30 September 2024
Lexington Gold Ltd
("Lexington Gold" or the "Company")
Interim Consolidated Results for the half-year ended 30 June 2024
Lexington Gold (AIM: LEX), the gold exploration and development company with projects in South Africa and the USA, is pleased to announce its unaudited interim consolidated results for the six- month period to 30 June 2024 ("H1 2024" or the "Period").
Highlights:
Operational
Bothaville Project (SA)
- Successfully completed 2,355 m of drilling comprising a total of four mother holes and five deflections
- Initial observations indicate the potential presence of mineralisation in three of the mother holes
- Drilling programme has significantly expanded the potential area of mineralisation and indicated a possible significant gold system
- During the period the core from the final two holes was logged, cut and sampled in preparation for submission to SGS Laboratory Services for assay analysis
Jelani Resources JV Project (SA)
- The successful renewal of the Jelani Resources licence until May 2026 triggered the issuance of an initial tranche of 25,806,451 deferred consideration shares as part of the terms of the White Rivers Exploration Proprietary Limited ("WRE") acquisition, predominantly to Mark Creasy/his nominees
Jennings-Pioneer Project ("Jennings-Pioneer") (USA)
- Completed 495 m of diamond drilling at Jennings-Pioneer comprising three diamond core holes to test for gold mineralisation adjacent to the historic Barite Hill Main open pit gold- silver mine
- All three target zones of the Barite Hill Trend were successfully intersected, namely the Middle Ore Zone, the Foot Wall Ore Zone and the Red Hill Ore Zone
- Assay results from the drill core confirmed the strike and down plunge continuation of the Barite Hill Trend gold mineralisation onto the Jennings-Pioneer Project area
- Significant intercepts from drill core gold (Au) and Tellurium (Te) assays include:
- Hole JP24-2: 23 m at 1.14 g/t Au from 127 m to 150 m including:
- 10 m at 2.11 g/t Au from 127 m to 137 m
- 2 m at 5.66 g/t Au from 133 m to 135 m
- Hole JP24-3: 39 m at 0.80 g/t Au and 60.49 ppm (60.49 g/t) Te from 14 m to 53 m including:
- 11 m at 1.03 g/t Au and 79.54 ppm (79.54 g/t) Te from 42 m to 53 m
Lexington Gold Ltd: Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda.
Registration No: EC33385 Website: www.lexingtongold.co.uk
Post Period End
- Announced formal adoption and release of the Independent JORC (2012) Mineral Resource Estimate for the Jelani Resources Joint Venture (JV) project
- Total combined Inferred, Indicated and Measured JORC (2012) Mineral Resource Estimate of 6.02 Moz of gold with an average grade of 6.47 g/t gold comprising of:
- 4.88 Moz at 6.48 g/t gold located in the Buffer Zone; and o 1.14 Moz at 6.41 g/t gold located in the JV area
Financial Summary
- Net loss for H1 2024 from continuing operations was US$0.3m (H1 2023: US$0.4m)
- Total assets were US$17.8m as at the half-year end (31 December 2023: US$18.2m)
- Cash position of US$1.5m as at the half-year end (31 December 2023: US$2.6m)
- Total liabilities of US$0.9m as at the half-year end (31 December 2023: US$1.1m)
For further information, please contact:
Lexington Gold Ltd
Bernard Olivier (Chief Executive Officer)
Edward Nealon (Chairman)
Mike Allardice (Group Company Secretary)
Strand Hanson Limited (Nominated Adviser)
Matthew Chandler / James Bellman / Abigail Wennington
Peterhouse Capital Limited (Broker)
Duncan Vasey / Lucy Williams (Broking)
Eran Zucker (Corporate Finance)
www.lexingtongold.co.ukvia Yellow Jersey
www.strandhanson.co.ukT: +44 207 409 3494
www.peterhousecap.comT: +44 207 469 0930
Yellow Jersey PR Limited (Financial Public Relations) | www.yellowjerseypr.com |
Charles Goodwin / Annabelle Wills | T: +44 7948 758 681 |
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, as amended by virtue of the Market Abuse (Amendment) (EU Exit) Regulations 2019.
Note to Editors:
Lexington Gold (AIM: LEX) is a gold exploration and development company currently holding interests in four diverse gold projects, covering a combined area of approximately 1,675 acres in North and South Carolina, USA and in six gold projects covering approximately 114,638 hectares in South Africa.
