Lionsgold Limited - Finland Gold Joint Venture Update

05 October 2017

5 October 2017

Lionsgold Limited

("Lionsgold", "LION" or the "Company")

Finland Gold Joint Venture Update

Lionsgold, the gold-focused exploration company with assets in India and Finland, and a fintech subsidiary that provides online accounts backed by physical gold, is pleased to provide an update on activities undertaken by its Finnish gold joint venture ("JV") in the Suomussalmi region of eastern Finland. 


Kalevala Gold Oy ("Kalevala") is the Finland-incorporated, JV operating company for the work conducted on the Syrjälä Project, which includes the planned Kuikka Gold Deposit bulk sampling programme and regional gold exploration.



·     Kuikka Gold Deposit, Planned Bulk Sample Update:

o  Bulk sample box-cut plan refined by closely spaced shallow Rotary Air Blast ("RAB") drilling results.

o  Drill sample assays from 22 inclined RAB holes have defined the central and parallel mineralised zone; with best intersection 3m @ 26.50g/t Au from 7m  in hole T014.

Purpose built pilot scale processing plant constructed ready for the bulk sampling. 

Initial 200t test ore sample is planned, subject to governmental permission, to fine tune plant recoveries, bulk sampling procedures and protocols.

·     Regional Gold Exploration Work

Kalevala Prospecting Licence (277.7km2) awarded, combined with existing licences the JV  now controls 90% of the known outcrop of the Suomussalmi Greenstone Belt.

Geochemical survey completed over 95km2 in south of new licence (1,578 samples).

Major arsenic anomaly delineated over an 8.5km2 area, indicating gold potential.

o  Geochemical coverage to be completed ahead of planned ground magnetic geophysics  surveys and infill sampling over anomalies in 2018.


Cameron Parry, Lionsgold CEO, commented: "We are pleased to report on the progress being made under our JV in Finland.  Additional exploration targets have been identified and with the new prospecting licence recently granted, Kalevala now holds more than 300km2 under licence representing over 90% of what the board believes to be the highly prospective Suomussalmi Greenstone Belt.  At Kuikka, the results of the confirmation grade drilling program further demonstrate a high grade gold deposit and further delineate the shape and size for the most effective bulk sample cut.  With regard to processing the ore, our pilot plant and equipment is in place and awaiting commissioning using a planned 200 tonnes sample.


"We look forward to updating shareholders as additional prospecting areas are granted and relevant testing permissions are received in relation to our Finland gold assets, whilst we concurrently progress our interests in India and develop our gold-backed financial technology offering."


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 MENF in 2016 ahead of a targeted box-cut bulk sampling programme.  


During 2017 work at Kuikka has concentrated on detailed planning, mapping and further grade confirmation drilling as part of the environmental permiting and optimisation of the bulk sampling programme.  A total of 222 drill samples were analysed for gold in Finland by certified laboratory ALS Minerals ("ALS").  With the 222 one metre samples from 22 inclined RAB drill holes, helping to refine understanding of the morphology of the central vein and parallel mineralisation, to a depth of up to 10m, within the envelope of the planned bulk sample.


Selected inclined RAB drill hole intersections (2m or wider composites), are set out below.  Given depths are measured downhole.


Hole T001

Ø 2m @ 3.17g/t Au from 0m; and

Ø 5m @ 1.27g/t Au from 5m.


Hole T007

Ø 2m @ 6.49g/t Au from 8m


Hole T011

Ø 4m @ 4.64g/t Au from 6m


Hole T014

Ø 3m @ 26.50g/t Au from 7m


The proposed bulk sampling was originally anticipated to be able to commence in H2 2017, but as indicated on 4 July 2017, subject to the timing of approval being granted, it is expected that the bulk sampling programme will commence in 2018.


As a precursor to the bulk sample, which is expected to be circa 5,000 tonnes, permission has been sought to process an initial, smaller, test sample of 200 tonnes in order to optimise the pilot plant recovery and operating procedures for the planned bulk sampling.  A decision on permitting for the 200t sample is currently pending.


Bulk Sampling Pilot Plant


Ahead of the planned bulk sampling, Kalevala has assembled a containerised, gold recovery pilot plant which consists a 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 ore 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 leaching 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 current plan is to commission and optimise the pilot plant using the material from the planned 200t test sample as soon as permissions are granted.


The pilot plant is located approximately 1hr 40min drive from the Kuikka Deposit, along sealed and all-weather roads.


Regional Exploration Work


Regional exploration has focussed on the securing of the prospective exploration belt in the vicinity of the Syrjälä Project area.  The award of the 277.7km2Kalevala Prospecting Licence gives the JV an effective 90% coverage of the prospective Suomussalmi Greenstone Belt which hosts the Syrjälä Project and Kuikka Deposit.


During August and September, a geochemical sampling programme was conducted over 95km2 in the south of the new Kalevala Prospecting Licence with a total of 1,578 samples collected.  Initial results are very encouraging with a major arsenic anomaly delineated over an area of 8.5km2, indicating gold potential.  All samples will now also be analysed for gold.


Kalevala plans to continue the geochemical survey work to complete coverage of the new licence in the 2018 field season.  The anomalies identified will then be followed up by ground magnetic geophysics and infill sampling.


The technical information contained in this disclosure has been read and approved by Mr. Nick O"Reilly (MSc, DIC, MAusIMM, FGS), who is a qualified geologist who meets the criteria of Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies.  Mr. O"Reilly has visited the Syrjälä Project.  Mr. O"Reilly is a consultant working for Mining Analyst Consulting Ltd which has been retained by Lionsgold Limited to provide technical support.



For further information, please visit or contact:



Lionsgold Limited

Cameron Parry (Chief Executive Officer)

Luke Cairns (Executive Director)


Tel: +44 (0)20 3778 0578


WH Ireland Limited (Nominated Adviser)

Tim Feather / Ed Allsopp


Tel: +44 (0)113 394 6600


Smaller Company Capital Limited (Joint Broker)

Rupert Williams / Jeremy Woodgate


Tel: +44 (0)20 3651 2911


Beaufort Securities Limited (Joint Broker)

Tel: +44 (0)20 7382 8300

Elliot Hance



Tavistock (Financial PR)

Emily Fenton


Tel: +44 (0) 207 920 3150