REG - Lexington Gold Ltd - Jennings Pioneer Project Sampling Results

Lexington GoldAnnouncement

05/04/2023 07:15

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RNS Number : 3813V  Lexington Gold Limited  05 April 2023

5 April 2023

Lexington Gold Ltd

("Lexington Gold" or the "Company")

 

Jennings-Pioneer Project assays from soil sample grid and rock sampling

 

 Multiple Au bearing gossans with distinct alteration halo geochemistry
identified

 

Lexington Gold (AIM: LEX), the gold exploration and development company with
projects in North and South Carolina, USA, is pleased to announce receipt of
the results for 505 soil samples and 17 rock grab samples taken from the
Jennings-Pioneer Project.

 

Highlights:

·     Analysis of soil assays in conjunction with field mapping has
identified 13 gossans (targets at surface) within three separate
mineralisation trends: the Barite Hill Trend, the Jennings Trend and the Self
Trend (see Figure 1).

·     The Barite Hill Trend represents the north east extension of the
historic Barite Hill Mine, which continues 600m along strike onto Lexington
Gold's tenured property.

·     Sampling programme identified a 350 metre surface extent of the Red
Hill mineralisation extending from the historic Barite Hill pit.

·     United States critical mineral by-product potential including
barite and tellurium.

 

Figure 1: Soil Grid with gold assays highlighting three separate mineralised
trends at the Jennings-Pioneer Project.

 

A detailed soil and rock chip sampling programme together with a review of
historical exploration activities, a reconnaissance mapping programme and
airborne geophysics (magnetics and electromagnetics), has provided a clear
definition of three highly prospective mineralised trends.

 

Barite Hill Trend - walk-up drill target

The Barite Hill Trend represents the north east extension of the historic
Barite Hill Mine, which produced 59,000 oxide ounces in the early 1990s. The
historic Barite Hill pit is truncated by an historic and current land tenure
boundary and the mineralised Red Hill Prospect is located within the
Jennings-Pioneer Project area where Lexington Gold holds the mineral
exploration rights. The Barite Hill Trend continues 600m along strike onto the
Company's tenured property.

 

The surface sampling outlined a siliceous alteration halo extending 600m to
the north east and sulphide mineralisation extending over 350m with gossanous
surface rock chips returning up to 1.735g/t Au. An historic drill hole, CO-08,
drilled by Amselco in the 1980s intersected 11m @ 3.86g/t Au, including 1.5m @
15.09g/t Au from 183m, approximately 30m north east of the pit and adjacent to
Lexington Gold's tenure boundary. The depth and location of the high-grade
mineralisation represents a north east plunging ore shoot parallel to the
other plunging Barite Hill ore zones and is a high priority drill target
located at the Jennings-Pioneer Project.

 

Jennings Trend - shallow historic workings

The Jennings Trend is located 500m north west and parallel to the Barite Hill
Trend with similar geology and alteration. Historic workings are present along
a 900m strike of a silica and sulphide alteration zone with several gossanous
rock chip samples returning grades in excess of 0.5g/t Au (maximum 0.72g/t
Au). In addition to elevated Au values, rock chip samples yielded significant
base metals assaying up to 7.60% Pb, 0.15% Zn, 0.14% Cu and 0.11% Mo. This
mineralised zone has not been drill tested by previous explorers.

 

The Jennings Trend warrants follow up exploration work potentially including
detailed trenching along the 900m strike or shallow drilling.

 

Self Trend

The Self Trend is located a further 350m north west and parallel to the
Jennings Trend. Soil sampling on the Self Trend located anomalous copper and
zinc with evidence of gossans. Although the tenor of the surface sampling
results is lower the trend warrants further exploration.

 

Critical Minerals

The United States' Energy Act of 2020 defines a "critical mineral" as a
non-fuel mineral or mineral material essential to the economic or national
security of the U.S. and which has a supply chain vulnerable to disruption.
The U.S. Infrastructure Investment and Jobs Act of 2021 and its 2022 Amendment
allocated funding and other incentives to spur the development of domestic
supply chains for 50 critical minerals. Tellurium and barite are two such
critical minerals that have been identified at Jennings-Pioneer in potentially
economic quantities.

