Vancouver, British Columbia–(Newsfile Corp. – June 9, 2022) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company” or “EMX“) is pleased to announce that it will receive a royalty payment of approximately US$2.7 million (pre-tax) from the Company’s effective 0.7335% net smelter return royalty (“NSR“) interest covering the Caserones Copper-Molybdenum Mine (“Caserones“) in Chile. This royalty payment distribution to EMX, anticipated later this month, is based upon first quarter (“Q1”) (i.e., January-March, 2022) copper and molybdenum production.
EMX initially acquired a 0.418% NSR royalty interest on Caserones in 2021 and acquired an additional 0.3155% NSR royalty interest in April of this year, bringing the Company’s total (effective) NSR royalty interest to 0.7335% (see EMX news release dated April 14, 2022). Although the recent royalty purchase was completed after the end of Q1, the agreement contained provisions for EMX to receive the Q1 distributions for the newly acquired interest. This new royalty interest (0.3155% NSR) accounted for US$1.2 million of the US$2.7 million (pre-tax) Q1 total. The higher-than-expected Q1 royalty distributions reflect strong copper prices and robust production throughput at higher grades.
In addition to Caserones, EMX receives production royalty payments from its Leeville royalty in Nevada, and expects addition cash flow in 2022 from the Cukaru Peki Mine in the Bor Mining District in Serbia, as well as the Gediktepe and Bayla royalty properties in Turkey. Together, these interests provide commodity diversity that includes base metals (i.e., copper, molybdenum, lead, and zinc) and precious metals (i.e., gold and silver) in key mining districts of Chile, the U.S., Serbia, and Turkey.
Since the acquisition of the initial royalty interest at Caserones, royalty distributions to EMX total US$6.3 million (pre-tax). This has provided meaningful positive cash flow in a very short time (four quarters). This performance reflects the quality of Caserones as a cornerstone Company asset that resulted from EMX’s royalty acquisition initiatives.
EMX has a unique approach to the royalty business which is based upon a combination of royalty purchases, sustainable organic royalty growth, and strategic investments. Royalties are financial instruments that grow in value via ongoing investments by operators, and at no expense to royalty holders. This upside optionality occurs throughout the life cycle of a royalty as further exploration leads to resource and reserve growth, while technological and engineering advancements lead to more efficient mining, all to the benefit of royalty holders. As inflation fears have roiled global financial markets in 2022, this is a time when royalties stand out the most, with no exposure to exploration, production, and development cost increases yet full exposure to commodity price inflation. As a result, royalties are a key hedge that will become increasingly important as the current inflationary cycle plays out.
Caserones Overview. The Caserones open pit mine is developed on a significant porphyry copper-molybdenum deposit in the Atacama Region of northern Chile’s Andean Cordillera, 162 kilometers southeast of the city of Copiapó. The mine has been in operation since 2014, and is owned and operated by SCM Minera Lumina Copper Chile SpA (“Minera Lumina”), which is 100% indirectly owned by JX Nippon Mining & Metals Corporation of Japan.
Caserones produces copper and molybdenum concentrates from a conventional crusher, mill and flotation plant, as well as copper cathodes from a dump leach, solvent extraction and electrowinning plant. The mine produced 94,846 tonnes of fine copper in concentrate, 2,287 tonnes of fine molybdenum in concentrate, and 14,829 tonnes of fine copper in cathodes in 20211.
In addition to currently defined zones of mineralization, considerable exploration upside exists on the Caserones property, and exploration for additional resources has been ongoing and continues at present.
Eric P. Jensen, CPG, a Qualified Person as defined by National Instrument 43-101 and an employee of the Company, has reviewed, verified, and approved the disclosure of the technical information contained in this news release.
About EMX. EMX is a precious, base and battery metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol “EMX”, and also trade on the Frankfurt Stock Exchange under the symbol “6E9”. Please see www.EMXroyalty.com for more information.
For further information contact:
David M. Cole President and Chief Executive Officer Phone: (303) 973-8585 Dave@EMXroyalty.com
Scott Close Director of Investor Relations Phone: (303) 973-8585 SClose@EMXroyalty.com
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release may contain “forward looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding completion of the transaction, perceived merits of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential”, “upside” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to: unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors. It is possible EMX may not complete the transaction, as a result of failure to fulfill conditions of closing, unavailability of financing or for other reasons EMX cannot anticipate at this time.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the quarter ended March 31, 2022 (the “MD&A”), and the most recently filed Annual Information Form (the “AIF”) for the year ended December 31, 2021, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and Financial Statements of the Company, is available on SEDAR at www.sedar.com and on the SEC’s EDGAR website at www.sec.gov.
VANCOUVER, BC / ACCESSWIRE / June 9, 2022 / Metallic Minerals (TSX.V:MMG)(OTCQB:MMNGF) (“Metallic Minerals“, or the “Company“) is pleased to report that it has closed its previously announced non-brokered private placement financing for aggregate proceeds of $4,032,000 through the issuance of 9,600,000 units at a price of $0.42 per flow-through unit (the “Private Placement”). Each Unit consists of one flow-through common share and one-half purchase warrant where each whole warrant is exercisable into a flow-through common share for 30 months at a price of $0.50 on the TSX Venture Exchange (“TSX-V”).
Greg Johnson, CEO and Chairman, noted, “We are pleased to complete this premium-to-market Private Placement and to strengthen our shareholder base with new institutional investors. These new funds will be primarily directed toward the ongoing exploration and development of our Keno Silver Project in the high-grade, Keno silver district of Canada’s Yukon Territory. Final planning is underway for the initiation of our 2022 exploration programs at Keno Silver, as well as at our La Plata silver-gold-copper project in Colorado, USA. We look forward to meeting with existing and potential shareholders during PDAC 2022 in Toronto June 13-15, as well as during the Yukon Property Tours and Conference June 20-24 in Dawson City.”
Proceeds from the Private Placement will be used toward eligible Canadian Exploration Expenses, within the meaning of the Income Tax Act (Canada). The Private Placement is subject to the final approval of the TSX-V. The flow-through shares will be subject to a hold period of four months and one day from their date of issuance under applicable Canadian securities law.
The flow-through shares have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws.
An officer of the Company participated in the private placement for an aggregate of 4,400 FT Units. The participation by the insider in the private placement is considered to be a related-party transaction as defined under Multilateral Instrument 61-101. The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of the securities being issued, nor the consideration being paid exceeds 25% of the Company’s market capitalization.
Upcoming Events
PDAC 2022 – Metallic will join fellow Metallic Group members, Stillwater Critical Minerals (formerly Group Ten Metals) and Granite Creek Copper, at PDAC in Toronto, June 13-15 (Booth IE2851).
Yukon Property Tours & Conference – Metallic will be in Dawson City June 20-24 for the 2022 Yukon Property Tours, with President, Scott Petsel, and CEO, Greg Johnson, both visiting the Keno Silver Project for exploration planning.
About Metallic Minerals
Metallic Minerals Corp. is an exploration and development stage company, focused on silver, gold and copper in the high-grade Keno Hill and La Plata mining districts of North America. Our objective is to create shareholder value through a systematic, entrepreneurial approach to making exploration discoveries, growing resources and advancing projects toward development. Metallic Minerals has consolidated the second-largest land position in the historic Keno Hill silver district of Canada’s Yukon Territory, directly adjacent to Alexco Resource Corp’s operations, with more than 300 million ounces of high-grade silver in past production and current M&I resources. In addition, the Company recently announced the inaugural resource estimate for the La Plata silver-gold-copper project in southwestern Colorado. All of the districts in which the Company works have seen significant mineral production and have existing infrastructure, including power and road access. Metallic Minerals is led by a team with a track record of discovery and exploration success on several major precious and base metal deposits, as well as having large-scale development, permitting and project financing expertise.
About the Metallic Group of Companies
The Metallic Group is a collaboration of leading precious and base metals exploration and development companies, with a portfolio of large, brownfields assets in established mining districts adjacent to some of the industry’s highest-grade producers of silver and gold, platinum and palladium, and copper. Member companies include Metallic Minerals in the Yukon’s high-grade Keno Hill silver district and La Plata silver-gold-copper district of Colorado, Granite Creek Copper in the Yukon’s Minto copper district, and Stillwater Critical Minerals (formerly Group Ten Metals) in the Stillwater PGM-nickel-copper district of Montana, USA and Kluane district in the Yukon. The founders and team members of the Metallic Group include highly successful explorationists formerly with some of the industry’s leading explorer/developers and major producers. With this expertise, the companies are undertaking a systematic approach to exploration and development using new models and technologies to facilitate discoveries in these proven, but under-explored, mining districts. Members of the Metallic Group have been recognized as recipients of awards for excellence in environmental stewardship demonstrating commitment to responsible resource development and appropriate ESG practices. The Metallic Group is headquartered in Vancouver, BC, Canada, and its member companies are listed on the Toronto Venture, US OTCQB and Frankfurt stock exchanges.
Forward Looking Statements: This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Metallic Minerals believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Metallic Minerals and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
June 9, 2022 – Vancouver, BC – Group Ten Metals Inc. (TSX.V: PGE; US OTC: PGEZF; FSE: 5D32) (the “Company” or “Group Ten”) is pleased to announce that, effective at market opening on June 13, 2022, the common shares of the Company will trade on the TSX Venture Exchange under the name “Stillwater Critical Minerals Corp.” to better reflect the commodity suite of battery, catalytic and precious metals at the Company’s flagship Stillwater West project in Montana, USA. The project hosts a total of eight metals (nickel, cobalt, chromium, palladium, platinum, rhodium, iridium and ruthenium) designated as critical by the United States government with a mandate to secure domestic supplies based on economic and national security concerns. Stillwater West also hosts significant copper resources.
President and CEO Michael Rowley commented “Rebranding Group Ten Metals to Stillwater Critical Minerals reflects our increasing focus on our flagship project and the great potential we see in the iconic and famously productive Stillwater mining district. With the recent addition of two renowned Bushveld and Platreef geologists to our team we are well positioned to advance the next phase of large-scale critical mineral supply from the district, building on past production of nickel, copper, and chromium, and the on-going production of platinum group and other metals by our neighbor, Sibanye-Stillwater. Our Platreef-style nickel and copper sulphide deposits contain a compelling suite of critical minerals and are open for expansion along trend and at depth. We look forward to further announcements including assay results from our 2021 resource expansion drill campaign and our 2022 exploration plans in the near term.”
