REG - Lexington Gold Ltd - Jelani Project, SA Mineral Resource Estimate

Lexington GoldAnnouncement

16/09/2024 07:00

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RNS Number : 2292E  Lexington Gold Limited  16 September 2024

16 September 2024

Lexington Gold Ltd

("Lexington Gold" or the "Company")

 

Jelani Resources JV Project, South Africa

Mineral Resource Estimate (JORC 2012)

 

Lexington Gold (AIM: LEX), the gold exploration and development company with
projects in South Africa and the USA, is pleased to confirm the formal
authorisation by the board of directors of Jelani Resources Proprietary
Limited ("Jelani Resources") to its shareholders of an independent JORC (2012)
Mineral Resource estimate for the Jelani Resources project area (the "Jelani
Resources Project") prepared in 2018. The Jelani Resources Project includes
the area covered by the Jelani Resources Prospecting Right (the "JV Area") and
a buffer zone (the "Buffer Zone") which is held by Harmony Gold Mining Company
Limited (JSE: HAR) ("Harmony").

 

Jelani Resources is an incorporated joint venture between White Rivers
Exploration Proprietary Limited ("WRE") (owned by LEX 76%, BEE partner 24%),
and Lorraine Gold Mines Limited ("Lorraine") and Avgold Limited ("Avgold")
(both subsidiaries of Harmony).

 

Highlights:

 

·    As at 27 August 2018, Total combined Inferred, Indicated and Measured
JORC (2012) Mineral Resource Estimate of 6.02 Moz of gold with an average
grade of 6.47 g/t comprising of:

o  4.88 Moz at 6.48 g/t gold located in the Buffer Zone; and

o  1.14 Moz at 6.41 g/t gold located in the JV area.

·    Accordingly, the net attributable total resources to Lexington Gold's
effective 76% interest in the current JV Area are 2.72 Mt for 0.56 Moz of
gold, potentially increasing to 10.78 Mt for 2.24 Moz of gold should the JV
parties proceed to future production, on a revised ownership interest of 49%
for WRE, with the Buffer Zone then included as detailed further below.

 

Ed Nealon, Lexington Gold's Non-Executive Chairman, commented:

"We are delighted that we are now authorised to release the independent JORC
(2012) Mineral Resource Estimate for the Jelani Resources Project and can now
formally report it under the 2012 Edition of the JORC Code. The independent
JORC (2012) Mineral Resource Estimate was also audited by SRK Consulting as
part of the sign-off process. The total combined Inferred, Indicated and
Measured JORC (2012) Mineral Resource Estimate of 6.02 Moz, at a grade of 6.47
g/t gold in which we have an interest, is a very significant resource and
showcases the huge potential of not only the Jelani Resources JV asset but
Lexington Gold's assets in South Africa as a whole."

 

 

Additional information:

The shareholders of Jelani Resources are Lexington Gold via its subsidiary,
WRE, (65%) and Lorraine and Avgold (both subsidiaries of Harmony) (35%). The
prospecting right held by Jelani Resources (the "Jelani Resources Prospecting
Right") does not cover the Buffer Zone, which is attributable solely to
Harmony, however Harmony have previously indicated their willingness to permit
Jelani Resources to mine this area in the future subject to the satisfaction
of certain conditions as further detailed below.

 

In August 2018, geological consultants, Shango Solutions (Pty) Limited,
established an independently estimated gold Mineral Resource of 6.02 Moz gold
attributable to the Jelani Resources Project. The declared Mineral Resource
was classified, estimated and reported by Shango Solutions under the 2012
Edition of the "Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves" (JORC Code) and has now been approved by
the board of directors of Jelani Resources. The Jelani Resources Mineral
Resource declaration as at 27 August 2018 is presented in Table 1 below.

 

Table 1: Jelani Resources Project Mineral Resource statement (at 27 August
2018)

 Area             Confidence       Tonnes (Mt)   Au (Mg)    Au (Moz)    Au (g/t)    Au (cmg/t)
 Buffer Zone      Measured         3.25         31.87      1.02        9.81        1,134
                  Indicated        5.69         36.46      1.17        6.41        727
 Measured and Indicated Total      8.94         68.34      2.20        7.65        873
                  Inferred         14.49        83.57      2.69        5.77        644
 Buffer Zone Total                 23.43        151.91     4.88        6.48        730
 JV               Measured         0.13         1.32       0.04        10.46       1,174
                  Indicated        0.79         4.71       0.15        6.00        609
 Measured and Indicated Total      0.91         6.03       0.19        6.62        681
                  Inferred         4.60         29.30      0.94        6.36        661
 JV Total                          5.52         35.33      1.14        6.41        665
 Grand Total                       28.95        187.24     6.02        6.47        717

Notes:

Mineral Resources were reported in accordance with the JORC guidelines.
Cut-off values were reported applying a gold price of ZAR 625/g
(US$ 1,450/oz and ZAR 13.61:1 US$) including a 20% dilution. All Mineral
Resources reported excluded regional pillars, middling pillars, safety pillars
and shaft pillars. Any discrepancies in totals are due to rounding.

