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Newly Found Feeder Zone at Gold Project to Benefit Mine Plan
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The high-grade and mineable widths of this zone will likely improve the economics of the future mining operation in Fiji, noted a ROTH Capital Partners report.

As Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX; LLO:ASX; LY1:FSE) keeps drilling at its Tuvatu project on Fiji, it becomes more and more apparent that the 500 zone, a high-grade feeder below the current resource, "may become an early, near-term [mineable] target in the mine plan," reported ROTH Capital Partners analyst Mike Niehuser in an Oct. 5 research note.

"The attraction of the 500 zone is both its higher grade and broad, consistently mineable widths," Niehuser wrote. "This deeper zone may represent a highly economic zone to mine as early as possible."

These two characteristics are seen in these examples of 500 zone intercepts:

  • 21.16 grams per ton gold (21.16 g/t Au) over 19.6 meters (19.6m) from 594.5m downhole, including 25.28 g/t Au over 16.2m from 596.7m downhole (hole TUDDH-608)
  • 23.02 g/t Au over 20.1m from 576.1m downhole and 8.09 g/t Au over 20.7m from 602.5m downhole (hole TUDDH-601)
  • 20.86 g/t Au over 75.9m from 443.4m downhole (hole TUG-141)

There, The Canadian mining company "is rapidly defining a roughly 32,000-ton zone grading of about 20 g/t gold," Niehuser noted.

ROTH has a Buy rating and a CA$2.50 per share target price on Lion One, the current share price of which is about CA$0.81.

The 500 zone sits about 400m below the current resource and, Niehuser pointed out, could extend another 500m vertically.

How the zone shapes up with additional drilling will drive the mine plan. For example, Niehuser wrote if drilling continues to define it as a feeder, the new mine plan, an improved version over that outlined in the preliminary economic assessment, might include mining deeper down and doing so potentially earlier than originally planned.

On a related note, a significant catalyst for Lion One, the release of an updated resource estimate, is happening soon, in Q1/23, Niehuser noted.

"With a significant amount of drilling completed since 2014, we anticipate an increase in classification, tons, and grade for the latest resource estimate," he wrote.

ROTH has a Buy rating and a CA$2.50 per share target price on Lion One, the current share price of which is about CA$0.81.

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1) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Lion One Metals Ltd. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. 

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Disclosures For Roth Capital Partners, Lion One Metals Ltd., October 5, 2022

Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Disclosures:Shares of Lion One Metals Limited may be subject to the Securities and Exchange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities. 

ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request.

This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH.

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