The Company’s stock symbols remain the same (TSX.V: PGE | OTCQB: PGEZF | FSE:5D32). The new CUSIP number is 86074L103 and the new ISIN number is CA86074L1031. In addition, the Company is pleased to announce the launch of a new website, www.criticalminerals.com, and new Twitter handle, @Stillwater_CM.
Shareholders of the Company are not required to take any action in connection with the name change as physical and Direct Registration System (“DRS”) share certificates in the predecessor company name of Group Ten Metals Ltd. continue to be enforceable. Should a registered shareholder wish to exchange their share certificates of Group Ten into Stillwater Critical Minerals, they can contact the Company’s transfer agent:
Odyssey also maintains an online portal where securityholders have access to view their registered holdings or request updated DRS statements 7 days a week. To register, please contact web.access@odysseytrust.com.
Upcoming Events
PDAC 2022 – Stillwater Critical Minerals will join fellow Metallic Group members Metallic Minerals and Granite Creek Copper at PDAC in Toronto, June 13-15, 2022 at Booth 2851 in the Investor Exchange.
THE Mining Investment Event of the North – Stillwater Critical Minerals will be attending meetings and presenting the Company’s vision at this inaugural conference in Quebec City, June 19-21. President & CEO Michael Rowley will participate in a key panel entitled “Trends in Energy Metals” moderated by Egizio Bianchini, Head of Metals & Investment Banking, Stifel GMP. Mr. Rowley will be joined by fellow panelists Mark Selby, Chairman & CEO, Canada Nickel, Mike White, President & CEO, IBK Capital, and Phil Baker, CEO, of Hecla Mining.
About Stillwater West
Group Ten is rapidly advancing the Stillwater West PGE-Ni-Cu-Co + Au project towards becoming a world-class source of low-carbon, sulphide-hosted nickel, copper, and cobalt, critical for batteries and the electrification movement, as well as key catalytic metals including platinum, palladium, rhodium, iridium and ruthenium used in catalytic converters, fuel cells, and the production of green hydrogen. Stillwater West positions Group Ten as the second-largest landholder in the Stillwater Complex, with a 100%-owned position adjoining and adjacent to Sibanye-Stillwater’s PGE mines in south-central Montana, USA1. The Stillwater Complex is recognized as one of the top regions in the world for PGE-Ni-Cu-Co mineralization, alongside the Bushveld Complex and Great Dyke in southern Africa, which are similar layered intrusions. The J-M Reef, and other PGE-enriched sulphide horizons in the Stillwater Complex, share many similarities with the highly prolific Merensky and UG2 Reefs in the Bushveld Complex. Group Ten’s work in the lower Stillwater Complex has demonstrated the presence of large-scale disseminated and high-sulphide battery metals and PGE mineralization, similar to the Platreef in the Bushveld Complex2.
Drill campaigns by the Company, complemented by a substantial historic drill database, have delineated five deposits of Platreef-style mineralization across a core 12-kilometer span of the project, all of which are open for expansion into adjacent targets. Multiple earlier-stage Platreef-style and reef-type targets are also being advanced across the remainder of the 32-kilometer length of the project based on strong correlations seen in soil and rock geochemistry, geophysical surveys, geologic mapping, and drilling.
About Group Ten Metals Inc.
Group Ten Metals Inc. is a TSX-V-listed Canadian mineral exploration company focused on the development of high-quality platinum, palladium, nickel, copper, cobalt, and gold exploration assets in top North American mining jurisdictions. The Company’s core asset is the Stillwater West PGE-Ni-Cu-Co + Au project adjacent to Sibanye-Stillwater’s high-grade PGE mines in Montana, USA. Group Ten also holds the high-grade Black Lake-Drayton Gold project adjacent to Treasury Metals’ development-stage Goliath Gold Complex in northwest Ontario, which is currently under an earn-in agreement with an option to joint venture whereby Heritage Mining may earn up to a 90% interest in the project by completing payments and work on the project. The Company also holds the Kluane PGE-Ni-Cu-Co project on trend with Nickel Creek Platinum‘s Wellgreen deposit in Canada‘s Yukon Territory.
Note 1: References to adjoining properties are for illustrative purposes only and are not necessarily indicative of the exploration potential, extent or nature of mineralization or potential future results of the Company’s projects.
Note 2: Magmatic Ore Deposits in Layered Intrusions—Descriptive Model for Reef-Type PGE and Contact-Type Cu-Ni-PGE Deposits, Michael Zientek, USGS Open-File Report 2012–1010.
Forward Looking Statements: This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Group Ten believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Group Ten and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Integrous- Oil & Gas- Drilling & Exploration- The Answer to Supply-Side Inflation
Crude oil at the highest price since 2008- Inventories and product prices support higher highs
Natural gas is also at a fourteen-year high- Inventories, and European prices support the continuation of a very volatile bull market
The four reasons for higher fossil fuel prices- SPR releases are a temporary band-aid
Drilling and exploration are the answer to supply-side economic woes
XOP outperforming the stock market in 2022- The trend is your best friend
Throughout most of 2021, the US Federal Reserve called the rising inflationary pressures “transitory.” Late last year, increasing consumer and producer price data convinced the central bank that the economic condition was not a temporary event. The Fed told markets it was preparing to shift to a more hawkish approach to monetary policy to address the economy’s demand-side pressures. The artificially low interest rates, liquidity, and government stimulus in 2020 and 2021 planted the inflationary seeds which sprouted during the second half of 2020, throughout 2021, and into early 2022.
In early 2022, the geopolitical landscape threw a curveball at the central bank when Russia invaded Ukraine, launching the first major war in Europe since WW II. Sanctions on Russia and Russian retaliation began to cause even more upside pressure on commodity prices as Russia is a leading producer of energy and other raw materials. China and Russia’s “no-limits” support agreement complicated matters, setting the stage for the invasion.
Crude oil and natural gas prices had already been rising by the end of 2021. The leading benchmark crude oil futures are the Brent and WTI contracts. After falling to a record low below zero in April 2020, nearby WTI crude oil futures at $75.21 per barrel. Brent futures fell to $16 per barrel, the lowest price of this century in April 2020, and closed 2021 at the $77.78 level.
Meanwhile, nearby natural gas futures dropped to $1.44 per MMBtu in June 2020 and were at the $3.73 level on December 31, 2021. The oil and gas futures markets had been rising, making higher lows and higher highs throughout the second half of 2020 and in 2021. In 2022, they took off on the upside, reaching fourteen-year highs.
Increasing inflation and post-pandemic demand created a bull market in crude oil and natural gas that turned into a perfect bullish storm in 2022. The war and a dramatic geopolitical shift made dynamics shift from demand to supply-side concerns. The Fed has few if any tools to deal with supply-side economic events, and the only answer could be increasing supplies, which is a challenge in the current environment.
Just as the Fed mischaracterized inflation as “transitory,” US and European policies addressing climate change have played a role in the ascent of hydrocarbon prices. Since energy prices are inflation’s root cause, exploration and drilling could be the only answer to address the economic condition. Fossil fuels continue to power the world, and the price action is screaming that monetary policy has taken a backseat to the energy debacle.
Crude oil at the highest price since 2008- Inventories and product prices support higher highs
Nearby NYMEX WTI futures rose to $130.50 per barrel on March 7 after Russia invaded Ukraine on February 24, and the war escalated.
Source: Barchart
The chart highlights that the WTI futures were sitting at just above the $115 level on May 27. Brent crude oil hit a high of $139.13 in early March.
Source: Barchart
The chart shows the price was at around the $119.43 per barrel level in late May 2022. The all-time 2008 peaks in WTI and Brent were at $147.27 and $147.50.
While crude oil missed an all-time high, gasoline and heating oil hit record prices in 2022.
Source: Barchart
The chart shows that gasoline futures prices reached $4.0640 per gallon wholesale in May, an all-time high. July gasoline was sitting at over the $3.90 level on May 27.
Source: CQG
Heating oil is also a proxy for distillates like diesel and jet fuels. The chart shows the spike to a record peak in distillate in April at $4.7072 per gallon wholesale. Heating oil was also over the $3.90 per gallon level on May 27.
Inventories and US production have supported prices:
Source: US Energy Information Administration
So far, in 2022, US crude oil stockpiles rose by 1.9 million barrels, but the data includes strategic stockpile releases. Meanwhile, gasoline inventories declined by 12.9 million barrels, and distillate stocks fell by 19.9 million barrels from the beginning of 2022 through May 20. Consumers require oil products, and the data supports higher prices. While US daily output rose from 11.7 to 11.9 million barrels per day in 2022, they remain below the March 2020 13.2 mbpd record peak.
Natural gas is also at a fourteen-year high- Inventories, and European prices support the continuation of a very volatile bull market
NYMEX natural gas futures fell to a twenty-five-year low in June 2020, reaching $1.432 per MMBtu.
Source: CQG
The long-term chart shows that natural gas futures moved over six times higher by May 2022, reaching a high of $9.447 per MMBtu and sitting at over the $8.70 level on May 27.
Natural gas inventories are at low levels, with the price at a fourteen-year high.
Source: EIA
At the 1.812 trillion cubic feet level on May 20, natural gas in storage across the US was 17.6% below last year’s level and 15.3% under the five-year average.
Over the past years, natural gas liquefication opened a burgeoning export market for the US energy commodity as it now travels worldwide via ocean vessels. Natural gas’s addressable market expanded far beyond the US pipeline network.
While US natural gas exports have sold LNG to Asian consumers under long-term contracts, the war in Europe and Russian retaliation for sanctions have sent European natural gas prices to record levels.
Source: Barchart
The chart shows that ICE UK natural gas futures rose to the 800 pounds per 1,000 thermals level in March 2022. Before 2021, the all-time high was at the 117 level, and at the 171.61 level on May 27, the price was well above the pre-2021 record peak. Russian natural gas travels by pipeline to European consumers. The Russians have demanded payment in rubles and have cut off “unfriendly” countries that support Ukraine. Moreover, Sweden and Finland’s plans to join NATO only increase Russian export bans, and European consumers are turning to the US for supplies. The bottom line is that
US natural gas has become an international energy market, and the supply shortage is lifting worldwide prices.
