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Lion One Metals : Management's Discussion and Analysis for the Period Ended September 30, 2021 – Marketscreener.com

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LION ONE METALS LIMITED
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED SEPTEMBER 30, 2021
306 – 267 West Esplanade
Level 1, 31-33 Cliff Street
North Vancouver, BC
Fremantle, WA
V7M 1A5
6160
Canada
Australia
Tel: 604-998-1250
Tel: (08) 9432 3200
Email: info@liononemetals.com
Management’s Discussion and Analysis
September 30, 2021
INTRODUCTION
The Management Discussion & Analysis (“MD&A”) has been prepared by management and reviewed and approved by the Board of Directors on November 12, 2021. Set out below is a review of the activities, results of operations and financial condition of Lion One Metals Limited (“LIO”, “Lion One”, or the “Company”) and its subsidiaries for the year ended September 30, 2021. The following discussion of performance, financial condition and future prospects should be read in conjunction with the Company’s unaudited condensed consolidated interim financial statements for the period ended September 30, 2021 and the audited annual consolidated financial statements for the year ended June 30, 2021. Those financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. This discussion covers the three month period ended September 30, 2021 and the subsequent period up to November 12, 2021, the date of preparation of this MD&A. Monetary amounts in the following discussion are in Canadian dollars unless otherwise noted.
The Company is listed on the TSX Venture Exchange (“TSX-V”) under the symbol LIO, on the Australian Securities Exchange (“ASX”) under the symbol LLO, and on the OTCQX market under the symbol LOMLF.
Mr. Sergio Cattalani, M.Sc., who is an officer of the Company and a member of The Association of Professional Geologists of Ontario, is the Qualified Person under the meaning of Canadian National Instrument 43-101, and responsible for the exploration technical content of this Management’s Discussion and Analysis.
Mr. Patrick Hickey, P. Eng., MBA, who is an officer of the company, is a Qualified Person under the meaning of Canadian National Instrument 43-101, is responsible for the development and engineering content of this Management’s Discussion and Analysis.
OBJECTIVES AND OUTLOOK
Lion One is focused on advancing premium quality gold assets in Fiji that have the world class attributes of: high grades, scope, district scale, and depth potential, with access to infrastructure in a mining-friendly jurisdiction. The Tuvatu Gold Project has received all of the mandatory regulatory approvals, including a 10-year renewable mining lease and a 21- year surface lease, for the complete development of mining and processing operations at Tuvatu. In 2019, the Company commenced a deep diamond drilling program targeting feeder structures at depth below the known Tuvatu mineralization. In other mineralized alkaline gold systems around the world, these feeder structures often run hundreds or thousands of g/t gold. In securing the adjacent ground to Tuvatu in mid 2019, Lion One became the first company in modern times to consolidate and carry out systematic exploration over the entire 7km diameter Navilawa Caldera. The Project area now consists of four contiguous exploration licenses covering approximately 13,619 hectares. The 384.5 hectare Tuvatu mining lease is located near its epicentre and hosts the high grade, permitted for production, Tuvatu gold resource.
Mineralization of the Tuvatu deposit is associated with the emplacement of an alkalic volcanic intrusive complex, with Navilawa Caldera being one of several large mineralized alkaline gold systems aligned along the Viti Levu Lineament, Fiji’s gold corridor. The geologic setting of Tuvatu shares affinities with the Vatukoula deposit in the neighboring Tavua Caldera, where over seven million ounces of gold have been recovered since mining commenced at Vatukoula in 1933.
The Fijian Islands are located along the Pacific Island Arc, which hosts a number of other well-known major mineralized alkaline gold deposits systems such as the Lihir and Porgera gold deposits in Papua New Guinea. This variety of gold system is not prolific in number globally but are among the largest producers of gold in the world, with notable examples in the South Pacific including the Porgera and Lihir gold mines in Papua New Guinea, and Vatukoula in Fiji, 40km from Tuvatu. A North American example is the Cripple Creek gold mine in Colorado. The Barrick/Goldcorp Porgera gold deposit (>25 million ounces gold) and the Newcrest Lihir gold deposit (>40 million ounces gold) are both alkaline host gold deposits situated in Papua New Guinea. These deposits, like other alkaline hosted gold deposits, are associated with deep crustal magmas, alkaline rich alteration mineral assemblages, and are valued for their high grades and deep vertical profiles, resulting in large gold endowments.
