Lion One Metals has achieved yet another record in gold production, despite facing operational downtime. For the quarter ending September 30, the Tuvatu gold mine produced 3,639 ounces of gold, marking three consecutive quarters of record output during the pilot plant phase, as stated by Chairman and CEO Walter Berukoff. The mill’s production was affected by a scheduled nine-day maintenance shutdown in July 2024, which was essential for upgrades to the processing plant facilities.
Mr. Berukoff highlighted that these upgrades are expected to significantly enhance processing efficiency and lead to considerable cost savings in the future. However, he noted that the current mine development plan does not rely on a feasibility study that outlines the economic and technical viability of the mineral reserves. This could result in increased uncertainty regarding mineral recovery levels and associated costs, as well as risks in developing a commercially viable mining deposit.
Lion One currently operates five drills at Tuvatu, with three positioned underground for grade control and infill drilling. The other two drills are on the surface, focusing on near-mine exploration and extension drilling.
Moreover, last month brought promising news with the identification of a near-surface roscoelite-bearing high-grade gold zone at the Tuvatu project. The presence of roscoelite, a rare vanadium-bearing mica mineral, is closely associated with higher-grade gold occurrences. An initial bulk sample from this zone returned an impressive 11.6 grams of gold per tonne from 861 tonnes of mineralized material mined at full widths.
Lion One is integrating this gold-rich roscoelite material into its mine plan, which is currently being processed through the pilot plant. The relationship between roscoelite and high-grade gold mineralization mirrors findings at other alkaline gold systems, such as the Vatukoula gold mine, which has yielded over seven million ounces of gold, and the Porgera gold mine in Papua New Guinea, which is renowned for its gold production.
In addition to these developments, Lion One announced a drawdown of $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 in Fiji, demonstrating its commitment to bolstering the local mining sector.
This approach showcases Lion One’s resilience and proactive strategies in enhancing its operations and output, promising a bright future for both the company and the local economy.
In summary, Lion One’s steady production increase amidst challenges, the discovery of high-grade mineral zones, and significant investments underline its strong position in the mining industry, suggesting optimistic prospects ahead.
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