REG - Lexington Gold Ltd - JORC Estimates for Jones-Keystone

Lexington GoldAnnouncement

14/11/2022 07:00

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RNS Number : 2197G  Lexington Gold Limited  14 November 2022

14 November 2022

Lexington Gold Ltd

("Lexington Gold" or the "Company")

Maiden Independent JORC Mineral Resource Estimate for Jones-Keystone

Total JORC Resource estimate for JKL Project up 155% to 210,800 Au oz

 

Lexington Gold (AIM: LEX), the gold exploration and development company with
projects in North and South Carolina, USA, is pleased to announce the receipt
of a maiden independent JORC (2012) Mineral Resource Estimate for the
Jones-Keystone side of the Jones-Keystone-Loflin ("JKL") Project prepared by
Pivot Mining Consultants Pty Ltd ("Pivot").

 

Highlights:

 * 155% increase in contained gold for the combined JKL Project comprising:

o Total Inferred Resource of 6,976,000t @ 0.94 g/t Au for 210,800 oz of
contained gold

 * Maiden independent JORC (2012) Mineral Resource Estimate for the
Jones-Keystone deposit:

o Total Inferred Resource of 4,380,000t @ 0.91 g/t Au for 128,000 oz of
contained gold

 * Potential for mineralisation at Jones-Keystone remains open down-dip, to the
north-east as well  as to thesouth-west

 * Potential for further increase in resources at Jones-Keystone as well as
Loflin and Loflin South  through additional drilling

 * 3D Geological modelling and drilling delineated a NE-SW shallow plunging fold
structure that probably controls gold mineralisation

 

 

Bernard Olivier, CEO of Lexington Gold, commented:

"We are pleased to announce that this maiden JORC resource estimation of
128,000 gold ounces for Jones-Keystone, which forms part of our JKL Project,
has surpassed our expectations. When combined with the existing JORC resource
for Loflin, it takes the total JORC mineral resource estimate for the JKL
Project to over 210,000 gold ounces, which is a significant achievement for
Lexington Gold.

 

"As previously reported, the JKL Project exhibits significant shallow
mineralisation with grades of up to approximately 10g/t gold achieved as well
as multiple intersections of 20m+ mineable widths, including 34m at an average
grade of 1.75 g/t gold. The mineralisation at both Jones-Keystone and Loflin
remains open down-dip and along strike with the potential to further increase
the resources via additional drilling".

 

 

 

Pivot Mining Consultants (Pty) Ltd

Pivot was requested by Lexington Gold to provide a maiden Mineral Resource
Estimate (with an effective date of 10 November 2022) for the Jones-Keystone
deposit that forms part of the Company's JKL Project, located in North
Carolina, USA, utilising the results of the additional drilling completed by
Lexington Gold in 2022.

The Mineral Resources have been reported in accordance with the guidelines of
the "Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves (2012 Edition)" (JORC Code).

The Mineral Resource Estimate was undertaken by Ken Lomberg, who is a
Competent Person with the requisite professional experience, as set out in the
JORC Code. Mr Lomberg is the Director of Geology and Resources at Pivot.

Pivot is an independent technical consulting group, with no direct or indirect
interests in Lexington Gold.  Neither Pivot, nor the key personnel
responsible for its work, have any material interest in Lexington Gold, the
companies associated with this project, their subsidiaries or their mineral
properties.

Mineral Resources

The maiden Mineral Resource statement for the Jones-Keystone deposit that
forms part of the larger JKL Project, as at 10 November 2022, is presented in
Table 1 below.  The estimate is in respect of in situ material.

Table 1: Maiden JORC Mineral Resource Estimate for Jones-Keystone.
Discrepancies may occur due to rounding.

 Inferred Mineral Resource Declaration as at 10 November 2022

 Declared in terms of the JORC Code (2012)

 Cut-off Grade 0.5 g/t
                 Tonnage (t)  Grade - Au (g/t)  Content (oz)
 Jones-Keystone  4,380,000    0.91              128,000

 

Estimation Methodology

The Mineral Resource estimation for the Jones-Keystone deposit was completed
using ordinary kriging of drill hole data within each geological model and a
0.5 g/t Au cut-off grade was applied.

The database was checked and validated prior to the commencement of the
estimate.

The Jones-Keystone Project's deposit was modelled using the 3D software
packages Datamine™ Studio RM Version 1.3.41.2 and Micromine™ Version 11.
A three-dimensional (3D) model was created based on the known geology and
structural interpretation.

A visual and statistical review and analysis was completed on the estimate
prior to accepting the model. The drilling data was reviewed and validated
prior to the resource evaluation studies.

The classification of the Mineral Resources was undertaken in accordance with
the guidelines of the JORC Code (2012).  The Competent Person (CP)
responsible for the Mineral Resource estimation and classification is Mr Ken
Lomberg Pr.Sci.Nat.

Consideration of the "Reasonable Prospects for Eventual Economic Extraction"
(RPEEE) was undertaken using a simple financial assessment, assuming an open
pit extraction with a satellite processing facility that would source material
from a number of similar sized mines.

Figure 1: Isometric view of the Jones-Keystone deposit's Block Model

The classification of the Mineral Resource was based on the robustness of the
various data sources available, confidence in the geological interpretation,
variography and various estimation service variables (e.g. distance to data,
number of data, maximum search radii etc).

Total JKL Project Mineral Resource

Pivot previously completed a maiden Mineral Resource estimate for Loflin in
September 2021 (please refer to the 23 September 2021 announcement) and an
updated Mineral Resource for Loflin in August 2022 (please refer to the 8
August 2022 announcement).  All the estimates were reported at a 0.5 g/t Au
cut-off for all mineralised material. The combined Mineral Resource estimation
for the JKL Project is shown in Table 2 below.

