Lexington Gold Regulatory News (LEX)

22 December 2021

Lexington Gold Ltd

("Lexington Gold" or the "Company") 

Operational Update

Lexington Gold (AIM: LEX), the gold exploration and development company with projects in North and South Carolina, USA, is pleased to provide an operational update which includes information with respect to its latest ongoing 5,000m Reverse Circulation ("RC") drilling programme.

Highlights

· 39 drill holes completed for a total of 3,275m drilled to date, out of the planned total of 5,000m for the Phase 2 drilling programme

· Drilling is underway at the Loflin side of the Jones-Keystone-Loflin Project with seven drill holes for a total of 645m completed to date

· Significant sulphide mineralisation of over 25m intersected on the southern side and outside of the current known Loflin resource

· Drilling activities will pause during the Christmas and New Year period, with drilling scheduled to recommence on 4th January 2022

· Due to a current backlog reported by SGS Canada ("SGS"), the Company is not expecting the first assay results to be returned during December 2021

· The Company has successfully extended an existing 4.05 acre mining lease with an option to purchase agreement on the south-western ("Loflin") side of JKL for an additional six year period to 17 December 2027

· The Company has retained its 51% interest in all four of its projects by meeting Year 1 minimum expenditure requirements

Bernard Olivier, Lexington Gold's CEO, commented:

"We continue to be pleased with the progress made in the ongoing 5,000m drilling programme, with drilling now underway at the Loflin side of the JKL Project, following the completion of drilling at the Carolina Belle Project, as announced on 1 December 2021. The initial drilling of a previously untested, potential southern extension of the Loflin project returned sulphide intersections of over 25m.  The drilling at Loflin is aimed at expanding the initial maiden resource estimate, which reported an Inferred Resource of 2,064,000t @ 0.99 g/t Au for 65,056 oz of contained gold. Our other goal for this drilling programme is to establish a maiden resource for the Jones-Keystone side of the JKL project.

"The Company is awaiting the receipt of assay results from already completed drilling, and we look forward to updating the market once these are received. I would like to take this opportunity to thank the team on the ground for their diligent work and good progress made on the drilling programme, and also thank shareholders for their continued support this year."

Additional information

The Phase 2 drilling contract with FTE Drilling is for a minimum of 5,000m of RC drilling. FTE Drilling is an international drilling company headquartered in Canada and is highly experienced in RC drilling, including in the Carolinas, where they previously conducted extensive drilling for the third party Haile Mine.

Jones-Keystone-Loflin ("JKL") Project

The Company's Phase 1 drill campaign at JKL intersected significant gold mineralisation, with the assay results showing a good correlation with the historical drilling results at Loflin.

Highlights from the 600m Phase 1 drilling campaign included:

· 35.7m @ 1.15 g/t Au from surface to 35.7m

· 6.1m @ 3.36 g/t Au from 79.9m to 86m

· 1.5m @ 9.5 g/t Au from 79.9m to 81.4m

· 12.2m @ 1.4 g/t Au from 23.5m to 35.7m

· 6m @ 2.3 g/t Au from 9.8m to 15m

Additionally, all six holes of the initial campaign intersected gold mineralisation of over 1 g/t Au above 100m depth with multiple intersections over 30m width.

The Phase 1 drilling campaign also enabled the establishment of a maiden JORC (2012) Mineral Resource Estimate for the Loflin side of the JKL Project of approximately 65,000 oz of contained gold.

The current Phase 2 drilling campaign will include drilling on both the Loflin and Jones-Keystone sides of the project with the drill programme to include the following:

· Additional drilling at Loflin to potentially expand the initial maiden resource estimate

· Drill holes positioned to test additional targets that form part of the project area, identified from geophysics and historical work

· Drill holes positioned to seek to establish a maiden resource for the Jones-Keystone side of the project

The Company also announces that it has successfully extended an existing 4.05 acre mining lease with an option to purchase agreement on the south-western ("Loflin") side of JKL that had been scheduled to expire on 17 December 2021, for an additional six-year period. The agreement covers 4.05 acres and forms part of the current 179.66 acres mineral exploration rights package at Loflin.

Assaying

Two sets of samples have been dispatched to SGS Canada's Vancouver ("SGS") based laboratory. Assay laboratories globally have been particularly impacted by the various COVID-19 related workplace restrictions, protocols and guidelines, resulting in large delays. Due to a backlog reported by SGS, the Company is not expecting the first assay results to be received during December 2021 and will update the market once a revised estimation has been received from SGS, or the first assay results are received.

Minimum Expenditure requirements

The Company has retained its 51% interest in all four of its project by meeting Year 1 minimum expenditure requirements. In relation to the Jones-Keystone-Loflin, Carolina Belle and Jennings Pioneer projects the Company exceeded its minimum expenditure requirements and in relation to the Argo Project it has agreed with Uwharrie Resources Inc and Carolina Gold Resources Inc. that the currently estimated shortfall of approximately AUD 38K (approximately US$28K) in relation to Year 1 expenditure for the Argo Project be added to the Year 2 expenditure requirement for the Argo project. Once the actual Year 1 expenditure for the Argo Project has been finalised and agreed with Uwharrie Resources Inc and Carolina Gold Resources Inc in the New Year the Company will provide an update on the remaining expenditure requirements to retain its 51% interest in its 4 projects.

Enquiries:

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.

Note to Editors:

Lexington Gold Ltd (AIM: LEX) is focused on the exploration and development of its four diverse gold projects, covering a combined area of approximately 1,675 acres in North and South Carolina, USA. The projects are situated in the highly prospective Carolina Super Terrane ("CST"), which has seen significant historic gold production and is host to a number of multi-million-ounce mines operated by majors and was also the site of the first US gold rush in the early 1800s, before gold was discovered in California.

Further information is available on the Company's website: www.lexingtongold.co.uk. 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.