 

Bernard Olivier, Lexington Gold's CEO, commented:

"These assay results have reaffirmed the high potential of the
Jennings-Pioneer Project, particularly the mineralised extension from the
historical Barite Hill pit onto our property, which is certainly an area of
focus with our surface sampling returning up to 1.735g/t Au. Samples from the
Jennings Trend have indicated elevated gold values as well as significant base
metal assays. This area has not previously been tested and these early
findings warrant further exploration.

 

"Additionally, the presence of barite and tellurium also presents further
potential value for the project given their diverse industrial applications
and demand in the U.S. to increase their supply. We look forward to
undertaking further exploration work in due course at Jennings-Pioneer."

 

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

 WH Ireland Limited (Joint Broker)                       www.w (http://www.whirelandplc.com) hirelandplc.com
                                                         (http://www.whirelandplc.com)
 Katy Mitchell / Ben Good / Enzo Aliaj                   T: +44 207 220 1666

 Peterhouse Capital Limited (Joint 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: +44 774 778 8221

 

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.

 

 

 

Additional Information

 

Recent field mapping, geochemical soil sampling and analysis of historic data
sets for the Jennings-Pioneer Project have added resolution to the Company's
understanding of the deposit's geology. In summary, the analysis indicates a
high degree of predictability regarding targeting.

 

Ore at Jennings-Pioneer is easily identified in the field by distinct textures
and colour, while the unique geochemical signature further simplifies
targeting of ore. In the field, ore exists in red-brown to black gossans,
which are iron oxide and metal rich rock outcrops. Figure 2 below displays a
gossan sample from the Red Hill ore zone. The gossans also have a distinct
alteration halo characterised by a very hard white granular siliceous material
associated with sericite. The hard nature of this alteration halo tends to
result in topographic highs as seen on the Jennings Trend, the Barite Hill
Trend and Red Hill. Qualitative visual appraisal of lithologies and ore is
possible at this deposit, which will be of value regarding ore control should
this prospect reach a future production stage.

 

Secondly, the geochemical signatures of the gossans and alteration halo are
also distinct, which further simplifies exploration. Ore at Jennings-Pioneer
is characterised not only by elevated gold values, but also a notable
multi-element signature including a polymetallic suite of elements. Pathfinder
elements are Ba, As, Sb, Te, Bi, In as well as localised elevations in S and
Fe in the vicinity of gossans. Gossans have varying ratios of Ag, Cu, Pb, Zn,
Mo, Sn and W suggesting by-product potential for the project. Gold rich zones
tend to be associated with elevated Ag and Mo, however ore grade Au appears to
be present in all gossans. Our understanding of these multi-element
associations in conjunction with other data has led to the generation of the
mineralisation map set out in Figure 1 above.

 

Finally, the whole of the Jennings-Pioneer Project is underlain by the well
documented and well-studied Persimmon Fork Formation of the Carolina Slate
Belt. This formation is host to major gold deposits including the active Haile
Gold mine. The gold rich nature of these rocks has drawn much attention to
such formation through its mining history. Several companies have explored the
Jennings-Pioneer property in the past including Phelps Dodge in the 1970s and
Amselco in the 1980s. Mining has also occurred in the district as recently as
the 1990s by Nevada Gold Fields. Historic exploration and mining information
from these companies is in the Company's possession thereby strengthening our
understanding not only of the ore zones, but also the relationship of
mineralisation to country rock. Such historic data, in conjunction with recent
soil multi-element analysis, field mapping and aerial geophysics have rendered
the map set out in Figure 3.

 

In summary, field observations, geochemical analysis and historic data sets
have provided Lexington Gold with numerous at surface target options on the
Jennings-Pioneer Project area.

Figure 2: Gossan sample from the Red Hill ore zone. These are easily
identified in the field and show distinct geochemical signatures.

 

Figure 3: Surface geologic map based on multielement geochemistry, field
mapping, Lexington Gold aerial geophysics and historic exploration data sets.

 

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.

 

 

- END -

 

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. 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. It 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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