REG - Lexington Gold Ltd - Exceptional Assay Results from Jones-Keystone

Lexington GoldAnnouncement

13/06/2022 07:00

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RNS Number : 5582O  Lexington Gold Limited  13 June 2022

13 June 2022

Lexington Gold Ltd

("Lexington Gold" or the "Company")

Exceptional Assay Results from Jones-Keystone

 

Lexington Gold (AIM: LEX), the gold exploration and development company with
projects in North and South Carolina, USA, is pleased to announce that it has
now received all of the outstanding assay results with respect to
Jones-Keystone further to the Company's recently completed 5,000m reverse
circulation ("RC") drilling programme.

The assay results received relate to the six RC holes drilled on the
Jones-Keystone side of the Company's Jones-Keystone-Loflin ("JKL") Project.
The objective of such drilling at Jones-Keystone was to verify third party
historical drill results with the aim of enabling a JORC Resource estimation
to be produced for the Jones-Keystone side of the JKL Project and to expand
the existing Maiden JORC (2012) Mineral Resource Estimate completed by Pivot
Mining Consultants Pty Ltd ("Pivot") for the Loflin side of the JKL Project
comprising an Inferred Resource of 2,064,000t @ 0.99 g/t Au for 65,056 oz of
contained gold, as announced on 23 September 2021. The JKL Project is one of
four projects in the Company's portfolio located in the highly prospective
Carolina Super Terrane ("CST"), in which a majority interest was acquired in
November 2020, and which is host to a number of multi-million-ounce mines
operated by third party large-scale competitors (please refer to the Company's
latest corporate presentation on its website for a local map displaying such
mining operations).

 

Highlights:

·    Exceptional assay results received for the six RC drill holes at
Jones-Keystone (see Table 1 below) including:

 

·    Hole JKRC-002: 52m @ 0.99 g/t Au from 72m to 124m including:

o  24m @ 1.37 g/t Au from 80m to 104m

o  16m @ 1.7 g/t Au from 84m to 100m

o  4m @ 2.75 g/t Au from 92m to 96m

 

·    Hole JKRC-004: 40m @ 1.27 g/t Au from 20m to 60m including:

o  28m @ 1.69 g/t Au from 28m to 56m

o  16m @ 2.5 g/t Au from 28m to 44m

o  4m @ 4.56 g/t Au from 36m to 40m

 

·    Hole JKRC-003: 28m @ 1.37 g/t Au from 64m to 92m including:

o  8m @ 3.1 g/t Au from 64m to 72m

o  4m @ 4.96 g/t Au from 64m to 68m

 

·    Jones-Keystone deposit remains open along strike and down dip.

 

·    These assay results should support and facilitate the production of a
Maiden JORC Resource estimation for Jones-Keystone to be added to the existing
JORC Resource for Loflin, thereby increasing the combined JKL Project JORC
resource.

 

 

Bernard Olivier, Lexington Gold's CEO, commented:

"Our first ever drill results from Jones-Keystone have exceeded our
expectations with multiple intersections of 24m width and over and grades of
between 1.37 g/t and 1.69 g/t gold. Additionally, all the gold intersections
start above 100m depth and represent commercial grades and mineable widths. We
believe that these results will enable the establishment of a significant
maiden JORC Resource estimate for Jones-Keystone of potentially up to 100,000
ounces, which has been commissioned from Pivot, which will serve to
significantly increase the existing JORC Resource estimate for the overall
combined JKL Project. The planned next phases of drilling at JKL will be
designed to potentially further expand the mineralisation and JORC Resource.
The Jones-Keystone deposit remains open in all directions, both along strike
and down dip, whilst the Loflin deposit remains open along strike to the
north-east, down-dip as well as to the south."

 

Additional drilling and assaying information on the JKL Project

The Company's Phase 1 drill campaign at the JKL Project in 2021, intersected
significant gold mineralisation, with the assay results showing a good
correlation with the historical drilling results at Loflin. The Phase 1
campaign enabled the establishment of a maiden resource estimate for the
Loflin side of the JKL Project of 2Mt @ 1 g/t Au for approximately 65k oz of
contained gold to JORC standards.

The Phase 2 drill campaign was designed to upgrade this initial maiden JORC
resource estimate at Loflin and establish a maiden JORC resource estimate for
Jones-Keystone, which together should result in an enhanced combined JORC
resource estimate for JKL.

Table 1: Selected drill results from Jones-Keystone

 Hole No.  Dip         Azimuth     Final depth (m)  From  To    Interval  g/t Au

           (degrees)   (degrees)                                          (gold)
 JKRC-001  -50         150         80m              76m   80m   4m        1.02
 JKRC-002  -50         150         150m             72m   124m  52m       0.99
 including                                          80m   104m  24m       1.37
 including                                          84m   100m  16m       1.7
 including                                          92m   96m   4m        2.75
 JKRC-003  -50         150         140m             64m   92m   28m       1.37
 including                                          64m   72m   8m        3.1
 including                                          64m   68m   4m        4.95
 JKRC-004  -50         150         90m              20m   60m   40m       1.27
 including                                          28m   56m   28m       1.69
 including                                          28m   44m   16m       2.5
 including                                          36m   40m   4m        4.56

 

All of the intersection information in Table 1 is reported using the down-hole
depth. The holes were drilled at inclined angles of approximately 50(o) and,
accordingly, the mineralisation will therefore be at shallower depths than the
down-hole depths reported in Table 1.

