The Tuvatu gold mine in Sabeto, located in the hinterlands of Nadi, is poised for substantial growth, potentially surpassing the production levels of Fiji’s oldest gold mine, Vatukoula, according to its Canadian owner, Lion One Metals Ltd. In a recent interview, the company’s founder and president, Walter Berukoff, expressed confidence in the mine’s future, emphasizing that the partnership with Arete Capital Advisors is a strategic move aimed at enhancing the mine’s operational capacity.
Berukoff confirmed that Tuvatu will indeed be larger than Vatukoula, which has been in operation for more than 90 years. He noted that the Tuvatu mine has the potential to remain operationally productive for just as long. The current surge in gold prices, recently hitting historic highs, positions Fiji favorably within the gold industry. With prices soaring, Berukoff highlighted the profitability potential for smaller companies like Lion One.
Currently, the investment into Tuvatu is around CAD 300 million (FJD 500 million), and Berukoff acknowledged the significant capital required to ensure a sustainable operation. He reinforced that the elevated gold prices, which reached USD 5,500 per ounce last week, enhance profitability prospects for the mine. As the price continues to rise, it presents an encouraging climate for future earnings.
Bringing Arete Capital on board is a promising development. Known for revitalizing older or abandoned mines, Arete is investing CAD 15 million and acquiring a 9.9 percent stake in Lion One, with the aim of expanding and improving the mine’s infrastructure. The leadership at Arete, including CEO Campbell Olsen, will play a crucial role in modernizing operations and scaling production from the current levels towards a goal of processing 600 to 700 tonnes of ore daily, which could significantly increase annual gold output.
Berukoff sees this collaboration with Arete as a pivotal milestone for Lion One, facilitating the expertise necessary to transform Tuvatu into a major entity in gold production. As this partnership develops, the outlook for Tuvatu and the broader implications for Fiji’s gold mining sector appear promising, potentially heralding a new era of growth and opportunity.