REG - Lexington Gold Ltd - Results of sampling programme at Argo Project

Lexington GoldAnnouncement

24/07/2023 07:00

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RNS Number : 8751G  Lexington Gold Limited  24 July 2023

24 July 2023

Lexington Gold Ltd

("Lexington Gold" or the "Company")

Results of surface sampling programme at Argo Project, USA, confirm and define
surface gold mineralisation of over 10 g/t

 

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 completed surface exploration and trenching
sampling programme at its Argo Project (the "Argo Project" or "Argo").

The Company has received 440 multi-element assay samples returned from trench
channel and rock sampling at the Argo Project. Channel samples were taken from
13 trench lines totalling 844m of combined trench length. 30 additional rock
samples were taken in portions of trenches with prospective geology and were
also taken during field mapping of the property. Analysis of multi-element
assays and detailed trench mapping data have defined complex mineralised vein
arrays.

 

Highlights:

·    Trench assay results confirm that gold is present at surface at the
Argo Project:

 

·    Trench AT-04: 24m @ 1.10 g/t Au from 14m to 38m including:

o  2m @ 7.50 g/t Au from 14m to 16m

o  2m @ 2.51 g/t Au from 26m to 28m

 

·    Trench AT-07: 8m @ 0.61 g/t Au from 16m to 24m including:

o  2m @ 1.24 g/t Au from 22m to 24m

 

·    Trench AT-13: 8m @ 0.34 g/t Au from 24m to 32m

 

·    Rock samples from trenches and outcrops show local high grade ore
shoots:

 

·    ARRK-016: 12.65 g/t Au from trench wall of AT-07

 

·    ARRK-017: 2.89 g/t Au from trench wall of AT-07

 

·    ARRK-011: 2.70 g/t Au from trench wall of AT-06

 

·    ARRK-014: 1.21 g/t Au from historic waste dump

 

·    ARRK-024: 43.30 g/t Ag from surface outcrop

 

 

Bernard Olivier, Lexington Gold's CEO, commented:

"This is a promising first set of assays from Argo showing high-grade surface
mineralisation at both the Northeast and Southern workings. With this new
data, we will be assessing the next steps for the project as we build further
value in our US assets.

 

"We also continue to move closer to completing the acquisition of White Rivers
Exploration Proprietary Limited ("WRE"). Following the Company's recent
fundraising, we are fully funded to embark on the workstreams required to
initiate the conversion of WRE's current non-code compliant resource estimate
into a JORC compliant Mineral Resource Estimate and to progress the Jelani
Resources JV. We look forward to providing further updates in due course."

 

Additional Trenching and Assay Information for the Argo Project

The Company's trenching and surface sampling campaign at the Argo Project
intersected gold mineralisation at surface and defined three vein systems.
Prior to this trenching campaign at Argo, the Company had commissioned aerial
geophysics to supplement the lack of pre-existing exploration information
available for this property. Aerial geophysics, 27 reconnaissance rock
samples, and historic workings identified from LiDAR images were used to
generate the trench targets at Argo.

 

Trenches were designed to bisect historic workings in order to better
understand ore grade and the nature of the mineralisation at Argo. Sampling
occurred along continuous channels situated at the bottom of each trench. All
channel sample material was collected in 2m intervals. Figure 1 is a summary
map of trench channel sampling with gold intercepts and annotations.
Additional rock samples were taken in portions of trenches with prospective
geology, and were also taken during field mapping of the property.  Figure 2
is a summary map of rock sample assays from trench walls, historic mine dumps,
outcrops, and float.

 

Figure 1: Plan view of trench channel sample gold assays with geology and
LiDAR at the Argo Project.

 

Figure 2: Plan view of rock sample gold assays with geology and LiDAR at the
Argo Project.

 

Argo Project's Geology

 

The Argo Project is situated in the northwest corner of Nash County, 16km
north of Nashville, North Carolina, USA. This region is part of the Eastern
Carolina Gold Belt. Historic gold mine workings on the property are easily
identified by LiDAR data and form three clusters of hard rock surface and
underground workings. These working clusters have been labelled Northeast
Workings, Northwest Workings, and Southern Workings. All of the clusters
contain mining pits and numerous exploration trenches. A backfilled portal was
identified in the Northeast Workings along with a linear 82m surface
excavation with an azimuth of 045 degrees. The Southern Workings are the
longest zone of workings, extending over 500m along its 030 degree azimuth.
The Northwest Workings extend only 250m and have an azimuth of 060 degrees.
Significant historic placer mining has also occurred on the northern portion
of the property.

