Shares of Lion One Metals (CVE:LIO)(ASX:LLO)(OTCQX:LOMLF) surged today after announcing that it has received environmental approvals for the construction and development of its Tuvatu gold project on the island of Viti Levu in Fiji.
The stock was last up 45 percent at 29 Canadian cents, rising to as high as 31 cents earlier in the session. The company's 52-week high is 49 cents.
Lion One has been granted a special mining lease for its project from the Fiji's Minister of Lands and Mineral Resources, while the asset's environmental impact assessment was also approved by the Department of Environment, according to the Vancouver, BC-based company's statement released earlier Monday.
The special lease, which represents the final step in the permitting process in Fiji, provides for exclusive rights for the potential development, construction and operation of Tuvatu and the surrounding area. Lion One filed its mining lease application in 2013.
"This is a very significant milestone for Lion One and we thank the Government of Fiji for their support in approving the grant of SML 62 for Tuvatu" said Lion One chairman and CEO Walter Berukoff.
"We are now permitted to enter the next phase of development focused on our goal of bringing Tuvatu into production and becoming Fiji's next high grade gold mining operation."
The special grant covers 373 hectares, which includes all of the current resource and multiple prospects in the Navilawa goldfield, one of Fiji's major volcanic intrusive complexes.
The project currently has an estimated 299,500 indicated gold ounces and an additional 468,000 ounces classified in the inferred category. The property is located 16km by road from Lion One's head office in Fiji and 35 km from Port Lautoka.
The high grade deposit has been subject to more than 87,000 metres of drilling and 1,600 metres of underground development by a previous operator. The structure still remains open for expansion at depth and along strike, Lion One said.