In the US, natural gas is heading into the volatile hurricane season. In 2005 and 2008, Hurricanes Katrina and Rita wreaked havoc along the Louisiana coast. The NYMEX futures delivery point is the Henry Hub in Erath, Louisiana, along the Gulf Coast hurricane corridor. Storms in 2008 and 2005 lifted the price to $13.694, and $15.65per MMBtu, respectively. Even if the natural gas market makes it through the annual hurricane season without category four or five storms, the 2022/2023 winter season in worn-torn Europe will likely push prices higher, with $10+ NYMEX futures prices on the horizon.
The four reasons for higher fossil fuel prices- SPR releases are a temporary band-aid
At least four factors favor higher oil and gas prices in late May 2022:
The Biden administration’s green energy initiative favors alternative and renewable fuels while inhibiting fossil fuel production. The US energy policy since early 2021 handed the pricing power to OPEC, the international oil cartel, and Russia. After years of suffering under low prices and lower US demand because of US shale oil and gas production, OPEC+ now controls supplies and owes the US and European consumers no favors. US requests for production increases fell on deaf ears in Riyadh, Moscow, and other production capitals.
The February 4 “no-limits” agreement between China and Russia creates a bifurcation of the world’s nuclear powers, with the US and Europe on the other side. Russia’s invasion of Ukraine could lead to Chinese reunification attempts with Taiwan. Hostilities and geopolitical tensions make hydrocarbons a political tool for the Russians and allied world oil and gas producers.
The crude oil and natural gas prices have been rising despite a COVID-19 lockdown in China. When the Chinese economy reopens, the global energy demand will likely rise, putting more upside pressure on oil and gas prices. Meanwhile, a historic heatwave in India is causing increased energy demand in the world’s second-most populous country. India has not cooperated with the US and Europe with sanctions on Russia.
Even if the US were to shift back to a drill-baby-drill and frack-baby-frack approach to traditional energy production, labor shortages and higher input and equipment prices put upside pressure on production costs. Moreover, the Biden administration has doubled down on its green initiatives, so the potential for production increases remains low.
Instead of increasing production over the past months, President Biden released a historical level of crude oil from the strategic petroleum reserve. Past SPR releases have not weighed on the price in challenging times. Moreover, the US will eventually need to replace its resources, leading to buying in the oil market. The administration released 30 million barrels in early 2022 and has been releasing one million barrels per day from the SPY. The price remains around the $115 per barrel level as the SPR sales have been a short-term, ineffective band-aid. Meanwhile, crack spreads, a real-time demand indicator rose to new all-time highs in May. The level of refining margins are a warning sign that higher crude oil prices are on the horizon.
Drilling and exploration are the answer to supply-side economic woes
The Fed is increasing interest rates and reducing its balance sheet to address the highest inflation in over four decades. The central bank’s toolbox contains monetary policy tools that deal with the economy’s demand-side. In 2020, slashing interest rates and government stimulus encouraged borrowing and spending and inhibited saving.
The Fed now faces supply-side economic factors caused by the war in Ukraine, sanctions, and geopolitical bifurcation. There are few, if any, tools that can deal with the supply-side issues that will continue to fuel inflation. While core inflation data excludes food and energy, food and energy are critical inflationary factors that impact individuals and businesses. Moreover, energy is a crucial cost of goods sold input in all sectors of the economy. Therefore, the only answer to dealing with supply-side inflationary pressures in the current environment is to increase supplies. Just as the Fed woke up from its “transitory” trance, the administration will likely realize that encouraging fossil fuel exploration and drilling is the only route out of the current inflationary spiral. The US is blessed with rich oil reserves in the shale regions, Alaska, and other oil-producing areas. The Marcellus and Utica shale contains quadrillions of cubic feet of natural gas. A hostile Russia and China could cause a reversal of the current path of US energy policy. Rising oil and gas prices will eventually choke all economic growth, and the administration may have no choice but to put climate change initiatives to the side while it deals with the inflationary spiral.
XOP outperforming the stock market in 2022- The trend is your best friend
The war, rising interest rates, a strong US dollar, increasing geopolitical turmoil, and other factors have weighed on the stock market in 2022.
Source: Barchart
The S&P 500 is the most diversified US stock market index. After closing at 4,766.18 on December 31, 2021, the index was 12.8% lower at 4,158.24 on May 27.
The S&P Oil & Gas Exploration and Production ETF product (XOP) holds many of the top US companies that explore, drill, and produce crude oil and natural gas, including:
While the S&P 500 is 12.8% lower in 2022, the XOP performance has been impressive:
Source: Barchart
The XOP closed at $95.87 at the end of 2021. At the $157.04 level on May 27, the ETF was over 63.8% higher this year.
Existing oil and gas exploration, drilling, and production companies have experienced a profit bonanza in 2022, but they are struggling to meet the growing worldwide hydrocarbon requirements. The bull market in oil and gas opens the door for newcomers in exploration and drilling. Dealing with inflation requires addressing the root cause, energy shortages, and high prices. An epiphany that shifts US energy policy is the path of fighting inflation. The supply-side problems are beyond the Fed’s reach, and SPR releases are only a band-aid on a worldwide gapping ax wound.
Written By: Andrew Hecht, on behalf of Maurice Jackson of Proven and Probable.
Any investment involves substantial risks, including, but not limited to, pricing volatility, inadequate liquidity, and the potential complete loss of principal. This document does not in any way constitute an offer or solicitation of an offer to buy or sell any investment, security, or commodity discussed herein, or any security in any jurisdiction in which such an offer would be unlawful under the securities laws of such jurisdiction.
Within the Arctic region’s 21 million square kilometers, eight countries — Canada, Russia, the United States, Denmark, Sweden, Finland, Norway, and Iceland — have exclusive economic rights to resources up to 200 nautical miles from their shores.
But as rising ocean temperatures disrupt shorelines and shipping routes, heavy hitters like China are eying assets and deep seaports along Canada’s Northwest Arctic Passage.
Potential at the 60th Parallel
Global gold production is expected to grow at a compound annual rate of more than 3% through 2026, with Canada being the largest contributor to the increase. Over the forecast period 2022-2026, Canadian gold mine production is expected to grow at a compound annual growth rate (CAGR) of 18.7% to reach 15.5 Moz.
But action is needed to capitalize on these trends. “If there are no new mines coming online in the Northwest Territories, the population, taxes, and government needed to assert Canada’s northern border dwindles creating a potential power vacuum in the arctic,” said Rover Metals Chief Executive Officer and Director Judson Culter.
With its strategic proximity to the key city of Yellowknife, Rover’s 100%-owned Cabin Gold asset and minority owned Up Town Gold asset could be the catalysts that build a critical mass of population, infrastructure, employment, and income, he said.
Cabin Gold Project
Cabin Gold is located 110 km northwest of the city of Yellowknife, close to hydro lines and to the Tlicho All Season Road (TASR), the newest corridor of mining infrastructure in the Northwest Territories. Two new gold mines along the TASR are scheduled to see advanced-stage mine development over the next five years: Fortune Minerals Ltd.’s (FT:TSX) NICO Project and Nighthawk Gold Corp.’s (NHK:TSX.V) Indin Lake project.
Supported by a grant from the government of the Northwest Territories’ Mining Incentive Program, under a mandate to ensure that mineral resource exploration and development continues to flourish in the north, Rover commenced Phase 3 exploration in Cabin Gold in March 2022.
“The project will be a success even if we prove up only 500,000 ounces of gold because we can do a milling offtake agreement with either Nighthawk or Fortune,” Culter said.
New drilling results are expected sometime this summer, but for now, Culter considers Sabina Gold & Silver Corp.’s (SBB:TSX; RXC:FSE; SGSVF:OTCPK) Back River project to be “the closest geological analog in terms of how we’re going to follow on our discoveries. Plus, we’re in the same neighborhood and with relatively the same type of rocks.”
Up Town Gold Project
Located on the outskirts of the city limits of the city of Yellowknife, this Archean lode-gold prospect adjoins the historic 7.2 Moz Giant Mine gold deposit and Gold Terra Resource Corp.’s (YGT:TSX.V; YGTFF:OTC; TXO:FRANKFURT) 2.2 Moz Yellowknife City Gold Project.
“We believe the Up Town Gold project has the potential for a million-plus ounces,” Culter said.
If exploration continues to be successful in proving up ounces of gold, Up Town has a high chance of resale within the next two years. Newmont Corp. (NEM:NYSE) is active in the Yellowknife area, having optioned their gold claims at the southern city limits to Gold Terra in 2021.
In addition, Culter said, “A new producing gold mine pushes the demand for new exploration and discoveries in the northern territories, paving the way for shipping and airborne logistics, new jobs, and the potential for new highways and hydro infrastructure. For every new head hired into a junior mining company, there’s a multiplier of two and a half new jobs hired into the supply chain that supports that company.”
‘We’re Pretty, Pretty Confident’
With assets in all the right places, Rover Metals is relatively under-appreciated and undervalued, Culter said.
“We’re at the very bottom of the Pierre Lassonde discovery curve, with only one direction but moving up ,” he said. “We need another $4 million or $5 million in drilling, but over the next two years, there’s critical ounces and value in our Cabin Gold project.”
The company has just raised $2 million dollars at a time when other junior miners have struggled to raise anything.
“Here’s a company with high-grade gold resources in the right neighborhood. We’re fully financed, with drill results coming, so we’re pretty, pretty confident,” Culter said. “I think investors should be taking note.”
Newsletter writer Clive Maund agreed, writing when the share price was $0.04 that Rover Metals was an immediate speculative buy. The price hovered at $0.04 on Monday.
“This, therefore, looks like a good low price to pick it up and this is said in the knowledge that it could temporarily break even lower,” he wrote. “As it is only at 4 cents now, it can’t drop much lower.”
Rover Metals has a market cap of $5.51 million and 157.44 million shares outstanding. It trades in a range of $0.12 and $0.03 over 52 weeks.
