Results from drilling at Lion One Metals fully permitted Tuvatu Gold Project in Fiji have further confirmed the continuity of mineralised lodes planned to be mined in the first three years of the proposed operation.

The company has received results for seven diamond drill holes focused on infill targets at Tuvatu, which is near Nadi on the island of Viti Levu.

Results received to date include 71.41 g/t gold over 8.41 metres; 12.32 g/t over 4.05 metres, including 34.92 g/t over 1.29 metres; 76.6 g/t over 0.30 metres and 13.95 g/t over 2.55 metres; 7.83 g/t over 6.77 metres, including 12.54 g/t over 3.92 metres; 24.07 g/t over 2.42 metres; and 16.06 g/t over 1.39 metres.

Drill holes have targeted areas previously in zones of high grade inferred mineralization or otherwise extensions to existing lodes.

The company has completed its diamond drilling program for 2016 but will resume in January 2017 with one surface rig and one underground rig.

Lion One has continued to dewater the existing decline which was used to take bulk samples in the previously completed (historic) feasibility study. In all 1431 metres of decline were excavated at that time. Dewatering is now complete to approximately a third of the underground development and will continue over the Christmas period.

Ventilation fans have also been installed in preparation for further work underground in the new year, which will include underground diamond drilling from the decline, detailed sampling and mapping, and exploitation of the mineralised ore zones.

Slippage in the Core Shed Fault area which lies about 140 metres from the portal was less than anticipated and has also been cleared.

The company envisages a low-cost underground gold mining operation producing 352,931 ounces of gold at head grades of 11.30 g/t over an initial seven year mine life, including 262,000 ounces at 15.30 g/t through year three, at cash costs of US$567 per ounce with all-in sustaining costs of US$779 per ounce.