Guess which ASX mining share just exploded 50% on a 'substantial discovery'

Shares of Lion One Metals Ltd (ASX: LLO) have surged to more than 48% higher in trade on Tuesday after a key company update.

Investors have rallied the stock to $2.06 at the time of writing, a shade off the intraday high of $2.45 in early trade.

The price action also marks a 52-week high for the company whose share price had flatlined up until today's announcement.

What did Lion One release?

The company announced the discovery of a major new feeder structure at its Tuvatu Alkaline Gold Project in Fiji.

Specifically, Hole TUG-141 has encountered the longest high-grade intercept yet recorded at Tuvatu. The company was targeting a complex network of high-grade structures called the 500 Zone at the site.

It intersected 20.86 g/t Au over 75.9m, including 43.62 g/t Au over 30.0m which includes 90.35 g/t Au over 7.2m.

"The new discovery is located at depth beneath the current resource fully within the permit boundaries of the Tuvatu mining lease," it remarked.

The company's CEO, Walter Berukoff, said the find "represents a substantial discovery for Lion One".

I have long encouraged our team to find that "gold room" at Tuvatu, and hole TUG-141 leads me to believe they have found it. We have only to look at other notable large alkaline Au deposits as direct
analogues to better understand what this latest discovery tells us, and it is clear that the discovery of a major high-grade feeder such as this should be viewed as very promising.

I am confident that Tuvatu will one day fall in the ranks of notable multi-million ounce Au deposits such as Porgera and Vatukoula.

The company says that further drilling is required to better understand the results, and that hole TUG-141 is still being drilled. Other mineralised structures are yet to be assayed.

Its immediate priority is to follow up with additional drilling in the Tuvatu system.