 

Country rock at the Argo Project comprises shallow dipping metasediments with
subordinate chlorite schists and metafelsic tuffs. Additionally, there are two
late diabase dikes that cross cut the project with azimuths of 165 degrees.
These dikes are easily distinguished from aerial magnetic data. Finally,
approximately 40% of the property is overlain by a relatively thin layer of
coastal plain Tertiary sand and gravels, which may conceal additional targets
particularly along the western margin of the Northwest Workings and to the
south of the Southern Workings. The alluvial cover was mapped using airborne
radiometric data in conjunction with field mapping.

 

Gold and silver are hosted in thin but numerous 0.15m - 0.30m thick sucrose
quartz lenses or veins that cross cut and are interlaminated within
metasediment country rock. Veins commonly exhibit boudin textures and undulate
along trench walls. These sucrose quartz veins were systematically sampled,
photographed and mapped in trenches and in surface outcrops. Some veins had
north to south strikes with relatively shallow dips, while other veins had
southwest to northeast strikes with steep dips. The north to south striking
veins appear to be lower in grade than the southwest to northeast striking
veins; however grade is most likely greatest at the intersections of
structures. This reflects a complex yet systematic structural control on the
ore at Argo. Cross sections for neighbouring mines in the district suggest
vertical feeder veins with subsidiary veins cross cutting and traveling along
bedding/foliation planes of shallow dipping metasediments.

 

Additionally, gold can be found in intrusive igneous rocks as leucocratic
phaneritic porphyry with a gold grade of 0.87 g/t Au (ARRK-018) unearthed in
trench AT-07. The wall rock and marginal veins of this 2m intrusive body were
sampled with rock assays returning 12.65 g/t Au (ARRK-016) and 2.89 g/t Au
(ARRK-017) (see Figure 3). This occurrence in conjunction with multi-element
analysis, suggests that gold is related to an intrusive or porphyry system
that has cross cut the shallow dipping country rock.

 

The region has been subjected to low grade regional metamorphism, with the
majority of primary sedimentary textures preserved. However, the metamorphic
grade was great enough to render boudin textures in vein morphologies.
Additionally, the granular or sucrose nature of white quartz veins is
interpreted to be due to recrystallisation during subsequent deformation
episodes.

 

Figure 3: Phaneritic leucocratic porphyry rock sample (left) and sucrose
quartz vein rock sample with high grade hanging wall rock sample (right) from
trench AT-04 in the Northeast Workings.

 

Northeast Workings' Results

 

Trenches AT-06, AT-07, AT-08 and AT-09 were designed to determine the strike
length and tenor of surface mineralisation at the Northeast Working (see
Figure 4 with AT-09 indicated in Figure 2).  Mineralisation is open to the
northeast, but is terminated to the southwest by a diabase dike as confirmed
by trench AT-09. However, the end of AT-09 did intersect a sucrose quartz vein
accompanied by detectable gold mineralization. This could be the northern tip
of an additional, but separate, gold bearing vein array. The Northeast deposit
is also open to the south as both AT-07 and AT-06 terminated in low grade
mineralisation (0.06 ppm Au and 0.08 ppm Au). The mineralised vein array most
likely also continues to the north as both trenches AT-07 and AT-06 also began
in low grade mineralisation. In summary, the recent Lexington Gold trenching
programme defined a surface mineralised vein array system with a strike length
of at least 200m with a width of 100m. As indicated, this vein array is
defined by local high grade ore shoots (ARRK-016 assaying 12.65 g/t Au) with
numerous uneconomic veins. Whilst it is assumed that the best portion of this
surface mineralisation was historically mined out in the 82m linear cut, it is
doubtful that the historic miners were able to follow the continuation of this
complex vein system at depth without the aid of modern exploration drilling
methods.

 

Figure 4: Plan view of trench channel sample gold assays with geology and
LiDAR of the Northeast Workings at the Argo Project.

 

 

Southern Workings' Results

The Southern Workings are defined by trenches AT-02, AT-03, AT-04, and AT-05
(see Figure 5). Trench AT-02, at the northern portion of the trend,
intersected two sucrose quartz veins accompanied by wall rock mineralisation
suggesting that either the vein array was not offset by the diabase dike, or
that a second vein system exists to the east of the Southern Workings. Trench
AT-04 yielded the greatest trench results of the programme with a 24m
intercept @ 1.10 g/t Au from 14m to 38m including a local high grade intercept
of 2m @ 7.50 g/t Au plus 1.18 g/t Ag from 14m to 16m. The system is open both
to the northeast and to the southwest. Trench AT-05 did not intersect
significant mineralisation, but did intersect a north to south trending vein.
Additionally, several vein out crops were mapped in the creek to the southwest
of the Southern Workings thus suggesting that the system does continue to the
southwest under coastal plain alluvium cover.

Figure 5: Plan view of trench channel sample gold assays with geology and
LiDAR on the Southern Workings at the Argo Project.

 

 

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.

 

 

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.whirelandplc.com (http://www.whirelandplc.com)
 Katy Mitchell                                           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 / Soraya Jackson      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. 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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