The Company will continue to advance its exploration program to add further high-grade resources and develop a world class alkaline gold project and prove the concept that the Tuvatu has the potential to become 10 to 20 million ounces gold camp. Lion One has six active diamond drilling rigs, including five fully owned, and a fully operational, quick- response metallurgical and geochemical laboratory at its Fiji head office in Nadi, 16km from the project site. The Company will focus on testing the deep extensions of new high-grade zones of mineralization discovered below Tuvatu in 2020. The Company has also discovered very similar styles of mineralization at Banana Creek, 3.5km to the NE of Tuvatu, and has a large pipeline of drilling targets across the Navilawa Caldera. This program will include deep drilling, further geophysics, mapping and sampling, and targeted exploration of other prospects generated. The Company has also recently added personnel to its growing and vastly experienced exploration and engineering team and as a result, has been able to operate in Fiji throughout most of the COVID epidemic.
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Management’s Discussion and Analysis
September 30, 2021
HIGHLIGHTS AND SIGNIFICANT SUBSEQUENT EVENTS
During the quarter ended September 30, 2021, the Company completed 6869.1 meters of diamond drilling in 22 completed holes, while a further 4 drill holes were still in progress. The Company is continuing to undertake three tiers of drilling for exploration purposes:
An additional tier of drilling for geotechnical purposes has also been initiated during the September quarter.
September 2021 Quarter Exploration Summary
Activity
Number
# of drill holes completed
22
# of drill holes in progress at end of Quarter
4
# of meters drilled
6,869.1
# of drill core samples submitted for analysis
6,209
# of bulk density analyses from drill core
nil
# of channels excavated and sampled
11
# of samples from channel sampling
50
# of rock chip samples collected
nil
# of samples analysed in Lion One Laboratory
9,681
During the quarter ended September 30, 2021, the Company continued with its exploration program to confirm the potential for a multi-million ounce alkaline gold system. Two rigs remain focused on the deep-seated feeder structure of the main Tuvatu mineralization, two rigs are focused on the infill drill program in areas earmarked for initial mining, one rig is devoted to testing regional targets, and the remaining rig has primarily been utilized for geotechnical and water monitoring wells. In early July 2021, one of those four rigs was mobilized to the Navilawa tenement (SPL1512) to target further Tuvatu lookalikes 3.5km to the north.
On July 7, 2021, the Company announced its latest high-grade gold intercepts including deep step-out intercepts from drilling beneath Tuvatu itself (news release dated July 7, 2021), highlights include:
On July 26, 2021, the Company announced further assay results from its ongoing deep step-out drilling at the Tuvatu gold project (news release dated July 26, 2021). Multiple high-grade gold intercepts were encountered in TUDDH533. The deepest intercept of 55.44 g/t Au over 2.30m (including 221.60 g/t Au over 0.40m) from a downhole depth of 575.70m, is believed to be a continuation of the same structure that encountered 55.44 g/t Au over 12.70m in TUDDH500, 40m to the SW, in July 2020 (news release dated July 24, 2020).
TUDDH533 highlights include:
Lion One interprets this deep intercept from TUDDH533 to be part of the same important structure as in TUDDH500 with both intercepts displaying strong visual similarities including coarse pyrite and visible gold in gray silica within centimetric-scale veins with distinct light gray potassium feldspar alteration halos around the veins.
On September 7, 2021, the Company announced further high-grade intercepts from ongoing deep extensional step- out drilling and near-surface infill drilling from the Company’s 100% owned Tuvatu gold project in Fiji.
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Management’s Discussion and Analysis
September 30, 2021
Highlights from deep extensional step-out drilling include:
On November 2, 2021, the Company announced further high-grade intercepts from two recently completed drillholes (TUDDH544-W2 – 33.40 g/t Au over 3.90m from 629.30m incl. 105.0 g/t Au over 0.30m from 629.6m and TUDDH544- W1 – 48.74 g/t Au over 0.6m from downhole depth of 651.50m) as part of ongoing deep extensional step-out drilling and confirmed the following:
High grade mineralization in Deep Feeder Zone 500 has now been demonstrated to extend over an area approximately 150m along strike and 300m vertically and the Company believes it will add significantly to the overall gold inventory of the Tuvatu orebody. Furthermore, an improved understanding of the orientation of the 500 Zone now allows Lion One to connect this high-grade feeder to the base of the existing resource. The Company plans to continue additional drilling to test the lateral and vertical extents of this zone which remains open in all directions.
