Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX; LLO:ASX; LY1:FSE) discovered a new gold lode at Tuvatu, and another mineralized zone to the east of it reported ROTH Capital Partners analyst Mike Niehuser in a Dec. 16 research note.
"The combination of discovering distal mineralization, with the reorientation of the north-to-south lodes, may lead to the realization of a larger mineralized gold system open to expansion," Niehuser added.
ROTH has a Buy rating and a CA$2.50 per share target price on Lion One. This implies a significant potential return for investors in the company as its current share price is CA$0.84.
Highly Prospective, Untested Area
Niehuser described the new URA1 gold lode, discovered while the company was constructing the development decline, and provided some early drill results from the area.
Niehuser wrote. "This may accelerate achieving an enhanced interpretation of mineralization in the caldera and accelerate resource discovery and development."
The lode was defined through channel sampling, with sample MD-CH-001 returning 9.95 grams per ton (9.95 g/t) gold over 2.5 meters (2.5m), he relayed. URA1 is 75m from the portal entrance, has mineable widths, trends north-northeast to south-southwest, and dips steeply. Given its location, it should provide material to process early on.
"The recognition of the intersection of steeply dipping and shallow angle veins is leading to an improved understanding of mineralization and should assist modeling and resource estimation," Niehuser commented.
Drill holes placed in a fan-like array in URA1 showed the following:
TUDDH-617:
- 167.42 g/t gold over 0.3m from 140.7m
- 19.27 g/t gold over 1.2m from 143.4m
- 2.93 g/t gold over 3.6m from 59.7m downhole
- 1.76 g/t gold over 2.1m from 56.1m downhole
TUDDH-619:
- 3.48 g/t gold over 0.3m from 65m downhole
TUDDH-621:
- 27.9 g/t gold over 1.2m from 159.3m downhole
- 30.75 g/t gold over 4.8m at 105.3m downhole, where the hole intercepted the Murau 8 lode
"This is important because vein intersections may have high grades," Niehuser wrote.
Possible New Vein Field
Niehuser noted that Lion One discovered the additional zone of high-grade mineralization about several hundred meters east of Tuvatu when following up on a target identified through a CSAMT, or controlled-source audio-frequency magnetotellurics, survey. Hole TUDDH-612, drilled there, for instance, demonstrated 18.53 g/t gold over 0.6m at 491.8m downhole and may represent the strike extension of the UR4 lode.
"This is important because CSAMT appears to be a useful geophysical tool for targeting blind structures," Niehuser wrote. "This may accelerate achieving an enhanced interpretation of mineralization in the caldera and accelerate resource discovery and development."
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Disclosures For Roth Capital Partners, Lion One Metals Ltd., December 16, 2022
Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
Disclosures: Shares of Lion One Metals Limited may be subject to the Securities and Exchange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH.