 

The Jones-Keystone deposit remains open in all directions, both along strike
and down dip whilst the Loflin deposit remains open along strike to the
north-east, down-dip as well as to the south.

JORC Resource

Following the completion of the 5,000m RC drill campaign and receipt of all outstanding assay results, Pivot (previously named Coffee Mining SA) has been commissioned to review and analyse the historical and new drilling data for the entire drilling campaign. They will be conducting data validation, interpretation and modelling with the aim of establishing a maiden resource estimate for Jones-Keystone plus a potential upgrade of the maiden JORC resource estimate for the Loflin side of the JKL Project comprising an Inferred Resource of 2,064,000t @ 0.99 g/t Au for 65,056 oz of contained gold. Pivot will also review and evaluate the recent drilling data for Carolina Belle as part of a JORC based assessment.

Ken Lomberg, a director at Pivot, is leading its team with regards to
Lexington Gold's assignment. He is both the chairperson of the SAMREC
Committee and previous chairperson of the Committee for Mineral Reserves
International Reporting Standards (CRIRSCO). CRIRSCO
(http://crirsco.com/welcome.asp (http://crirsco.com/welcome.asp) ) is the body
responsible for developing the mineral reporting codes and guidelines in
Australasia (JORC), Brazil (CBRR), Canada (CIM), Chile (National Committee),
Colombia (CCRR), Europe (PERC), India (NACRI), Indonesia (KOMBERS _ KCMI),
Kazakhstan (KAZRC), Mongolia (MPIGM), Russia (NAEN), South Africa (SAMREC),
Turkey (UMREK) and the USA (SME).

 

 

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                                         www.lexingtongold.co.uk (http://www.lexingtongold.co.uk)

 Bernard Olivier (Chief Executive Officer)                  via Yellow Jersey

 Edward Nealon (Chairman)

 Mike Allardice (Group Company Secretary)

 Strand Hanson Limited (Nominated Adviser)                  www.strandhanson.co.uk (http://www.strandhanson.co.uk)

 Matthew Chandler / James Bellman / James Harris            T: +44 207 409 3494

 Peterhouse Capital Limited (Broker)                        www.peterhousecap.com (https://peterhousecap.com/)

 Duncan Vasey / Lucy Williams (Broking)                     T: +44 207 469 0930

 Eran Zucker (Corporate Finance)

   Yellow Jersey PR Limited (Financial Public Relations)    www.yellowjerseypr.com (http://www.yellowjerseypr.com)

 Tom Randell / Annabelle Wills                              T: +44 7948 758 681

                                                            +44 2030 049 512

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, as amended.

 

 

Glossary of technical terms:

 

 "Au"                  gold;

 "Ag"                  silver;

 "Footwall"

                       the rock on the underside of a vein or ore structure;
 "g"                   grammes;
 "g/t"                 grammes per tonne;
 "Hangingwall"         the rock on the upper side of a vein or ore deposit;

 "Inferred resource"   that part of a Mineral Resource for which quantity and grade (or quality) are
                       estimated on the basis of limited geological evidence and sampling. Geological
                       evidence is sufficient to imply but not verify geological and grade (or
                       quality) continuity. It is based on exploration, sampling and testing
                       information gathered through appropriate techniques from locations such as
                       outcrops, trenches, pits, workings and drill holes;
 "Indicated resource"  that part of a Mineral Resource for which quantity, grade (or quality),
                       densities, shape and physical characteristics are estimated with sufficient
                       confidence to allow the application of Modifying Factors in sufficient detail
                       to support mine planning and evaluation of the economic viability of the
                       deposit;
 "JORC"                the Australasian Code for Reporting of Exploration Results, Mineral Resources
                       and Ore Reserves, as published by the Joint Ore Reserves Committee of The
                       Australasian Institute of Mining and Metallurgy, Australian Institute of
                       Geoscientists and Minerals Council of Australia;
 "JORC (2012)"         the 2012 edition of the JORC Code;
 "m"                   metre;

 "Mt"                  million tonnes;

 "ore-zone"            the portion, or length, of a vein or other structure that carries sufficient
                       valuable minerals to be extracted profitably;

 "oz"                  troy ounce; and
 "t"                   tonnes.

 

Note to Editors:

Lexington Gold (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 (http://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.

The Maiden JORC (2012) Mineral Resource Estimate completed by Pivot for the
Loflin side of the JKL Project as at 1 September 2021 was an Inferred Resource
of 2,064,000t @ 0.99 g/t Au for 65,056 oz of contained gold.

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