Lion One Metals Ltd V.LIO

Zone 5 ……29 grams per ton

[nozzpack]

Grade control drilling in Zones 2 and 5 are being conducted on five to 10 m centres and is designed to provide a much higher resolution of the lode arrays than compared with infill drilling, which is being conducted on approximately 20 m centres.

This increased resolution provides a much better understanding of the geometry and mineralization of the lodes and helps to optimize mine development and extraction.

grade control assay grades being of very high drill sampling density should be an accurate representation of the shallow zones being/ to be mined in These two zones.

I have posted Zone two grades which average 20 grams per ton.

The much larger Zone 5 assay grades representing over 70 assay samples from the April and June 2023 Drill reports have been estimated to have an average grade of 29 grams per ton.

For these early mining zones, currently under commissioning ramp up to 500 tpd ,
these are extraordinary grades that are rarely encountered in any gold mines around the world .

Being drill sampled just 5-10 m apart , they should have minimal mining dilution which means that you can just drive a mining ramp straight through these zones and recover these grades.

Early commissioning has been largely  the lower grades of stockpiled ore of Zone 2, but mechanical  mining of these LOM grades began circa mid April in Zone 2 and about late April in Zone 5.

Taking May and June as mechanical mining of both zones @ average  30 tpd to be conservative ,  about 18000 tons would be mined from Zones 2 and 5.

At conservative 15  grams per ton, 270,000 grams would be mined in May and June , of which about 240,000  grams or 8000  ounces would recovered.

Noting that high grading is normal in early mining of a new gold mine, this estimate could be conservative,

Still, 8000 ounces at $3000 ounces cad POG represents $24 million in Revenue.

Being very shallow,  very high grade and very well spatially defined by close spaced grade control, cash costs would be very low and probably below $500 US per ounce ($700 CAD ) , so cash flows will be above $20 million for those two months .

This assumes that mechanical mining achieves its mining output forecast of 300 tpd.

So far, so good ......

[Puma1back]

Good little conversational with Quinton - i suspect he was a strong supporter of the financing given the propensity of NFG to do the same thing time & again. Drill, drill, & then drill some more. only take issue with his assertion that the capital raise was for the production side. LIO had cash, it could use it for exploration or production, not both as too thinly spread. So no

[Puma1back]

As long as good news volumes are used as a liquidating trigger by holders we will struggle to get any traction Volumes April - 12 million at 49 cent average March - 13 million at 44 cent average February- 14 million at 53 cent average

[Puma1back]

rsi is ok at this point having moved above 50 , as well the 50 dma was broken for a toal of about 5 days now -  but this stock has to move back to an accumulation stage and throw off this now 3 month distribution mode resulting from the financing. if the technical break above the 50 dma holds we could see some recovery of the huge pull back imo.  

[Puma1back]

to plug in May's number - volumes well down for May - 9.1 million traded at average of 52 cents - so about  a 30% drop in volume.