 

Table 2: Total Mineral Resource Estimation for the JKL Project. Discrepancies
may occur due to rounding.

 Total Inferred Mineral Resource Declaration as at 10 November 2022

 Declared in terms of the JORC Code (2012)

 Cut-off Grade 0.5 g/t

                           Tonnage (Mt)  Grade - Au (g/t)  Content (oz)
 Loflin Isocline           2.355         0.97              73,700
 Loflin South Satellite 1  0.095         1.27              3,900
 Loflin South Satellite 2  0.146         1.10              5,200
 Jones-Keystone            4.38          0.91              128,000
 Total                     6.976         0.94              210,800

 

Geology and Geological Interpretation

Similar to the Loflin deposit the main geologic units at the Jones-Keystone
deposit are extensively interbedded mafic flows, volcanoclastics, tuffs and
metasediments with reasonably distinct lithological contacts. The younger
NE-trending dolerite dykes that are present at the Loflin deposit are not
observed at the Jones-Keystone deposit. At surface there are large felsic
intrusions, but these have not been intersected at depth with diamond
drilling. The entire deposit is also weathered with 5 to 25m of saprolite
observed from drilling.

Gold mineralisation at both Loflin and Jones-Keystone is typically confined to
the volcanoclastics (as above) but can occur in the mafic flows and to a
lesser extent in the argillites. The saprolite may contain gold in areas where
it overlies the tuff, where it is interpreted to represent an oxidised version
of the fresh unit at depth. The typical sulphide assemblage is pyrite
(py)/pyrrhotite (po) ± arsenopyrite (asp). In the gold-bearing intervals,
pyrite occurs as stringers, fine disseminations and dendrites. The pyrrhotite
is typically disseminated to blebby. Arsenopyrite occurs as small 2-3mm blebs
where the pyrite/pyrrhotite concentrations are high and 22m euhedral
arsenopyrite has been observed in the core. Pyrite tends to be dominate in
areas with gold mineralisation. The gold mineralisation will typically contain
greater than 3% sulphide (with py>po) and be strongly foliated with more
intense quartz-sericite alteration than the surrounding rocks. Occasionally,
the mineralisation will be accompanied by millimetre-scale quartz stringers
running parallel to the foliation. Based on drill core observation the ore
zones tend to be more deformed than country rock containing strong deformation
textures including brecciation and very strong foliations whilst the country
rock is moderately foliated to massive. The ore zone colour is sooty sulphide
black to bright sericite white, but is commonly a bright grey with sulphides
subordinate to sericite.

The drill programmes have defined reasonably coherent broad zones of low to
high grade gold mineralisation along a complexly sheared, folded and strongly
altered sequence of quartz-sericite-sulphide associated with volcanoclastic
and tuffaceous units at Jones-Keystone and Loflin. The prospects show
kilometre scale alteration, mineralogy and grade-range similarities to that of
the third party Russell gold deposit in Northern Carolina.

The IP inversions and ground magnetic surveys completed by Orford Mining
Corporation across the Jones-Keystone property have been useful in clarifying
the overall geologic setting and structural trends. At the Jones-Keystone
property, strong chargeability anomalies not only coincide with historically
drilled mineralisation but also extend at depth and along strike beyond known
mineralisation. In the eastern portion of the deposit, orientation of the IP
chargeability anomaly suggests that the mineralised zone may dip to the south
but the mineralisation appears open to the northeast as well. Furthermore,
Lexington's airborne radiometric data has been successful in finding areas
that are enriched in potassium. Multi element assay data has identified high
potassium levels in the ore zones, which is believed to be a proxy for strong
sericite alteration. Also, extremely high magnetic signatures are interpreted
to represent pyrrhotite pods.

There is clear evidence of folding from the mapped geology. The alternating
mudstone and andesite is interpreted as evidence of open folding and probably
represents a syncline. Other mapping has interpreted two fold axes but without
a clear indication of whether this is a syncline or anticline. The locus of
mineralised drill hole intersections suggests that the mineralisation host is
fracturing within the fold structure, with the conduit of the mineralising
fluid being fractures or foliation likely to be parallel to the axial plane
cleavage.

A pervasive weak chlorite overprint is associated with upright folding and a
region-wide penetrative NE-trending axial planar cleavage and greenschist
facies metamorphism that occurred between the Late Ordovician to Silurian (457
to 425Ma). The plunge of the NE trending folds is between 10° and 12° to the
southwest. An older, less obvious folding episode is oriented east-west and,
at Loflin, fold interference patterns occur where the two fold axes intersect.

Competent Person's Statement

The information contained in this announcement relates to a Mineral Resource
Estimate report prepared by Mr Ken Lomberg (BSc (Hons) (Geology), BCom, MEng
(Mining Engineering) at Pivot Mining Consultants (Pty) Limited. Mr Lomberg is
a qualified geologist, registered with the South African Council for Natural
Resources and is a Competent Person as defined by the JORC Code.  Mr Lomberg
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). Mr Lomberg has reviewed and approved the
information in this announcement.

 

 

 

 

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 / Abigail Wennington     T: +44 207 409 3494

 WH Ireland Limited (Joint Broker)                         www.whirelandplc.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)

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

                                                           +44 2030 049 512

 

Glossary of technical terms:

 

 "asp"                arsenopyrite;
 "Au"                 gold;
 "g"                  grammes;
 "g/t"                grammes per tonne;

 "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;
 "IP"                 Induced Polarisation, a method used to detect disseminated minerals often
                      associated with minerals with economic value;
 "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;
 "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;
 "po"                 pyrrhotite;
 "py"                 pyrite;
 "t"                  tonnes; and
 "oz"                 troy ounce.

 

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 a gold exploration and development company
currently with 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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