More capital investment expected from Lion One

July 14, 2022 4:30 pm

[Photo: Supplied/Ministry of Lands and Mineral Resources/ Facebook]

Lion One Private Limited is expected to inject around $100 million in capital investment to complete mine development and undertake its first gold pour by the last quarter of next year.

Minister for Lands and Mineral Resources Jone Usamate today handed over the renewed Special Mining Lease 62 to Lion One for a further period of 11 years from the date of expiry of the current lease term.

Initially, Lion One was granted the license in 2015 for a 10-year term.

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Usamate says within the initial 10-year term, Lion One Limited has invested over $140 million in terms of exploration drilling and progressing mine development or construction in preparation for mine production.

He says Lion One has expressed interest in extending its mining lease, given its confidence in attaining a rate of return on investment that justifies further investment in the Tuvatu Gold Project.

“The level of investment made is truly reflective of the capital-intensive nature of mineral development and mining and is also a sign of investor confidence in investing in Fiji which will aid in the country’s economic recovery and also boost the contribution of the mining sector to Fiji’s GDP.”

Usamate adds the significant investment will also allow the company to continue with its extensive mineral exploration drilling program to improve geological confidence of the mineral resource within the mining lease area and also within its Special Prospecting Licenses.

He says this will augur well for Lion One in building its mineral resource base and subsequently extend the Tuvatu Gold project mine life.