Canadian gold producer Lion One Metals Ltd. has begun the first phase of a multi-stage expansion of its Tuvatu Gold Mine processing plant in Fiji, a project expected to increase mill capacity by one-third and lift annual gold production by about 2,100 ounces.
The first phase, known as the Filtered Tailings Expansion Project, will increase nominal plant capacity from 300 tonnes per day (tpd) to 400 tpd by doubling filtration capacity through the installation of two additional filter presses and associated infrastructure.
The project forms part of Lion One's broader plan to expand the Tuvatu processing plant to 700 tpd in phases, with a total estimated capital cost of C$13.5 million.
Phase 1 carries a capital cost of C$1.9 million and is expected to be completed by the end of the first quarter of 2027.
Lion One said the filtration circuit had been identified as the primary bottleneck in processing operations. The expansion includes two new filter presses, a filter feed tank, two filter feed pumps, structural and piping modifications, and an additional tailings truck.
Once operational, the upgrade is expected to increase annual gold production by about 2,100 ounces, based on an incremental gold grade of 3 grams per tonne.
At a gold price of US$4,000 per ounce, the additional production is projected to generate about C$11.8 million in annual revenue, with the company estimating the investment will be recovered within three months of commissioning.
"We're very excited to start Phase 1 of our mill expansion project," Lion One President and Chief Executive Officer Ian Berzins said.
"The filter press expansion is a key component of the expansion to 700 TPD and it will have an immediate impact on our production capacity once complete. The economics of the project are very strong with only a three-month payback period."
Berzins said capital projects with such short payback periods and significant production gains were uncommon and would deliver lasting operational benefits.
The company said no additional mining fleet or processing equipment would be required to support the increase to 400 tpd.
Lion One owns 100% of the Tuvatu Gold Mine, located on Fiji's main island of Viti Levu. Commercial production commenced in late 2023.
Beyond the initial expansion, the company plans to progressively lift processing capacity to 700 tpd as part of its long-term growth strategy.
Separately, Lion One appointed Shayla Forster as corporate secretary. The company said Forster has extensive experience in corporate governance, compliance and securities disclosure for publicly listed companies in Canada.
Lion One is headquartered in North Vancouver, British Columbia, and also holds exploration licences covering the Navilawa Caldera, a highly prospective alkaline gold district surrounding the Tuvatu project.