 

The following tonnage discount factors were applied:

-     Geological loss of 5% for the Measured category;

-     Geological loss of 10% for the Indicated category; and

-     Geological loss of 15% for the Inferred category.

Additional effects of mining and recovery losses were considered in the
cut-off grade calculations.

 

The Mineral Resource estimate comprises 6.02 Moz of gold, of which
approximately 2.95 Moz could potentially be attributable to WRE in the event
that all of the Jelani Resources Project commencement milestones are
ultimately achieved. These milestones include completion of a pre-feasibility
study, successful completion of a bankable feasibility study, a decision to
mine being approved by Jelani Resources' shareholders and WRE electing to
participate in the funding of future development costs in order to retain a 49
per cent. share in Jelani Resources.

 

The estimated Mineral Resource within the Buffer Zone is currently
attributable solely to Harmony (100%).  Harmony has previously indicated that
Jelani Resources will, subject to the successful completion of a bankable
feasibility study, be afforded the opportunity to mine the Mineral Resource in
the Buffer Zone provided that: (i) a decision to mine has been approved by
Jelani Resources' shareholders; (ii) commercial terms have been agreed between
the parties in respect of the Buffer Zone; and (iii) approval from the board
of directors of Harmony has been obtained. The JORC (2012) Mineral Resource
estimate as at 27 August 2018 is summarised in Figure 1.

 

 

Figure 1: Summary of the JORC Mineral Resource estimate

 

The classification of the Mineral Resource was based on the robustness of the
various data sources then available, confidence in the geological
interpretation, variography and various estimation parameters  (e.g. distance
to data points, number of data points, maximum search radii etc.).
Consideration was also given to the "Reasonable Prospects for Eventual
Economic Extraction" ("RPEEE").

 

Competent Person's Statement

The information contained in this announcement relates to a Mineral Resource
Estimate report prepared by Dr Jochen Schweitzer who is employed at Shango
Solutions (Pty) Limited. Dr Jochen Schweitzer is a qualified geologist,
registered with the South African Council for Natural Resources and is a
Competent Person as defined by the JORC Code. Dr Jochen Schweitzer has
sufficient experience 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). Dr Jochen Schweitzer has reviewed and approved the
information in this announcement.

 

 

Glossary of technical terms

 

 "Au"                                  gold;
 "Buffer Zone"                         the Mining Right covering, inter alia, the Buffer Zone (FS) 30/5/1/2/2/225 MR
                                       is held by Lorraine Gold Mines Limited;
 "cmg/t"                               the product of the width (cm) and gold grade (g/t) which is known as the
                                       accumulation value and frequently cited for South African mining projects;
 "g"                                   grammes;
 "g/t"                                 grammes per tonne;
 "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;
 "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;
 "Jelani Resources Prospecting Right"  The Jelani Resources Prospecting Right is held by Jelani Resources(formerly

                                     Friedshelf 1541 Proprietary Limited). Friedshelf 1541 Proprietary Limited's
                                       name was changed to Jelani Resources Proprietary Limited on 14 December 2017;
 "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;
 "JV"                                  joint venture;
 "Measured"                            that part of a Mineral Resource for which quantity, grade (or quality),
                                       densities, shape and physical characteristics are estimated with confidence
                                       sufficient to allow the application of modifying factors to support detailed
                                       mine planning and final evaluation of the economic viability of the deposit.
                                       Geological evidence is derived from detailed and reliable exploration,
                                       sampling and testing gathered through appropriate techniques from locations
                                       such as outcrops, trenches, pits, workings and drill holes, and is sufficient
                                       to confirm geological and grade (or quality) continuity between points of
                                       observation where data and samples are gathered.
 "Mineral Resource"                    a concentration or occurrence of material of economic interest in or on the
                                       earth's crust in such form and quantity that there are reasonable and
                                       realistic prospects for eventual economic extraction. The location, quantity,
                                       grade, continuity, and other geological characteristics of a Mineral Resource
                                       are known, estimated from specific geological evidence and knowledge, or
                                       interpreted from a well-constrained and portrayed geological model. Mineral
                                       Resources are sub-divided, in order of increasing confidence, into Inferred,
                                       Indicated and Measured categories;
 "Mg"                                  million grammes;
 "Moz"                                 million ounces;
 "Mt"                                  million tonnes;
 "oz"                                  troy ounce;
 "t"                                   tonnes;
 "US$"                                 United states dollars; and
 "ZAR"                                 South African Rand.

 

 

 

For further information, please contact:

 

 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 / Abigail Wennington   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)

 Charles Goodwin / Annabelle Wills                       T: +44 7747 788 221

 

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 by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.

 

Note to Editors:

 

Lexington Gold (AIM: LEX) is a gold exploration and development company
currently holding interests in four diverse gold projects, covering a combined
area of approximately 1,675 acres in North and South Carolina, USA and in six
gold projects covering approximately 114,638 hectares in South Africa.

 

Further information is available on the Company's website:
www.lexingtongold.co.uk (http://www.lexingtongold.co.uk) or follow us through
our social media channel:

X (formerly known as Twitter): @LexGoldLtd

 

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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