Lion One has announced record gold production for the third consecutive quarter despite facing operational downtime. The company reported extracting 3,639 ounces of gold during the three-month period that ended on September 30, 2023. This achievement comes in light of a scheduled nine-day maintenance shutdown in July, which was necessary for improvements to the processing plant at their Tuvatu site.
Walter Berukoff, the company’s chairman and CEO, emphasized that the recent upgrades to the mill will enhance processing efficiency and lead to cost savings in the future. However, he also acknowledged that Lion One’s current development plan lacks a feasibility study to validate the economic and technical viability of its mineral reserves. As a result, there is a level of uncertainty regarding mineral recovery and associated costs, which may introduce risks in the development process.
Interestingly, Lion One is currently leveraging five drilling rigs at the Tuvatu site to assess the quality of its mineral deposits. Three of these drills are positioned underground for grade control and infill drilling, while the remaining two are on the surface, focusing on exploration and extending the mine’s reach.
Recently, Lion One made discoveries concerning a high-grade gold zone rich in roscoelite, a rare mineral that is often indicative of higher-grade gold deposits. An initial bulk sample from this zone yielded an impressive 11.6 grams per tonne of gold from 861 tonnes of material. Berukoff noted that this newly identified roscoelite material is being integrated into the updated mine plan and processed through the pilot plant.
The discovery of roscoelite is particularly promising given its historical association with other successful gold mines, such as the Vatukoula and Porgera mines. Both have produced millions of ounces of gold over their operational histories and display similar geological characteristics to Tuvatu.
To further enhance operations, Lion One has initiated a $4 million enhancement plan aimed at stabilizing and increasing production levels, in preparation for future plant expansions. Over the past three years, Lion One has invested approximately $300 million into its projects in Fiji, underscoring its commitment to developing the region’s gold mining capabilities.
In summary, Lion One’s latest production achievements and discovery of high-grade mineralization provide a solid foundation for future growth, with promising prospects for increased efficiency and economic viability as they continue to advance their mining operations. The company’s substantial investment in infrastructure and resource exploration highlights a positive trajectory for both the company and the local mining sector in Fiji.
Leave a comment