Lion One Metals (TSXV: LIO) (ASX: LLO) has encountered visible gold in approximately 1 cm wide veins at a downhole depth of approximately 583 metres 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 metres.
Drilling of this hole will continue to its planned termination at 1,000 metres 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% on the TSX by 2:30 p.m. EDT Tuesday. The Vancouver-based miner has a market capitalization of approximately C$202.1 million.