Gold Mineralization Extended Over 1 KM West of Tuvatu
Jun 19, 2012
OTC Disclosure News Service
North Vancouver, BC, Canada –
GOLD MINERALIZATION EXTENDED OVER 1 KM WEST OF TUVATU
Lateral Continuous Vein Extensions Strengthen Resource Potential Ahead of Production Decision
· Murau West 1 Lode – extended 870 meters
· Murau West 3 Lode – extended 1,330 meters
· 290 Vein – extended 800 meters
· Upper Ridges Lodes – extended 800 meters
Vancouver, B.C., May 7, 2012. Lion One Metals Limited (TSX-V:LIO) (FSE:LY1) (LOMLF:OTCQX) (the “Company”) is pleased to announce the following update on ongoing exploration at its Tuvatu Gold Project (“Tuvatu”) located near Nadi on the island of Viti Levu in Fiji. The Company continues to confirm further resource potential and exploration upside at Tuvatu, while preparing for feasibility work and potential decision for a fast track to production. Metallurgical testing currently underway is expected to be completed in late June.
The Company has confirmed the continuity of several of the principal gold bearing veins that comprise part of the Tuvatu Gold Deposit. Mapping along strike confirmed the Murau West 1 and the Murau West 3 Veins continue an additional 870 and 1,300 meters respectively from the principal Tuvatu Resource Area. Both veins are truncated by the later “290 Vein”, that itself has been exposed an additional 1,420 meters along strike length. The Company has also mapped continuous extensions of the Upper Ridge Lodes 4, 5, 6, 7, and 8 along strike lengths up to 800 meters to the S-SW. These Lodes, all of which have been drilled within the current Tuvatu Resource Area, remain open at depth and along strike. “Branching” or fanning of the epithermal veins along the caldera rim is consistent with the regional geology of the Navilawa Caldera. Samples from newly mapped structures have been collected for laboratory analysis.
To view a version of the news release accompanied by a map and exploration data please visit the Company website at the following webpage www.liononemetals.com/i/pdf/2012-05-07_NR.pdf.
Murau Lode Extensions
The existing gold resource hosted within the Murau Lodes contained within the Tuvatu Resource Area has been drilled along strike for 250 meters to a depth of 244 meters, with widths measured from 0.4 to 1.0m and rock chips samples grading as high as 20.50 g/t Au. Recent drill core analysis and mapping confirm that the Murau West 1 and Murau West 3 Lodes extend 870 and 1,330 meters along strike respectively from the current Tuvatu Resource Area. These lode extensions branch out with each intersecting the northeast trending 290 Vein, 750 meters apart, approximately 1 km west of the Resource Area. Both Murau Lodes are characterized by multiple phases of quartz and/or calcite veining that host gold and associated sulfide mineralization.
290 Vein and Upper Ridge Lodes
The “290 Vein” consists of auriferous quartz and/or calcite veins with pyrite and other minor sulphide mineralization that was emplaced in a shear zone striking 210° north and dipping 80° southeast. With the recent surface exploration program extending the strike length of the vein by 800 meters, the 290 Vein has now been delineated over a total of 1,420 meters (the “290 Vein” was labeled from a rock chip sample that returned 293.5 g/t Au over 0.15 m) with widths ranging from 0.15 to 0.55. The extensions were discovered in outcrops and drainages adjacent to the Tuvatu exploration camp where they cut the Core Shed Fault.
Upper Ridge Lodes
The existing gold resource hosted within the Upper Ridge Lodes contained within the Tuvatu Resource Area has been drilled along strike for 485 meters to a depth of up to 480 meters. Historic bonanza grades have reported in drill core where multiple Upper Ridge lodes intersect and have been in excess of 1590 g/t (TUDDH-160). Vein widths on the surface range from 0.25 to 1.5 m and rock chips samples with grades up to 63.70 g/t. Continuous extensions of these lodes have been mapped past the Ura Creek Prospect approximately 1 km S-SW of the Tuvatu Resource Area, where mineralization occurs as a 1-2 m wide (true width) gossanous iron-oxide stained shear zone hosted within altered micro-monzonite. The Upper Ridge Lodes are characterized by silicified vein selvages containing base metal sulphides, pyrite, chalcopyrite, sphalerite, and galena, with native gold.
The Company is pleased with the results from the ongoing surface exploration program as it demonstrates that the high grade epithermal vein system is significantly more extensive than that incorporated in the current mineral resource. This lateral continuity of the vein system is consistent with the geologic model and technical staff believes that ongoing surface exploration and testing of the down dip extensions have the potential to substantially increase the current mineral resource.
The Company also reports the expiry of 4,991,656 warrants priced at $2.25. As at May 1, 2012 the Company has 48,952,095 common shares issued and outstanding, with zero outstanding warrants remaining.
Samples are analyzed at Australian Laboratory Services (ALS) Pty. Ltd. an independent and qualified analytical laboratory in Brisbane, Australia. Samples are first prepared and crushed at the ALS facility in Suva, Fiji. Samples are subjected to fire assay with atomic absorption finish for gold and 33 elements, four acids, Inductively Coupled Plasma Spectrometry (ICP-AES). Consistent with industry standard QA/QC protocols, sample standards and blanks are inserted to ensure quality control.
The Tuvatu property lies within Viti Levu Lineament, a north-west trending belt that hosts a number of alkaline volcanic centers. These include the world-class Vatukoula Gold Deposit, which lies approximately 50 km to the north east. Low sulphidation, epithermal gold veins at Tuvatu occur along the margins of the eroded Navilawa volcanic center in a multi-phase geologic environment that also hosts copper-gold porphyry mineralization. The Fijian Islands themselves are situated along the margins of the SW Pacific Rim regional tectonic plate, the host of a number of world class epithermal gold-silver and porphyry copper-gold deposits that include Lihir, Porgera, Wafi Golpu, (Papua New Guinea) and Lepanto (Philippines).
Darcy Krohman, P.Geo, Senior Geologist with Lion One and a Qualified Person for the Company for purposes of National Instrument 43-101 has reviewed the technical information in this news release.
On Behalf of the Board of Directors For further information contact:
“Walter H. Berukoff” Investor Relations
Chairman of the Board Tel: 604-998-1250
Lion One Metals Limited Fax: 604-998-1253
Neither the TSX Venture Exchange nor its Regulation Service Provider accepts responsibility for the adequacy or accuracy of this release.
This press release may contain “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “proposed”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. This forward-looking information reflects Lion One Metals Limited’s current beliefs and is based on information currently available to Lion One Metals Limited and on assumptions Lion One Metals Limited believes are reasonable. These assumptions include, but are not limited to, the actual results of exploration projects being equivalent to or better than estimated results in technical reports, assessment reports, and other geological reports or prior exploration results. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Lion One Metals Limited or its subsidiaries to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the early stage development of Lion One Metals Limited, general business, economic, competitive, political and social uncertainties; the actual results of current research and development or operational activities; competition; uncertainty as to patent applications and intellectual property rights; product liability and lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting mining, timing and availability of external financing on acceptable terms; not realizing on the potential benefits of technology; conclusions of economic evaluations; and lack of qualified, skilled labor or loss of key individuals. Although Lion One Metals Limited has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Lion One Metals Limited does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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