Mining Co. Discovers a Major High-Grade Gold Deep Feeder Structure

One drillhole returned the longest, high-grade intercept to date at the Fiji project, 20.86 grams per ton gold over 75.9 meters, a “potential game changer” in Lion One’s development.

Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX; LLO:ASX; LY1:FSE) discovered a major high-grade gold, deep feeder structure at its Tuvatu project, which is “a potential game changer,” reported Eight Capital analyst Akin Akinwale in a June 7 research note.

“The structure remains wide open at depth, underscoring Tuvatu’s potential as a large-scale, high-grade underground mine,” Akinwale added.

Intercepts from hole TUG-141 indicate the presence of this feeder, located at depth below the current resource boundary, relayed Akinwale. One of those intercepts is the longest ever encountered at Tuvatu, and its grade is about 2.4 times that of the total resource, which is 8.78 grams per ton gold (8.78 g/t Au). This standout intercept is 75.9 meters (75.9m) of 20.86 g/t Au starting at 443.4m downhole.

TUG-141 hit other impressive intercepts as well. They include 19.2m of 5.63 g/t Au beginning at  311.7m downhole, including 3m of 20.50 g/t Au. Another is 10.2m of 4.48 g/t Au from 109.8m downhole, including 0.3m of 38.27 g/t Au.

The hole was placed in the upper portion of the deep feeder Zone 500, about 300m below the existing Tuvatu resource, where it is believed to connect with the boundary of the Inferred resource. There, Lion One drilled between the depths of 450m and 550m.

The Canadian company’s previous drilling—specifically holes TUG-135, TUG-136, and TUG-138—returned bonanza-grade mineralization similar to that demonstrated in TUG-141, Akinwale pointed out. Together, these results suggest the newly discovered feeder is potentially robust in size.

Recent infill drill results from Zone 5 included shallow intercepts of exceptionally high grades, noted Akinwale. For instance, hole TUDDH-586 returned 292.69 g/t Au over 0.6m, including 584.07 g/t Au over 0.3m. Lion One is expected to complete the current drill campaign this summer.

“The phase two infill drilling campaign, combined with the deep feeder discoveries, bode well for resource expansion in the future resource update,” wrote Akinwale.

Eight Capital has a Buy rating and a CA$3 per share price target on Lion One, which is currently trading at around CA$1.58 per share.

Disclosures

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 Ltd. 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.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional, and any action a reader takes as a result of the information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice, and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services, or securities of any company mentioned on Streetwise Reports.

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 the 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 decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures for Eight Capital, Lion One Metals Ltd., June 7, 2022

This research report (as defined in IIROC Rule 3400) is issued and approved for distribution in Canada by Eight Capital. Eight Capital accepts responsibility for the dissemination of this report. Non-client recipients of the research report should not rely solely on the investment recommendations contained herein and should consult their own professional advisors. Eight Capital will not treat any non-client receiving this report as its own. Institutional clients who require additional information on securities discussed in this report should contact a qualified sales person at Eight Capital.

Eight Capital accepts no liability whatsoever for any loss arising from any use or reliance on this research report or the information contained herein. This research report is being provided only to institutional clients of Eight Capital and is intended for informational purposes only. This research report is not an offer to sell or the solicitation of an offer to buy any of the securities discussed herein. The information contained in this research report is prepared from publicly available information, internally developed data and other sources believed to be reliable, but has not been independently verified by Eight Capital. Eight Capital makes no representations or warranties with respect to the accuracy, correctness or completeness of such information and they should not be relied upon as such.

All estimates, opinions and recommendations expressed herein constitute judgments as of the date of this research report and are subject to change without notice. Eight Capital does not accept any obligation to update, modify or amend this research report or to otherwise notify a recipient of this research report in the event that any estimates, opinions and recommendations contained herein change or subsequently become inaccurate or if this research report is subsequently withdrawn.

Past performance is not a guarantee of future results, and no representation or warranty, expressed or implied, is made regarding future performance of any security mentioned in this research report. The price of the securities mentioned in this research report and the income they generate may fluctuate and/or be adversely affected by market factors or exchange rates, and investors may realize losses on investments in such securities, including the loss of investment principal. Nothing in this research report constitutes legal, accounting or tax advice. Investors should consult with his or her independent legal or tax adviser in this regard.

Neither Eight Capital, nor our affiliate VIII Capital Corp. is affiliated in any way with Eight Capital Management LLC, an Indiafocused investment firm.

US Residents: Eight Capital is not a U.S. registered Broker Dealer and therefor is not governed by U.S. laws, rules or regulations applicable to U.S. broker-dealers. Consequently, the persons responsible for the content of this publication are not licensed in the U.S. as research analysts in accordance with applicable rules promulgated by the U.S. self-regulatory organizations. Any US Institutional investor wishing to effect trades in any securities referred to herein should contact VIII Capital Corp., a U.S. Broker-dealer affiliated to Eight Capital.

Registration of Non-US Analyst:  The authoring non-US research analyst employed by Eight Capital who contributes to this report is not registered/qualified as a research analyst with FINRA; and the authoring non-US analyst is not subject to the requirements of FINRA rule 2241 regarding restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Conflicts of Interest:  Eight Capital has written procedures designed to identify and manage potential conflicts of interest that arise in connection with its research and other businesses. The compensation of each Research Analyst/Associate involved in the preparation of this research report is based competitively upon several criteria, including performance assessment criteria, the quality of research and the value of the services they provide to clients of Eight Capital. The Research Analyst compensation pool includes revenues from several sources, including sales, trading and investment banking. Research analysts and associates do not receive compensation based upon revenues from specific investment banking transactions.

Eight Capital generally restricts any research analyst/associate and any member of his or her household from executing trades in the securities of a company that such research analyst covers, with limited exception. Should this research report provide web addresses of, or contain hyperlinks to, third party web sites, Eight Capital has not reviewed the contents of such links and takes no responsibility whatsoever for the contents of such web sites. Web addresses and/or hyperlinks are provided solely for the recipient’s convenience and information, and the content of third party web sites is not in any way incorporated into this research report. Recipients who choose to access such web addresses or use such hyperlinks do so at their own risk.

Unless publications are specifically marked as research publications of Eight Capital, the views expressed therein (including recommendations) are those of the author and, if applicable, any named issuer or Investment Dealer alone, and have not been approved by, nor are they necessarily those of, Eight Capital. Eight Capital expressly disclaims any and all liability for the content of any publication that is not expressly marked as a research publication of Eight Capital.

Forward-looking statements are based on current expectations, estimates, forecasts and projections based on beliefs and assumptions made by the author. These statements involve risks and uncertainties and are not guarantees of future performance or results and no assurance can be given that these estimates and expectations will prove to have been correct, and actual outcomes and results may differ materially from what is expressed, implied or projected in such forward-looking statements.

Research Analyst Certification:  Each Research Analyst and/or Associate who is involved in the preparation of this research report hereby certifies that:

the views and recommendations expressed herein accurately reflect his/her personal views about any and all of the securities or issuers that are the subject matter of this research report;
• his/her compensation is not and will not be directly related to the specific recommendations or views expressed by the Research Analyst in this research report;
• they have not affected a trade in a security of any class of the issuer whether directly or indirectly through derivatives within the 30-day period prior to the publication of this research report;
• they have not distributed or discussed this Research Report to/with the issuer, investment banking at Eight Capital or any other third party except for the sole purpose of verifying factual information; and
• they are unaware of any other potential conflicts of interest.

The Research Analyst involved in the preparation of this research report does not have any authority whatsoever (actual, implied or apparent) to act on behalf of any issuer mentioned in this research report.