LionGold Corp, one of three Singapore-listed penny stocks that took a drubbing in the market last October, said on Monday its wholly-owned project in Bolivia may contain more gold than earlier thought.

The Amayapampa Gold Project is now estimated to contain a total of 1.79 million ounces of gold - a 40 per cent increase in its mineral resources - after an updated technical report was completed, LionGold said.

But while the resource estimate showed a "significant increase" in inferred mineral resources, it showed a small reduction in indicated mineral resources, the company added. The physical characteristics of indicated resources can be estimated with more confidence than those of inferred resources.

LionGold also said a new mineral reserve has been estimated at the project, containing a total of 701,000 ounces.

The company estimated that the project would produce 616,000 ounces of gold over the mine's nine-year life.

Development of the mine is expected to begin this year and the first stage of production is likely to start next year.

Liongold bought the project's owner, a Bolivian company called Minera Nueva Vista, in December 2012.

"LionGold's Bolivia Gold Project has a clear plan to production and represents an attractive return on our initial investment in the project," Liongold group chief executive Nicholas Ng said in a statement.

He added that it would contribute significantly to the group's growth in the coming years.

The net present value of the mine's production is estimated to be US$110 million, which works out to around $141 million.

In comparison. Liongold's market capitalisation was around $156 million on Monday.

LionGold shares were three cents higher at 15.4 cents as at 10.40am on Monday. The counter, along with Blumont Group and Asiasons Capital, lost some $8 billion in value when its share price crashed in October last year.