Lion One Metals has reported a 15% quarter-on-quarter increase in gold production at its Tuvatu underground mine in Fiji, according to Canadian Mining Journal. The preliminary operating figures showed quarterly gold recovery of 3,796 ounces at an average grade of 4.3 grams per tonne. Lion One, which trades on the TSX Venture Exchange under the ticker LIO, also reported the start-up of a new underground drill at the site.
The reported gold recovery was 39% above production in the quarter ended 31 March, providing a second comparison alongside the increase against the immediately preceding quarter. The results remain preliminary, and the source report did not identify the end date of the latest reporting quarter. The production figures were supplied by Lion One rather than presented as an independent assessment of the operation.
Underground mine development moved in the opposite direction to gold output. Lion One reported 1,539 metres of development during the quarter, compared with 1,660 metres in the preceding period. The figures therefore show higher reported gold production alongside a reduction in the amount of underground development completed.
Tuvatu is on Fiji’s Viti Levu island and is described in the report as a high-grade underground gold operation. The wider project includes the Tuvatu alkaline gold deposit, an expanded pilot plant and an assay laboratory, in addition to the producing mine.
Lion One said its new Boart Longyear LM90 underground core drill reached Tuvatu earlier than scheduled and is already operating. The company plans to use the rig to support resource expansion and upgrades in Zone 500 and the West Zone. It said the equipment would allow faster drilling at lower cost; the report provided no quantified cost or drilling-rate estimates.
Canadian Mining Journal also reported that Lion One shares initially gained as much as 6.06% during Tuesday morning trading in Toronto before finishing unchanged at 17 cents each.