Lion One Announces Results from Trenching Program, Grants Options
Vancouver, B.C., May 27, 2011. Lion One Metals Limited (TSX-V: LIO) (FSE: LY1) (the “Company”) is pleased to report results from the first 1,200 meters of trenching on its Tuvatu Gold Project on the Island of Viti Levu in the Republic of Fiji.
Subsequent to the news release dated March 22, 2011, in which the Company reported several bonanza grade gold results, geologists embarked on a test program to determine whether broad zones of lower grade, near surface gold mineralization exist in the hanging and foot walls of the many high grade Au veins either exposed on surface or in historic drill holes. Results from the March 22, news release included five samples that returned grades over 100 g/t Au, including 210.0 g/t Au across 0.05 meters, 188 g/t Au across 0.87 meters and 188.0 g/t Au across 0.70 meters. A selected sample returned 1,715 g/t Au. Significant intervals included 8.7 g/t Au across 4.8 meters from the surface expression of the north-west striking Tuvatu Lode.
Historically, former operators needed to concentrate on the underground exploitation of the high grade, narrow vein mineral resource with an average grade in excess of 8 g/t Au. However, currently strong gold prices have allowed the Company to focus on broad zones of low grade mineralization potentially exploitable by surface mining methods. In response to the results from the recent trenching program, the Company is embarking on a systematic program to continue to pursue the delineation of the extent of near surface gold mineralization, including the possibility of the existence of a near surface, lower grade oxide envelope surrounding the high grade core of the deposit previously identified.
Since mid-January, in excess of 1,200 meters of trenching has been completed within the Tuvatu Resource Area. With limited surface exposure, trenching has been found to be a very efficient and cost effective method of exploration. In addition to trenching, surface mapping and sampling, prospecting and stream sediment sampling programs are ongoing. A first phase diamond drill program designed to test several of the recently identified, near surface targets is scheduled to begin in the near future.
The analytical results from 187 rock samples taken from the 1,200 meters of trenching were recently received from ALS Laboratory Services. Of the 187 samples, 15 graded between 0.4 g/t Au and 1.0 g/t Au and 22 graded over 1.0 g/t Au.
Seventy nine of the 187 samples were from the 135 m long, Bench 5 West, where a broad zone of alteration and mineralization up to 60 meters wide is exposed. This structural corridor consists of mineralized veins and veinlets within a weathered and hydrothermally altered, quartz monzonite host. Mineralization predominately consists of black, crystalline quartz, calcite, chlorite, pyrite, and chalcopyrite. Intervals grading 1.50 g/t Au across 20 meters, 1.19 g/t Au across 11meters, 0.66 g/t Au across 7.5 meters and 0.68 g/t Au across 3.80 meters were exposed. Individual samples graded up to 24.3 g/t Au across 0.33 meters. This zone is located 100 meters south west of the portal, parallel to the URW1 lode.
These results give a strong indication of the existence of a near surface, lower grade, oxide envelope surrounding a high grade core. From review of historical results from underground sampling and drill programs, precious metal grades are known to increase below this leached zone. Technical staff will be in a better position to confirm their observations once the planned core re-logging and re-sampling program covering selected portions of the existing core from previous drilling stored on the site has been completed. In addition, the incorporation of a significant volume of lower grade material is expected to significantly increase the mineral resource while enhancing the open pit viability of the project.
Recent excavation of a 400 m wide trench located 1.2 km south of the portal exposed a 250 meters wide zone of hydrothermally altered monzonite that hosts nine distinct veins (UR1W through UR8). These nine lodes host the majority of the current resource base.
The test program will continue to evaluate other zones with high grade gold on surface as it is evident that the two broad envelopes of mineralization detailed above are not unique to the Tuvatu Resource Area and may also be present on other areas of the Company’s property.
CORE RE-LOGGING & RE-SAMPLING PROGRAM
The Company also wishes to announce the initiation of the core re-logging and re-sampling program. The principal objectives of the program will be to identify mineralized intervals that were ignored by previous operators and integrate the new information into a revised deposit and resource model. As 3.0 g/t Au was the historical cut-off grade, Company geologists believe the economic significance of many altered and mineralized zones within the hanging and foot walls were previously overlooked. Over 60,000 meters of the 86,000 meters of drilling in over 550 holes completed on the property remain on site. Considering the significant proportion of free gold and the favorable flotation characteristics, LIO technical staff is of the opinion that 0.4 g/t Au is a reasonable cut-off grade to consider in assessing the economic viability of near surface mineralization. Historical sampling of the core appear to have focused on sections with distinct quartz veining, often leaving significant intervals in the hanging and foot walls that host either weaker veining or alteration, un-split and un-sampled. Re-evaluation of this core has the potential to significantly increase future mineral resource estimates and alter grade and pit shells that will be fundamental for accurate mine design.
Samples are analyzed at Australian Laboratory Services (ALS) Pty. Ltd. an independent and qualified analytical laboratory in Brisbane, Australia. Samples are first prepared and crushed at the ALS facility in Suva, Fiji. Samples are subjected to fire assay with atomic absorption finish for gold and 33 element, four acid, Inductively Coupled Plasma Spectrometry (ICP-AES). Consistent with industry standard QA/QC protocols, sample standards and blanks are inserted to ensure quality control.
GRANT OF OPTIONS
The Company also reports that it has granted incentive stock options under its 10% rolling stock option plan to officers and consultants of the Company to purchase a total of 1,685,000 common shares at $1.40 per share exercisable until May 25, 2016. The options vest subject to the terms and conditions of the Company’s stock option plan. The options are subject to acceptance for filing by the TSX Venture Exchange.
THE TUVATU GOLD DEPOSIT
The Tuvatu property lies within Viti Levu Lineament, a north-west trending belt that hosts a number of alkaline volcanic centers. These include the world-class Vatukoula Gold Mine, which lies approximately 50 km’s to the north east. Low sulphidation, epithermal gold veins at Tuvatu occur along the margins of the eroded Navilawa volcanic center in a multi-phase geologic environment that also hosts porphyry copper-gold and VMS style mineralization. The Fijian Islands themselves are situated along the margins of the SW Pacific Rim regional tectonic plate, the host of a number of world class epithermal gold-silver and porphyry copper-gold deposits that include Lihir, Porgera, Misima, Ok Tedi (Papua New Guinea) and Bougainville (Solomon Islands).
Darcy Krohman, P.Geo, a Qualified Person for the Company for purposes of National Instrument 43-101 has reviewed the technical information in this news release.
ON BEHALF OF THE BOARD OF DIRECTORS
“Walter H. Berukoff”
Lion One Metals Limited
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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, 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.