Want to be the first to know about interesting Gold investment ideas? Sign up to receive the FREE Streetwise Reports’ newsletter.
1) Wendy Hubbert and Steve Sobek compiled this article for Streetwise Reports LLC and provide services to Streetwise Reports as an independent contractor/employee, respectively. They or members of their household own securities of the following companies mentioned in the article: None. They or members of their 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: Rover Metals Corp. 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) 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 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.
4) 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 Rover Metals Corp. and Gold Terra Resource, a company mentioned in this article.
Vancouver, British Columbia–(Newsfile Corp. – June 7, 2022) – Couloir Capital is pleased to announce it has published a new research note on Metallic Minerals Corp. (TSXV: MMG) (OTCQB : MMNGF) (“MMG” or “Company”). The update report is titled, “Inaugural Copper Resource for La Plata, Strong Drilling Results at Keno Silver.”
Report excerpt: “MMG has significantly advanced its core properties Keno Silver and La Plata, with key developments including:
Announcement of a maiden resource for the La Plata Project located in Colorado, as well as final results from the drilling campaign completed in December 2021.
Announcement of further results from the 2021 field program at Keno Silver, specifically for East Keno and Formo.
The developments, especially the inaugural resource estimate for La Plata, are catalytic events that fundamentally change aspects of our valuation thesis for MMG. With the discovery of pounds in the ground, we are able to apply a valuation of MMG that incorporates the intrinsic value of a more material asset base, reducing the risk associated with a valuation based primarily on less tangible metrics. With a resource discovery and a private placement underway, we believe MMG will look to build on recent strength and maintain momentum going into the rest of 2022.”
Metallic Minerals Corp. is a growth-stage exploration company, focused on high-grade silver and gold projects in underexplored, brownfields mining districts of North America. Our objective is to create shareholder value through a systematic, entrepreneurial approach to exploration in the Keno Hill silver district, La Plata silver-gold-copper district, and Klondike gold district through new discoveries and advancing resources to development. Metallic Minerals has consolidated the second-largest land position in the historic Keno Hill silver district of Canada’s Yukon Territory, directly adjacent to Alexco Resource Corp’s operations, with nearly 300 million ounces of high-grade silver in past production and current M&I resources. In addition, exploration at the recently acquired La Plata silver-gold-copper project in southwestern Colorado is targeting a silver and gold-enriched copper porphyry and adjacent high-grade silver and gold epithermal systems. The Company also continues to add new production royalty leases on its holdings in the Klondike gold district in the Yukon. All three districts have seen significant mineral production and have existing infrastructure, including power and road access. Metallic Minerals is led by a team with a track record of discovery and exploration success on several major precious and base metal deposits, as well as having large-scale development, permitting and project financing expertise.
About Couloir Capital Ltd.
Couloir Capital Ltd. is an investment research firm comprised of a team of veteran investment professionals dedicated to providing world-class opportunities in the natural resource exploration and development sectors along with real and alternative asset classes and strategies.
For further information, please contact:
Rob Stitt, Managing Director, Couloir Capital Ltd.
Disclosure: Couloir Capital and/or affiliated companies holds shares or warrants in the Company. The warrants have an exercise price of $0.60 and expire in August 2022.
A service agreement exists between Couloir Capital and the Company.
I have been waiting for a couple of years to write this story. For years Lion One has been my biggest holding because the story is so simple to understand. I’ve written half a dozen pieces on the company and the last one I wrote was seven months ago. I called it, Buying Lion One is like Stealing. And few listened. The shares were $.97 at the time. Between then and now the stock has barely edged higher in spite of excellent results such as their May 31 press release showing 584 grams of gold per tonne over 0.30 meters.
I love the chat boards. You get to see just how stupid some people can be in their failed attempts to look smart. Here is what someone said on the CEO.CA Lion One board in response on May 31st.
@NabtaPlayaEgypt Tuvatu continues to be restricted to returning very narrow (1/3 meter average) high grade shoots which unless such systems are spaced relatively close en-echelon, may not be economic to mine. At the rate that drilling returns are coming in, that it could take another 2-3 years minimum to create a significant resource update.
Someone wrote me privately and asked what I thought about the comment. Here is how he posted my response.
@WisGuy1 BM response: “Absolute rubbish. There is a similar mine a stone’s throw away that has produced millions of ounces of gold of similar grade and thickness.”
(Click on images to enlarge)
Investing in Lion One at a profit is about as difficult as learning how to fall off a bike. If you can handle that, you can make money on Lion One, because there is an identical age and grade alkaline deposit located about 40 km to the Northeast called the Vatukoula Gold mine. In production from 1932 the Vatukoula mine has produced over seven million ounces of gold and shows a resource of an additional four million ounces.
The deposits are identical in age, grade and type of deposit. So anyone saying you can’t mine a 584-gram intercept of gold over 0.30 meters is blowing smoke.
Lion One is fully permitted to go into production. They built their own assay lab and it is run to industry standards so assays that might take 2-3 months in Canada take 2-3 days in Fiji. Lion One plans on production to begin in Q3/Q4 of 2023.
Lion One has a current 43-101 showing just over 910,000 ounces of gold at an average of 5.61 g/t to 5.8 g/t. I had a short conversation with Wally Berukoff about the production plans. He is shooting for annual numbers of around 100,000 ounces of gold. That is pretty much the magic number. The market will not take any company seriously below that number.
Because of silly Covid restrictions put in by the government of Australia and Fiji, Lion One has been pretty much delayed for two years. The stock hit a high of $2.67 in July of 2020 based on excellent results before drifting lower to a low a month ago of $.88. I’ll stand by every word I said in my piece from November of last year. Buying Lion One is like stealing. They have the goods.
Wally realized the project could not be run remotely from Perth so last year he put in a brilliant on site team in Fiji. If you watch this video, I think you will agree with me in saying that this is one of the most professional teams I have ever seen in twenty years.
Currently the company has about $34 million in cash in the treasury. They have six drills turning with two more on order. The incredible latest hole shows they have tapped into a feeder pipe. They will continue to drill to upgrade and increase the near surface gold resource for near term production but I expect them to pincushion the feeder to determine all its limits.
The worst thing that can happen to any stock is for shareholders to become bored. Once they do, they bail out at the first opportunity to break even. While the stock going up 17.5% on the news with over two million shares trading on the news, I suspect that was a lot of weak hands selling. Look for a couple of quiet days without a lot of price movement and then for the shares to go higher, perhaps much higher. The incredible results of the past two years tell me the high of $2.67 will be revisited soon. Lion One is still cheap.
Until the news of the incredible latest intercept hit the market my personal shares have been underwater for most of the last two years. My average price was $1.18 and it took this news to bring me into profit. But I have believed this story since I first heard it and continued to add to my position as the price dropped. I have never sold a single share and right now I am really glad.
Lion One is an advertiser. I love the company; I love the management and the team that Wally has put together. It will be a mine. It will be profitable and it will be a hell of a lot bigger than anyone imagines today. I expect majors will be sniffing around soon wanting to pick up a piece of it while it’s still cheap. That isn’t going to last long. As with the case of Newfound Gold, intercepts similar to this do not occur in a vacuum. There will be more record-breaking hits in the future.
I own shares and have participated in PPs in the past and will in the future. I am biased so do your own due diligence.
Lion One Metals LIO-V $1.34 (Jun 06, 2022) LOMLF OTCQX 156 million shares Lion One website
TORONTO, June 07, 2022 (GLOBE NEWSWIRE) — Labrador Gold Corp. (TSX.V:LAB | OTCQX:NKOSF | FNR: 2N6) (“LabGold” or the “Company”) is pleased to announce results from seven drill holes, including the first hole drilled at the Golden Glove Target in the south end of its 100% owned Kingsway project near Gander, Newfoundland. These holes were drilled as part of the Company’s ongoing 100,000 metre drill program at Kingsway.
Hole K-22-150 intersected 6.22 g/t Au over 4 metres that included 10.31 g/t Au over 2m at a vertical depth of 246 metres. This intersection is located approximately 160 m south of the Golden Glove discovery outcrop where six grab samples, three of which contained visible gold, assayed between 2.99 g/t and 338.1 g/t Au (see news release dated September 21, 2021). This intersection at Golden Glove is the fourth of four targets drilled by LabGold to return significant gold intercepts.
While there are many similarities between the mineralization observed at Golden Glove and that at Big Vein, a significant difference is that while Big Vein occurs on the west side of the Appleton Fault Zone, Golden Glove is situated on the East Side. This is the first drilling on the east side of the fault at the Kingsway Property.https://embed.fireplace.yahoo.com/embed?ctrl=Monalixa&m_id=monalixa&m_mode=document&site=sports&os=android&pageContext=%257B%2522ctopid%2522%253A%25221542500%253B1577000%2522%252C%2522hashtag%2522%253A%25221542500%253B1577000%2522%252C%2522wiki_topics%2522%253A%2522Labrador%253BFault_(geology)%253BGold%2522%252C%2522lmsid%2522%253A%2522a0770000002m0AbAAI%2522%252C%2522revsp%2522%253A%2522globenewswire.com%2522%252C%2522lpstaid%2522%253A%252256728853-316a-31bc-a98d-be02627be93e%2522%252C%2522pageContentType%2522%253A%2522story%2522%257D
Six holes drilled at the Pristine target intersected near surface gold mineralization over significant widths in the Doyle Zone, including 1.86 g/t Au over 8m in hole K-22-144 and 1.75 g/t over 20.2m that included 2.76 g/t Au over 6.2m in Hole K-22-139.
“We are very pleased with the results from the first hole drilled at Golden Glove especially considering that the intersection is approximately 160m south of the discovery outcrop. This indicates excellent potential for the area between this hole and the outcrop and we are certainly looking forward to the results from the remaining five holes drilled there to date,” said Roger Moss, President and CEO of LabGold. “The continued near surface gold intercepts extending the strike length of the Doyle Zone are nice to see especially those with wider intersections. We are encouraged by the successful drilling of our four initial targets, all of which have delivered significant gold mineralization. We will continue to test the new targets developed along the Appleton Fault Zone through the summer, starting with the CSAMT target approximately eight kilometres northeast of Big Vein.”
