16
September 2024
Lexington
Gold Ltd
("Lexington Gold" or the "Company")
Jelani Resources JV Project,
South Africa
Mineral Resource Estimate
(JORC 2012)
Lexington Gold (AIM: LEX), the gold
exploration and development company with projects in South Africa
and the USA, is pleased to confirm the formal authorisation by the
board of directors of Jelani Resources
Proprietary Limited ("Jelani Resources") to its
shareholders of an independent JORC (2012)
Mineral Resource estimate for the Jelani Resources project area
(the "Jelani Resources
Project") prepared in 2018. The Jelani Resources Project
includes the area covered by the Jelani Resources Prospecting Right
(the "JV Area") and a buffer zone (the
"Buffer Zone") which is
held by Harmony Gold Mining Company Limited (JSE: HAR)
("Harmony").
Jelani Resources is an incorporated
joint venture between White Rivers Exploration Proprietary Limited ("WRE") (owned by LEX
76%, BEE partner 24%), and Lorraine Gold Mines Limited
("Lorraine") and Avgold
Limited ("Avgold") (both
subsidiaries of Harmony).
Highlights:
·
As at 27 August 2018, Total
combined Inferred, Indicated and Measured
JORC (2012)
Mineral Resource Estimate of 6.02 Moz
of gold with an average grade of 6.47 g/t
comprising of:
o 4.88 Moz
at 6.48 g/t gold located in the Buffer Zone;
and
o 1.14 Moz
at 6.41 g/t gold located in the JV
area.
·
Accordingly, the net attributable total resources
to Lexington Gold's effective 76% interest in the current JV Area
are 2.72 Mt for 0.56 Moz of gold, potentially increasing to 10.78
Mt for 2.24 Moz of gold should the JV parties proceed to future
production, on a revised ownership interest of 49% for WRE, with
the Buffer Zone then included as detailed further below.
Ed Nealon, Lexington Gold's
Non-Executive Chairman, commented:
"We are delighted that we are
now authorised to release the independent JORC (2012) Mineral
Resource Estimate for the Jelani Resources Project and can now
formally report it under the 2012 Edition of
the JORC Code. The independent JORC (2012)
Mineral Resource Estimate was also audited by SRK Consulting as
part of the sign-off process. The total combined Inferred,
Indicated and Measured JORC (2012) Mineral Resource Estimate of
6.02 Moz, at a grade of 6.47 g/t gold in which we have an
interest, is a very significant
resource and showcases the huge potential of not only the Jelani
Resources JV asset but Lexington Gold's assets in South Africa as a
whole."
Additional information:
The shareholders of Jelani Resources
are Lexington Gold via its subsidiary, WRE, (65%) and
Lorraine and Avgold (both subsidiaries of Harmony)
(35%). The prospecting right held by Jelani Resources (the "Jelani Resources
Prospecting Right") does not cover the Buffer Zone,
which is attributable solely to Harmony, however Harmony have
previously indicated their willingness to permit Jelani Resources
to mine this area in the future subject to the satisfaction of
certain conditions as further detailed below.
In August 2018, geological
consultants, Shango Solutions (Pty) Limited, established an
independently estimated gold Mineral Resource of 6.02 Moz gold
attributable to the Jelani Resources Project. The declared Mineral
Resource was classified, estimated and reported
by Shango Solutions under the 2012 Edition of the "Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves" (JORC Code) and has now been approved by the board of
directors of Jelani Resources. The Jelani Resources
Mineral Resource declaration as at 27 August 2018 is presented in
Table 1 below.
Table 1: Jelani Resources Project Mineral Resource
statement (at 27 August 2018)
|
Area
|
Confidence
|
Tonnes (Mt)
|
Au
(Mg)
|
Au
(Moz)
|
Au
(g/t)
|
Au
(cmg/t)
|
|
Buffer Zone
|
Measured
|
3.25
|
31.87
|
1.02
|
9.81
|
1,134
|
|
Indicated
|
5.69
|
36.46
|
1.17
|
6.41
|
727
|
|
Measured and Indicated
Total
|
8.94
|
68.34
|
2.20
|
7.65
|
873
|
|
|
Inferred
|
14.49
|
83.57
|
2.69
|
5.77
|
644
|
|
Buffer Zone
Total
|
23.43
|
151.91
|
4.88
|
6.48
|
730
|
|
JV
|
Measured
|
0.13
|
1.32
|
0.04
|
10.46
|
1,174
|
|
Indicated
|
0.79
|
4.71
|
0.15
|
6.00
|
609
|
|
Measured and Indicated
Total
|
0.91
|
6.03
|
0.19
|
6.62
|
681
|
|
|
Inferred
|
4.60
|
29.30
|
0.94
|
6.36
|
661
|
|
JV Total
|
5.52
|
35.33
|
1.14
|
6.41
|
665
|
|
Grand Total
|
28.95
|
187.24
|
6.02
|
6.47
|
717
|
Notes:
Mineral Resources were reported in accordance with the JORC
guidelines. Cut-off values were reported applying a gold price of
ZAR 625/g (US$ 1,450/oz and ZAR 13.61:1 US$) including a
20% dilution. All Mineral Resources reported excluded regional
pillars, middling pillars, safety pillars and shaft pillars. Any
discrepancies in totals are due to rounding.
