Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX; LLO:ASX; LY1:FSE) discovered a major high-grade gold, deep feeder structure at its Tuvatu project, which is "a potential game changer," reported Eight Capital analyst Akin Akinwale in a June 7 research note.
"The structure remains wide open at depth, underscoring Tuvatu's potential as a large-scale, high-grade underground mine," Akinwale added.
Intercepts from hole TUG-141 indicate the presence of this feeder, located at depth below the current resource boundary, relayed Akinwale. One of those intercepts is the longest ever encountered at Tuvatu, and its grade is about 2.4 times that of the total resource, which is 8.78 grams per ton gold (8.78 g/t Au). This standout intercept is 75.9 meters (75.9m) of 20.86 g/t Au starting at 443.4m downhole.
TUG-141 hit other impressive intercepts as well. They include 19.2m of 5.63 g/t Au beginning at 311.7m downhole, including 3m of 20.50 g/t Au. Another is 10.2m of 4.48 g/t Au from 109.8m downhole, including 0.3m of 38.27 g/t Au.
The hole was placed in the upper portion of the deep feeder Zone 500, about 300m below the existing Tuvatu resource, where it is believed to connect with the boundary of the Inferred resource. There, Lion One drilled between the depths of 450m and 550m.
The Canadian company's previous drilling—specifically holes TUG-135, TUG-136, and TUG-138—returned bonanza-grade mineralization similar to that demonstrated in TUG-141, Akinwale pointed out. Together, these results suggest the newly discovered feeder is potentially robust in size.
Recent infill drill results from Zone 5 included shallow intercepts of exceptionally high grades, noted Akinwale. For instance, hole TUDDH-586 returned 292.69 g/t Au over 0.6m, including 584.07 g/t Au over 0.3m. Lion One is expected to complete the current drill campaign this summer.
"The phase two infill drilling campaign, combined with the deep feeder discoveries, bode well for resource expansion in the future resource update," wrote Akinwale.
Eight Capital has a Buy rating and a CA$3 per share price target on Lion One, which is currently trading at around CA$1.58 per share.
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