LONDON (ShareCast) - (Sharecast News) - Exploration and development company Lexington Gold updated the market on its ongoing operational activities on Tuesday, reporting that the phase 1 drilling campaign at the Jones-Keystone-Loflin (JKL) project was progressing satisfactorily, with more than half of the drilling completed.
The AIM-traded firm said core logging and sampling of the first two drill holes in the campaign, plus a redrilled section of the second drill hole, had also been completed.

Sulphide mineralisation was intersected below the saprolite zone in all holes drilled to date, the board said, adding that gold had a known association with sulphide mineralisation at JKL.

The samples from the first two holes, plus the redrilled section, had been dispatched to the assay laboratory for gold analysis.

Lexington said the fixed-wing airborne geophysical survey over the JKL, Carolina Belle and Argo Projects in North Carolina had also been completed, with interpretation of the resulting data and modelling underway.

Initial high-level overview of the unprocessed data as received from the geophysical survey had already returned "promising" results, the board said, adding that interpretation and modelling of the VTEM geophysical survey over the Jennings-Pioneer Project had also been completed.

The VTEM survey had identified two potential anomalies at the Jennings-Pioneer Project that would be further investigated through soil sampling, trenching and drilling, it added.

"We are very pleased with the steady progress being made at our projects in the Carolinas and our observations from our early exploration activities are very encouraging," said chief executive officer Bernard Olivier.

"The core samples from our maiden drilling programme show good levels of sulphide mineralisation, which demonstrates excellent potential for gold prospectivity.

"Furthermore, the initial unprocessed data from the geophysical survey is already showing promising results and we have also been able to identify two potential targets for exploration within the Jennings-Pioneer Project."

Olivier said that, with phase 1 drilling more than halfway completed and geophysical analysis underway, the company was "excited" to push forward with its exploration plans.

"Following completion of this exploration activity we intend to establish an initial maiden resource estimate for JKL, with the aim of then potentially expanding this through additional future drilling."

At 1201 BST, shares in Lexington Gold were down 5.15% at 3.13p.

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