Hole ID
From (m)
To (m)
Interval (m)
Au (g/t)
Zone
K-22-152
66
70.24
4.24
1.78
Doyle
87
90
3
2.24
93
96
3
1.17
K-22-150
348
352
4
6.22
Golden Glove
including
348
350
2
10.31
K-22-149
13
14
1
1.27
Doyle
K-22-146
57
57.95
0.95
1.12
Doyle
K-22-144
64
72
8
1.86
Doyle
including
69
71
2
3.32
K-22-143
92.2
93
0.8
1.42
Doyle
K-22-139
57.2
77.4
20.2
1.75
Doyle
including
62.2
68.4
6.2
2.76
89.4
92.4
3
1.59
Table 1. Summary of Assay Results. All intersections are downhole length as there is insufficient Information to calculate true width.
True widths of the reported intersections have yet to be calculated. Assays are uncut. Samples of HQ split core are securely stored prior to shipping to Eastern Analytical Laboratory in Springdale, Newfoundland for assay. Eastern Analytical is an ISO/IEC17025 accredited laboratory. Samples are routinely analyzed for gold by standard 30g fire assay with atomic absorption finish as well as by ICP-OES for an additional 34 elements. Samples containing visible gold are assayed by metallic screen/fire assay, as are any samples with fire assay results greater than 1g/t Au. The company submits blanks and certified reference standards at a rate of approximately 5% of the total samples in each batch.
Qualified Person
Roger Moss, PhD., P.Geo., President and CEO of LabGold, a Qualified Person in accordance with Canadian regulatory requirements as set out in NI 43-101, has read and approved the scientific and technical information that forms the basis for the disclosure contained in this release.
The Company gratefully acknowledges the Newfoundland and Labrador Ministry of Natural Resources’ Junior Exploration Assistance (JEA) Program for its financial support for exploration of the Kingsway property.
About Labrador Gold Labrador Gold is a Canadian based mineral exploration company focused on the acquisition and exploration of prospective gold projects in Eastern Canada.
In early 2020, Labrador Gold acquired the option to earn a 100% interest in the Kingsway project in the Gander area of Newfoundland. The three licenses comprising the Kingsway project cover approximately 12km of the Appleton Fault Zone which is associated with gold occurrences in the region, including those of New Found Gold immediately to the south of Kingsway. Infrastructure in the area is excellent located just 18km from the town of Gander with road access to the project, nearby electricity and abundant local water. LabGold is drilling a projected 50,000 metres targeting high-grade epizonal gold mineralization along the Appleton Fault Zone following encouraging early results. The Company has approximately $28 million in working capital and is well funded to carry out the planned program.
The Hopedale property covers much of the Florence Lake greenstone belts that stretches over 60 km. The belt is typical of greenstone belts around the world but has been underexplored by comparison. Work to date by Labrador Gold show gold anomalies in rocks, soils and lake sediments over a 3 kilometre section of the northern portion of the Florence Lake greenstone belt in the vicinity of the known Thurber Dog gold showing where grab samples assayed up to 7.8g/t gold. In addition, anomalous gold in soil and lake sediment samples occur over approximately 40 km along the southern section of the greenstone belt (see news release dated January 25th 2018 for more details). Labrador Gold now controls approximately 40km strike length of the Florence Lake Greenstone Belt.
The Company has 159,199,026 common shares issued and outstanding and trades on the TSX Venture Exchange under the symbol LAB.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements: This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as actual results of current exploration programs, the general risks associated with the mining industry, the price of gold and other metals, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on such forward-looking statements.
North Vancouver, British Columbia–(Newsfile Corp. – June 6, 2022) – Lion One Metals Limited (TSXV: LIO) (OTCQX: LOMLF) (ASX: LLO) (“Lion One” or the “Company”) is delighted to announce the discovery of a major new feeder structure at its Tuvatu Alkaline Gold Project in Fiji. Hole TUG-141, targeting a complex network of high-grade structures called the 500 Zone, has encountered the longest high-grade intercept yet recorded at Tuvatu, 20.86 g/t Au over 75.9m, including 43.62 g/t Au over 30.0m which includes 90.35 g/t Au over 7.2m. The new discovery is located at depth beneath the current resource fully within the permit boundaries of the Tuvatu mining lease.
High-grade intercepts from TUG-141 include:
20.86 g/t Au over 75.9m from 443.4-519.3m
including 35.25 g/t Au over 37.5m from 471.3-508.8m
including 43.62 g/t Au over 30.0m from 477.6-507.6m
including 90.35 g/t Au over 7.2m from 494.4-501.6m
and notable individual high-grade assay intervals including:
– 138.15 g/t Au over 0.30m from 450.9-451.2m
– 396.16 g/t Au over 0.30m from 479.1-479.4m
– 103.54 g/t Au over 0.30m from 498.6-498.9m
– 340.07 g/t Au over 0.30m from 498.9-499.2m
– 600.42 g/t Au over 0.30m from 499.5-499.8m
– 244.37 g/t Au over 0.30m from 502.5- 503.1m
– 230.18 g/t Au over 0.30m from 507.3-507.6m
– 105.58 g/t Au over 0.30m from 518.7-519.0m
Lion One CEO, Walter Berukoff, stated: “Like the initial discovery of the high-grade 500 Zone drilled two years ago, I believe this new robust high-grade gold feeder mineralization encountered by hole TUG-141 represents a substantial discovery for Lion One. The notable high grades and continuity of mineralization of this intercept demonstrate Tuvatu’s potential to become a large-scale, high-grade underground gold mine. I have long encouraged our team to find that “gold room” at Tuvatu, and hole TUG-141 leads me to believe they have found it. We have only to look at other notable large alkaline Au deposits as direct analogues to better understand what this latest discovery tells us, and it is clear that the discovery of a major high-grade feeder such as this should be viewed as very promising. I am confident that Tuvatu will one day fall in the ranks of notable multi-million ounce Au deposits such as Porgera and Vatukoula. I commend our team on this truly outstanding discovery and I look forward to continued successful execution of both our exploration strategy to realize growth at Tuvatu and our development strategy targeting the commencement of gold production in the second half of 2023.”
Lion One Senior VP of Exploration, Sergio Cattalani, commented: “The mineralized intercepts reported by TUG-141 represent a highly significant development. The grades and continuity observed by the intercepts in hole TUG-141 are of a magnitude not previously documented at Tuvatu, and highlights the largely untapped potential of this deposit. The significance of having identified what may be a new principal feeder conduit for Tuvatu confirms the model that has driven this deep exploration program since the discovery of hole TUDDH-500 in July 2020. Our immediate priority is to follow up of this significant discovery with additional drilling in what remains a relatively poorly drilled portion of the Tuvatu system. Lion One, is now more than ever, convinced of the potential of Tuvatu to become a prominent, multi-million ounce Au deposit at the top of the Au grade distribution worldwide.”
Lion One Technical Advisor, Quinton Hennigh, commented: “Alkaline gold systems tend to be deep-rooted and very structurally complex. Exploring them can be analogous to drilling a tree from the top down. In the shallow part of the system, one finds the upper “branches,” or gold-bearing lodes, but as exploration persists to depth, bigger and bigger “branches,” or lodes, are encountered ultimately leading to the “trunk,” the feeder. The way this remarkable discovery at Tuvatu has unfolded is quite similar to the experience at Porgera, where after approximately ten years of diligent drilling, the high-grade Romane Fault Zone was discovered beneath a myriad of smaller lodes. What is most exciting about this discovery is that now that we have a clear idea where the deep fluid-tapping conduit of this system is located, we can effectively chase it to depth, and alkaline gold systems are known to persist to great depths, sometimes as deep as 2 km. Considering this intercept is only approximately 500m below surface, this discovery is wide open for growth at depth.”
TUG-141 was drilled in the area between modelled 500 Zone lodes 500A, 500C and 500F (Figure 1) where it intersected continuous high-grade Au mineralization grading 20.86 g/t Au over 75.9m that is predominantly hosted by intensely altered, fractured and brecciated andesite. The highest grade core of this zone is characterized by hydrothermal breccia displaying extreme silicification, potassic alteration and sulfidation with regular occurrences of visible gold (Figure 2). In addition, the presence of abundant roscoelite (a vanadium mica mineral) is very encouraging and is a mineral synonymous with the high-grade zones of world-class alkali gold systems such as Cripple Creek in Colorado and Porgera in Papua New Guinea. Some fragments within portions of this breccia are visibly milled, or rounded, indicating vigorous fluid flow. Observations of fracture patterns and textures ranging from incipient and in-situ to full-on brecciation (Figure 2) point to this zone being a dilational breccia that likely formed along a major structural intersection where stresses were being released at the time of mineralization. Rapid depressurisation accompanying seismic movement along such a dilational zone would allow rapid ascent of hydrothermal fluids resulting in silicification, K-metasomatism, sulfidation and rapid precipitation of Au. Textures of minerals observed in veins and open spaces is consistent with a rapid depositional regime.
Lion One is concurrently undertaking a two-pronged exploration drill campaign: 1) shallow infill drilling to enhance definition of its current resource in preparation for mine planning, and 2) deep drilling focussed on better understanding the geometry and extent of the underlying high-grade feeder network. As part of the latter program, hole TUG-141 targeted the upper portion of the 500 Zone at depths between approximately 450-550m where it is projected to connect with the base of lodes making up the Inferred resource. As discussed above, TUG-141 drilled into a very wide and exceptionally high-grade zone, 20.86 g/t Au over 75.9m, cored by hydrothermal breccia (Figure 2). Such a zone of extreme fracturing and brecciation has never before been observed at Tuvatu. It is significant to note that the bulk of this mineralized interval is hosted within andesite rather than by intrusive monzonite, the typical host rock for many lodes at Tuvatu. The significance of this observation has yet to be determined.
Furthermore, it is also notable that the nearest drill holes to TUG-141 are TUG-135 (70m below), TUG-136 (45m to the E), and TUG-138 (60m to the W), indicating that there is considerable space for a substantial increase in the ultimate size of the feeder conduit. All three of these holes have returned previously reported bonanza grade mineralization, similar in tenor and texture to that in TUG-141, including:
24.92 g/t Au over 3.70m from 415.7-419.4m in hole TUG-135 including 159.3 g/t Au over 0.30m;
87.83 g/t Au over 1.5m from 445.1-446.6m in hole TUG-136 including 108.41 g/t Au over 0.60m;
and 23.14 g/t Au over 3.0m from 571.5-574.5m in hole TUG-138 including 118.6 g/t Au over 0.30m.
