Mining NL / Mincor Resources NL||SABETO PROJECT Special Prospecting Licence 1412: Annual Reports 2003, 2004, 2005, 2006, 2007 (5 reports) and compiled in databases from Golden Rim mining (2010).||Rock chips (2003, 2004) Radiometrics / magnetics 2007||ALS Chemex Laboratory in Brisbane. Gold: Fire Assay 50g charge (AA26); Multi- element: Aqua regia digestion / atomic emission spectroscopy MEICP-41|
|Golden Rim Ltd / Mincor Resources N:||SABETO PROJECT Special Prospecting Licence 1412: Annual Reports 2008, 2009, 2010 (3 reports)||Rock chips (2008)||Not disclosed in reports but assumed equivalent to above 2003-2007 annual reports.|
Table A1.2 Banana Creek Rock Sampling Data > 1g/t, sorted by gold grade from various reports as compiled by Alcaston Mining and Golden Rim Mining noted above. Sample Type: Rock = rock sample collected in outcrop; Channel = channel sample collected in outcrop or trench; Rock unclassified = rock sample with unknown sampling technique. Bd = below detection; “-” = not assayed. Highest samples per assay result highlighted in bold. Coordinates in Fiji Map Grid (Vitu Levu). All samples are considered ‘selective’ in that they were selected by geologist or field technician from specific mineralised lodes reported between 0.1 and 2 metres wide and may not be representative of the overall system.
|Easting (m)||Northing (m)||Sample Type||Gold (g/t)||Silver (g/t)||Copper (ppm)||Lead (ppm)||Zinc (ppm)|
Table A.2 Banana Creek Drill Data Details. Coordinates in Fiji Map Grid (Vitu Levu)
|Hole ID||EAST||NORTH||AZIMUTH||DIP||Hole Depth||From||To||Peak Assay
1 Alcaston Annual report for the Sabeto Project (2003) records this result as 23.4g/t gold in the body of the report. However, the subsequent database supplied reports the result as 19.5g/t gold