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Not so good agreed.. but this is a 180km2 concession.. They are looking for channels. There were 18 historical holes drilled on this concession before, we have 4 More concessions too and the Jelani JV.
Looking on the positive side, the precious RNS about raising capital was not really about raising capital. It was about the revival of the Jelani JV with Harmony which point blank talked about the existence of 2.95mn oz reserve of gold. The market seems to have completely ignored this which was buried deep in the text and focused on the issue of more shares.
Markets sometimes get it wrong.. we've got some great assets in south Africa... I think the Jelani JV will be the first to come home, there has to be more to that announcement if both LEX and Harmony are acknowledging the existence of potentially 2.95mn oz. That's worth 6bn dollars
our market cap is 17mn. Looks a bit cheap to me. Bring it on..
It's a shame the results were disappointing as a good set of results would have made it much easier for the company to raise funds for further drilling.
Disappointing grades
Highlights:
· A total of four drillholes were completed, amounting to 2,355m of drilling. This comprised 1,433m of percussion drilling through the overburden and 922m of core drilling.
· Three of the four holes were completed successfully with a total of eight intersections of the A-Reef from three motherholes and five deflections. Due to the presence of an unexpected geological structure the fourth hole was abandoned before it could intersect the A-Reef.
· The drilling was undertaken to test for a gold-bearing channel at shallow depth in the target A-Reef horizon at Bothaville, as postulated by the drilling of two historic holes which returned 7.1 g/t Au over 71 cm and 5.53 g/t over 77 cm, respectively.
· The latest drilling has proven the concept of A-Reef channels occuring at Bothaville, and has provided significantly more information on the presence and orientation of one such channel first intersected by historic third party drilling.
· The three new successful drillholes intersected gold mineralisation approximately 250m towards the NW, NE and SE of the historical drillholes, thereby significantly expanding the potential area of mineralisation and indicating a possible significant gold system.
· Key intercepts include 1.2 g/t Au and 111 cmg/t over 92.7 cm from 275.89 m (Hole CD03D2) and 0.76 g/t and 160 cmg/t over 209 cm from 442.68 m (Hole CD02AD1).
· The recent drillholes only tested a localised portion of the entire Bothaville Project site which covers an area of over 180km2. Historical drilling identified other areas with significant gold mineralisation such that the overall project represents a sizeable gold exploration opportunity.
https://www.londonstockexchange.com/news-article/LEX/bothaville-ne-project-drilling-results/16483878
Have to say, the analyst at WHI must be smoking something that I would not wish to partake of. Maybe it's killjoy weed.. So we see an announcement confirming that, after a few hoops to pass though, Lex has a 2.95mn oz share in a gold mine that already has ALL the infrastructure in place, shafts etc etc..
There has to be more to it than this. Apparently White Rivers announced an 11.25mn oz reserve in the Jelani JV a few years ago. This has been pared down to 6.05mn oz . We have no idea if it is supported by a JORC compliant reserve though the fact that LEX is in a JV with Harmony and Harmony is a public company, indicates that Harmony must know about the announcement and therefore is complicit in approving a 6.05mn oz reserve. It simply has to know what is going on. Where there's smoke there's fire. If these ounces were a figment of LEX imagination, this announcement would never have been made in the first place
The real mystery is why the price of this stock is still 5p. And the house broker has not upped it's target price.. quite surreal. But markets are not perfect, and hence the opportunity to pick up a stock that has just announced a 13 fold increase in it's reserves at the same price as before the announcement..
Lexington Gold (LEX) – Corporate – Renewal of Jelani Resources Prospecting
Right
Market Cap £19.4m Share Price 5.2p
Lexington announced yesterday the renewal of the Jelani Resources Prospecting
Right until 29 May 2026. In accordance with Lexington’s acquisition of White
Rivers Exploration (WRE), the renewal of the Jelani Resources Prospecting Right
is a milestone for the issue of 25,806,451 deferred consideration shares.
The Jelani Resource Prospecting Right is adjacent to Harmony Gold’s Target 1
Mine and is the basis for the Jelani JV (joint venture) between Lexington and
Harmony Gold. Extensive and deep underground workings at the Target Mine are
a potential launch point to exploit the 2.38M oz of gold contained in the
Measured and Indicated Jelani JV resource.
WHI View: The Prospecting Right contains significant gold resources and is a key
part of Lexington’s portfolio. The successful renewal of the Prospecting Right
ensures that Lexington can continue to pursue a tribute mining arrangement with
Harmony Gold. We still see fair value at 15.3p.
