TIDMLION
RNS Number : 3922K
Lionsgold Limited
10 April 2018
Lionsgold Limited
("Lionsgold", "LION" or the "Company")
Finland Gold Licences and JV Stake Increase
Lionsgold (LSE: LION), the AIM-quoted gold-focused company
involved in the exploration, production and retail application of
physical gold, including the development of the digital currency
Goldbloc, is pleased to provide an update on its activities in
Finland undertaken by its Finnish joint venture ("JV") company,
Kalevala Gold Oy ("Kalevala").
Highlights
-- Lionsgold has increased its Finland JV interest to 30%
following the injection of additional working capital.
-- Kalevala has received permission to undertake test processing
on an initial 200 tonne sample from the Kuikka Gold Deposit in
order to fine tune plant recoveries, bulk sampling procedures and
protocols for a planned bulk sampling programme.
-- The company has until 20 June 2018 to complete the test
sample. Following completion Kalevala will seek permission to
conduct a 5,000 tonne bulk sample of the Kuikka deposit.
-- Kalevala has received an additional prospecting licence
(1,214km(2) ) which provides significant coverage of the gold
prospective Kuhmo Greenstone Belt.
Cameron Parry, Lionsgold CEO, commented: "We are pleased to
report on the progress of our Finland Gold JV company, Kalevala.
Approvals have been received for Kalevala to process 200 tonnes of
material from our Kuikka high grade gold deposit as part of the
commissioning of the gold recovery pilot plant for the planned bulk
sampling.
"Additionally, a new prospecting licence has been granted to
Kalevala immediately resulting in a five-fold increase in the
combined area held under licence with Kalevala now holding
approximately 1,500km(2) of gold prospective ground in Finland,
including over 90% of the Suomussalmi Greenstone Belt and
significant coverage of the Kuhmo Greenstone Belt.
"Also significant, Lionsgold has increased its Finland JV
interest to 30% following a recent injection of EUR60,000 in
working capital to Kalevala.
"Progress is also being made regarding our activities and
interests in India and our financial technology subsidiary, in
particular surrounding the release of Goldbloc this quarter, and we
look forward to updating shareholders over coming weeks on both of
those business divisions."
Additional Prospecting Licence Granted
Kalevala has received notification that it has been awarded the
Kuhmo Prospecting Licence following a previous application.
The Kuhmo Prospecting Licence (#VA2017: 0074) ("Kuhmo Licence")
has a total area of 1,213.92 km(2) and is located within the
municipalities of Suomussalmi, Hyrynsalmi, Kuhmo and Sotkamo in
east-central Finland. The licence is valid through to 10 September
2019 and includes permission to explore for metals including gold,
nickel, cobalt and platinum group metals.
The Kuhmo Licence covers a large part of the prospective Kuhmo
Greenstone Belt which is located immediately south of the
Suomussalmi Greenstone Belt where the Kuikka Gold Deposit is
hosted. The Kuhmo Greenstone Belt is the largest Achaean greenstone
belt in Finland, being up to 10km wide and more than 100km from
north to south.
The award of the Kuhmo licence brings the total ground held
under licence by Kalevala to 1,491.62km(2) . The pre-existing
277.7km(2) Kalevala Prospecting Licence has an effective 90%
coverage of the prospective Suomussalmi Greenstone Belt which hosts
the Syrjälä Project and Kuikka Gold Deposit.
Project Background
Bulk Sampling Pilot Plant
The bulk sampling gold recovery pilot plant consists a
containerised, crusher and vibromill feeding a ITOMAK 5 centrifugal
separator with a production rate of up to 5 t/hr followed by a
concentration/shaker table with a capacity of up to 50 kg/hr, to
clean the gravity concentrate from the separator. As the Kuikka
mineralisation contains free gold, gold recovery by gravity methods
is expected to be high, however tailings will be securely stored
onsite in case the pilot studies show further processing of tails
to be economic.
The pilot plant is located within an aggregate processing
facility which is fully permitted for the crushing and milling
activities that will be taking place. The pilot plant incorporates
a closed water settling and recirculation system to mitigate its
environmental impact and minimise water consumption.
The pilot plant is located approximately 1hr 40min drive from
the Kuikka Deposit, along sealed and all-weather roads.
Kuikka Gold Deposit
The Kuikka Gold Deposit ("Kuikka") is located within the Syrjälä
Project area on the prospective Suomussalmi Greenstone Belt.
Originally defined by 4,359m of diamond core drilling undertaken by
the Geological Survey of Finland (GTK) and the Finnish company
Outokumpu Mining, Kuikka was subject to a further 937 metres of
infill RAB drilling carried out by Lionsgold JV partner Mineral
Exploration Network (Finland) Ltd ("MENF") in 2016 ahead of a
targeted box-cut bulk sampling programme.
During 2017 work at Kuikka concentrated on detailed planning,
mapping and further grade confirmation drilling as part of the
environmental permitting and optimisation of the bulk sampling
programme. An additional 22 inclined RAB drill holes were drilled
to help refine understanding of the morphology of the central vein
and parallel gold mineralisation, to a depth of up to 10m, within
the envelope of the planned bulk sample.
For further information, please visit www.lionsgold.com or
contact:
Lionsgold Limited Tel: +44 (0)20 3778 0578
Cameron Parry (Chief Executive Officer)
WH Ireland Limited (Nominated Adviser) Tel: +44 (0)113 394 6600
Tim Feather / Chris Viggor
Smaller Company Capital Limited (Broker) Tel: +44 (0)20 3651 2911
Rupert Williams / Jeremy Woodgate
About LIONSGOLD Limited (LSE: LION)
Lionsgold is a London Stock Exchange AIM market quoted,
gold-focused company involved in the exploration, production and
retail application of physical gold, with gold assets in India and
Finland and a majority owned financial technology company
developing the digital gold currency, Goldbloc.
Lionsgold's three core focuses are:
-- Strategic partnership with leading India gold exploration and
mine development company, Geomysore, in which Lionsgold holds
21.15%;
-- Majority ownership of a financial technology platform
providing online accounts for people to hold and utilise physical
gold (www.goldbloc.com / www.indexgold.com /
www.therealasset.co.uk); and
-- Gold exploration and production in Finland via joint venture, owned 30% by Lionsgold.
This information is provided by RNS
The company news service from the London Stock Exchange
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