The significant growth potential of the project also enhances its profile as a takeout target, noted a ROTH Capital Partners report.
received a 10-year extension of its Tuvatu mining lease from the Fiji government, which helps derisk the gold project and, in turn, increases its attractiveness to other parties, reported ROTH Capital Partners analyst Mike Niehuser in an August 8, 2022 research note.
The lease, covering 3.85 square kilometers, is now valid through and renewable on Feb. 28, 2035, relayed Niehuser.
“The extension of time, with the potential to explore and develop the balance of the Navilawa caldera, elevates the potential of Tuvatu to equal Vatukoula and approach other alkaline gold systems,” Niehuser commented.
The analyst believes Tuvatu will become one of the world’s highest-grade gold mines, on par with Vatukoula, an approximately 7,000,000–11,000,000 ounce gold mine that has been in operation for more than 85 years.
Given the typical significant depth and high grades of alkaline gold systems, Niehuser highlighted, Tuvatu has the potential to grow to the point where it would entice companies seeking to form a joint venture on the project or acquire it outright.
In the coming weeks, investors can expect a large amount of Tuvatu drill results from Lion One, Niehuser indicated.
“This should continue to demonstrate the expansion potential of the Tuvatu deposit, consistent with our investment thesis,” he added.
ROTH has a Buy rating and a CA$2.50 per share price target on Lion One, the current share price of which is around CA$1.30 per share.
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