REG - Lexington Gold Ltd - Initial & Maiden Drill Results for Carolina Belle

Lexington GoldAnnouncement

09/02/2022 07:00

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RNS Number : 0821B  Lexington Gold Limited  09 February 2022

9 February 2022

Lexington Gold Ltd

("Lexington Gold" or the "Company")

Initial and Maiden Drill Results for Carolina Belle

 

Lexington Gold (AIM: LEX), the gold exploration and development company with
projects in North and South Carolina, USA, is pleased to announce assay
results received in respect of the first 11 drill holes from the Company's
Reverse Circulation ("RC") drilling programme at its Carolina Belle Project.
Results for the remaining 21 drillholes will be announced in due course once
received from the SGS laboratory in Vancouver ("SGS").

 

Lexington Gold's four-project portfolio covers a combined area of
approximately 1,675 acres in the highly prospective Carolina Super Terrane
("CST") located in North and South Carolina, USA. The CST has seen significant
historic gold production and is host to a number of multi-million-ounce mines
operated by large-scale companies, including the third-party Haile Mine
operated by OceanaGold Corporation (ASX/TSX: OGC), which, has a mineral
resource grade of 1.67 g/t Au.

 

 

Highlights:

·    Initial assay results for 11 of the 32 RC drill holes from the
Company's maiden drill campaign at Carolina Belle intersected  the first gold
mineralisation identified from drilling

 

·    Drilling has identified and confirmed the down-dip extension of the
main historical ore-zone mined during the historical third party Iola and
Uwarra gold mining operations with a confirmed down-dip extension intersection
of:

o  4m @ 2.1 g/t Au from 64m to 68m in hole CRBC-24

 

·    Significant gold mineralisation intersected in the Footwall and
Hangingwall of the main ore-zone of the historical Iola and Uwarra gold mining
operations with:

o  11m @ 1.01 g/t Au from 68m to 79m (combined Hangingwall, Footwall and
mined out historical main ore-zone) in hole CRBC-22 including:

§ Footwall intersection of 4m @ 1.62 g/t Au from 72m to 76m

§ Hangingwall intersection of 4m @ 0.7 g/t from 68m to 72m

§ Main historical ore-zone intersected between 72.2m and 73.2m

 

·    Potential second gold mineralised zone intersected approximately 25m
above the main historical Iola and Uwarra ore-zone with:

o  4m @1.53 g/t Au from 48m to 52m in hole CRBC-22

 

·    Four drill holes intersected the historical mine workings of Iola and
Uwarra

·    Assay results for the remaining 21 holes remain pending and will be
announced as soon as they are received from the laboratory and collated.

 

 

Bernard Olivier, Lexington Gold's CEO, commented:

"We are delighted to have received the first assay results from our maiden
drilling campaign at Carolina Belle. It is an excellent initial result to
intersect multiple mineralised zones of significant width so close to the
surface.

 

"The first set of results are predominantly from the historic Iola and Uwarra
gold mining operations. The drill results have now identified significant gold
mineralisation in the Footwall and Hangingwall of the historical mining
operations as well as confirming the down-dip extension of the main historical
ore-zone. Four of the holes also intersected the historical mine workings
providing valuable information on the dip and strike directions of the main
mineralised zone as well as the extent of the historical mining operations.
This will facilitate modelling and extrapolation of the mineralised zones for
the next phase of drilling at Carolina Belle.

 

"These initial results give us great confidence regarding the prospectivity
and potential of the Carolina Belle deposit and we look forward to receiving
and reporting the results from the remaining 21 holes in the coming weeks."

 

 

Additional Drilling and Assaying information

Carolina Belle comprises exploration and mining rights over 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.

 

Our first ever drilling campaign on Carolina Belle was completed in early
December 2021 for a total of 32 drill holes for an aggregate of 2,630m
drilled. A total of 738 samples comprising of 4 metre sample composites as
well as standards, blanks and duplicates were dispatched to SGS.

