Why did the Lion One Metals (ASX:LLO) share price jump over 8% today?

The Lion One Metals share price is nearly 9% higher today following a recently announced gold discovery at the Tuvatu operation.

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The Lion One Metals Ltd (ASX: LLO) share price is trading at $1.70 a share at the time of writing. That’s close to 9% higher for the day.

Lion One is a Canadian development and exploration company. The company’s CEO, Walter Berukoff, has owned or operated over 20 mines in 7 countries.

Lion One aims to become the premier high-grade gold producer in Fiji. This is set to be achieved via its 100% owned and fully permitted Tuvatu Alkaline Gold Project. 

Let’s take a closer look at why Lion One’s share price has jumped today. 

Lion One Metals share price jumps with high-grade gold drill results at Tuvatu

Lion One recently announced positive shallow and deep high-grade gold drill results from two diamond drill holes at the Tuvatu alkaline gold project.

Result highlights include discovering high grade gold mineralisation at a shallow intercept in a previously drilled area.

Both drill holes are still progressing and recently experienced delays caused by bad weather.

The main mineralised zone at Tuvatu (Upper Ridges) is comprised of eleven principal lodes.  There is a strike length over 600m and a vertical extent of more than 300m. 

Commenting on the recent Tuvatu project discoveries, Lion One Technical Advisor, Dr. Quinton Hennigh said:

“We are starting to see a clearer picture develop around which lode structures are deep-tapping and likely prospective for high grade gold mineralisation.”

Lion One announces the arrival of two new drill rigs

The company further advised that two underground drill rigs purchased in November 2020 are expected to arrive over the approaching week.

Lion One stated that the company believes this will accelerate drill testing of the deep high grade discovery. This will also support continuous drilling throughout the wet season.

In addition to year round, continuous drilling, Lion One said that there are other  advantages of underground drilling. This includes improved access to target depths and an ability to drill at more favourable angles.

The company’s technical crew has started preparing multiple drill stations in preparation for the new rigs.

The Lion One share price has dropped approximately 17.5% over the last 12 months.

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Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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