Lion One Metals Limited

Lion One Metals Limited

December 20, 2012 15:03 ET

Lion One Provides Exploration and Development Update for 2012 Work Programs at Tuvatu Gold Project in Fiji

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 20, 2012) - Lion One Metals Limited (TSX VENTURE:LIO)(OTCQX:LOMLF)(FRANKFURT:LY1) -

Investment Highlights:
Shares Issued and Outstanding: 48,868,827
Cash and Cash Equivalents of $14,000,000
Market Capitalization: $35,000,000

Lion One Metals Limited (the "Company" or "Lion One") is pleased to announce the following exploration and development update for its Tuvatu Gold Project ("Tuvatu") located near Nadi on the island of Viti Levu, Fiji.

"The Company's geological and metallurgical programs carried out during 2012 overwhelmingly support the continued advancement of Tuvatu," said Mr. Walter H. Berukoff, Chairman and Chief Executive Officer of the Company. "In conjunction with further engineering and environmental studies, our objective for 2013 is to build a robust economic model and complete the permitting process for a high-grade gold mining operation in Fiji."

The Company will continue to test, confirm, and substantially expand historic exploration, 80,000 meters of previous drilling, and metallurgical data from previous feasibility studies. Management believes that the 12,166 hectare Tuvatu property has further resource potential beyond the resource area drilled to date (a surface area measuring 600x200 meters drilled to depths of 300 meters). Tuvatu's geological setting and location in the Navilawa Caldera draws scale comparisons and geological similarities with the Vatukoula gold deposit in the neighboring Tavua Caldera, recognized as one of the giant gold deposits of the SW Pacific.

2012 Drilling Program Overview

The Company commenced its diamond drill program in June 2012, with a total of 3,003 meters of core recovered from 15 diamond drill holes completed to date. Drilling is targeting western extensions of the mineralized structures in the Tuvatu Resource Area, which have now been mapped at surface over a distance of 1km along strike west of the Resource Area, displaying consistent lateral continuity typical of many epithermal lode systems.

The current program has three objectives: (i) infill drilling to increase the confidence level of the existing resource; (ii) step out drilling to expand the resource base; and (iii) exploratory drilling to test additional targets. Initial results confirmed high grades including the following significant intersections:

TUDDH-347: intersected 3.78 m @ 16.15 g/t gold from 122 to 125.77 m (including 0.09 m @ 248 g/t gold)
TUDDH-348: intersected 7.49 m @ 23.03 g/t gold from 155.05 to 162.54 m (including 0.11 m @ 855 g/t gold)
TUDDH-349: intersected 11.9 m @ 11.77 g/t gold from 128.55 to 140 m (including 0.03 m @ 37.7 g/t gold)

The Company expects to increase the resource base through continued drilling and is confident that additional near-surface resources identified to date can also be converted to mineral resources with additional drilling and Management believes the addition of lower-cost oxide resources near surface will significantly enhance the economics of the project in the initial years of development. Drilling is expected to lead to an updated resource estimate in preparation for taking the project into production.

Metallurgical Test Results

Metallurgical studies performed in 2012 confirmed robust gold recoveries from the principal rock types hosting the Tuvatu resource. Recoveries from standard flotation tests ranged up to 94 percent. Because of the coarse nature of some of the mineralization, the study program included gravity tests to determine the amount of recoverable free gold. In addition two mill flow sheets for processing the gravity tailing were also completed. Significant conclusions of the study include:

  • Gold is free-milling by conventional gravity and flotation processing at reasonable grind sizes
  • Gravity recoveries averaged over 40%, and combined gravity and flotation ranged up to 94%
  • Mineralization is clean with respect to deleterious elements such as arsenic, selenium, and uranium
  • Testing indicates conventional crushing, two-stage ball milling and three points of gravity concentration in the crushing and milling circuits, followed by conventional flotation and CIL leaching or direct sale of concentrates will produce optimum recoveries.

