REG - Lexington Gold Ltd - JORC Exploration Target Established for Bothaville

Lexington GoldAnnouncement

14/01/2025 07:00

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RNS Number : 1394T  Lexington Gold Limited  14 January 2025

14 January 2025

Lexington Gold Ltd

("Lexington Gold" or the "Company")

 

Maiden JORC (2012) Exploration Target Established for Bothaville Project, SA

Lexington Gold (AIM: LEX), the gold exploration and development company with
projects in South Africa and the USA, is pleased to announce, further to the
Company's announcement of 28 October 2024, the establishment of a maiden
Exploration Target (JORC, 2012) for the group's Bothaville Project in the Free
State Province, South Africa. The Exploration Target estimation is based on
recent drilling results, historical data, and advanced geological modelling
and was produced by Shango Solutions in accordance with the Joint Ore Reserve
Committee guidelines ("JORC 2012") for the Bothaville Project.

 

The Bothaville Project is strategically located within the world-renowned
Witwatersrand Basin, a region that has historically produced approximately 40%
of gold mined globally to date.

 

Highlights:

 

Maiden JORC Exploration Target:

·    Total independently estimated JORC Exploration Target of
approximately 16 - 30 million tonnes (Mt) for the combined A and B Reefs with
an average grade range of approximately 3.26 - 6.03 g/t Au, equivalent to 1.7
to 5.8 million ounces (Moz) of gold

 

·    A Reef: 11Mt - 20Mt grading 3.2 - 5.9 g/t Au, equivalent to 1.1Moz to
3.8Moz of gold, respectively

 

·    B Reef: 5Mt - 10Mt grading 3.4 - 6.3 g/t Au, equivalent to 0.5Moz to
2Moz of gold, respectively

 

·    The maiden Exploration Target complies with the JORC Code (2012) and
underscores the project's significant gold potential

 

·    Drilling in 2023/2024 confirmed an NW-SE trending A Reef Kimberley
Formation channel with encouraging continuity and grades

 

·    Detailed geological modelling has highlighted further potential for
Mineral Resource delineation within the Big Pebble and B Reefs

 

·    Planned follow-up drilling to upgrade the Exploration Target to a
Mineral Resource estimate

Ed Nealon, Non-Executive Chairman of Lexington Gold, commented:

"This maiden JORC Exploration Target at the Bothaville Project represents a
significant step forward in unlocking the potential of one of South Africa's
premier gold exploration regions. With potentially up to 5.8Moz of gold
contained in our Exploration Target, it serves to validate and reaffirm
Lexington Gold's strategic focus on high-quality, scalable projects in the
Witwatersrand Basin.

 

"The exceptional work by our team and Shango provides a solid foundation for
the next phase of exploration and we look forward to advancing the Bothaville
Project alongside our other world-class portfolio assets."

 

Dr Bernard Olivier, Chief Executive Officer of Lexington Gold, commented:

"The establishment of this maiden JORC-compliant Exploration Target of up to
5.8 million ounces of gold at the Bothaville Project, combined with the
existing JORC-compliant Mineral Resources of over 6 million ounces across our
joint venture with Harmony Gold and the JORC Mineral Resource established for
our US projects, firmly positions Lexington Gold as a substantial
international gold exploration company.

 

"In addition, our ongoing discussions with Gold One Africa regarding potential
collaboration on the Ventersburg Project further highlights the quality of our
assets and commitment to leveraging potential synergies. Lexington Gold is
uniquely placed with an impressive portfolio of gold exploration assets across
two world-class mining jurisdictions and I look forward to further progressing
our projects to deliver value to our shareholders."

 

 

Additional Information

Shango Solutions ("Shango"), registered as Dunrose Trading 186 (Pty) Ltd, is
an independent geological consultancy based in South Africa. Established in
2004, Shango specialises in exploration, geological modelling, Mineral
Resource estimation and technical reporting. Shango's independence ensures
conflict-free, objective technical support, and it has provided technical
services to a number of major international mining houses including BHP
Billiton, RioTinto, Barrick, Harmony and GoldOne. For further information,
please visit their website at: www.shango.co.za (http://www.shango.co.za) .

