Fiji-Based Gold Project Reveals Bonanza-Grade Find

Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX; LLO:ASX) announced in a press release that it has intercepted bonanza-grade gold results from its Tuvatu gold mine in Fiji. The drilling on the project revealed 1,986.23 grams per tonne (g/t) gold (Au), along with several other extremely high-grade finds focused in the near-surface area of the mine, where Lion One's new gold production facility recently started up. The company reports that these new intercepts will be added to the mine plan for 2024.

The highlights of the drill results included massive, high-high grade finds. The company reports that drill hole TUDDH-696 found 1,986.23 g/t Au across 0.6m starting at a depth of 206.1m, drill hole TGC-0116 found 198.75 g/t Au across 1.5m starting at a depth of 109.9m, including 866.25 g/t Au across 0.3m, drill hole TUDDH-681 found 93.56 g/t Au across 0.6m starting at a depth of 138m, and drill hole TGC-0114 found 83.32 g/t Au across 0.9m starting at a depth of 69m.

Mike Niehuser with ROTH Capital Markets rated the company as a "Buy" with an estimated 169% return.

Drill hole TUDDH discovered 52.36 g/t Au across 0.6m starting at a depth of 192.9m, drill hole TUDDH-688 found 26.67 g/t Au across 2.4m starting at a depth of 247.7m, including 135.60 g/t Au across 0.3m, drill hole TGC-0114 found 26.38 g/t Au across 1.8m starting at a depth of 125.7m, including 61.48 g/t Au across 0.9m, drill hole TUDDH-692 found 25.90 g/t Au across 0.9m starting at a depth of 226m, drill hole TUDDH-696 found 25.46 g/t Au across 1.2m starting at a depth of 203.4m, and drill hole TGC-0114 found 7.79 g/t Au across 4.5m starting at a depth of 82.2m, including 20.55 g/t Au across 0.9m.

The CEO and Chairman of Lion One, Walter Berukoff, commented, "These incredible results add to the growing list of exceptional drill results returned from Tuvatu, and we look forward to mining these areas in 2024 and 2025."

Gold Looking to Rally

Technical Analyst Clive Maund reviewed the gold market on December 9, 2023, and concluded that gold still represents a considerable opportunity for investors in spite of the commodity's failed breakout.

Felix Shafigullin of Eight Capital reviewed the company on August 30, 2023, rated the company as a "Buy" for potential investors, and estimated that the company would have a return on investment of 180%. 

Maund commented, "Although gold made a failed breakout attempt, the breakouts by large and mid-cap gold stocks have not failed – on the contrary, what we have seen so far is a normal post-breakout reaction back to the support at the upper boundary of the base patterns that they broke out of, which means that this is a great place to buy them." As gold prices fall temporarily, Maund recommended that investors should use this as an opportunity to grab more.

On December 12, 2023, Stewart Thomson with 321 Gold reviewed the market and stated that "investors in ultimate money gold need to stay focused on the big picture and on buy and sell zones of significance." Thomson also predicts an imminent rally for gold.

Potential 169% Return on Investment

Mike Niehuser with ROTH Capital Markets rated the company as a "Buy" with an estimated 169% return on October 12, 2023. Niehuser's report focused on the completion of the mine on the Tuvatu property and the first gold pour on that property on October 10. The Tuvatu project is expected to be particularly productive by analysts and the company, with an expected production rate of 300 tons per day.

Felix Shafigullin of Eight Capital reviewed the company on August 30, 2023, rated the company as a "Buy" for potential investors, and estimated that the company would have a return on investment of 180%. Shafigullin cited several factors in the company's positive assessment, including the estimated mineralized structures on the company's Lumuni property, the recent assay results, and its drilling program on the Tuvatu property.

Clive Maund also reviewed Lion One on June 16, 2023, and commented that, at the time, it "looks a good point to buy, especially as the Accumulation line has been creeping higher in recent days and momentum recovering."

Maund discussed the possibility that the stock could break out, commenting, "If it does break to the upside after the recent tight standoff, it is likely to be with a large white candle."

The company has a number of catalysts to report, according to its investor presentation, including the beginning of mechanized mining and the expansion of plant operations in 2024, as well as the development of Zone 500 planned for 2025.

Ownership and Share Structure

Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 10.27% of the company.

According to Reuters, Chairman, and CEO Walter H. Berukoff owns 10.12% of the company with 20.90 million shares, Director Kevin Puil owns 0.08% of the company with 0.18 million shares, CFA Tony Young owns 0.05% of the company with 0.10 million shares, and Director Richard J. Meli owns 0.02% of the company with 0.04 million shares.

Reuters reports that institutional investors own 6.59% of the company, as Franklin Advisers, Inc., owns 5.61% of the company with 11.58 million shares, Aegis Financial Corporation owns 0.61% of the company with 1.25 million shares, U.S. Global Investors, Inc. owns 0.24% of the company with 0.50 million shares, Timelo Investment Management Inc. owns 0.05% of the company with 0.10 million shares, Marmite Capital AG owns 0.04% of the company with 0.08 million shares, and Nanjia Capital Limited owns 0.04% of the company with 0.08 million shares.

According to Reuters, there are 206.4 million shares outstanding and 185.17 million free float traded shares, while the company has a market cap of CA$113.92 million and trades in the 52 week period between CA$0.64 and CA$1.07.

Important Disclosures:

1. Lion One Metals Ltd. is a billboard sponsor of Streetwise Reports.
2. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
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