Operational Update

RNS Number : 7365J

Lexington Gold Limited

25 August 2021

 

25 August 2021

Lexington Gold Ltd

("Lexington Gold" or the "Company")  

Operational Update

Lexington Gold (AIM: LEX), the gold exploration and development company with projects in North and South Carolina, USA, is pleased to provide an update on its ongoing operational activities.  

Highlights :

· Drilling contract signed for 5,000m Reverse Circulation ("RC") drill programme with FTE Drilling, a highly experienced international drilling company headquartered in Canada  

· Drill rig and crew currently scheduled to arrive on site during the week commencing 20^th September 2021

· Drilling will be conducted on the Carolina Belle Project ("Carolina Belle") and Jones-Keystone-Loflin ("JKL") Project (both Loflin and Jones-Keystone deposits)

· All requisite environmental submissions for the preparation of the drill sites and the drill programme are currently being prepared and the environmental approvals are expected prior to the commencement of drilling

· Core Geophysics in Perth, Australia has completed its modelling and interpretation of the geophysical data for both JKL and Carolina Belle, with the drill targets generated for both projects included in the RC drilling programme for testing

· Pivot Mining Consultants Pty Ltd ("Pivot") has completed its geological interpretation and data verification for the Loflin deposit. Pivot is currently assisting with planning certain drill locations for incorporation in the Phase 2 RC drilling programme at Loflin

· A maiden resource estimate for the south-western (Loflin) side of the JKL Project is expected to be received from Pivot in the coming weeks once their resource and 3D modelling process has been completed

Bernard Olivier, Lexington Gold's CEO, commented :

"We are pleased to provide this update on our ongoing activities, particularly on progress made at Carolina Belle and JKL. The team is encouraged by the potential for both of these projects, and is optimistic about moving them up the value chain as soon as possible.

"The planned 5,000m drill programme signed with FTE Drilling is an excellent marker of our progress. The programme will focus on drilling at the Carolina Belle and JKL projects, in order to further our understanding of the highly prospective nature of Carolina Belle and to potentially expand the upcoming maiden resource estimate at JKL.

"The guidance received from Core Geophysics and expected completion of Pivot's 3D modelling to deliver a maiden resource estimate for JKL are also highly encouraging developments. We look forward to updating the market further in due course."

Additional information

Phase 2 Drilling contract signed with FTE Drilling for a minimum of 5,000m of RC drilling. FTE Drilling is an international drilling company headquartered in Canada and is highly experienced in RC drilling, including in the Carolinas, where they previously conducted extensive drilling for the Haile Mine. The Phase 2 drilling campaign will include both the Carolina Belle and JKL Projects.

Carolina Belle Project

Carolina Belle is located in central North Carolina and comprises a total of 391.98 acres covering both the historical Iola and Uwarra Mining areas. Discovered in 1901, the area was mined almost continuously until 1916, collectively producing approximately 50,000oz of gold until a dispute between the neighbouring mines of Iola and Uwarra prevented continued mining activities.

The project has several greenfield to brownfield exploration prospects with well-defined and potentially continuous zones of low sulphidation, epithermal gold mineralisation already identified from the historic mines and surface workings. There is potential to extend the existing zones of gold mineralisation along the lithostratigraphic horizon and discover additional mineralised areas including feeder veins and alteration associated with a larger system.

The exploration drilling campaign at Carolina Belle will include drilling of the following areas:

· Drilling down-dip and along strike from the historic Iola and Uwarra gold mining operations

· Drill testing of other known areas of gold mineralisation, historical surface workings and areas identified for drill testing following the completion of the interpretation of geophysics data

· Drill testing of the newly discovered gold anomaly not associated with the known gold mineralisation in the project area. As announced on 12 July 2021, rock chip and grab samples from the newly identified mineralised zone returned 10 samples with gold grades in excess of 1g/t including: 17g/t; 5.1g/t; 3.5g/t, 3.2g/t; 2.7g/t; and 2.2g/t. Soil sampling over the newly identified mineralised area suggests an initial surface gold anomaly footprint of approximately 350m by 250m

The planned campaign is exploratory in nature, with the aim of further testing the highly prospective nature of the project and is not designed to enable a resource estimation.

Jones-Keystone-Loflin Project (JKL)

The Phase 1 drilling campaign at JKL intersected significant gold mineralisation, with the assay results showing a good correlation with the historical drilling results at Loflin.   Importantly, all six holes of the initial campaign intersected gold mineralisation of over 1 g/t Au above 100m depth with multiple intersections over 30m width. The Phase 2 drilling campaign will include drilling on both the Loflin and Jones-Keystone sides of the project with the drill programme to include the following:

· Additional drilling at Loflin to potentially expand the upcoming maiden resource estimate expected to be received prior to the start of drilling

· Drill holes positioned to test additional targets that form part of the project area that have been identified from geophysics and historical work

· Drill holes positioned to potentially establish a maiden resource for the Jones-Keystone side of the project

Pivot Mining Consultants Pty Ltd ("Pivot") in South Africa (previously Coffey Mining SA (Pty) Ltd) has completed its review, analysis and geological modelling of the historical and new drilling data from the Loflin side of JKL. Pivot is currently finalising its resource and 3D modelling process with the aim of establishing an initial maiden resource estimate for Loflin in the coming weeks.

Competent Person's Statement

The information contained in this announcement that relates to exploration activities is based upon information compiled by Edward Nealon, Chairman of Lexington Gold. Mr Nealon is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the December 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Mr Nealon consents to the inclusion in this announcement of the matters based upon the information in the form and context in which it appears.

Enquiries :

Lexington Gold Ltd Bernard Olivier (Chief Executive Officer) Edward Nealon (Chairman) Mike Allardice (Group Company Secretary)	www.lexingtongold.co.uk via Yellow Jersey
Strand Hanson Limited (Nominated Adviser) Matthew Chandler / James Bellman / James Harris	www.strandhanson.co.uk T: [phone]
Peterhouse Capital Limited (Broker) Duncan Vasey / Lucy Williams (Broking) Eran Zucker (Corporate Finance)	www.peterhousecap.com T: [phone]
Yellow Jersey PR Limited (Financial Public Relations) Joe Burgess / Charles Goodwin	www.yellowjerseypr.com T: [phone]

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018.

Note to Editors :

Lexington Gold Ltd (AIM: LEX) is focused on the exploration and development of its four diverse gold projects, covering a combined area of approximately 1,675 acres in North and South Carolina, USA. The projects are situated in the highly prospective Carolina Super Terrane ("CST"), which has seen significant historic gold production and is host to a number of multi-million-ounce mines operated by majors and was also the site of the first US gold rush in the early 1800s, before gold was discovered in California.

Further information is available on the Company's website: www.lexingtongold.co.uk . Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

 

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