Big Picture – A Deep Dive Examination of the Lionsgold
Lionsgold Limited is a gold-focused company with exploration and development in assets in India and Finland complemented
by its technology division which house an established gold holding and trading platform (therealasset.co.uk indexgold.com) and is developing a gold currency platform (goldbloc.com), listed on the London Stock Exchange AIM Market (LON:LION)
Lionsgold has newly established a three-fold strategy:
Grow opportunities in India from its partnership with India’s leading gold exploration company, Geomysore;
Provide individuals with the utility of gold as any other mainstream currency and the security of direct ownership of physcical gold; and
Jurisdictional diversification through gold exploration and mine development in Finland.
Lionsgold's business model aims to see all three initiatives become revenue generative, whilst concurrently building capital growth through developing its underlying assets. Two of the three divisions target revenues to commence in 2018 with the third by the end of 2019.
Revenues are expected from the fintech division in Q2 2018 with the release of the Company’s gold currency connected to global banking. The first of our targets within the Finland JV portfolio through an inaugural bulk sampling campaign in Spring 2018, and Geomysore’s most advanced gold project in India is expected to commence mining in Q4 2019.
Lionsgold’s India exploration and mine development interests are represented by its 22.31% equity holding in Geomysore Services (India) Private Limited (“Geomysore”) a leading Indian mineral exploration group based in Bangalore.
Geomysore has focused exploration on areas mainly covered by Archaean and Proterozoic volcano-sedimentary greenstone belts, which are known to contain abundant precious mineral deposits. Geomysore has a significant portfolio of licences and applications for targets throughout India with priority rights covering in excess of 900km2.
Most advanced India gold project: Jonnagiri
- targeting to build a producing gold mine to commence production in H2 2018;
- granted a 30-year mining licence to mine 365,000 tonnes of gold ore per year;
- drilling undertaken at Jonnagiri totaling 15,800 metres;
- US$2.4m of new funding recently approved from one shareholder for additional drilling of up to 10,000 metres and complete the economic feasibility study (“EFS”);
- The site is divided into two parts: a prospective shallow open pit mine at the East Block and a potential open pit and underground mine at the West Block;
- Golders Associates Pty Ltd (“Golders”) recently estimated a JORC compliant resource at Jonnagiri based on data available as at 30 June 2016 of 351,000 ounces (Indicated and Inferred) in aggregate at the East and West blocks.
- EFS is expected to be concluded by the end of Q1 2017.
Lionsgold (previously Kolar Gold) announced on 1st November 2016 that it had agreed terms for a joint venture (“JV”) with TRAC Technology Limited (“TRAC”) to launch an online gold and silver ownership and trading platform for the Indian market and concurrently acquired 27.3% equity in TRAC.
Under the JV Lionsgold and TRAC will be looking to adapt and launch TRAC’s established technology for the Indian market of 1.25bn people representing the world’s second largest consumer of gold.
Lionsold and TRAC will own 50% each of the newly incorporated JV company in return for Lionsgold initially providing up to £50,000 and TRAC providing an exclusive licence to use its technology and knowhow (including personnel) online platform for India.
TRAC was founded in 2010 in the UK and developed a gold and silver buying and trading platform, allowing users to easily track and trade their physical gold and silver. As of 1st November 2016, TRAC stores on behalf of its clients in excess of 120kg of gold and over 4.4 tonnes of silver at vaults across London, Geneva, Singapore and Hong Kong.
On 13th October 2016, Lionsgold (previously Kolar Gold) announced that it had entered into a Memorandum of Understanding (“MOU”) to establish a JV to develop existing gold exploration projects in Finland, thereby securing gold assets in a second jurisdiction, to be developed concurrently to India interests.
Lionsgold’s commitment is to inject €500,000 in cash (of which €150,000 has been paid) and €150,000 in shares to hold 28.7%. Option for Kolar to earn-in up to 50% by providing a further €1m to be expended on a drilling and bulk sampling program targeted to produce 100kg of gold in Spring 2017.
Finland JV company will hold ve exploration licences and two pending licences covering an area of 23.81km2. The Project area is located approximately 600 km north of Helsinki. Mineralisation is hosted by Archaean greenstone metasediments and meta- volcanics, with the licences located on the southern part of the Suomussalmi greenstone belt. Project includes the Kuikka gold deposit. Geological Survey of Finland (GTK) 52 diamond drill holes, returned 17 positive intersections.
- 16.2m @ 18.97g/t Au from 15m in Hole R361;
- 11.8m @ 2.8g/t from 36.4m in Hole R362;
- 7.7m @ 5.3g/t Au from 4m in Hole R363;
- 8.0m at 2.1g/t Au from 62.9m in Hole R367; and
- 7.4m @ 4.0g/t Au from 36.6m in Hole R372.
In 2016, MENF conducted in ll RAB drilling (19 holes) at Kuikka confirming continuity of high grade gold mineralisation.
- 6.0m @ 15.58g/t Au from 12.5m in hole KU002;
- 6.0m @ 18.10g/t Au from 17.00m,
- 13.0m @ 7.58g/t Au from 26.00m in hole KU005;
- 6.0m @ 26.95g/t Au from 7.00m in hole KU008; and
- 11.0m @ 12.15g/t Au from 34.5m in hole KU010.
Cameron John Parry
Chief Executive Officer
Cameron Parry, aged 42, is an experienced company developer and executive director of quoted public companies in both the mining and fintech sectors.
Cameron was the founder and inaugural CEO of AIM quoted Metal Tiger PLC (LSE: MTR) from 2014 to 2016, and as executive chairman and co-founder, completed in 2015 the world's first IPO of a blockchain fintech company, Coinsilium Group Limited (NEX: COIN). Cameron was appointed to the board of Lionsgold (formerly called Kolar Gold Limited) as CEO in July 2016.
Luke Sebastian Cairns
Luke Cairns, aged 38, has managed and advised growth companies across a number of sectors and regions on a wide range of transactions.
Luke was previously the head of corporate finance and managing director at Northland Capital Partners and a former qualified executive for AIM. Luke is currently a non-executive director of AIM-listed Onzima Venture PLC (LON:ONZ) and he is an associate of the Chartered Institute of Secretaries. Luke joined the board of Lionsgold (formerly called Kolar Gold Limited) in July 2016.
Dr. M. Hanuma Prasad
Hanuma Prasad, aged 51, holds a doctorate in geology and has over 22 years’ experience in geological survey and exploration within the mining industry. He worked with the Geological Survey of India for eight years in geological mapping and mineral exploration projects and has worked as a geologist across multiple territories around the world, including the Archaean greenstone belt in Eastern Finland near Lionsgold’s Finland Gold JV.
Hanuma is currently CEO of Australian Indian Resources Ltd (“AIR”), the multi-metals group that established Geomysore Services (India) Private Limited (“Geomysore”) – a leading India exploration company of which Lionsgold and AIR are significant shareholders. He has been working with Geomysore since 2001, as exploration manager for 13 years, and currently as technical and strategy advisor. Hanuma joined the Lionsgold board in November 2016.
London EC2V 6DN
Tel: +44 (0) 207 397 2880
Email: [email protected]
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