Lion One Metals (TSXV: LIO) (ASX: LLO) has encountered visible gold in approximately 1 cm wide veins at a downhole depth of approximately 583 m at its flagship Tuvatu alkaline gold project in Fiji.
This drill hole follows up on the company’s recent discovery of Tuvatu-style lodes at the high-priority Banana Creek target, and is designed to undercut the Tuvatu lode network in a position where these lodes are postulated to connect to form a possible feeder structure.
A profound, deep-rooted, controlled source audio-magnetotelluric gradient is evident in this area providing technical support for this hypothesis, Lion One says.
A network of veins, each measuring a few mm up to 2 cm wide, has been intercepted, some displaying coarse clots of visible gold particularly those at a depth of approximately 583 m.
Drilling of this hole will continue to its planned termination at 1,000 m once it has passed across the entire feeder target. Core drilled to date is currently being logged and will soon be sawed, sampled and assayed.
The Tuvatu gold deposit — located on the island of Viti Levu — contains an estimated 1.12 million tonnes of indicated resources at 8.17 g/t Au (294,000 oz. Au) and 1.3 million tonnes of inferred resources at 10.60 g/t Au (445,000 oz. Au).
Shares of Lion One Metals surged 8.9% by 2:30 p.m. EDT Tuesday. The Vancouver-based miner has a market capitalization of approximately C$202.1 million.