In a Dec. 1 research note, Niehuser reported that of the 11 exploration targets in its recently acquired Navilawa Special Prospecting License area in Fiji, Lion One Metals Limited (LIO:TSX.V) decided to explore Banana Creek first. "Based on the amount of historic exploration activity with various exploration methods completed, we believe Banana Creek to be an advanced exploration target," he noted.
Accessibly located within the Navilawa caldera, 3 kilometers northeast of the company's Tuvatu project, Banana Creek "appears to contain both gold and base metal mineralization similar to Tuvatu's HT corridor," Niehuser wrote. Banana Creek could provide ore to the mill proposed for Tuvatu.
Niehuser provided a summary of the historic work done at Banana Creek but noted it was completed without "security, laboratory and assay methods necessary to be relied upon for resource calculation or investment purposes."
Past geophysical surveys showed a zone of hydrothermal alteration, and soil samples revealed an area of anomaly. Of the 800 rock chip samples taken, 114 reported over 1 gram per ton (1 g/t) gold. Fourteen of them indicated 10 g/t or higher gold, the highest being 46.3 g/t. From the 531 meters (531m) of diamond drilling that were done at Banana Creek, hole BCDH4 intersected 19.5 grams g/t gold over 0.4m at a depth of 32m.Niehuser reiterated Scarsdale Equities' Buy rating and CA$1.40 per share target price on Lion One Metals, whose stock is currently trading at around CA$0.57 per share.
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1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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Disclosures from Scarsdale Equities, Lion One Metals Ltd., Dec. 1, 2017
Author Certification: R. Michael Niehuser, the author primarily responsible for this report certifies, with respect to each security or issuer in this report, that: (1) all of the views expressed in this report accurately reflect his own personal views about the subject companies and their securities; (2) part of the author’s compensation may be, directly or indirectly, related to a portion of the commissions generated by Scarsdale Equities LLC [“SE”] in transactions in this or other securities designated for the author’s credit; (3) the author does not receive compensation based on investment banking or advisory services SE might provide to this or any other issuer.
Scarsdale Equities LLC, at the time of publication, does not make a market in any security.
The author does not have a financial interest Lion One Metals Limited (LIO.V) covered in this report.
Part of the author’s compensation may consist of a portion of the commissions generated by transactions in this issuer’s securities placed at Scarsdale Equities LLC for the credit of the author.
Scarsdale Equities LLC expects to receive advisory or investment banking compensation from the issuer in the next ninety days.