Lion One Metals has announced its third consecutive quarter of record gold production, achieving an impressive 3,639 ounces for the three-month period ending September 30, despite facing operational downtime in July. This milestone reflects the successful pilot plant phase of operations at the Tuvatu gold project, as highlighted by chairman and CEO Walter Berukoff.
During the quarter, production was affected by a scheduled nine-day maintenance shutdown of the mill in July 2024, aimed at performing necessary upgrades to the processing plant facilities at Tuvatu. Mr. Berukoff emphasized that these upgrades are expected to greatly enhance processing efficiency and generate cost savings in the future.
Lion One’s current development strategy for the mine does not rely on a feasibility study focused on mineral reserves, which introduces some uncertainty regarding the recovery of minerals and associated costs. Nevertheless, the company continues to operate five drilling rigs at Tuvatu, with three positioned underground for grade control and infill drilling, while the remaining two are focused on surface exploration.
Significantly, last month the mine discovered a promising near-surface zone containing high-grade gold associated with a rare mica mineral called roscoelite. Initial sampling yielded 11.6 grams of gold per tonne from a bulk sample of 861 tonnes, suggesting a rich resource. Mr. Berukoff confirmed that Lion One is optimizing its mining plan to incorporate this valuable material.
Furthermore, the presence of roscoelite is a positive sign for the Tuvatu project, as it is found in other successful gold mining operations, such as the Vatukoula and Porgera mines. The correlation of roscoelite with high-grade gold mineralization at these sites underlines the potential of Tuvatu to yield substantial returns.
In addition to these achievements, Lion One has secured a $4 million drawdown for a mine enhancement plan, which aims to stabilize and boost current production, paving the way for future expansions of the processing plant. With over $300 million invested in Fiji over the past three years, Lion One’s commitment to the region showcases its dedication to unlocking the potential of the Tuvatu gold project.
In summary, despite facing operational challenges, Lion One’s consistent production achievements, promising discoveries, and investments in infrastructure set a positive trajectory for the company’s future and the potential growth of the Tuvatu project. Investors and stakeholders can remain optimistic about the advancements in both mining efficiency and resource recovery.
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