COVID-19
The Company’s business could be adversely affected by the effects of the ongoing outbreak of respiratory illness caused by the novel coronavirus (“COVID-19”). In March 2020, the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread across the world, has adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn. The Government of Fiji confirmed its first case of COVID-19 on March 19, 2020 and has since documented over 52,000 cases of COVID-19, with over 679 fatalities attributed to the virus. To date, the impact of COVID-19 to Lion One’s activities has been limited as the Company acted quickly to establish clear policy guidelines for the health and safety of its employees and consultants, and their families, and thus has experienced only a small decrease in productivity.
The Company continues to monitor the situation in Fiji, however it is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company’s business or results of operations at this time due to uncertainties relating to the ultimate geographic spread of the virus, the severity of the disease, the duration of the outbreak, and the length of travel and quarantine restrictions imposed by governments of affected countries. In particular, the continued spread of the COVID-19 globally could materially and adversely impact the Company’s business including without limitation, employee health, limitations on travel, the availability of industry experts and personnel, restrictions on planned drill and exploration programs, restrictions on the Company’s future mine development and process plant construction, and other factors that depend on future developments beyond the Company’s control. While the impact of COVID-19 is expected to be temporary, the current circumstances are dynamic and the impacts of COVID-19 on the Company’s development and exploration activities, including the impact on future mine development and process plant construction, cannot be reasonably estimated at this time.
Although COVID-19 has restricted the movement of some of the management team and consultants into Fiji, in addition to significant delays to the arrival of equipment and consumables from out of the country, the Company has continued its exploration program with little interruption. Lion One has actually doubled its workforce since early 2020 due to the additional drilling teams for the rigs, the laboratory staff to cater for the increased number of samples generated and the field crew to process the core and samples. The Company continues to maintain a strict regimen of safety with respect to COVID-19 for its employees. Strict health and safety protocols remain in place, and the Company is particularly focused on maintaining top-of-mind awareness about prevention practices within the organization. To date vaccination programs are rapidly advancing in Fiji with over 96% of the eligible population having received a first dose and over 88% fully vaccinated with two doses. The Company’s Fijian employees are 100% vaccinated with first dose and 97% fully vaccinated with two doses at this time.
Resignation of Stephen Mann, Managing Director
The Company announces the resignation of Stephen Mann as Managing Director and director of the Company effective August 31, 2021 and November 2, 2021, for personal reasons. The Company would like to thank Mr. Mann for his lengthy service and many contributions including his instrumental role in building Lion One’s exploration and drilling division, completion of the Tuvatu Environmental Impact Assessment, the development and commissioning of Lion One’s own geochemical laboratory, all in Fiji, in addition to negotiating and securing a significant magnetite royalty on the Olary Creek iron asset in South Australia.
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Management’s Discussion and Analysis
September 30, 2021
BACKGROUND AND CORE BUSINESS
Lion One Metals Limited was incorporated on November 12, 1996, under the name X-Tal Minerals Corp. and under the laws of the Province of British Columbia, Canada. On January 28, 2011, the Company executed a reverse takeover of X-Tal by American Eagle Resources Inc. and changed its name to Lion One Metals Limited. Lion One is a reporting issuer in British Columbia and Alberta, with its common shares listed on the TSX Venture Exchange under the symbol “LIO”, and a secondary listing of Chess Depository Interests “CDI’s” on the Australian Stock Exchange “ASX” under the symbol “LLO”. The Company’s head office and principal address is 306 – 267 West Esplanade, North Vancouver, BC, V7M 1A5.
The Company’s primary asset is the 100% held Tuvatu Gold Project (“Tuvatu”), located 17 km from the Nadi International Airport on the main island of Viti Levu in Fiji. Discovered in 1987, Tuvatu is a high-grade underground gold project situated along the Viti Levu lineament, Fiji’s own corridor of high-grade alkaline gold deposits. The Tuvatu resource covers a 5-hectare footprint within the 384 hectare mining lease. The project contains numerous high-grade prospects proximal to Tuvatu, at depth, and up to 1.50 km along strike from the resource area, giving near-term production potential and further discovery upside on one of Fiji’s largest and underexplored alkaline gold systems. The Tuvatu Project was acquired by Lion One in 2011 and has over 120,000 meters of drilling completed to date in addition to 1,600 meters of underground development.