The following tonnage discount
factors were applied:
-
Geological loss of 5% for the Measured
category;
-
Geological loss of 10% for the Indicated category;
and
-
Geological loss of 15% for the Inferred
category.
Additional effects of mining and
recovery losses were considered in the cut-off grade
calculations.
The Mineral Resource estimate
comprises 6.02 Moz of gold, of which approximately 2.95 Moz could
potentially be attributable to WRE in the event that all of the
Jelani Resources Project commencement milestones are ultimately
achieved. These milestones include completion of a pre-feasibility
study, successful completion of a bankable feasibility study, a
decision to mine being approved by Jelani Resources' shareholders
and WRE electing to participate in the funding of future
development costs in order to retain a 49 per cent. share in Jelani
Resources.
The estimated Mineral Resource
within the Buffer Zone is currently attributable solely to Harmony
(100%). Harmony has previously indicated that Jelani
Resources will, subject to the successful completion of a bankable
feasibility study, be afforded the opportunity to mine the Mineral
Resource in the Buffer Zone provided that: (i) a decision to mine
has been approved by Jelani Resources' shareholders; (ii)
commercial terms have been agreed between the parties in respect of
the Buffer Zone; and (iii) approval from the board of directors of
Harmony has been obtained. The JORC (2012) Mineral Resource
estimate as at 27 August 2018 is summarised in Figure 1.
Figure 1: Summary of the JORC Mineral Resource
estimate
The classification of the Mineral
Resource was based on the robustness of the various data sources
then available, confidence in the geological interpretation,
variography and various estimation parameters (e.g. distance
to data points, number of data points, maximum search radii etc.).
Consideration was also given to the "Reasonable Prospects for
Eventual Economic Extraction" ("RPEEE").
Competent Person's Statement
The information contained in this
announcement relates to a Mineral Resource Estimate report prepared
by Dr Jochen Schweitzer who is employed at Shango Solutions (Pty)
Limited. Dr Jochen Schweitzer is a qualified geologist, registered
with the South African Council for Natural Resources and is a
Competent Person as defined by the JORC Code. Dr Jochen Schweitzer
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). Dr Jochen Schweitzer has reviewed and approved the
information in this announcement.
Glossary of technical terms
|
"Au"
|
gold;
|
|
"Buffer Zone"
|
the Mining Right covering,
inter alia, the Buffer
Zone (FS) 30/5/1/2/2/225 MR is held by Lorraine Gold Mines Limited;
|
|
"cmg/t"
|
the product of the width (cm) and
gold grade (g/t) which is known as the accumulation value and
frequently cited for South African mining
projects;
|
|
"g"
|
grammes;
|
|
"g/t"
|
grammes per tonne;
|
|
"Indicated resource"
|
that part of a Mineral Resource for
which quantity, grade (or quality), densities, shape and physical
characteristics are estimated with sufficient confidence to allow
the application of modifying factors in sufficient detail to
support mine planning and evaluation of the economic viability of
the deposit;
|
|
"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;
|
|
"Jelani Resources Prospecting Right"
|
The Jelani Resources Prospecting
Right is held by Jelani Resources(formerly Friedshelf 1541
Proprietary Limited). Friedshelf 1541 Proprietary Limited's name
was changed to Jelani Resources Proprietary Limited on 14 December
2017;
|
|
"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;
|
|
"JV"
|
joint venture;
|
|
"Measured"
|
that part of a Mineral Resource for
which quantity, grade (or quality), densities, shape and physical
characteristics are estimated with confidence sufficient to allow
the application of modifying factors to support detailed mine
planning and final evaluation of the economic viability of the
deposit. Geological evidence is derived from detailed and reliable
exploration, sampling and testing gathered through appropriate
techniques from locations such as outcrops, trenches, pits,
workings and drill holes, and is sufficient to confirm geological
and grade (or quality) continuity between points of observation
where data and samples are gathered.
|
|
"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. Mineral Resources are sub-divided, in order of
increasing confidence, into Inferred, Indicated and Measured
categories;
|
|
"Mg"
|
million grammes;
|
|
"Moz"
|
million ounces;
|
|
"Mt"
|
million tonnes;
|
|
"oz"
|
troy ounce;
|
|
"t"
|
tonnes;
|
|
"US$"
|
United states dollars;
and
|
|
"ZAR"
|
South African Rand.
|
For
further information, please contact:
|
Lexington Gold Ltd
Bernard Olivier (Chief Executive
Officer)
Edward Nealon (Chairman)
Mike Allardice (Group Company
Secretary)
|
www.lexingtongold.co.uk
via Yellow
Jersey
|
|
Strand Hanson Limited (Nominated Adviser)
Matthew Chandler / James Bellman /
Abigail Wennington
|
www.strandhanson.co.uk
T: +44 207
409 3494
|
|
Peterhouse Capital Limited (Broker)
Duncan Vasey / Lucy Williams
(Broking)
Eran Zucker (Corporate
Finance)
|
www.peterhousecap.com
T: +44 207
469 0930
|
|
Yellow Jersey PR Limited (Financial Public
Relations)
Charles Goodwin / Annabelle
Wills
|
www.yellowjerseypr.com
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 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
or follow us through our social media
channel:
X
(formerly known as Twitter):
@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.