REG - Lexington Gold Ltd - Update re: Ventersburg Gold Project, South Africa

Lexington GoldAnnouncement

03/12/2024 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241203:nRSC4650Oa&default-theme=true

RNS Number : 4650O  Lexington Gold Limited  03 December 2024

3 December 2024

 

Lexington Gold Ltd

("Lexington Gold" or the "Company")

 

Update re: Ventersburg Gold Project, South Africa

 

Exploration Target, Resource Potential and Potential Synergies

 

Lexington Gold (AIM: LEX), a gold exploration and development company with
projects in South Africa and the USA, is pleased to announce further progress
with respect to its Ventersburg Gold Project (the "Project") in the Free State
Province, South Africa. The Project, held and operated through Lexington
Gold's subsidiary, White Rivers Exploration (Proprietary) Limited ("WRE"), is
strategically situated within the world-renowned Witwatersrand Basin, a region
estimated to account for approximately 40% of gold mined globally to date.

 

This update is based on the findings of a detailed technical report prepared
by Shango Solutions ("Shango"), an independent geological consultancy firm
based in South Africa. The full report is available on the Company's website
and via the following
link: http://www.rns-pdf.londonstockexchange.com/rns/4650O_1-2024-12-2.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4650O_1-2024-12-2.pdf) .
Shango, inter alia, reported an independent Exploration Target (grade and
tonnage estimate) for the Project.  Exploration Targets comprise an estimate
of the exploration potential of a mineral deposit which are typically quoted
as a range of tonnes and a range of grade due to geological uncertainty and
insufficient supporting data. The potential quantity and grade is therefore
conceptual in nature, in that there has been insufficient exploration
completed to date to estimate a Mineral Resource and it is currently uncertain
if further exploration will result in the estimation of a Mineral Resource.

 

Highlights:

 

·    High Exploration Target Potential:

o  The Project's independently calculated Exploration Target is estimated at
1.39 - 3.55 million ounces of contained gold at grades between 2.82 g/t and
3.44 g/t (grade and tonnage estimate).

 

o  Potential uranium and silver by-products are identified, based on the
exploration results of neighbouring projects and consistent with historical
data from the Witwatersrand Basin.

 

·    Adjacent Strategic Properties:

o  Gold One Africa Limited's ("Gold One Africa") mining right/gold project is
directly adjacent to WRE's Ventersburg A tenement. Gold One Africa's
exploration activities have defined a 4.31 Moz Mineral Resource on its project
comprising an Indicated Mineral Resource of 23.49 Mt at 3.81 g/t gold (2.88
Moz) and an Inferred Mineral Resource of 12.85 Mt at a grade of 3.23 g/t gold
(1.33 Moz).

 

o  Sibanye Stillwater Limited's ("Sibanye-Stillwater") Robijn Project, also
nearby, hosts Indicated Mineral Resources of 13.6 Mt at 5.8 g/t (2.54 Moz
gold) and 0.129 kg/t U(3)O(8), as well as Inferred Mineral Resources of 9 Mt
at 5.7 g/t (1.65 Moz gold) and 0.127 kg/t U(3)O(8) over its Beatrix Reef.

 

·    Potential Consolidation Synergies:

o  Lexington Gold and its BBBE partner, Letsema Holdings (Proprietary)
Limited, are in discussions with Gold One Africa to explore the potential
consolidation of the Ventersburg Goldfield, by aligning the adjacent
properties to maximise resource and operational efficiencies.

 

·    Extensive Exploration Database:

o  WRE holds data over 2,500 historical boreholes, with a subset relevant to
the Ventersburg area, supporting geological modelling and informing future
drilling programmes.

 

·    Development Opportunities:

o  Gold One Africa's established mining plan, including a Life of Mine (LoM)
of 17 years and substantial infrastructure investments, provides a suitable
benchmark for potential development strategies for WRE's Ventersburg Project.

 

 

Ed Nealon, Chairman of Lexington Gold, commented:

"We are most encouraged by the significant Exploration Target potential
identified at our Ventersburg Gold Project. The Project's proximity to
established neighbouring operations, notably Gold One Africa's and
Sibanye-Stillwater's presents unique opportunities for potential collaboration
and resource optimisation.

 

"Our ongoing discussions with Gold One Africa aim to explore and evaluate
possible synergies that could enhance the development prospects for the
Ventersburg Goldfield. The Modder East mine, operated by Gold One Group
Limited in South Africa's historically rich East Rand Goldfield situated 30km
east of Johannesburg, has reported an average gold grade of approximately 2.84
grams per tonne (g/t) in the Indicated Mineral Resource category. As such, the
estimated Exploration Target for our Project at Ventersburg represents a
potentially higher grade than that reported for the equivalent depth Modder
East Mine and therefore represents an exciting development opportunity for
Lexington Gold."

 

"We remain committed to advancing our exploration efforts in South Africa and
unlocking value for our shareholders."

