Lion One Metals Limited - CEO, Walter Berukoff
CEO, Walter Berukoff
Source: Twitter (@liononemetals)
  • Lion One Metals (LIO) has issued an updated Preliminary Economic Assessment of its Tuvatu Gold Project in western Fiji
  • The study outlines a five-year mine life with total production of 331,369 ounces of gold and an average yearly production of 77,969 ounces
  • Based on a price per ounce of approximately C$1,875, the company expects to generate total life-of-mine revenue of roughly $621.1 million
  • The PEA is based on a mineral resource estimate from 2018, and does not include any new drilling work completed during the company’s 2019 and 2020 programs
  • Lion One Metals (LIO) is currently up 1.14 per cent to $1.78 per share at 3:16pm EDT

Lion One Metals (LIO) has issued an updated Preliminary Economic Assessment (PEA) of its Tuvatu Gold Project in western Fiji.

Located approximately 24 kilometres northeast of the town of Nadi, on the island of Viti Levu, the wholly owned project sits at an elevation of between 100 and 600 metres in the eroded crater of the Navilawa caldera, overlooking the Sabeto River valley.

The PEA outlines a five-year mine life, with a total anticipated production of 331,369 ounces of gold and an average yearly production of 77,969 ounces.

These projections are based on an average grade of 8.6 grams per tonne of gold, and a total mill feed of 1,384,000 ounces at a recovery rate of 87.3 per cent.

Assuming a gold price of approximately C$1,875, Lion One expected to generate a total life-of-mine revenue of $621.1 million, with an average annual pre-tax flow of $63.86 million. This represents all-in sustaining cost of roughly $785 per ounce.

However, despite being updated, the PEA is based on a mineral resource estimate from 2018, and does not include any new drilling work completed during the company’s 2019 and 2020 programs.

Walter Berukoff, Chairman and CEO of Lion One Metals, said the PEA demonstrates robust economic potential for a low-cost, high-grade gold operation with minimal upfront capital costs, enabling a rapid payback of capital even at low gold prices.

“We are encouraged about Tuvatu’s potential for a near-term development and production opportunity, with further exploration and expansion potential as we continue our current drill programs to extend the known mineralisation of Tuvatu and the surrounding Navilawa Caldera,” he added.

Lion One Metals (LIO) is currently up 1.14 per cent to $1.78 per share at 3:16pm EDT.

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