Eight Capital mining analysts Akin Akinwale and Felix Shafigullin commented in a February 1 research note that the research firm is upgrading its forecast model for Vancouver gold explorer Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX; LLO:ASX; LY1:FSE) in order to adjust for the company's recent drill results from its wholly owned Tuvatu gold project located in Fiji.
The analysts indicated that based upon the positive results from near-surface infill drilling, the research firm has tweaked its conceptual mine plan and boosted its expectations for higher-than-expected average head grade in area targeted for early production when underground mining commences.
The analyst highlighted recent drilling results that returned what was referred to as "bonanza-grade intercepts" at the Tuvatu project located on the island nation of Fiji. The drill results included hole TUDDH555 which returned 126.62 g/t Au over 0.70m, hole TUDDH562 which returned 111.40 g/t Au over 0.40m, hole TUDDH563 that returned 68.50 g/t Au over 0.30m and most notably hole TUDDH565 which returned 359.76 g/t Au over 1.80m.
Data from the Deep Feeder Zone 500 displayed high-grade mineralization extending around 150m along strike and 300m vertically and open along strike and at depth. Intercepts in the area returned weighted average grades of 23 g/t Au which the analysts stated is 2.6x greater than the grades of 8.78 g/t Au outlined in Tuvatu's 2018 resource report.
The company's infill drill work is focusing on areas previously classified as Inferred. The firm is expected to initiate regional drill programs to test remote areas of the Navilawa caldera in 2022.
The analyst noted that some potentially positive catalysts might come from the company's ongoing drilling campaign at Tuvatu which focused currently on infill drilling, deep extensional step-out drilling, and regional targets in the Navilawa caldera.
Lion One is a Canadian gold explorer focused on advancing its 100% owned and fully permitted Tuvatu Alkaline Gold Project in Fiji.
The research firm envisions that the model for the Tuvatu mine will include a 900 tpd underground operation designed to target the 1 Moz gold deposit at the property. Eight Capital forecasts a 10-year mine-life for Tuvatu with annual average production of 75 Koz Au.
Eight Capital anticipates that the underground mining operation at Tuvatu will require an initial investment of US$80 million and an another US$50 million in sustaining CAPEX over the life of the mine. The analysts stated that Eight Capital's projects call for "average LOM cash costs and AISC of US$483/oz and US$553/oz, respectively."
Eight Capital advised that it is reiterating its CA$3.00 target price and "Speculative Buy" rating on Lion One Metals Ltd.
Lion One shares trade on the TSX Venture Exchange under the symbol "LIO" and last closed for trading at CA$1.11 on Tuesday, February 8, 2022. In addition, the company's shares trade under the ticker "LOMLF" on the OTCQX market and "LLP" on the Australian Securities Exchange.
Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his 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. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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) This 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 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 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. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Lion One Metals Ltd., a company mentioned in this article.
Disclosures and Disclaimers, Eight Capital, Lion One Metals Ltd., Feb. 1, 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 India-focused investment firm.
