Lion One Metals – More High-Grade Deep Drill Results and Answering Your Questions on Development Plans at The Tuvatu Gold Project
Quinton Hennigh, Technical Advisor at Lion One Metals (TSX.V:LIO – OTCQX:LOMLF) joins us to recap the last round of high-grade gold intercepts at the Deep Feeder 500 Target on the Tuvatu Gold Project, in Fiji. After these round of results the high-grade zone is now extended over 300 meters vertically and 150 meters latterly. We have Quinton comment on the potential of the Deep Feeder 500 Target in terms of size and where the drilling is continuing.
Since we have received a number of questions on the development plans for the known resource we also have Quinton provide an update on this front.
Please email us with any follow up questions for Quinton or the team over at Lion One Metals. Our email addresses are Fleck@kereport.com and Shad@kereport.com.
Click here to read over the full news release highlighting the recent drill results.
Is this the company bob Moriarty is big on and did a good piece on it if I’m not mistaken?
Yes Moriarty and QH have been high on this for years. There have been concerns about the pace that the CEO works but not necessarily that he isn’t competent. Good drill results and it was always reported that the Government wants it to succeed. Slowness always makes a good miner a target of specs. It has fallen below a dollar US a few times and moved up. With miner two month windows, it can do a double …so if unimpeded by intervention, it could be a mine and that is the issue.
Buying Lion One is Like Stealing
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Bob Moriarty – Nov 15, 2021
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“…when markets are at new lows, volume dries up and often you have to make an appointment to give shares away. And there is the issue of stocks that investors have simply given up on because the companies made the cardinal mistake of boring shareholders.”
“Lion One Metals (LIO-V) made the mistake of doing all of those. Think of it as a trifecta of mining. Our saga really began in March of 2019 when Chairman and CEO Wally Berukoff appointed Quinton Hennigh as a technical advisor to Lion One. The shares were bouncing along at $.35 after years of quiet but slow progress on the 100% company owned gold project in Fiji.”
“Quinton started off with a surprising announcement. What they thought of as an epithermal gold system of limited potential in spite of the already defined 43-101 of over 900,000 ounces of gold wasn’t that at all. It wasn’t epithermal limited in size and grade; it was a far richer and more valuable alkaline gold system. All the company needed to do was to drill deeper.”
“Lion One did and in 2020 came up with results of 55 g/t Au over 12.7 meters in hole DDH 500 and 85.7 g/t Au over 3.3 meters driving the price of shares up to $2.67. Wisely, Wally went to the financing markets and raised over $65 million to begin construction of the mill and for further resource definition.”
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“The government of Fiji wants the mine to go into production. The potential tax revenue is an important part of their financial plan for the future. Investors want to see concrete action on the part of exploration and the start of construction for the long promised mill. Wally has 100% ownership of the project, a boatload of cash that makes the company more of a bank than a mining junior and two highly experienced mining professionals in position to move this puppy to production. It’s time for the company to shit or get off the pot.”
“I know of no company with a resource as real as Lion One’s and the cash they have on hand that is selling for pennies. Lion One has derisked the project. A move to production would convince investors that instead of what is probably $100 an ounce CAD today, the company would really be worth a whole lot more. Wally is in a position to ride the wave of gold higher to a multi-billion dollar market cap. He’s done it twice before and this is a whole lot better potential.”
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http://www.321gold.com/editorials/moriarty/moriarty111521.html
What he said…
Yep. I’ve been a shareholder for a few years now off and on, and remained constructive that with their new geological model that they’d keep hitting higher grade at depth chasing the bigger branches and eventually trunk of the tree in that alkaline system. That is what they have appeared to have done over the last 2 years in particular, and odds are that will continue the further down the go, and especially when drilling from underground now… much easier and more cost effective to get at those deeper higher grade targets.
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It should also be mentioned that they still have the rest of the caldera to explore at surface and have other exciting targets they started on but have been paused at present. They just need the manpower and focused strategy to proceed, it would be nice to have revenues coming in from at least the small scale mining to fund more exploration and staff. I do agree with Bob M though, at this point they need to show the market place that they can build the mine and processing center and get Tuvatu into production and start generating some cheddar. The local government would like that too. They’ve been saying that was the plan for years now, and the time has come to get er’ done.
Thanks for those updates guys! I’m going to keep a closer eye on it and it has been notes and put on my added chart list.
