Lion One has achieved its third consecutive quarter of record gold production, despite facing operational downtime. For the three-month period ending September 30, the Tuvatu gold producer extracted an impressive 3,639 ounces of gold, showcasing resilience even after a scheduled nine-day maintenance shutdown in July to upgrade its processing facilities.
Walter Berukoff, Lion One’s chairman and CEO, emphasized the importance of these upgrades, predicting they will lead to improved processing efficiency and cost savings in the future. However, he also noted that the company has not yet grounded its current mining development plan on a feasibility study of mineral reserves, which introduces some uncertainty regarding mineral recovery and related costs.
Currently, Lion One is deploying five drilling rigs at Tuvatu, including three underground for grade control and infill drilling, while the remaining two focus on near-mine exploration at the surface.
Recently, the mine announced a significant discovery of a high-grade gold zone containing roscoelite, a rare mica mineral associated with alkaline gold systems like Tuvatu. An initial bulk sample of this mineral returned a promising 11.6 grams of gold per tonne from nearly 861 tonnes of material. This finding is expected to enhance Lion One’s mine plan as it begins processing this gold-rich roscoelite material through its pilot plant.
The presence of roscoelite is critically linked to potent gold occurrences at notable mines such as Vatukoula and Porgera, which have historically yielded millions of ounces of gold. Lion One is striving to position itself similarly in the gold market.
Additionally, the company has reported a drawdown of $4 million for enhancing mining operations, aimed at stabilizing and increasing current production levels, while also setting the stage for future expansions. Over the past three years, Lion One has invested $300 million in its operations in Fiji, reflecting a strong commitment to growth and sustainability in the region.
In summary, despite some operational challenges, Lion One’s strategic upgrades and promising gold discoveries reinforce its potential for future success, inspiring optimism for both the company and its stakeholders.
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