Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX) announced in a news release that its first deep diamond drill hole at its 100% controlled and fully permitted Tuvatu deposit in Fiji returned high-grade gold assays.
"As anticipated, we see high-grade mineralization extending and evolving at depth," Dr. Quinton Hennigh, technical advisor to Lion One, said in the release. "
Hole TUDDH493 hit high-grade gold mineralization at the bottom of and below the current delineated resource. One highlight assay was 4.29 meters (4.28m) of 33.22 grams per ton (33.22 g/t) gold intersected about 70m below the current resource. Interpreted to be part of the UR2 lode, this interval is composed of hydrothermal breccia like that seen at the Vatukoula gold mine about 40 km to the northeast but unlike the geology at Tuvatu, the company stated.
This interval included what Lion One considers a "highly significant" interval, 0.31m of 322 g/t gold starting at 423.41m downhole, the release noted. It "suggests the mineralizing system is evolving with depth, perhaps an indication of further high-grade mineralization below." At the location of the interval, several structures appear to be converging, a possibility that the next few drill holes will test.
Also of note is that the 3.83m interval of 21 g/t gold beginning at 322.17m, interpreted to be in the URW1 lode, is above historic hole TUDDH160. This suggests mineralization in historical TUDDH160 could be structurally linked to the new UR2 lode intercept of 4.29m of 33.22 g/t gold, the company suggested.
Another interval from the first hole, 35m interval of 105 g/t gold beginning at 177.25m, was interpreted to be part of the Murau 2 lode. The intercept demonstrates that hydrothermal fluids had been active in this part of the Tuvatu system. Also, it suggests the lode remains open to the west and may connect to a feeder structure, according to the company.
Also supporting that possibility is a result from the second deep diamond drill hole Lion One recently drilled, TUDDH494. The hole encountered a 2m long mineralized interval at 188.8m downhole depth, which may be another intercept into Murau 2. The company expects to complete this hole by early January 2020.
"As we continue to drill additional deep holes, we hope to gain a better understanding of the underlying plumbing system that brought up gold-rich fluids and ultimately discover the root feeder or feeders that gave rise to the Tuvatu lode complex," Hennigh stated.
"Alkaline gold deposits are known to extend to great depths, so we have plenty of room to explore," Hennigh added. "And thanks to our recent encouraging BLEG results, we now know we have an extensive anomalous area within the northern part of the Navilawa caldera to explore for extensions of this robust gold system. Thanks to our recent over-subscribed private placement, our C$18 million treasury will allow us to aggressively explore the Navilawa Caldera for the very first time."
Read what other experts are saying about:
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.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Lion One Metals. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.