Lion One has announced impressive gold production results despite facing operational challenges. For the three-month period ending September 30, the company produced 3,639 ounces of gold, marking its third consecutive quarter of record production at the Tuvatu site. This achievement comes after the company dealt with a nine-day maintenance shutdown in July, which was necessary for upgrades to the processing plant.
Chairman and CEO Walter Berukoff highlighted that these upgrades are expected to enhance the processing efficiency and generate cost savings in the future. However, it is important to note that Lion One’s current mining development plan has not yet been based on a feasibility study, which could create uncertainties regarding mineral recovery and associated costs.
Currently, Lion One is operating five drills at Tuvatu, with three located underground for grade control and infill drilling, while the remaining two are conducting surface exploration. The company is optimistic about its findings, particularly a recent discovery of a high-grade roscoelite-bearing gold zone at Tuvatu, which has shown promising results with an initial sample returning 11.6 grams per tonne from mined material.
Furthermore, Lion One is leveraging the gold-rich roscoelite material to enhance its mining operations. The roscoelite mineral, noted for its association with high-grade mineralization, has been successfully utilized in other significant gold mines, and its presence at Tuvatu could bode well for future production.
In a move to stabilize and increase production, Lion One has drawn down $4 million for a mine enhancement plan, contributing to its total investment of $300 million in Fiji over the last three years. This commitment reflects the company’s dedication to developing the Tuvatu project and positioning it for future growth.
In summary, Lion One’s record production, strategic upgrades, and promising geological findings showcase its potential for sustained success in the gold mining sector. The company’s proactive approach and significant investments highlight a hopeful outlook for both the Tuvatu project and the broader mining industry in Fiji.
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