The company also announced that its 2016-17 drilling program was continuing with one surface and one underground drill successfully intersecting high grade zones of mineralisation near the current resource.
In order to model the incoming results, the company has appointed a third party engineering firm as it believes the drilling underway has the potential to materially increase the tonnage and grade of the mineralised zones targeted for extraction in the initial years of the mine plan.
Since starting drilling in October 2016, Lion One has completed a total of 6439m of diamond drilling, with 5744m from 28 surface drill holes and 739m from seven underground drill holes.
Highlighted results include 8.41m at 71.41 grams per tonne from 96.1m and 2.42m at 24.07gpt from 86.94m.
Under mutual agreement with Ansteel - the company's engineering, procurement and construction partner - Lion One has contracted Chinese firm Yantai Jinpeng Mining Machinery Co, based in Shandong Province, PRC, to complete the final detailed engineering design plans for the Tuvatu processing plant, tailings dam and surface infrastructure.
Planned infrastructure includes the laboratory, office complex, dry area, workshop for light vehicles and heavy underground machinery, warehouse, conference facilities and mine site offices.
Lion One expects the final engineering plans to be delivered in June.
The company has also contracted Vancouver-based process engineering firm Canenco to manage equipment specifications, engineering plans, and design documentation for the processing plant to be constructed in the PRC to North American standards.
Mining equipment and processing plant components have been identified and priced, according to Lion One.
Tuvatu is a high grade, low sulphidation, epithermal gold deposit with numerous high grade prospects in adjacent areas. The project has had more than 100,000m of drilling completed to date, as well as 1600m of underground development.
Lion One acquired the project in 2011 and was granted a mining lease in January 2016.
The lease was granted following the release of Lion One's independent preliminary economic assessment, which detailed a low cost underground gold mining operation producing 352,931 ounces of gold at head grades of 11.30gpt over an initial seven year mine life.
This includes production of 262, 000oz at 15.30g/t through to the end of year three.