The area remains open at depth. This target has now become of utmost importance for follow up drilling.
In addition to the impressive intercept of 20.86 g/t Au over 75.9m discussed above, hole TUG-141 encountered numerous other significant mineralized intercepts both above and below this interval including:
Above the high-grade intercept
3.93 g/t Au over 5.7m from 101.7-107.4m including 12.17 g/t Au over 0.30m
4.48 g/t Au over 10.2m from 109.8-120.0m including 38.27 g/t Au over 0.30m
10.98 g/t Au over 1.5m from 291.3-292.8m including 17.20 g/t Au over 0.60m
5.63 g/t Au over 19.2m from 311.7-330.9m including 20.50 g/t Au over 3.00m from 322.2-325.2m, which includes 71.01 g/t Au over 0.30m and 13.75 g/t Au over 0.60m
3.33 g/t Au over 4.50m from 366.3-370.8m including 7.40 g/t Au over 1.20m
11.38 g/t Au over 2.1m from 380.7-382.8m including 22.30 g/t Au over 0.90m
1.97 g/t Au over 13.5m from 391.8-405.3m including 15.25 g/t Au over 0.30m
2.82 g/t Au over 3.90m from 425.1-429.0m including 8.47 g/t Au over 0.30m
Below the high-grade intercept
3.08 g/t Au over 1.50m from 524.1-525.6m including 7.50 g/t Au over 0.30m
In aggregate, all mineralized intercepts reported from hole TUG-141 total 1,909 g/t Au-meters.
Complete results, received to date, from hole TUG-141 are summarized below in Table 1. This is the first drill hole in this part of the Tuvatu alkaline gold system, and as such, orientation and true thicknesses of mineralized intercepts discussed above are not known at this time. Further drilling is required to better understand this new discovery. At the time of writing, hole TUG-141 is still being drilled, and is currently >600m in depth with other mineralised structures yet to be assayed.
Figure 1. Plan view (upper) and vertical section looking E (lower) of the trace of TUG-141 and selected drill holes relative to the 500 Zone lodes modeled to date. TUG-141 was drilled from underground along the Tuvatu exploration decline. The traces of known lodes UR2 and UR4, and modelled lodes of the 500 Zone feeder are shown in red.
Figure 2. Compilation of photographs from TUG-141. (A) Abundant visible gold grains (0.2-2mm) in highly altered potassium metasomatized groundmass and roscoelite. (B) Visible gold (~2mm grains) associated with coarse pyrite in a silicified breccia. (C & D) Intensely silicified and pyritized andesite with microfractures of visible gold (~0.5mm grains).
Figure 2 (continued). (E) Vuggy breccia with coarse pyrite and silicified-sulfidized ground mass. Breccia clasts are angular to sub-rounded. (F) Coarse pyrite breccia with silicified-sulfidized ground mass. (G) Network fracture stockwork ~1-5mm veins with two generations of pyrite. The clasts are highly altered silicified andesite, with the veins containing quartz-pyrite. (H) Network fracture stockwork veins at multiple angles, with intense silicification, quartz-carbonate infill and pyrite.
Mineralization is observed as two generations of pyrite; an earlier bright euhedral pyrite that forms coarse crystals in the core of the veins and breccia, and a darker brownish, spongy pyrite that typically forms extremely fine-grained encrustations or overgrowths on earlier pyrite and wallrock fragments, as well as lining the edges of most veins (Figure 2). Quartz occurs commonly as bluish grey, amorphous to locally colloform silica. Open space vuggy textures are common, as are visible gold grains. Highest grades (up to 600 g/t Au) appear to be associated with an interval of intense pervasive silicification and sulfidation by up to 30% or more extremely fine-grained pyrite developed throughout the host rock, giving the rock an overall massive chocolate brown appearance (Figure 2). The intensity of replacement suggests this is a zone of very high and sustained fluid flux.
Table 1: Table showing all drilling intervals returning >0.5 g/t Au for hole TUG-141. Intervals > 3.0 g/t Au, which is the cutoff grade used for the current resource, are shown in red, and intervals >9.0 g/t Au, which is the average grade of the resource, are bolded.
Sample ID
From (m)
To (m)
Interval (m)
Grade (g/t Au)
TUG08584
71.7
72
0.3
0.96
TUG08535
101.7
102
0.3
3.96
TUG08536
102
102.3
0.3
12.17
TUG08537
102.3
102.6
0.3
5.35
TUG08538
102.6
102.9
0.3
1.42
TUG08539
102.9
103.2
0.3
3.09
TUG08541
103.5
103.8
0.3
1.19
TUG08542
103.8
104.1
0.3
8.64
TUG08543
104.1
104.4
0.3
7.67
TUG08544
104.4
104.7
0.3
7.56
TUG08545
104.7
105
0.3
7.90
TUG08546
105
105.3
0.3
3.53
TUG08548
105.6
105.9
0.3
0.60
TUG08549
105.9
106.5
0.6
4.83
TUG08452
107.1
107.4
0.3
1.42
TUG08456
109.8
110.1
0.3
15.41
TUG08457
110.1
110.4
0.3
0.74
TUG08458
110.4
110.7
0.3
1.12
TUG08459
110.7
111
0.3
5.28
TUG08460
111
111.3
0.3
0.80
TUG08462
111.6
111.9
0.3
2.66
TUG08463
111.9
112.2
0.3
1.45
TUG08464
112.2
112.5
0.3
1.22
TUG08466
112.5
112.8
0.3
1.50
TUG08467
112.8
113.1
0.3
2.67
TUG08468
113.1
113.4
0.3
3.47
TUG08469
113.4
113.7
0.3
2.92
TUG08470
113.7
114
0.3
2.93
TUG08471
114
114.3
0.3
8.74
TUG08473
114.6
114.9
0.3
7.36
TUG08474
114.9
115.5
0.6
0.90
TUG08475
115.5
115.8
0.3
7.20
TUG08476
115.8
116.1
0.3
3.14
TUG08477
116.1
116.4
0.3
0.92
TUG08479
116.7
117
0.3
3.62
TUG08481
117
117.3
0.3
15.85
TUG08482
117.3
117.6
0.3
2.06
TUG08483
117.6
117.9
0.3
1.95
TUG08484
117.9
118.2
0.3
0.58
TUG08485
118.2
118.5
0.3
5.51
TUG08486
118.5
118.8
0.3
6.35
TUG08487
118.8
119.1
0.3
38.27
TUG08488
119.1
119.4
0.3
3.02
TUG08489
119.4
119.7
0.3
1.41
TUG08490
119.7
120
0.3
2.19
TUG08494
122.4
122.7
0.3
1.35
TUG08946
213.6
213.9
0.3
2.11
TUG08947
213.9
214.2
0.3
0.97
TUG08948
214.2
214.5
0.3
3.03
TUG09446
214.5
214.8
0.3
0.82
TUG08949
214.8
215.1
0.3
1.50
TUG09401
215.1
215.4
0.3
1.61
TUG09402
215.4
215.7
0.3
1.75
TUG09407
216.9
217.2
0.3
3.22
TUG09408
217.2
217.5
0.3
0.18
TUG09409
217.5
217.8
0.3
0.62
TUG09423
222.9
223.2
0.3
0.72
TUG09432
226.5
226.8
0.3
1.41
TUG09444
233.4
233.7
0.3
1.32
TUG09445
233.7
234
0.3
3.13
TUG09447
234
234.3
0.3
6.30
TUG09448
234.3
234.6
0.3
2.08
TUG09529
274.8
275.1
0.3
0.77
TUG09536
276.6
276.9
0.3
0.59
TUG09540
277.8
278.1
0.3
0.64
TUG09566
291.3
291.6
0.3
14.77
TUG09567
291.6
291.9
0.3
4.01
TUG09568
291.9
292.2
0.3
16.55
TUG09569
292.2
292.5
0.3
17.85
TUG09570
292.5
292.8
0.3
1.75
TUG09582
299.1
299.4
0.3
2.12
TUG09583
299.4
299.7
0.3
1.94
TUG09584
299.7
300
0.3
0.63
TUG09585
300
300.3
0.3
1.13
TUG09586
300.3
300.6
0.3
0.99
TUG09587
300.6
300.9
0.3
0.79
TUG09588
300.9
301.2
0.3
4.31
TUG09591
301.8
302.1
0.3
1.58
TUG09594
302.7
303
0.3
0.92
TUG09595
303
303.3
0.3
0.78
TUG09605
308.1
308.4
0.3
1.28
TUG09614
311.7
312
0.3
1.35
TUG09616
312
312.3
0.3
2.61
TUG09617
312.3
312.6
0.3
0.08
TUG09619
313.2
313.5
0.3
4.56
TUG09620
313.5
313.8
0.3
3.54
TUG09621
313.8
314.1
0.3
2.47
TUG09622
314.1
314.4
0.3
1.65
TUG09625
315.3
315.6
0.3
1.25
TUG09626
315.6
315.9
0.3
7.71
TUG09628
316.8
317.1
0.3