It’s an interesting point to be looking at LIO, after getting chopped in half in valuation since the summer of 2020 highs, and the biggest issue was the lack of staff and management supervision on site in Fiji in 2020 and for the first half of 2021, due to the pandemic travel restrictions and differing government rules etc… Now that the whole team is now out on site, I anticipate seeing more news on their plans for mine development and bringing in the processing plant, and hopefully a more steady stream of drilling news as well. They also how have their own assay lab, so that should help moving forward.
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I think they are going to approach it more like Minera Alamos, or Impact Silver, or Anaconda Mining, where they get the smaller mining scenario going first, then start generating revenues, and use those revenues to go explore their property, and when they’ve found more resources or satellite deposits, then they can upgrade the size and throughput of the mill. So it sounds like a 2-3 growth process to take it up to the next level of production, but it will hinge upon the exploration side of the story as well. To Jordan’s point, that is also what companies like K92 and Wesdome did, or more recently what Calibre and Karora have done. Not investment advice of course, but just sharing my personal opinion.
Have to admire QH leading a charmed life all over the world finding surface nuggets in the Pilbara, now going deep into the Fijian basement maybe 1-2km deep eventually. The guy is driven. Next stop Antarctica?
He’s also been active helping Irving Resources in Japan, so while the next stop may be Antarctica, the last stop could be in Tokyo….
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The Riverdales – “Last Stop Tokyo”
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https://youtu.be/kVtKqIPfXsc
He’s been associated with other finds so yeah, impressive record.
Indeed. Quinton is a very sharp guy, and one of the premier geologists in the field today, which is why he is in such high demand. Speaking of discoveries he’s helped with, just look at the recent ones just this year with New Found Gold in Newfoundland, Eloro Resources in Bolivia, and Eskay Mining in The Golden Triangle B.C., and with a number of other companies he’s consulted doing promising work.
Bonzo loves Lion One and has owned it for years. This is not investment advice.
Bonzo, now is the best time to be a buyer in almost 3 years. In fact, I like the current setup more.
Weekly:
https://stockcharts.com/h-sc/ui?s=LIO.V&p=W&yr=3&mn=0&dy=0&id=p12049842433&a=1066323554
Daily:
https://stockcharts.com/h-sc/ui?s=LIO.V&p=D&yr=1&mn=7&dy=0&id=p51883365170&a=1066323554
(I do not own it.)
Thanks, Matthew. I would buy more LIO but I already have a big position and need cash to pay my property taxes. They could have 20 or 30 million oz of gold like Lihir or Porgera.
Bonzo, the best moves in 40 years are coming soon so I’m sure you have more than enough shares.
Lots of civil and political problems in Fiji. If they can get a small operation going and make some money without any headaches, okay. Until then I’m not interested in LIO.
They have peer miners on the island that have been producing from an alkaline deposit for years without incident. Most of the pushback from locals and the government has been how long it is taking to actually get into production, and not the the opposite. They want job creation, and they wanted it yesterday.
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If/When they do get the smaller mining going as a first phase of operations, and do show they are generating revenue, then it’s likely the stock will have already started re-rating, especially if that happens in tandem with more exploration success at depth, or on other targets in the caldera from surface. To each their own, but the easiest money will be a rerating from a construction decision into first pour on their “golden runway,” instead of waiting for certainty where much more of that will then be priced in. As Rick Rule always says… “It’s about answering the unanswered question.” In this case…. Can they actually make it into production?
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This is one of the few remaining alkaline deposits that is not currently controlled by the Major gold producers.
Okay I learned something there, thank you for that.
Sure thing Terry. Always glad to share ideas. Also, I don’t mean to insinuate it is not without a level of risk, but all mining projects have an inherent level of risk, so that is just par for the course.
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Here is a slide from the Lion One corporate slide deck, and on it you’ll see a few alkaline system analogs of other large deposits that are held by the big boys. There are the nearby monster alkaline deposits of Porgera and Lihir in Papua New Guinea, and then one of them highlighted is Vatukoula in Fiji, and it is likely the best analog of what LIO may have nearby in the same vicinity.
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https://cdn-ceo-ca.s3.amazonaws.com/1gpeqb3-Lion%20One%20Alkaline%20System%20Analogs.JPG
When will a qualified CEO be hired that can run this company and be the public facing leader? Its tiring watching QH attempt to represent companies on podcasts when he is just an PT advisor. Wally should be in the Board chair seat only.