14 Mar 2017 07:00
14 March 2017
Lionsgold Limited
("Lionsgold" or "the Company")
India Gold Resource Upgrade and Broker Appointment
Lionsgold (LSE: LION), the India-focused gold exploration company with additional gold assets in Finland and an interest in a physical gold online trading platform, is pleased to announce details of the updated resource and drilling results in relation to the Jonnagiri gold project.
The Jonnagiri lease is held by Geomysore Services India Pvt Ltd ("Geomysore"), of which Lionsgold owns 20.5%. Jonnagiri is currently the focus of an economic feasibility study ("EFS") in respect of building a producing open pit gold mine, for which Geomysore has been granted a 30-year mining lease to mine 365,000 tonnes of gold ore per year.
In addition, Lionsgold is pleased to announce the appointment of Beaufort Securities Limited as joint broker to the Company with immediate effect.
Cameron Parry, Chief Executive Officer, commented: "We are delighted to be able to report a substantial increase to the Indicated Resource at Jonnagiri. The results underpin the work and data gathered via the current feasibility study and materially improve the viability of a producing gold mine. Additionally, the early test drilling results from the new South Block at Jonnagiri are particularly encouraging and plans are being made for further drilling on the South Block to establish an additional open pittable gold resource.
"In line with this and our other work underway in India and progress being made in our two other business divisions, Lionsgold has appointed a second broker to initiate research and help expand the Company's network and following."
India Gold Resource Update
As previously announced, Geomysore, in which Lionsgold owns 20.5%, is conducting an EFS in respect of a 'decision to mine' and the building of an open pit gold mine at Jonnagiri in India, for which Geomysore has been granted a 30-year mine licence to mine 365,000 tonnes of gold ore per annum.
Following the completion of drilling at Jonnagiri, Golder Associates Pty Limited ("Golder") has upgraded the JORC compliant resource based on the new drill results undertaken as part of the EFS. Golder has estimated a JORC compliant gold resource (the "Resource") of 214,000 ounces (Indicated) and 147,000 ounces (Inferred) in total at the East and West blocks (up from 103,000 ounces Indicated and 248,000 ounces Inferred as previously announced on 21 October 2016). Whilst the Resource increase in aggregate is marginal (up from 351,000 ounces to 361,000 ounces), significantly, 111,000 ounces of the Resource at the East Block (no additional drilling was undertaken at the West Block) has materially shifted from Inferred to Indicated category. Full details are set out below.
In addition, Golder has reported on the test drilling results in the South Block of Jonnagiri which demonstrate highly prospective intersections at shallow depth.
The best drill intersections include:
· 8m @ 2.67 g/t from surface,
· 2m @ 6.84 g/t from 26m,
· 5m @ 3.52 g/t from 3m,
· 5m @ 4.24 g/t from 6m,
· 3m @ 5.98 g/t from 3m, and
· 3m @ 7.84 g/t from 10m.
These intersections represent both detrital and primary ore, which is found in the vicinity of an ancient mine workings. The next step for exploration at the South Block is a further programme of diamond core and reverse circulation drilling (approximately 4,000 metres in aggregate) with a view to establishing a JORC compliant resource to add to the East and West Block deposits.
Resource Update Details
The JORC Resource at Jonnagiri has been estimated using a 0.5 g/t cut off for potential open pit activities and a 2 g/t cut off for potential underground activities at the West Block. Golder also provided Geomysore with the West Block model to assess the underground viability at lower cut off grades in the context of the Indian cost structure. The summary of the resource estimate, updated from the summary released 21 October 2016, is as follows:
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| Gross ¹ | Net attributable ¹ ² | ||||
Deposit | Class | Cut-off (g/t Au) | Tonnes (Kt) | Au (g/t) | Ounces | Tonnes (Kt) | Au (g/t) | Ounces |
East Block | Indicated | 0.5 | 4,200 | 1.45 | 196,000 | 861 | 1.45 | 40,180 |
Inferred | 0.5 | 1,300 | 1.18 | 47,000 | 267 | 1.18 | 9,635 | |
Sub-total | 0.5 | 5,500 | 1.39 | 244,000 | 1,128 | 1.39 | 50,020 | |
West Block (Temple) - Open Pit | Indicated | 0.5 | 500 | 1.05 | 18,000 | 102 | 1.05 | 3,690 |
Inferred | 0.5 | 300 | 1.13 | 9,000 | 61.5 | 1.13 | 1845 | |
Sub-total | 0.5 | 800 | 1.08 | 27,000 | 164 | 1.08 | 5,535 | |
Jonnagiri Total - Open Pit | Indicated | 0.5 | 4,700 | 1.40 | 214,000 | 964 | 1.40 | 43,870 |
Inferred | 0.5 | 1,500 | 1.17 | 57,000 | 308 | 1.17 | 11,685 | |
Total | 0.5 | 6,200 | 1.35 | 271,000 | 1,271 | 1.35 | 55,555 | |
West Block - Underground | Inferred | 2.0 | 800 | 3.52 | 90,000 | 164 | 3.52 | 18,450 |
Jonnagiri Total - Combined | Total | - | 7,000 | 1.59 | 361,000 | 1,435 | 1.59 | 74,005 |
¹ Columns may not total exactly due to rounding
² The Net Attributable resource is for illustrative purposes only and calculated by reference to Lionsgold's equity interest in Geomysore, in compliance with the Note for Mining and Oil and Gas Companies 2009.
The information in this statement which relates Mineral Resource estimation and classification of Mineral Resources is based on information compiled by Mr. Andrew Weeks who is a full-time employee of Golder Associates Pty Ltd, and a Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Weeks has sufficient relevant experience to the style of mineralisation and type of deposit under consideration and to the activity for which he is undertaking to qualify as a Competent Person as defined in the JORC Code (2012 Edition). Mr. Weeks consents to the publishing of Mineral Resources in the form and context in which it appears.
For further information, please contact:
Lionsgold Limited Cameron Parry (Chief Executive Officer) Luke Cairns (Executive Director)
| Tel: +44 (0) 20 7397 2880
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WH Ireland Limited (Nominated Adviser) Tim Feather Ed Allsopp
| Tel: +44 (0) 113 394 6600
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Smaller Company Capital Limited (Joint Broker) Rupert Williams Jeremy Woodgate
Beaufort Securities Limited (Joint Broker) Gavin Burnell Zoe Alexander
| Tel: +44 (0) 20 3651 2911
Tel: +44 (0) 20 7382 8300 |
Tavistock (Financial PR) | Tel: +44 (0) 20 7920 3150 |
Emily Fenton | |
Edward Lee |
GLOSSARY
"g/t" | grammes per tonne |
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"Indicated" | an 'Indicated Mineral Resource' is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed |
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"Inferred" | an 'Inferred Mineral Resource' is that the part of a mineral resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be of limited or uncertain quality and reliability. |
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"JORC" | the Australasian Joint Ore Reserves Committee Code |
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"kT"
"m" | thousands of tonnes
metres |
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"resource" | the calculated amount of material in a mineral deposit, based on limited drill information. |
About LIONSGOLD
Lionsgold is an AIM-quoted India-focused gold exploration company, with complementary gold assets in Finland and an interest in an online exchange targeting the India market for retail users to directly own and trade physical gold.
Lionsgold's three core focuses are:
· Strategic partnership with leading India gold exploration and mine development company, Geomysore, in which Lionsgold owns 20.5%;
· Physical gold holding and trading fintech platform for the Indian market; and
· Gold exploration and production in Finland.