In 2019, the Company purchased all of the drilling equipment from Geodrill, a Fijian drilling company, which included one surface diamond drilling rig and one underground drilling rig. Lion One also employed several experienced drillers and offsiders from Geodrill. This strategic acquisition ensured the Company has available, cost-effective diamond drilling capabilities well into the future. Operating these drills “in-house” enables the Company to significantly reduce drilling costs. In 2020-2021, the Company purchased an additional three deep capacity diamond drill rigs to accelerate the drilling program, with the capabilities to drill to depths beyond 1,000 meters. The Company also contracts a sixth diamond drill rig.
The Company’s has encountered multiple high-grade intercepts from its 2020-2021high-grade feeder diamond drill program, which supports the alkaline gold model and the concept that Tuvatu has high-grade gold mineralization extending and evolving at great depths. The Company will continue this deep hole drill program, up to depths of over 1,000m below the surface, to gain a better understanding of the underlying plumbing system which allowed a conduit for the gold-rich fluids from the base of the crust in that area. The Company is targeting the root feeder or feeders that gave rise to the Tuvatu lode complex. Alkaline hosted gold deposits are known to extend to great depths, so there are many areas to explore. Additional sampling, resampling and relogging of earlier diamond drill holes is an ongoing project. Trenching, mapping and sampling within the Company’s tenement holding is continuing.
In May 2019, SPL 1512 was issued for the Navilawa tenement for a 5-year term ending in 2024, which for the first time consolidated the ownership of the entire Navilawa mineral complex under a tenement package with the Tuvatu 384.5 hectare SML 62 Mining Lease at its center. The Banana Creek project area is a new, high-priority greenfields target situated within Lion One’s Navilawa tenement (SPL1512). A number of access tracks into the Navilawa tenement (SPL1512) were completed and sampling of prospective zones continues with numerous additional targets identified to date.
In 2019, the Company completed a specialized stream sediment sampling program using the BLEG (“Bulk Leach Extractable Gold”) technique over the entire project area. The results from that BLEG sampling program indicates an extensive anomalous area within the northern part of the Navilawa caldera. Furthermore, to better define the underlying structural controls that hosts the high-grade vein network in the Navilawa Caldera, an initial controlled source audio- magnetotelluric (“CSAMT”) geophysical program was also completed late in 2019. Following the interpretation of this CSAMT program, the deep drilling program was been expanded to include targets identified from that survey. Lion One believes the Tuvatu region can host a prolific, deep, high-grade alkaline gold system associated with the interpreted underlying magma chamber beneath the Navilawa Caldera.
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Lion One Metals Limited published this content on 15 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 November 2021 17:34:10 UTC.

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US banking regulators are looking to clarify crypto rules in 2022 – The Verge

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One of them is already working to make banks’ responsibilities clearer
The Federal Reserve, Federal Deposit Insurance Corporation (or FDIC), and Office of the Comptroller of the Currency (OCC) have issued a joint statement announcing a plan to clarify the rules and regulations around how banks can use cryptocurrencies over the next year (via Bloomberg).
The agencies say they’re focusing on setting expectations for what banks can do when it comes to holding crypto, allowing customers to obtain crypto, issuing their own stablecoins (or cryptocurrencies whose value is tied to a fiat currency like the US dollar), and taking crypto as collateral for loans and keeping it on their balance sheets. According to the letter, the goal is to make sure consumers are protected and that banks act responsibly. The regulators also say it’s an attempt to make sure the financial industry isn’t used to launder ill-gotten currency, something the Treasury Department has been focusing on recently.
The OCC has already made moves in this direction — on Tuesday, the acting comptroller released a letter clarifying decisions that the office had made throughout 2020 and early 2021. Now, the letter says, banks will have to ask permission from regional regulators before getting into certain crypto fields.
Previously, the Comptroller said banks were allowed to hold cryptocurrencies for customers as well as assets being used to back stablecoins. Banks were also told they could use stablecoins and act as nodes on blockchain networks. While financial institutions will still be able to carry out these activities, they’ll have to be able to prove to regulators that they can do so safely and responsibly.
These announcements come as some crypto companies have skirmished with regulators over what legal classifications their products fall under. Recently, Coinbase canceled its Lend program after a public feud with the Securities and Exchange Commission over whether what it was selling counted as securities (and would therefore fall under heavier legal scrutiny). The Treasury has also proposed that large cryptocurrency transfers be reported to the Internal Revenue Service, and has asked Congress to start regulating stablecoins.
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Altcoin Roundup: 3 signs that show crypto mass adoption is underway – Cointelegraph

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Bitcoin AUM falls 9.5% to record largest monthly pullback since July – Cointelegraph

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