Lexington Gold shares gained 5.3% to 3p in early afternoon trading on Monday after the mining group reported an updated independent JORC Mineral Resource Estimate (MRE) for the Loflin side of the Jones-Keystone-Loflin (JKL) project.
The updated JORC MRE confirmed a total inferred resource of 2,596,000 tonnes at 0.99 g/t Au for 82,700 oz of contained gold.
Lexington Gold also highlighted a 27% rise in contained gold achieved for the Loflin deposit that forms part of the JKL project, increased from 65,000 oz estimated in September 2021.
The firm noted the potential for mineralisation at Loflin to remain open down-dip, to the north-east along the plunge of the syncline.
The company added there was potential for a significant further increase in resources for Loflin and Loflin South through additional drilling.
Lexington Gold reported 3D modelling and drilling delineated a north-east to south-east shallow plunging synclinal fold structure with shallow gold mineralisation in the core of the structure.
In addition, the group said the maiden JORC Resource for the Jones-Keystone side of the JKL side of the project was expected shortly after the 1m assay results were received.
“We are very pleased by this 27% upgrade to our initial maiden JORC resource at Loflin, which forms part of the JKL Project, following the extremely successful 2021/2022 reverese circulation drilling campaign,” said Lexington Gold CEO Bernard Olivier.
“The updated JORC resource for Loflin also includes over 9,000 gold ounces from the newly discovered Loflin South. The resource is located at shallow depths, with the entire upgraded JORC resource located between surface and a maximum depth of 125m. Mineralisation at Loflin remains open along strike to the north-east and down-dip, while Loflin South remains open in all directions.”
“We continue to believe that the recent drilling results will also enable the establishment of a significant maiden JORC Resource estimate for the nearby Jones-Keystone of potentially up to 100,000 ounces.”
“The updated resource for Loflin and the anticipated maiden resource for Jones-Keystone will result in a substantial combined JORC resource for the JKL Project, and there is also significant potential for further expansion through additional drilling.”