Lion One Metals Limited (TSX-V: LIO) (OTCQX: LOMLF) (FSE: LY1) (the “Company”) is pleased to provide the following Bulk Development Area update on its Tuvatu Gold Project (“Tuvatu”) on the island of Viti Levu in Fiji. The first 24 of 91 core holes from the Murau Area have been sampled with assays pending. This work is part of the Company’s program of assaying extensive intervals of the 60,000 meters of drill core at the Tuvatu project that were not previously sampled. The Company’s plan is to transform the historic high grade epithermal model into a considerably larger bulk mineable target. Previous sampling work focused only on epithermal vein material, with a cutoff grade of 3 grams per tonne applied to historic reserves.
To illustrate the potential for the bulk mineable model, the following table of historic assays lists data from ten of the best drill holes from the Murau Area, along with ten additional holes exhibiting a range of ore grades. The Company believes that including the assays for previously unsampled core intervals has the potential to increase average grades and continuity of ore grade material. Designations in the table are for Tuvatu Diamond Drill holes (TUDDH) and Tuvatu Underground core holes (TUG):
|Hole ID||Length (m)||From||To||Interval||Average Gold
Grade for entire
interval (g/t) *
*Weighted averages for core samples include numerous lengthy un-sampled intervals for which a zero (0.00 g/t) value has been assigned. Upon sampling and assaying these intervals, all gold values from such assays will be included in the calculations of new weighted averages, which based upon past experience will increase the overall gold grades.
**Represents the total number of meters of drill core that has been previously sampled.
Further to its November 2, 2011 news release, the Company has identified five Bulk Development Areas with a mandate of incremental resource expansion. The Murau Area has been designated as the first for resource estimate calculations as it has the widest distribution and highest number and density of drill holes. Geologically the Murau Area is located immediately to the south of the known porphyry mineralization of the First Porphyry Area, yet centered along the Nasivi Shear Zone, which is known to host significant epithermal gold mineralization.
Assays for the Murau Area core samples are being processed in four successive batches. Each batch will consist of a mix of holes with higher grades from the intervals previously sampled and holes with lower grades, in an effort to make each batch reasonably representative of all 91 holes. Resource modeling in Surpac(r) will commence upon receipt of assays, with metallurgical studies and resource calculations expected to commence as early as late Q1 2012.
The Murau Area covers a surface area of 112,121 m² (300 x 373 m) and was drilled to a maximum depth of 200 meters. A total of 8,466 meters of drilling (142 holes, including 91 core holes) was carried out in the late 1990’s by Emperor Gold Mines when the price of gold was in the range of $250 to $350 per ounce.
Diagrams: Area Profile & Murau Drill Hole Sections
Diagrams: Murau Development Block & Tuvatu Bulk Development Areas
IP Survey Update
The Company has completed (58) kilometers of its Induced Polarization (“IP”) survey, and has prepared additional lines to obtain further depth readings over areas with prospective chargeability and resistivity anomalies, including five additional lines covering the First Porphyry Development Area. The objective of the survey is to first cover known mineral occurrences before applying the footprint to outlying areas. The Company has also completed 36 out of 58 line kilometers of soil sampling across the survey grid area.
The Company also announces that is has commenced trading in the U.S. on the OTCQX International Market under the ticker symbol LOMLF. Investors can find current financial disclosure and Real-Time Level 2 quotes for the company onwww.otcqx.com. Hart &Trinen L.L.P. of Denver, Colorado, will serve as the Company’s Principal American Liaison (“PAL”) on OTCQX, responsible for providing guidance on OTCQX requirements.
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 elements, four acids, Inductively Coupled Plasma Spectrometry (ICP-AES). Consistent with industry standard QA/QC protocols, sample standards and blanks are inserted to ensure quality control.
THE TUVATU GOLD PROJECT
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 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, Wafi-Golpu (Papua New Guinea), and Lepanto (Philippines).
Helen Grond, P.Geo, Senior Geologist with Lion One and Brian Hall, P.Geo are Qualified Persons 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”
Chairman of the Board
Lion One Metals Limited
For further information contact:
NA Toll Free: 1-855-805-1250
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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, 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.