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Lionsgold confident of substantial increase in value of Indian asset

The advancement of over 100,000 ounces from the lower-confidence inferred category to indicated classification was significant.
picture of gold and dollars
An economic feasibility study (EFS) is set for publication at the end of next month.
Lionsgold Ltd (LON:LION) and its partner Geomysore Services are putting in place the “stepping stones” for a shift in value of the Jonnagiri gold deposit in India.
That at least is the belief of Cameron Parry, chief executive of the AIM-listed natural resources group, which owns 20.5% of the project.
While the overall figure rose modestly, the advancement of over 100,000 ounces from the lower-confidence inferred category to indicated classification was significant. 
It is now sitting on 214,000 ‘indicated’ ounces, which will be crucial when compiling a reserves statement and assessing the economic potential Jonnagiri.
That ‘potential’ will be fully explored in an economic feasibility study (EFS) set for publication at the end of next month.     
“Subject to the conclusion of the EFS we are then expecting to see the bulk of the indicated resource become a reserve,” Parry said in an interview with Proactive Investors. 
“These are the stepping stones of what can become a fairly dramatic value shift as you go through these various categories with your gold deposit.”
In addition, Lionsgold revealed some of the early results from South Block on Jonnagiri, which yielded high-grade mineralisation near surface.
Unearthed were three-metres at almost 8 grams per tonne from just 10 feet, a further three-metres at almost six grams and five-metres at 4.24 grams.
“They have the potential to give an uplift to the inferred and indicated resources at some later date,” said Parry.
“They are a level about what we’ve seen in the East Block. Jonnagiri may be showing more of itself to us now.”
The partners are planning a 4,000-metre drill programme to further uncover the South Block’s potential, which Parry said is “economic and reasonable to us”. 
The company, formerly Kolar Gold, has another gold asset in Finland and a 50-50 joint venture with TRAC Technology in India. It also owns a 27.3% direct stake in business.
TRAC has developed a trading platform called The Real Asset Co ( that allows investors to acquire and store physical gold and silver rather than buying into exchange traded funds.
Lionsgold and TRAC aim to tap into India’s borderline obsession with the yellow metal with a platform that should be immediately revenue-generative.
“The gold trading platform is on target for release by the end of the month; we are getting ready to do that; it will have its own brand and we are on track and excited,” said Parry.
He said in Finland all the preparatory work for a bulk sample of gold is underway.
The idea is to process enough ore to generate just over US$4mln at today’s spot price for the precious metal. 
What it then does with the cash is open to discussion between Lionsgold and its partner, Mineral Exploration Network (Finland) Ltd.
We may decide to drill further high-grade targets and there are two other project areas to the south and we might commit to adding them,” CEO Parry said in an early interview.
The bulk sample, which gets underway in August, is expected to take two months to complete.
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