By The Gold Report
Technical analyst Clive Maund charts a company developing a gold mine on Fiji.
Lion One Metals Limited (LIO:TSX.V) has been working for years to develop a significant gold mine on Fiji, and is expected to bring it into production next year. Technically the stock is a buy in this area because it has reacted back over the past 18 months to the strong support at the upper boundary of a giant Head-and-Shoulders bottom that it earlier broke out of to embark on a major uptrend.
Key Fundamental points relating to the company and the project are as follows:
- The company is in possession of a fully permitted high grade underground gold project advancing to production in Fiji at Tuvatu.
- Tuvatu previously owned by Australian listed Emperor Gold (Emperor also operated Vatukoula gold mine in Fiji)
- Vatukoula gold mine produced 7m oz. gold since 1930s; Fiji is seasoned and pro-mining jurisdiction
- Tuvatu taken through feasibility 1997-2000; over $20 million spent in 1999 dollars; Ivanhoe was biggest shareholder of Emperor
- Gold prices dropped under $300, Emperor taken over by DRD (Ivanhoe had moved onto Mongolian assets by then)
- DRD divested Fiji assets in 2006, acquired by Red Lion (Walter Berukoff)
- Red Lion sold Vatukoula gold mine in 2008, kept Tuvatu, took public with Lion One in 2011
- Wally Berukoff: founder of Miramar, Northern Orion, La Manchacornerstone asset bases still valuable and productive
- Emperor feasibility included over 1km underground workings & 100,000 meters drilling
- Lion One updated database and previous technical studies
- Obtained 21-year surface rights from landowners and native land trust
- Obtained 10-year renewable mining lease over 400 hectares surround Tuvatu resource
- Secured surrounding district scale land positionthe Navilawa Caldera
- A 6×4 km caldera rivaling scale of most major volcanic occurrences in SW Pacific hosting likes of Porgera, Lihir, Vatukoula, Gosowong, etc.
Now we will look at the charts. We start with a long-term 17-year chart which shows that the company has been around for a long time working towards its long-term goal of getting this gold mine up and running. The stock broke out of a base pattern and took off strongly higher early in 2016, at a time when the entire sector rose sharply from extremely depressed levels.
Lion One Metals website.
Finally, one advantage that the company has over many mining companies is that it is easier to get mining analysts to go there, rather than to say, Fairbanks or Norilsk in Russia. It is not known why the company is named Lion One, since, to the writer’s knowledge there are no lions roaming free on Fiji and never have been.
Read what other experts are saying about:
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.
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1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Lion One Metals. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Lion One Metals.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Lion One Metals, a company mentioned in this article.
Charts provided by the author.
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction. Mr. Maund does not own securities of Lion One.
( Companies Mentioned: LIO:TSX.V,