Lion One Metals Ltd (LOMLF)

[miningstock1]

Here is my high level review of Lion One

After some homework and talking with the company regarding my investment in Lio, here is my summary on what's ahead for Lion One:

Ongoing drill results

• Ongoing exploration within the 384 hectare mining lease

• Contemplating the Ansteel MOU for 80% of the US$50M capex (development funding)

• Once development funding is secured there will be an approximate 18-month buildout to production

• Could begin producing gold in 2018

• Navilawa Caldera tender (potential to increase highly prospective land package to +30,000 hectares)

Lion One commenced an ongoing drill program targeting both infill and extensional targets. They have one surface rig currently operating and have one underground rig onsite ready to be deployed once the dewatering progresses (initial infill results intersected 8.41m @ 71 g/t Au). Due to the fact they raised $38M in Sept, they now have the budget for an aggressive exploration program to expand the resource and continue to enhance the mine life. The exploration potential is significant both within the Tuvatu deposit and the surrounding mining lease prospects. The potential increases exponentially with the consolidation of the Navilawa Caldera complex. The current deposit only extends approx. 250m from surface while the neighbouring operation (11m oz Vatukoula gold mine) has mined to a depth of 1300m+.



Gold Price Sensitivities for Tuvatu:



$1100 gold

Profit: US$533/oz

IRR: 43%

Payback: 21 months

NPV after-tax: $US65.50M

CF after-tax: US$87M



$1200 gold

Profit: US$633/oz

IRR: 53%

Payback: 18 months

NPV after-tax: $US86M

CF after-tax: US$112M



$1300 gold

Profit: US$733/oz

IRR: 62%

Payback: 16 months

NPV after-tax: $US108M

CF after-tax: US$138M



$1400 gold

Profit: US$833/oz

IRR: 71%

Payback: 15 months

NPV after-tax: $US129M

CF after-tax: US$163M


Read more at http://www.stockhouse.com/companies/bullboard/v.lio/lion-one-metals-ltd?postid=25577619#2MVXtPLYmDHoIMWY.99