Author: Atrium Research August 20, 2026
Nicholas Cortellucci, CFA | Equity Research Analyst | [email protected] | 647-391-3314
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What you need to know:
- LIO announced drill results from 3,337m of underground infill and grade control drilling at its 100% owned Tuvalu Alkane Gold Project in Fiji.
- The standout result was hole TGC-0650 which hit 715 g/t Au over 4.2m, at just 121m depth. Several other holes also intersected high-grade.
- On July 27th, LIO announced the purchase of a new Board Long-Hole LM90 underground core drill for Tuvatu, a key initiative to increase drilling rates and ultimately expand production.
This morning, Lion One Metals Ltd. (LIO:TSXV, LOMLF:OTC) reported new high-grade gold results from 3,337m of underground infill and grade control drilling at its Tuvatu Gold Mine in Fiji. The program targeted the southern and down-dip extensions of the Ura and Murau lodes in Zone 2, below level 1061 (the lowest level of underground development in the zone) and intersected high-grade mineralization in 14 of 18 holes. While high-grade results are usually not a surprise at Tuvatu, today’s headline result of 715.15 g/t Au over 4.2m, including 6,571.20 g/t Au over 0.45m, is the highest-grade over-width intercept in the mine’s history. We are maintaining our BUY rating and target price of $0.60/share on Lion One Metals.
Highlights from today’s results include:
- TGC-0650: 715.15 g/t Au over 4.2m, including 6,571.20 g/t over 0.45m (from 121.1m depth)
- TGC-0633: 35.24 g/t Au over 5.1m, including 325.75 g/t over 0.4m (from 131.5m depth)
- TGC-0625: 40.93 g/t Au over 3.6m, including 162.75 g/t over 0.5m (from 65.5m depth)
- TUE-0004: 237.58 g/t Au over 0.4m (from 113.45m depth)
- TGC-0617: 95.28 g/t Au over 0.5m (from 110.5m depth)
Encouragingly for near-term value, the bulk of the high-grade hits lie within 15m to 75m of existing underground development and within 50m vertically, about two mining levels below current workings in Zone 2. Management expects these areas to be incorporated into the mine plan over the next twelve months. Since the drilling was in areas that had seen little prior work and outside the current resource, and the Ura and Murau lodes remain open both down-dip and along strike, we see high potential for more strong drill results in this area.
Today’s results also come off the back of two other developments since our last note (detailed below). LIO reached a forbearance agreement with senior lender Nebari, curing its defaults and extending the Tranche 1 maturity to the end of the year and at the end of July LIO purchased a new underground drill to target the Zone 500 and West Zone at depth for the first time.
Our Take
Today’s 3,337m of drill results highly impress us as results like these are rarely seen across the globe. Specifically, hole-0650 intersecting 715.15 g/t over 4.2m is the highest-grade over-width drill result in the history of Tuvatu, and that is saying a lot for a high-grade system like this. Notably, that result is in close proximity to the underground workings and in an area that has seen limited drilling (leaving lots of potential for future drilling and potential resource growth).
Catalysts
- Production and Financial Results – Ongoing
- Exploration Results and Mine Development Progress – Ongoing
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