Lexington Gold Share Price (LEX)

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..