LION One Ltd Mines will soon have a new mill and processing site after a groundbreaking ceremony at Tuvatu, Sabeto in Nadi.
The new development is set to create employment for about 200 locals.
The company had set up in Fiji eight years ago and was only issued a special mining lease in January 2016.
Acting Prime Minister Faiyaz Koya, who officiated at the event on Friday, said the development was set to have direct contributions to the economy.
"It is evident how the company has forged ahead in meeting its exploration targets and is now advancing into the next stage of finalising its deposits for mine production," he said.
"This is a positive sign as it portrays the commitment of Tuvatu Gold Mine to produce to its full capacity by the second quarter of 2019.
"This expansion work will contribute to the economy directly and indirectly in many forms, such as the employment of the local community."
Lion One Metals chief executive officer Walter Berukoff said ore body of the rocks found at the mine was one of the best and believed to be in the top 10 in the world.
"Our goal is also to provide job opportunities for locals for generations to come," he said.
"We made the promise to build an environmentally sustainable mine and our mandate has not changed. That was the promise I made to Prime Minister Voreqe Bainimarama years ago and it is a promise we will keep."