The Emperor---Tuvatu connection
Exhibit B (1)
LION doesn’t mention the following information, which is a shame because it’s so important in regards to buying into, or buying more of Lion One. They told me they don’t for legal reasons but I don’t see what’s wrong with them publishing extant information.
Emperor owned and operated Vatukoula since 1958 along with exclusive interests in any surrounding deposits. In this context, Tuvatu was first discovered in 1987 and in the late 90’s Emperor made the decision to rapidly develop the deposit as an additional source of high-grade ore to feed their existing mill at Vatukoula. This is with an inflation adjusted gold price below US $400 per ounce, mind you.
By mid-2000, the company had completed extensive mine development work, including:
· Resource definition drilling totaling 87,000 meters and 605 drill holes, Over 1,600 meters of underground access tunneling, and a Definitive Feasibility Study (DFS).
The DFS was positive, demonstrating a commercially viable underground gold mine.
Emperor commissioned numerous engineering studies utilizing its own expertise and that of recognized consulting firms .
The report also provided JORC compliant initial reserves and resources totaling
809,000oz at impressive grades between 6.6 and 10.3 grams per tonne (g/t).
Unfortunately a persistently low gold price led the board to shelve the project until gold prices strengthened. In the meantime, Emperor ran into financial difficulties in the mid 2000’s, ultimately divesting of its Fijian assets and merging with another Australian explorer operating in Indonesia (Intrepid Mines Ltd.) in 2008.
As a result of Emperor’s troubles, both Vatukoula and Tuvatu were briefly orphaned in a complex web of ownership changes. These ownership changes were resolved when the newly formed Lion One finally took full control of Tuvatu in the last half of 2010. Nevertheless, the shelving of the project in 2000 combined with the disappearance of historic Emperor Mining caused Tuvatu to disappear from investor radar screens.
For some of the above information, thanks goes to a company called Frontier Research for an article I posted years ago on SH which is no longer accessible. Too bad because they had a photo of the eye watering 1,600g/t over a half meter core that Emperor drilled.