 

Geological Summary

The Bothaville Project benefits from favourable geological structures within
the Witwatersrand Basin:

·  The De Bron Horst Block, located approximately 70 km southwest, is a
significant gold-hosting structure in the Welkom Goldfield

·  The Concord Horst Block, situated 10 km north of the De Bron Horst, hosts
uplifted strata of Witwatersrand and Ventersdorp age rocks, with up to 3,000 m
of uplift

 

These horst blocks have created shallow exposures of gold-bearing
conglomerates in the Kimberley Formation thereby enhancing the Bothaville
Project's accessibility and exploration potential. The combination of these
two structures has led to the presence of shallow Witwatersrand rocks.
Previous work in the project area has confirmed the presence of these
horizons, which included several mineralised conglomerates of interest.

 

The main exploration targets are gold-bearing conglomerates in the Kimberley
Formation of the Central Rand Group. The Exploration Target for the project is
within the Kimberley Reef package of the Aandenk Member (A Reef), supported by
possible mineralisation in the Big Pebble and B Reefs. The Kimberley Formation
sub crops beneath the Karoo cover over a strike length of about 10 km.

 

The A Reef, the primary Exploration Target, is characterised by:

·  A NW-SE oriented channel structure with thicknesses ranging between 2 m
and 4 m;

 

·  Promising grades, including historical values of 7.7 g/t over 68.2 cm
(borehole CC2) and 6.1 g/t over 77 cm (borehole GO-001); and

 

·  Excellent lateral continuity confirmed by both historical and recent
drilling.

 

Proximal intrusions near the A Reef contact have locally affected grades,
emphasising the importance of further exploration to delineate high-grade
zones.

 

Maiden JORC (2012) Exploration Target

The maiden Exploration Target, based on the 2012 Edition of the JORC Code,
highlights the Bothaville Project's substantial gold potential (Table 1).

 

The Exploration Target is an estimate of the exploration potential of the
gold-bearing conglomerates of the Kimberley Formation of the Central Rand
Group. The Exploration Target reported was classified in accordance with the
guidelines set out in the 2012 Edition of the "Joint Ore Reserve Committee"
(The JORC Code). Exploration Targets are an estimate of the exploration
potential of a mineral deposit which is quoted as a range of tonnes and a
range of grade due to geological uncertainty and insufficient data support.
The Exploration Target is supported by a combination of recent drilling
results (Lexington Gold's drilling in 2023/2024) as well as historical summary
borehole data.

 

The Exploration Targets are conceptual in nature as there has so far been
insufficient exploration to define Mineral Resources. It is also uncertain if
further exploration will result in the determination of a Mineral Resource
under the 2012 Edition of the JORC Code. The Exploration Target is therefore
reported separately and does not form part of the declared Mineral Resources.
Furthermore, it is not guaranteed that the mineralisation will extend as far
as the Exploration Target upper estimates have been extrapolated.

 

Table 1: Summary of JORC (2012) Exploration Target ranges (at a 2 g/t Au
cutoff)

         Tonnes                  Au g/t      Gold Ounces (Million)
         Low         High        Low   High  Low          High
 A Reef  11,000,000  20,000,000  3.20  5.90  1.13         3.79
 B Reef  5,000,000   10,000,000  3.40  6.30  0.55         2.03
 Total   16,000,000  30,000,000  3.26  6.03  1.68         5.82

 

The Exploration Targets are reported with an upper and lower range. These
ranges are calculated by adding 30% to the base value of the lode tonnage and
grade for an upper range and subtracting 30% for the lower range. The base
value is the modelled tonnage, and the grade applied is the average of
borehole or underground data or an estimate thereof based on similar reefs.

 

Geological Modelling and Data

The 3D geological modelling exercise conducted by Shango for the Bothaville
Project focused on four primary reef targets, three of which belong to the
Kimberley succession:

·    The A Reef, Big Pebble Reef (BPR) and B Reef, with one target within
the Randfontein formation, the Vaal Reef

 

·    The geological modelling formed the basis for the maiden
JORC-compliant Exploration Target and was instrumental in defining the
project's potential

 

Shango employed Seequent's Leapfrog Geo software for 3D geological modelling,
which is widely recognised as an industry-leading tool for advanced geological
and Mineral Resource modelling. The modelling incorporated historical drilling
data, new data from Lexington Gold's 2023/2024 drill campaign and structural
information. The 3D models were built with a strong emphasis on accuracy and
data validation, resulting in a robust framework for the Exploration Target.

 

Key aspects of the geological modelling include:

 

1.   Data Integration and Validation

Historical and recent drilling data were compiled, analysed, and validated for
accuracy and consistency. Borehole logs, assay results and structural data
were incorporated to create a comprehensive dataset.

