VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 17, 2012) - Lion One Metals Limited (TSX VENTURE:LIO)(OTCQX:LOMLF)(FRANKFURT:LY1) (the "Company" or "Lion One") is pleased to provide this update on recent metallurgical test work from its Tuvatu Gold Project on the island of Viti Levu, Fiji.
Lion One's recent metallurgical work has confirmed the reliability of previous metallurgical test work and confirms that various ores from Tuvatu are amenable to conventional crushing, grinding and flotation processing techniques. The Company has commenced further optimization studies to evaluate a configuration that includes the combination of a cone crusher, two stage ball milling, in-line pressure gravity concentration, and two additional points of gravity concentration, followed by flotation at a coarse grind size and CIL leaching or direct sale of concentrates. The Company believes that this proposed configuration could enhance recoveries of both coarse and fine gold, and may have potentially attractive capital and operating cost parameters.
The Company is incorporating these tests into an update of the previously conducted feasibility study and will include an updated mine plan and production overview. The Company will report the conclusions of this work to the Mineral Resources Department of Fiji (MRD), in line with its regulatory requirements, in anticipation of securing formal permitting required for the commencement of mining operations, extraction, and processing.
Historic Test Work
Previous metallurgical test work on Tuvatu conducted from 1997-2000 included test work and analyses by Metcon Laboratories in Sydney, comminution by Amdel Laboratories in Adelaide, engineering studies and evaluation by Bateman Engineering Pty Ltd in Brisbane ("Bateman"), and various additional evaluations. Bateman engineered a flowsheet and process design criteria for a mill, included in the Feasibility Study that it completed in April of 2000.
The flowsheet consisted of a single jaw crusher, SAG mill and ball mill, gravity and flotation concentration, followed by CIL cyanide leaching. This flowsheet was chosen over a gravity/direct CIL route, since Bateman projected a combined recovery from gravity and flotation concentration of 94%, greater than the recovery obtained by gravity and direct leaching. In addition, this flowsheet benefitted from a significantly smaller leach circuit and a reduced use of cyanide, since only the flotation concentrates, amounting to only about 15% of the ore, and not the entirety of the ore, would be leached. The best overall recoveries of both coarse and fine gold were to be achieved through flotation at a coarse grind size of 125 microns, at which size, rather than a finer grind, the flotation concentrate included composite particles of pyrite and quartz containing fine gold inclusions. The flotation concentrate was thereafter to be ground to a size of less than 75 microns in a regrind mill prior to leaching.
Recent Work Commissioned by Lion One; Upgrades to Flowsheet
The Company commissioned Gekko Systems Pty. Ltd. of Ballarat, Australia during 2012 to confirm and add to Lion One's understanding of the earlier testwork. The results from Gekko's tests confirmed that a very high portion of the gold in the ore is either free gold or contained in quartz or pyrite, capable of being floated within composite particles. A significant portion of the gold consists of coarse free gold, and another significant portion of the gold reports as fine gold in the fine size fractions of the material, starting as early as the crushing stage. Gekko's Continuous Gravity Recovery ("CGR") tests recovered 43.1% of the gold, much of which was in the fine size fractions. Gekko's Gravity Recoverable Gold ("GRG") tests recovered 40.6% of the gold, more of which was in the coarser size fractions.
Gekko performed a number of studies on the crushing and grinding work indices of the ore, showing that the use of a cone crusher following a jaw crusher will be effective in reducing overall crushing and grinding costs. In addition, Gekko performed flash flotation tests and a battery of tests using gravity concentration, including the use of an in line pressure gravity jig along with additional gravity applications at a number of points in the process for the recovery of coarse and fine gold. Gekko's tests demonstrate that the application of a number of points of gravity concentration, followed by effective management of the grind size and of the flotation chemistry, could maintain an enhanced recovery of gold. Thus, two stages of ball mill grinding to control the size distribution for additional intermediate gravity concentration and enhanced flotation recovery has been determined to be a potentially efficient configuration.
The Company plans further variability tests to optimize recovery rates and evaluate the use of flotation tailings as mine backfill, and will continue evaluating the best processing and final product options for direct shipped material. These activities will be undertaken as a part of the Company's program of advancing the Tuvatu project toward development and production of gold.
Darcy Krohman, P.Geo, C.A., Technical Advisor to Lion One and a Qualified Person for the Company for purposes of National Instrument 43-101 has reviewed the technical information in this news release.
On Behalf of the Board of Directors
Walter H. Berukoff, Chairman of the Board
Lion One Metals Limited
This press release may contain "forward-looking information" 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 early 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 labor 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.
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