0.54
TUG09629
317.1
317.4
0.3
2.57
TUG09631
317.4
317.7
0.3
1.00
TUG09633
318
318.3
0.3
1.42
TUG09634
318.3
318.6
0.3
3.11
TUG09635
318.6
318.9
0.3
5.42
TUG09636
318.9
319.2
0.3
4.25
TUG09637
319.2
319.5
0.3
7.68
TUG09638
319.5
319.8
0.3
5.78
TUG09639
319.8
320.1
0.3
0.85
TUG09641
320.4
320.7
0.3
3.19
TUG09642
320.7
321
0.3
3.49
TUG09643
321
321.3
0.3
7.93
TUG09644
321.3
321.6
0.3
2.40
TUG09645
321.6
321.9
0.3
2.04
TUG09646
321.9
322.2
0.3
7.42
TUG09647
322.2
322.5
0.3
18.75
TUG09648
322.5
322.8
0.3
12.75
TUG09650
322.8
323.1
0.3
12.55
TUG09651
323.1
323.4
0.3
15.64
TUG09652
323.4
323.7
0.3
19.67
TUG09653
323.7
324
0.3
13.55
TUG09654
324
324.3
0.3
15.18
TUG09655
324.3
324.6
0.3
11.27
TUG09656
324.6
324.9
0.3
14.62
TUG09657
324.9
325.2
0.3
71.01
TUG09658
325.2
325.5
0.3
5.61
TUG09659
325.5
326.4
0.9
0.60
TUG09660
326.4
326.7
0.3
3.97
TUG09661
326.7
327
0.3
4.93
TUG09662
327
327.3
0.3
11.64
TUG09663
327.3
327.6
0.3
15.86
TUG09667
328.5
329.4
0.9
0.98
TUG09668
329.4
329.7
0.3
2.77
TUG09669
329.7
330
0.3
2.58
TUG09670
330
330.3
0.3
6.51
TUG09671
330.3
330.6
0.3
4.28
TUG09672
330.6
330.9
0.3
6.21
TUG09694
345.3
345.6
0.3
0.60
TUG09695
345.6
345.9
0.3
4.62
TUG09696
345.9
346.2
0.3
4.07
TUG09697
346.2
346.5
0.3
1.76
TUG09699
346.8
347.1
0.3
2.13
TUG09703
348.3
348.6
0.3
33.25
TUG09704
348.6
348.9
0.3
3.52
TUG09703
348.3
348.6
0.3
33.25
TUG09707
350.1
350.4
0.3
12.62
TUG09710
351.3
351.6
0.3
3.20
TUG09711
351.6
351.9
0.3
0.51
TUG09733
366.3
366.6
0.3
1.26
TUG09734
366.6
366.9
0.3
2.37
TUG09736
367.5
367.8
0.3
0.80
TUG09737
367.8
368.1
0.3
11.02
TUG09738
368.1
368.4
0.3
7.96
TUG09739
368.4
368.7
0.3
3.68
TUG09740
368.7
369
0.3
6.95
TUG09741
369
369.3
0.3
1.82
TUG09742
369.3
369.6
0.3
1.29
TUG09744
369.9
370.2
0.3
4.11
TUG09745
370.2
370.5
0.3
3.89
TUG09746
370.5
370.8
0.3
4.54
TUG09759
380.7
381
0.3
2.63
TUG09760
381
381.6
0.6
23.15
TUG09761
381.6
381.9
0.3
20.60
TUG09762
381.9
382.2
0.3
6.13
TUG09763
382.2
382.5
0.3
3.37
TUG09764
382.5
382.8
0.3
0.64
TUG09777
391.8
392.1
0.3
1.08
TUG09778
392.1
392.4
0.3
1.08
TUG09779
392.4
392.7
0.3
0.89
TUG09781
392.7
393
0.3
0.55
TUG09783
393.6
393.9
0.3
0.65
TUG09784
393.9
394.2
0.3
0.54
TUG09785
394.2
394.5
0.3
2.90
TUG09786
394.5
394.8
0.3
2.34
TUG09787
394.8
395.1
0.3
3.74
TUG09788
395.1
395.4
0.3
2.82
TUG09789
395.4
395.7
0.3
1.98
TUG09790
395.7
396
0.3
1.55
TUG09792
396.3
396.6
0.3
2.25
TUG09794
396.9
397.2
0.3
0.44
TUG09795
397.2
397.5
0.3
1.78
TUG09796
397.5
397.8
0.3
3.20
TUG09797
397.8
398.1
0.3
1.27
TUG09798
398.1
398.4
0.3
15.27
TUG09799
398.4
398.7
0.3
2.96
TUG09801
398.7
399
0.3
5.34
TUG09802
399
399.3
0.3
2.38
TUG09803
399.3
399.6
0.3
2.93
TUG09804
399.6
400.5
0.9
4.00
TUG09805
400.5
400.8
0.3
0.68
TUG09806
400.8
401.1
0.3
2.41
TUG09807
401.1
401.4
0.3
2.06
TUG09808
401.4
401.7
0.3
1.61
TUG09809
401.7
402
0.3
1.67
TUG09811
402.3
402.6
0.3
1.46
TUG09812
402.6
402.9
0.3
0.91
TUG09814
403.2
403.5
0.3
3.71
TUG09817
403.8
404.1
0.3
0.77
TUG09819
405
405.3
0.3
1.56
TUG09811
402.3
402.6
0.3
1.40
TUG09812
402.6
402.9
0.3
0.95
TUG09814
403.2
403.5
0.3
3.57
TUG09817
403.8
404.1
0.3
0.83
TUG09819
405
405.3
0.3
1.61
TUG09824
406.8
407.1
0.3
2.78
TUG09827
408
408.3
0.3
1.21
TUG09828
408.3
408.6
0.3
0.72
TUG09829
408.6
409.2
0.6
1.14
TUG09831
409.2
409.5
0.3
3.27
TUG09832
409.5
409.8
0.3
0.90
TUG09836
410.7
411
0.3
1.86
TUG09837
411
411.3
0.3
2.11
TUG09838
411.3
411.6
0.3
3.40
TUG09839
411.6
411.9
0.3
0.70
TUG09842
412.8
413.1
0.3
0.93
TUG09843
413.1
413.4
0.3
0.76
TUG09848
416.1
417
0.9
0.63
TUG10354
418.8
419.1
0.3
0.82
TUG10355
419.1
419.4
0.3
0.65
TUG10360
420.6
420.9
0.3
0.75
TUG10361
420.9
421.2
0.3
1.05
TUG10362
421.2
421.5
0.3
1.59
TUG10363
421.5
421.8
0.3
1.23
TUG10367
422.7
423
0.3
0.68
TUG10368
423
423.3
0.3
0.72
TUG10373
425.1
425.4
0.3
2.48
TUG10374
425.4
425.7
0.3
2.83
TUG10375
425.7
426
0.3
3.52
TUG10376
426
426.3
0.3
3.77
TUG10377
426.3
426.6
0.3
8.47
TUG10378
426.6
426.9
0.3
1.64
TUG10379
426.9
427.2
0.3
1.53
TUG10381
427.2
427.8
0.6
4.11
TUG10382
427.8
428.1
0.3
1.65
TUG10383
428.1
429
0.9
0.86
TUG10387
429.9
430.2
0.3
0.72
TUG10393
433.2
433.5
0.3
2.04
TUG10394
433.5
433.8
0.3
0.85
TUG10395
433.8
434.1
0.3
0.76
TUG10408
440.4
440.7
0.3
2.36
TUG10413
443.1
443.4
0.3
1.02
TUG10414
443.4
443.7
0.3
6.82
TUG10417
444.9
445.2
0.3
17.94
TUG10418
445.2
445.5
0.3
5.83
TUG10423
447
447.3
0.3
1.16
TUG10425
448.2
448.5
0.3
4.54
TUG10426
448.5
448.8
0.3
0.76
TUG10428
450
450.3
0.3
4.94
TUG10429
450.3
450.6
0.3
1.53
TUG10431
450.6
450.9
0.3
0.97
TUG10432
450.9
451.2
0.3
138.15
TUG10434
451.5
451.8
0.3
0.76
TUG10435
451.8
452.1
0.3
1.25
TUG10436
452.1
452.4
0.3
1.35
TUG10438
452.7
453
0.3
1.65
TUG10439
453
453.3
0.3
4.70
TUG10440
453.3
453.6
0.3
2.57
TUG10441
453.6
453.9
0.3
4.99
TUG10444
454.8
455.1
0.3
14.02
TUG10445
455.1
455.4
0.3
2.07
TUG10446
455.4
455.7
0.3
1.09
TUG10447
455.7
456
0.3
1.28
TUG10448
456
456.3
0.3
2.55
TUG10453
459
460.2
1.2
1.14
TUG10454
460.2
460.8
0.6
1.00
TUG10455
460.8
462
1.2
1.74
TUG10456
462
462.3
0.3
1.28
TUG10457
462.3
462.6
0.3
24.98
TUG10458
462.6
462.9
0.3
87.13
TUG10459
462.9
463.8
0.9
11.34
TUG10461
464.4
465
0.6
0.67
TUG10463
465.9
466.2
0.3
0.91
TUG10464
466.2
466.5
0.3
1.36
TUG10466
466.5
466.8
0.3
1.27
TUG10467
466.8
467.1
0.3
1.28
TUG10468
467.1
467.4
0.3
3.79
TUG10469
467.4
467.7
0.3
20.93
TUG10470
467.7
468
0.3
20.64
TUG10471
468
468.3
0.3
19.40
TUG10473
468.6
468.9
0.3
3.46
TUG10474
468.9
469.2
0.3
2.78
TUG10475
469.2
469.5
0.3
2.10
TUG10482
471.3
471.6
0.3
0.81
TUG10483
471.6
471.9
0.3
1.03
TUG10484
471.9
472.2
0.3
6.72
TUG10485
472.2
472.5
0.3
0.88
TUG10486
472.5
472.8
0.3
1.45
TUG10487
472.8
473.1
0.3
9.05
TUG10488
473.1
473.4
0.3
1.35
TUG10490
473.7
474
0.3
0.48
TUG10492
474.3
474.6
0.3
0.78
TUG10493
474.6
474.9
0.3
1.37
TUG10494
474.9
475.2
0.3
1.43
TUG10496
475.5
475.8
0.3
1.67
TUG10497
475.8
477
1.2
1.80
TUG10498
477
477.6
0.6
2.64
TUG10500
477.6
477.9
0.3
93.49
TUG10501
477.9
478.2
0.3
1.01
TUG10502
478.2
478.5
0.3
34.17
TUG10503
478.5
478.8
0.3
94.57
TUG10504
478.8
479.1
0.3
35.04
TUG10505
479.1
479.4
0.3
396.16
TUG10506
479.4
479.7
0.3
25.06
TUG10507
479.7
480
0.3
7.09
TUG10508
480
480.3
0.3
4.06
TUG10509
480.3
480.6
0.3
31.63
TUG10510
480.6
480.9
0.3
5.3
TUG10511
480.9
481.2
0.3
114.95
TUG10512
481.2
481.5
0.3
1.90
TUG10513
481.5
481.8
0.3
0.83
TUG10514
481.8
482.1
0.3
9.99
TUG10516
482.1
482.4
0.3
0.71
TUG10517
482.4
482.7
0.3
6.64
TUG10518
482.7
483
0.3
6.05
TUG10519
483
483.3
0.3
6.64
TUG10520
483.3
483.6
0.3
2.47
TUG10521
483.6
483.9
0.3
0.93
TUG10522
483.9
484.2
0.3
5.15
TUG10523
484.2
484.5
0.3
10.90
TUG10524
484.5
484.8
0.3
14.76
TUG10525
484.8
485.1
0.3
20.24
TUG10526
485.1
485.4
0.3
21.93
TUG10527
485.4
485.7
0.3
20.79
TUG10528
485.7
486
0.3
32.89
TUG10529
486
486.3
0.3
16.13
TUG10531
486.3
486.6
0.3
2.55
TUG10532
486.6
486.9
0.3
13.04
TUG10533
486.9
487.2
0.3
5.42
TUG10534
487.2
487.5