 

2.   Stratigraphic and Structural Modelling

The Kimberley Formation and the Randfontein Formation were modelled with a
focus on understanding the orientation and continuity of the key reef targets.
Faults, intrusives and other structural features were identified and
incorporated into the model to account for potential geological complexities.

3.   Estimation Parameters

Grade estimates were calculated using the kriging algorithm, with Simple
Kriging (SK) selected for its ability to employ global means and manage
variability in gold grade distributions. The Inverse Power of Distance (IDW)
method was applied as a secondary validation technique during the block model
validation process, ensuring consistency between estimation approaches.

 

4.   Cutoff Grades and Loss Factors

A cutoff grade of 2 g/t Au was applied, aligning with industry standards for
similar deposits in the Witwatersrand Basin. A geological loss factor of 25%
was incorporated to account for potential uncertainties, including grade
variations and structural complexities.

 

5.   Validation and Comparisons

The geological and grade models underwent rigorous validation, including
cross-checks between kriging and IDW results. Sensitivity analyses were
performed to understand the impact of varying cutoff grades and other
parameters for the Exploration Target.

 

The detailed 3D modelling exercise significantly enhanced the understanding of
the reef geometries, grades, and continuity within the Bothaville Project. The
A Reef was identified as the primary exploration target due to its favourable
grades and well-defined channel structure, while the Big Pebble Reef and B
Reef were confirmed as promising secondary targets (Figure 1).

 

Figure 1: Leapfrog model depicting the Ventersdorp Lava (green) eroded by the
Karoo Supergroup. Note the A Reef (red) reflecting underneath the Ventersdorp
Lava along major structures.

 

6.   Drilling and Analysis

The Company's 2023-2024 drill campaign, as announced on 23 May 2024, played an
instrumental role in defining the maiden JORC Exploration Target (Table 2).

 

The key outcomes included:

·     Eight A Reef intersections obtained from three motherholes and five
deflections (Figure 2)

·     Improved understanding of the influence of intrusions, which can
impact grades near the A Reef contact

 

The modelling incorporated historical drilling data, new data from Lexington
Gold's 2023/2024 drill campaign and structural information (Table 2). Drilling
was conducted to international best practice standards, incorporating rigorous
QA/QC measures such as Certified Reference Materials (CRMs), blanks and
re-assays. All data was compiled and verified using secure geological
databases.

 

Table 2: Borehole information utilised for the Bothaville Project.

 Source          Log Status  Motherhole  Deflection  Total
 CGS             Summary     40          60          100
 Lexington Gold  Full        5           6           11
 Gold One        Summary     1           6           7
 Total                                               118

 

 

Figure 2: A Reef stratigraphic column and results of all the A Reef
intersections from Lexington Gold's 2023/24 drill programme.

 

Next Steps

Lexington Gold aims to build on this maiden Exploration Target by conducting
additional drilling and geological analysis, in due course, to potentially
upgrade the Exploration Target to a JORC-compliant Mineral Resource estimate.

 

Planned activities include:

1.    Further drilling to enhance data density and geological confidence

2.    Advanced structural and grade modelling to better delineate
high-grade zones

3.    Ongoing environmental and regulatory compliance to support the
project's long-term development.

Competent Person's Statement

The information contained in this announcement is based on a technical report
prepared by Shango and the relevant Competent Person (CP) taking
responsibility for the Exploration Target estimates is Mr Hermanus Berhardus
Swart from Shango. Mr Swart is a Professional Natural Scientist registered
with the South African Council for Natural Scientific Professionals (SACNASP)
(membership number 400101/00), and he is also a Fellow of the Geological
Society of South Africa. Mr Swart is independent of Lexington Gold and its
subsidiaries and has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration and to the technical
activity being undertaken. He has reviewed and approved the information in
this announcement and consents to the inclusion of the information in this
announcement in the form and context in which it appears.

 

Ms Linert Mutongoreya (Pr. Sci. Nat., MBA and MSc) is responsible for the
declaration of the Exploration Targets. Ms Mutongoreya is a geologist with 20
years' Mineral Resource definition experience within the mining industry and
is currently involved in the economic evaluation of mineral projects both in
operation at an exploration stage. Ms Mutongoreya is a Professional Natural
Scientist registered with SACNASP (membership number 400181/08), and a Member
of the Geological Society of South Africa (membership number 966009). Ms
Mutongoreya is independent of Lexington Gold and its subsidiaries.

 

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

 

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: @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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