Lionsgold increases interest in Finnish joint-venture

AIM-quoted group Lionsgold has increased its interest in its Finnish joint venture to 30% following the injection of additional working capital

Kalevala, Lionsgold's joint-venture with Finnish group Mineral Exploration Network (MENF), received permission to begin test processing on an initial 200-tonne sample from the Kuikka gold deposit to perfect plant recoveries, and sampling procedures and protocols for a planned bulk sampling programme.

The joint-venture is aiming to complete the test sample before 20 June, after which it will seek permission to undertake a 5,000-tonne bulk sample of the deposit.

Kalevala has also received an additional prospecting licence for 1,214 square kilometre area in order to provide it with significant coverage of the gold-prospective Kuhmo Greenstone Belt.

Cameron Parry, Lionsgold's chief executive, said, "Approvals have been received for Kalevala to process 200 tonnes of material from our Kuikka high-grade gold deposit as part of the commissioning of the gold recovery pilot plant for the planned bulk sampling."

"Additionally, a new prospecting licence has been granted to Kalevala immediately resulting in a five-fold increase in the combined area held under licence with Kalevala now holding approximately 1,500km2 of gold prospective ground in Finland, including over 90% of the Suomussalmi Greenstone Belt and significant coverage of the Kuhmo Greenstone Belt," he added.

As of 1440 BST, shares had declined 3.33% to 2.32p.