(Alliance News) - Lexington Gold announced on Tuesday significant delays to its ongoing 5,000 metre reverse circulation drilling programme including a broken-down rig and laboratory backlogs.
Shares in Lexington Gold were down 9.1% at 3.00 pence on Tuesday morning in London.
The Bermuda-based gold exploration and development company with projects in the US said drilling operations have been delayed for over two weeks due to a breakdown of the drill rig. It explained that the replacement part could not be sourced in the US or Canada but has now been secured from Europe and is currently being fitted.
Lexington Gold continued that SGS Canada is still reporting delays in the processing of the company's assay results due to a backlog at its Vancouver laboratory. The company said it is hopeful, however, that initial assay results will be received from SGS Canada in early February.
Due to the delays, the company said it has decided to dispatch its latest batch of samples to American Assay Labs in Nevada, US, as the laboratory have confirmed it is not currently experiencing any significant delays in processing samples.
Lexington Gold added that two additional reverse circulation drill holes will be drilled once drilling re-commences due to the significant sulphide mineralisation being intersected at Loflin South in the US state of North Carolina.
By Heather Rydings; heatherrydings@alliancenews.com
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