Lion One Metals has announced its third consecutive record production quarter despite facing operational downtime. For the three-month period ending September 30, the Tuvatu gold project yielded 3,639 ounces of gold, even with a scheduled nine-day maintenance shutdown in July, which impacted mill production. Walter Berukoff, the company’s chairman and CEO, emphasized that this achievement during the pilot plant phase reflects significant progress.
The maintenance work was essential for upgrading the processing plant, which is expected to improve processing efficiency and result in cost savings. However, the company acknowledged that its current mine development plan has not been based on an extensive feasibility study, which introduces some uncertainty regarding mineral recovery and the associated costs.
Lion One currently operates five drills at Tuvatu: three underground for grade control and infill drilling, and two on the surface focusing on near-mine exploration and extension. The company also recently reported promising findings related to near-surface, high-grade roscoelite-bearing zones at Tuvatu. Roscoelite, a vanadium-bearing mica mineral, is closely linked to higher-grade gold deposits and is an important indicator in alkaline gold systems.
An initial bulk sample from this near-surface zone yielded an impressive 11.6 grams of gold per tonne from 861 tonnes of mineralized material. This finding is expected to bolster Lion One’s mine plan as the roscoelite material is already being processed through their pilot plant.
The significance of roscoelite is underscored by its association with successful operations at the Vatukoula and Porgera mines, both of which have produced millions of ounces of gold. This strong geological correlation provides optimism for future explorations at Tuvatu.
Lastly, Lion One has drawn down $4 million for a mine enhancement plan aimed at stabilizing and increasing production while preparing for future plant expansions. Over the past three years, the company has invested $300 million into its operations in Fiji, demonstrating a commitment to growth in the region.
In summary, despite some operational challenges, Lion One Metals is making notable strides in gold production and exploring promising new mineral-rich zones that could enhance its future prospects. This ongoing development, combined with significant investment in the region, suggests a positive trajectory for the company’s future in the gold mining industry.
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