0.3
3.95
TUG10535
487.5
487.8
0.3
4.89
TUG10536
487.8
488.1
0.3
4.24
TUG10537
488.1
488.4
0.3
4.41
TUG10538
488.4
488.7
0.3
5.21
TUG10539
488.7
489
0.3
1.80
TUG10540
489
489.3
0.3
16.42
TUG10541
489.3
489.6
0.3
7.17
TUG10542
489.6
489.9
0.3
6.47
TUG10543
489.9
490.2
0.3
4.07
TUG10544
490.2
490.5
0.3
4.75
TUG10545
490.5
490.8
0.3
4.86
TUG10546
490.8
491.1
0.3
7.13
TUG10547
491.1
491.4
0.3
11.64
TUG10548
491.4
491.7
0.3
35.68
TUG10549
491.7
492
0.3
22.53
TUG10551
492
492.3
0.3
10.72
TUG10552
492.3
492.6
0.3
25.23
TUG10553
492.6
492.9
0.3
16.77
TUG10554
492.9
493.2
0.3
20.86
TUG10555
493.2
493.5
0.3
23.61
TUG10556
493.5
493.8
0.3
5.85
TUG10557
493.8
494.1
0.3
6.41
TUG10558
494.1
494.4
0.3
4.25
TUG10559
494.4
494.7
0.3
36.13
TUG10560
494.7
495
0.3
19.66
TUG10561
495
495.3
0.3
72.65
TUG10562
495.3
495.6
0.3
241.21
TUG10563
495.6
495.9
0.3
31.77
TUG10564
495.9
496.2
0.3
51.52
TUG10566
496.2
496.5
0.3
25.17
TUG10567
496.5
496.8
0.3
100.35
TUG10568
496.8
497.1
0.3
12.86
TUG10569
497.1
497.4
0.3
4.68
TUG10570
497.4
497.7
0.3
33.81
TUG10571
497.7
498
0.3
37.11
TUG10572
498
498.3
0.3
20.74
TUG10573
498.3
498.6
0.3
26.29
TUG10574
498.6
498.9
0.3
103.54
TUG10575
498.9
499.2
0.3
340.07
TUG10576
499.2
499.5
0.3
269.25
TUG10577
499.5
499.8
0.3
600.42
TUG10578
499.8
500.1
0.3
73.02
TUG10579
500.1
500.4
0.3
13.41
TUG10581
500.4
500.7
0.3
1.85
TUG10582
500.7
501.3
0.6
13.32
TUG10583
501.3
501.6
0.3
26.54
TUG10584
501.6
501.9
0.3
9.04
TUG10585
501.9
502.2
0.3
4.79
TUG10586
502.2
502.5
0.3
3.93
TUG10587
502.5
502.8
0.3
126.85
TUG10588
502.8
503.1
0.3
361.90
TUG10589
503.1
503.4
0.3
1.95
TUG10590
503.4
503.7
0.3
3.27
TUG10591
503.7
504
0.3
32.78
TUG10592
504
504.3
0.3
23.63
TUG10596
505.2
505.5
0.3
8.07
TUG10598
505.8
506.1
0.3
18.51
TUG10599
506.1
506.4
0.3
53.78
TUG10602
506.7
507
0.3
7.50
TUG10604
507.3
507.6
0.3
234.39
TUG10605
507.6
507.9
0.3
2.22
TUG10606
507.9
508.8
0.9
0.58
TUG10612
510.3
510.6
0.3
3.37
TUG10613
510.6
510.9
0.3
1.32
TUG10614
510.9
511.2
0.3
5.53
TUG10616
511.2
511.5
0.3
24.91
TUG10617
511.5
511.8
0.3
64.47
TUG10618
511.8
512.1
0.3
72.56
TUG10619
512.1
512.4
0.3
13.35
TUG10620
512.4
512.7
0.3
2.08
TUG10621
512.7
513
0.3
1.59
TUG10622
513
513.3
0.3
0.74
TUG10623
513.3
513.6
0.3
0.94
TUG10624
513.6
513.9
0.3
0.53
TUG10625
513.9
514.2
0.3
1.17
TUG10626
514.2
514.5
0.3
23.17
TUG10627
514.5
514.8
0.3
0.85
TUG10628
514.8
515.1
0.3
2.39
TUG10629
515.1
515.4
0.3
1.03
TUG10631
515.4
515.7
0.3
0.83
TUG10632
515.7
516
0.3
1.74
TUG10633
516
516.3
0.3
3.50
TUG10634
516.3
516.6
0.3
0.59
TUG10636
516.9
517.2
0.3
0.80
TUG10637
517.2
517.5
0.3
2.99
TUG10638
517.5
517.8
0.3
0.76
TUG10639
517.8
518.1
0.3
3.34
TUG10640
518.1
518.4
0.3
8.94
TUG10641
518.4
518.7
0.3
12.80
TUG10642
518.7
519
0.3
105.58
TUG10643
519
519.3
0.3
34.42
TUG10644
519.3
519.6
0.3
0.55
TUG10645
519.6
519.9
0.3
0.80
TUG10656
522.6
522.9
0.3
0.59
TUG10657
522.9
523.2
0.3
0.88
TUG10658
523.2
523.5
0.3
0.76
TUG10659
523.5
523.8
0.3
1.09
TUG10660
523.8
524.1
0.3
0.61
TUG10661
524.1
524.4
0.3
2.11
TUG10664
525
525.3
0.3
5.56
TUG10666
525.3
525.6
0.3
7.50
TUG10667
525.6
525.9
0.3
0.87
TUG10668
525.9
526.2
0.3
0.78
TUG10693
543.9
544.2
0.3
0.63
TUG10695
544.5
544.8
0.3
0.75
TUG10696
544.8
545.1
0.3
0.59
TUG10699
545.7
546
0.3
0.81
TUG10701
546
546.3
0.3
0.63
TUG10702
546.3
546.6
0.3
0.59
TUG10706
547.5
547.8
0.3
0.52
TUG10719
554.1
554.4
0.3
0.84
Table 2: Survey details of diamond drill holes referenced in this release
Hole No
Coordinates (Fiji map grid)
RL
final depth
dip
azimuth
N
E
m
(TN)
TUG-135
3920759
1876459
139.2
689.4
-64
149
TUG-136
3920759
1876459
139.2
617.4
-58
151
TUG-138
3920759
1876459
139.2
746.4
-64
163
TUG-141
3920759
1876459
139.2
633.0 *
-55°
162°
* Current depth, hole is still drilling
Qualified Person In accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), Sergio Cattalani, P.Geo, Senior Vice President Exploration, is the Qualified Person for the Company and has reviewed and is responsible for the technical and scientific content of this news release.
QAQC Procedures Lion One adheres to rigorous QAQC procedures above and beyond basic regulatory guidelines in conducting its sampling, drilling, testing, and analyses. The Company utilizes its own fleet of diamond drill rigs, using PQ, HQ and NQ sized drill core rods. Drill core is logged and split by Lion One personnel on site. Samples are delivered to and analysed at the Company’s geochemical and metallurgical laboratory in Fiji. Duplicates of all samples with grades above 0.5 g/t Au are both re-assayed at Lion One’s lab and delivered to ALS Global Laboratories in Australia (ALS) for check assay determinations. All samples for all high-grade intercepts are sent to ALS for check assays. All samples are pulverized to 80% passing through 75 microns. Gold analysis is carried out using fire assay with an AA finish. Samples that have returned grades greater than 10.00 g/t Au are then re-analysed by gravimetric method. For samples that return greater than 0.50 g/t Au, repeat fire assay runs are carried out and repeated until a result is obtained that is within 10% of the original fire assay run. For samples with multiple fire assay runs, the average of duplicate runs is presented. Lion One’s laboratory can also assay for a range of 71 other elements through Inductively Coupled Plasma Optical Emission Spectrometry (ICP-OES), but currently focuses on a suite of 9 important pathfinder elements. All duplicate anomalous samples are sent to ALS labs in Townsville QLD and are analysed by the same methods (Au-AA26, and Au-GRA22 where applicable). ALS also analyses for 33 pathfinder elements by HF-HNO3-HClO4 acid digestion, HCl leach and ICP-AES (method ME-ICP61).
About Lion One Metals Limited Lion One’s flagship asset is 100% owned, fully permitted high grade Tuvatu Alkaline Gold Project, located on the island of Viti Levu in Fiji. Lion One envisions a low-cost high-grade underground gold mining operation at Tuvatu coupled with exciting exploration upside inside its tenements covering the entire Navilawa Caldera, an underexplored yet highly prospective 7km diameter alkaline gold system. Lion One’s CEO Walter Berukoff leads an experienced team of explorers and mine builders and has owned or operated over 20 mines in 7 countries. As the founder and former CEO of Miramar Mines, Northern Orion, and La Mancha Resources, Walter is credited with building over $3 billion of value for shareholders.
On behalf of the Board of Directors of Lion One Metals Limited “Walter Berukoff“ Chairman and CEO
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 statements that may be deemed to be “forward-looking statements” 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 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 labour 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.
