Lexington Gold reports progress on Ventersburg Project
By Josh White
Date: Tuesday 03 Dec 2024
(Sharecast News) - Lexington Gold reported progress at its Ventersburg Gold Project in South Africa's Free State Province on Tuesday, located in the Witwatersrand Basin - a region responsible for around 40% of the world's gold production to date.
The AIM-traded firm's update was based on a technical report by independent consultancy Shango Solutions, which highlighted the project's exploration target and development potential.
It estimated an exploration target for Ventersburg of 1.39 million to 3.55 million ounces of contained gold, with grades ranging from 2.82 grams to 3.44 grams of gold per tonne.
Additional by-products, including uranium and silver, could also be present, consistent with neighbouring projects and historical data from the Witwatersrand Basin.
Ventersburg is strategically situated near key gold assets - adjacent properties include Gold One Africa's tenement, which hosts a mineral resource of 4.31 million ounces, and Sibanye Stillwater's Robijn Project, with 4.19 million ounces of gold resources and significant uranium potential.
Discussions were underway between Lexington Gold, its Black Economic Empowerment partner Letsema Holdings, and Gold One Africa to explore consolidation opportunities that could maximise resource and operational synergies in the Ventersburg Goldfield.
Lexington said its subsidiary White Rivers Exploration held extensive historical data, including information from over 2,500 boreholes, enabling advanced geological modeling to guide future drilling.
The company said it viewed Gold One Africa's established mining plan, including a 17-year life of mine and substantial infrastructure, as a benchmark for Ventersburg's development.
"We are most encouraged by the significant exploration target potential identified at our Ventersburg Gold Project," said chairman Ed Nealon.
"The project's proximity to established neighbouring operations, notably Gold One Africa's and Sibanye-Stillwater's, presents unique opportunities for potential collaboration and resource optimisation.
"Our ongoing discussions with Gold One Africa aim to explore and evaluate possible synergies that could enhance the development prospects for the Ventersburg Goldfield."
Nealon said the Modder East mine, operated by Gold One Group in South Africa's "historically rich" East Rand Goldfield 30 kilometres east of Johannesburg, had reported an average gold grade of about 2.84 grams per tonne in the indicated mineral resource category.
"As such, the estimated exploration target for our Project at Ventersburg represents a potentially higher grade than that reported for the equivalent depth Modder East Mine and therefore represents an exciting development opportunity for Lexington Gold.
"We remain committed to advancing our exploration efforts in South Africa and unlocking value for our shareholders."
At 0942 GMT, shares in Lexington Gold were up 5.71% at 3.7p.
Reporting by Josh White for Sharecast.com.
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