Environmental Impact Assessment

An independent consultant approved by Fiji's Mineral Resources Department (MRD) is currently conducting an Environmental Impact Assessment (EIA) on Tuvatu. The findings of the EIA will be reported to the MRD and will be included in the filing of the mining license application that the company expects to file with the MRD in Q2 2013.

Fiji Survives Level 4 Cyclone Evan

The government of Fiji declared a State of Natural Disaster for parts of the island nation in the wake of Cyclone Evan, the largest and strongest cyclone to hit the country in over 20 years. The Company is pleased to report that all of its employees and their families are safe and that the Company's operations have not been jeopardized. Apart from damage to the Company's workshop in its Nadi head office compound and to the Tuvatu site mess hall the head office and Tuvatu site camp facilities are intact.

Results of AGM

The Company's Audited Consolidated Financial Statements for the year ended June 30, 2012 were received and considered at its Annual and Special Meeting held on December 12, 2012. Shareholders of the Company also considered and approved resolutions in favor of the:

  • Re-election of the Directors of the Company: Walter H. Berukoff, George S. Young, David Duval, Richard Meli, Stephen Mann, and Hamish Greig
  • Re-appointment of Ernst & Young, chartered Accountants, as Auditor of the Company, and
  • Approval and ratifications of the Company's "Rolling 10%" Stock Option Plan

Technical Information and Qualified Persons

The assay analyses performed during Lion One's drilling programs are subject to a formal quality assurance and quality control (QA/QC) program. Diamond drill core was logged and sampled on site at Tuvatu by Company staff with samples delivered by the Company to the facilities of Australian Laboratory Services (ALS) Pty. Ltd., an independent accredited analytical laboratory. Samples are first prepared and crushed at the ALS facility in Suva, Fiji, before being shipped to Brisbane, Australia for assay analysis. Samples are subjected to fire assay with atomic absorption finish for gold and 33 elements, four acids, and Inductively Coupled Plasma Spectrometry (ICP-AES). Standard reference materials, blanks, and field duplicates samples are inserted prior to shipment from site to monitor the quality control of the data. Samples with higher grade gold (greater than 3 grams per tonne) are reassayed using a gravimetric and/or pulps and metallic procedure. The content of this news release has been reviewed by Mr. Darcy Krohman, P.Geo., a Qualified Person for the purposes of National Instrument 43-101.

About Lion One Metals Limited

Lion One Metals is focused on the exploration and development of prospective multi-million oz. gold deposits in the Fijian Islands. The Company's flagship Tuvatu Gold Project is situated in the Sabeto Valley, along Fiji's corridor of mineralized volcanic centers, approximately 50 km southeast of the 11 million ounce Vatukoula gold deposit. The Fijian Islands exhibit similar "island arc" geology that gives rise to many of the SW Pacific's major gold deposits such as Vatukoula, Ok Tedi, Porgera, and Lihir.

On Behalf of the Board of Directors

Hamish Greig, Director, Vice President

This press release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "proposed", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. This forward-looking information reflects Lion One Metals Limited's current beliefs and is based on information currently available to Lion One Metals Limited and on assumptions Lion One Metals Limited believes are reasonable. These assumptions include, but are not limited to, the actual results of exploration projects being equivalent to or better than estimated results in technical reports, assessment reports, and other geological reports or prior exploration results. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Lion One Metals Limited or its subsidiaries to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the early stage development of Lion One Metals Limited, general business, economic, competitive, political and social uncertainties; the actual results of current research and development or operational activities; competition; uncertainty as to patent applications and intellectual property rights; product liability and lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting mining, timing and availability of external financing on acceptable terms; not realizing on the potential benefits of technology; conclusions of economic evaluations; and lack of qualified, skilled labor or loss of key individuals. Although Lion One Metals Limited has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Lion One Metals Limited does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Service Provider accepts responsibility for the adequacy or accuracy of this release.

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