 

 

The exploration drilling campaign at Carolina Belle set out to investigate:

 

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

·    Drill testing of areas of gold mineralisation, known historical
surface and underground 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 previously known gold mineralisation in the project area now named
the "Martha Washington South" target

 

The majority of the drilling for the first 11 drill holes for which assay
results have now been returned from SGS was drilled to test the down-dip and
strike extent as well as the mineralisation and nature and extent of the
historical Iola and Uwarra mining operations. The key selected assay results
are set out in Table 1 below.

 

Table 1: Selected drill results for holes CRBC-22, CRC-23, CRBC-24, CRBC-26
and CRBC-27

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

           (degrees)   (degrees)
 CRBC-22   -60         125         79m              48m   52m  4m        1.53
 CRBC-22   -60         125         79m              68m   79m  11m       1.01
 including                                          68m   72m  4m        0.7
 including                                          72m   76m  4m        1.62
 CRBC-23   -60         127         90m              24m   28m  4m        0.75
 CRBC-24   -60         128         120m             64m   68m  4m        2.1
 CRBC-26   -61         120         80m              40m   44m  4m        0.54
 CRBC-27   -60         127         100m             4m    8m   4m        0.4

 

All of the intersection information in Table 1 is reported using the down-hole
depth. The holes were drilled at inclined angles of approximately 60(o) and
the mineralisation will therefore be at shallower depths than the down-hole
depths reported in Table 1.

 

Hole CRBC-20 to CRBC-25 form part of a total of 8 holes drilled to identify
the mineralisation associated with the historic Iola and Uwarra gold mining
operations including investigating its potential down-dip and strike
extensions and the nature and location of the historical workings.

 

Four of the drill holes intersected historical mine workings and stopes,
including timber support, associated with the historic Uwarri and Iola mines:

·    CRBC-21 intersected the historical workings from 31m to 33.2m

·    CRBC-22 intersected historical mine workings from 72.3m to 73.3m

·    CRBC-23 intersected historical mine workings from 66m to 67m

·    CRBC-25 intersected the historical workings from 19m to 20m

The intersection of the historical workings at various depths and along strike
enables further investigation and understanding of the nature and extent of
the historical ore-zone, its Hangingwall and Footwall zones and the mine
workings itself, which will facilitate 3D modelling of the orebody and
positioning of future drilling.

CRBC-22 intersected a 4m zone of mineralisation from 48m to 52m with an
average grade of 1.53 g/t Au located approximately 25m above the main
historical workings intercepted between 72.3m and 73.3m.  Both the Footwall
and Hangingwall contacts surrounding the historical workings returned good
gold mineralisation with the Footwall wall returning 7m at an average of 1.17
g/t Au from 72m to 79m, including a 1m wide mined out section which can be
assumed to have contained gold mineralisation, and the Hangingwall contact
returning 4m at an average grade of 0.7 g/t Au from 68m to 72m.

CRBC-24 was drilled down-dip from CRBC-25 which intersected the historical
mine workings at 19m to 20m and is interpreted as intersecting and confirming
the down-dip extension of the main zone of mineralisation associated with the
historical Uwarrie and Iowla mine workings between 64m and 68m and returned an
average gold grade of 2.1 g/t Au over the 4m intersection.

 

CRBC-18 and CRBC-19 form part of 6 holes drilled to investigate a separate
target, named the "Mcmaster" target. The Mcmaster target contains historical
workings that were further defined by soil sampling and geophysics. The target
is located to the north-west of the historical workings of Uwarri and Iola and
returned initial gold values of 0.18g/t Au over 4m and 0.21 g/t Au over 4m,
respectively.

 

CRBC-26 and CRBC-27 form part of 11 drill holes drilled in the newly
discovered target, as announced on 12 July 2021, now named "Martha Washington
South". Hole CRBC-26 intersected gold values of 0.54 g/t Au over 4m between
40m and 44m while CRBC-27 returned an average gold grade of 0.4 g/t Au over 4m
between 4m and 8m below surface. Surface rock chip and grab samples from
Martha Washington South previously 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.

 

 

 

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 / Matthew McHale                               T: +44 7769 325 254

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;

 "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;

 "m"              metre;

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

 "t"              tonnes;
 "oz"             troy ounce.

 

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 (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.

 

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