The fact that the shareholders of the JV have decided to renew the prospecting rights surely indicates that Harmony are very interested in the 6.02 million ounces that are down there. They wouldn’t have done it otherwise!
Will be 398,969,609 shares after Creasy gets this next trench total shares.
What’s the total number of shares in issue for Lexington? Before and after todays extra 25 million?
Topped up this afternoon but it’s showing as a sell.
This was on the Trade Smith report this evening .
Could well see some movement in the next few days?
LEX-L
LEXINGTON GOLD
E
Early Entry Signal triggered on
05/01/2024
£0.05
Latest Close
Blue
What's the latest cash position? I expect they'll need to raise soon...
Really no rush here. Confident with management, good to see things ticking over positively on US sites. The golden goose is the South African projects. Long hold for gold.
About time too, come on LEX.
Good luck all 👍
5.10 paid there.
Well well, whoever is deciding where to drill at LEX is, doing a pretty decent job.!! so they drilled where they saw potential for extensions of the already existing next door mine, Barite Hill. The holes, three direct hits. OK, three holes isn't going to get us a reserve, but what we do know about the Barite Hill mine is that it had a reserve of 600k oz and 60k were mined in the early 90s.
However, no reason why, after we get back the assay results, that we shouldn't at least have a decent exploration target! The Environmental Protection Agency controls the clean up barite hill. Seems logical that LEX should be investigating taking that on. I'm sure the EPA would be happy to get it off the books. Exciting stuff.
We're still waiting for the results of the NE Bothaville drilling... And hopefully an update about the status of the Jelani JV with, Harmony. How long can it stay at these levels?
Actually just did a DCF on 210mn over 10 years at 10%, NPV is around $73.22mn
Actually just did a DCF on 210mn over 10 years at 10%, NPV is around $73.22mn
Simple open pit mining, maybe 900 to 1k dollars an ounce. 20mn or so to set up simple leaching operation, 1K an ounce gross profit, =210mn bucks, more than 10X Yr money over say 5 to 10 years.. Discount that back @10%, don't have my calculator with me, but nice numbers..
Yes and likely the next round of drilling results due in a bout a month add another lump onto that JORC amount. These US assets look very shallow on the last LEX paper not all that expensive to mine especially with current gold prices.
3m ish ounces on the Joint venture sat next door to Harmonys target one mine.
Estimated 30m+ ounces to prove up on the rest of the plots..
Multi multi bagger potential on this SP is very real possibility. Some of the target numbers you can come up with are huge..
Just a thought but the 210 thousand ounce deposits we have in the USA have a value of close to half a billion dollars at this gold price… appreciate costs involved to mine
Look at the recent acquisitions done by Calibre gold and Yintai mining. Valuations in x. S. of $110 per oz.. If you just take our portion of the Jelani JV with Harmony, 2.95mn oz, that alone values LEX at around $320mn. More than 20x higher than where we are now. And from what I can see from the info released, the reserve in the JV thiight not officially JORC'D yet, is based on historic actual drilling!! Therefor it can be turned into a JORC.
And then we hace all the other stuff with potential up to tens of millions of ounces. It really is painfully silly to see the price of the stock at these levels, but as the old broker saying goes, "Fill yer boots boys and girls"!! It'll be alright on the night.
I find it incredible that the price of gold has risen as much as it has over the last year or so and yet junior miners and exploration companies are still overlooked on exchanges around the world. At some stage we are going to see larger gold miners start acquiring their junior counterparts which will probably lead to a feeding frenzy with every junior in the crosshairs. Hang on tight I think we are on the launch pad
OK. So we hit mineralisation in Bothaville in 3 of the 4 holes, likely reason I'm guessing for not hitting the 4th is faulting, but who am 1 to say. We'll know soon enough. So the cores have gone 4 assay. Hopefully no queues at labs in SA, so expect stuff back in 3 to 4 weeks with luck.
Barite Hill, 500 metres away fm our Jennings Pioneer was a producing open pot mine. The only reason it closed was the collapse in the price of gold in the mid 90s and the bankruptcy of its owner at the time. There were some really good trenching and rock chip samples there a year ago. We're looking to see if that trend extends into our Jennings property.. Longer term, if its not sold to fund more drilling in SA, there's every liklihood that the Barite property could be taken over from the Environmental Protection Agency who would love to get shot of this liability.
Hopefully buying pressure will build as we move closer to nearer term assay results announcements!! Keep chewing away at these levels all. Ain't seen nothing yet.