Analyst Says Mining Junior Well Positioned To Ride Out Gold Bear Market

The company has numerous elements working in its favor, including a fully permitted gold project only 12 months away from initial production, noted an Eight Capital report.

Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX; LLO:ASX; LY1:FSE) is well-poised to endure the current gold bear market and emerge from it stronger, Eight Capital purported in a September 12, 2022 equity research note.

Also, Eight capital highlighted that Lion One has an entirely permitted gold project only 12 months away from the first production. That, along with the deposit being open along multiple feeder structures, makes Tuvatu stand out among all of the gold exploration projects in Eight Capital’s coverage universe.







To its benefit, the Canadian explorer boasts a “unique combination of strengths, including a high-grade ore body, plenty of upside resource potential, proven management, good jurisdictional exposure, and a visible path to production,” wrote Eight Capital, which has a Buy rating and CA$3 per share target price on the company.

Also, Eight capital highlighted that Lion One has an entirely permitted gold project only 12 months away from the first production. That, along with the deposit being open along multiple feeder structures, makes Tuvatu stand out among all of the gold exploration projects in Eight Capital’s coverage universe.

The junior gold miner continues to advance Tuvatu by taking three tacks. One is to conduct expansion drilling to gain a better understanding of the deposit’s feeder structures. Another is to carry out infill drilling in advance of the upcoming resource update (expected in late 2022-early 2023). The third is to test regional targets in the Navilawa Caldera.

“Lion One’s management also sees the potential to realize an early cash flow opportunity at Tuvatu by building a 300 ton per day pilot milling facility and starting to mine while continuing to learn about the Tuvatu ore body,” Eight Capital noted. Then after production commences, the company would expand it to 500 tons per day.

A final noteworthy fact about Lion One, Eight Capital pointed out, is it outperformed its peers thus far in 2022, down only 2% year to date versus their 31%.

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