 

 

Additional Information

 

Gold One Africa - Adjacent Development and Potential Exploration Synergies

 

Gold One Africa's mining right/gold project directly borders WRE's Ventersburg
A tenement and offers substantial potential synergies:

 

1.    Recent Drilling Success:

•    Between 2021 and 2023, Gold One Africa completed a 30-borehole
drilling programme targeting the A Reef, yielding high-quality structural and
Mineral Resource data.

•    This programme resulted in a Measured and Indicated Mineral Resource
of 1.03 Moz at 3.72 g/t gold located within its initial production footprint
(Years 1-3) and forms part of its larger 4.31 Moz estimated Mineral Resources.

 

2.    Historical Mineral Resource Estimates:

•    In 2013, Gold One Africa declared an Indicated Mineral Resource of
23.49 Mt at 3.81 g/t gold (2.88 Moz) and an Inferred Mineral Resource of 12.85
Mt at 3.23 g/t gold (1.33 Moz) for a total of 4.31 Moz.

•  An Indicated Mineral Resource of 19.37 Mt at 0.113 kg/t U(3)0(8) was
also declared for the associated uranium.

•    A Probable Reserve of 10.57 Mt at 3.81 g/t gold (1.30 Moz) was also
outlined.

3.    Life of Mine Plan:

•    Gold One Africa's Ventersburg Gold Mine is planned as an underground
operation with a 17-year LoM, featuring surface infrastructure such as shafts,
a processing plant, waste rock dumps, and a water treatment plant.

•    Gold One Africa's infrastructure and operational expertise could
provide a foundation for the collaborative development of WRE's Ventersburg
Gold Project.

 

4.    Payshoot Continuity Across Boundaries:

•    Gold One Africa's payshoot model suggests that high-grade
mineralisation trends extend into WRE's Ventersburg tenement areas, thereby
providing an opportunity for potential joint exploration and development.

 

 

WRE's Ventersburg Gold Project - Exploration Target and  Exploration Details

 

1.    Exploration Target:

•    Shango's independent estimation for WRE's A Reef Exploration Target
ranges from 1.39 to 3.55 million ounces of gold at grades of between 2.82 g/t
to 3.44 g/t.

•    The estimate is based on historical borehole data and provides a
foundation for planned infill drilling to refine the resource and upgrade
confidence levels. The Exploration Target reported is conceptual in nature at
this stage.

 

2.    Strategic Proximity:

•    WRE's tenements are strategically located along strike from Gold One
Africa's and Sibanye-Stillwater's project areas, thereby offering significant
potential for Mineral Resource alignment and operational synergies.

 

3.    Planned Exploration Activities:

•    A drilling programme is planned for WRE's Ventersburg A, B and
Consolidated tenements to enhance our geological modelling and the Mineral
Resource classification.

•    Collaboration with Gold One Africa is under consideration in order
to leverage existing structural data and payshoot models.

 

Additional Exploration Potential

 

The A and Reworked BPM reefs of the Kimberley Formation, located between 350m
and 1,500m below surface, are the primary exploration focus. Recent data
suggests the presence of payshoots, which trend in a northwest-southeast
direction, extending into WRE's tenement areas. Historical and recent third
party drilling data indicates the potential for multiple mineralisation zones,
including uranium concentrations, within the same geological horizons.

 

Strategic Next Steps

 

Lexington Gold aims to realise the full potential of the Ventersburg Gold
Project through targeted exploration and strategic collaborations.
Accordingly, the Company is prioritising the following:

 

•    Drilling programmes to enhance geological modelling and classify
resources.

•    Potential collaborations with Gold One Africa and Sibanye-Stillwater
to leverage existing infrastructure and operational synergies.

•    Further evaluation of by-product potential, including uranium, to
enhance the Project's economics.

 

Further updates will be provided as exploration activities and potential
partnership negotiations progress.

 

Competent Person's Statement:

The information contained in this announcement is based on a technical report
prepared by Shango Solutions (registered as Dunrose Trading 186 (Pty) Ltd), an
independent geological consultancy firm based in South Africa. The report was
reviewed by, amongst others, Dr Jochen Schweitzer, a principal geological
consultant at Shango Solutions and a qualified geologist, registered with the
South African Council for Natural Resources and a Competent Person as defined
by the JORC Code (2012). Dr Schweitzer has sufficient experience relevant to
the style of mineralisation and type of deposit under consideration, and to
the technical activity being undertaken. Dr Schweitzer has reviewed and
approved the information in this announcement and consents to the inclusion in
this announcement of the matters based upon the information in the form and
context in which it appears. Exploration Target estimates for WRE are
conceptual in nature and are subject to further exploration and verification.

 

This announcement highlights Lexington Gold's strategic initiatives to expand
its presence in the Witwatersrand Basin of South Africa through, inter alia,
collaboration, leveraging of synergies, and advancing its Ventersburg Gold
Project targeting the creation of long-term shareholder value.

 

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 (http://www.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.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DRLMZMGZDZRGDZM