Lexington Gold Ltd: Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda.
Registration No: EC33385 Website: www.lexingtongold.co.uk
Further information is available on the Company's website: www.lexingtongold.co.ukor follow us
through our social media channel: X (formerly known as Twitter): @LexGoldLtd
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.
Chairman's Statement
I am pleased to present Lexington Gold's unaudited interim consolidated results for the six-month period ended 30 June 2024 and to report on the group's ongoing activities to the date of this statement.
Despite capital markets remaining difficult for junior mining companies, we have made encouraging progress during the first half of the year in terms of deploying capital efficiently to advance our exploration projects and build asset value.
In the USA, we completed a drilling programme at our Jennings-Pioneer project in South Carolina, targeting gold mineralisation adjacent to Barite Hill. Assay results were promising and showed extensions of the Barite Hill Trend gold mineralisation, further highlighting the potential of this exploration area.
Since our acquisition of WRE, we have been clear about the potential of the extensive gold deposits in South Africa's Witwatersrand Basin. In the period, we made good progress at our Bothaville Project after completing a drill programme with assay results confirming the presence of a potentially significant gold system. The results enhanced our existing geological data and expanded potential mineralisation zones.
In May 2024, Lexington Gold successfully renewed the Jelani Resources licence until May 2026, which triggered the issuance of an initial tranche of deferred consideration shares in connection with the WRE acquisition. This was an important milestone in the ongoing development of the Jelani Resources JV and our relationship with Harmony Gold.
In relation to our circa £2.5 million (gross) fundraising in July 2023, our unlisted 10 pence warrants, expiring in July 2026, were admitted to JP Jenkins' matched bargain platform in order to provide an accessible trading venue for our warrant holders.
Lexington Gold has made great strides with its multi-project portfolio as the price of gold has continued to surge. The value of this precious metal has soared to over US$2,600 per troy ounce, spurred on by high demand among Asian consumers, buying by central banks keen to diversify away from the US dollar amid geopolitical uncertainty, and expectations of lower US interest rates. We look forward to making further progress with our projects in both the USA and South Africa as we continue to unlock value and build our mineral resources.
Mr Edward Nealon
Non-Executive Chairman
30 September 2024
Lexington Gold Ltd: Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda.
Registration No: EC33385 Website: www.lexingtongold.co.uk
Chief Executive's Operational and Financial Review
1. Overview
Lexington Gold continued to successfully advance its exploration activities during the first half of 2024, with efforts focused at its Bothaville project in South Africa and Jennings-Pioneerproject on the Carolina Slate Belt, USA.
The South African assets acquired through WRE, in early September 2023, have added an exciting and potentially highly valuable dynamic to our portfolio. Having commenced in December last year, our initial drill programme at the Bothaville project was successfully completed in May 2024. This delivered highly encouraging assay results as we continue to build our database and understanding of the project.
In May 2024, the Company also renewed its Jelani Resources Prospecting Right until May 2026. The Jelani Resources JV project is a major part of our South African portfolio, and we are committed to its further progress. The licence renewal led to the issue of an initial tranche of deferred consideration shares in line with the terms of the acquisition of WRE.
Following signing of a new drilling contract with Logan Drilling Group, we also completed a drilling programme at our Jennings-Pioneer project. This generated some excellent results which have reinforced our commitment to advancing the project and our broader USA exploration portfolio.
Momentum has continued into the second half with the recent authorisation and announcement of the Independent JORC (2012) Mineral Resource Estimate for the Jelani Resources JV project prepared in August 2018.
- Financial Performance
- Net loss for H1 2024 from continuing operations was US$0.3m (H1 2023: US$0.4m)
- Total assets were US$17.8m as at the half-year end (31 December 2023: US$18.2m)
- Cash position of US$1.5m as at the half-year end (31 December 2023: US$2.6m)
- Total liabilities of US$0.9m as at the half-year end (31 December 2023: US$1.1m)
- Dividend
The directors have not declared a dividend (2023: Nil).
4. Operational and Corporate Activities
During the first half of 2024, Lexington Gold conducted a series of exploration activities on its existing portfolio projects as follows:
Lexington Gold Ltd: Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda.
Registration No: EC33385 Website: www.lexingtongold.co.uk
South African Projects
Bothaville project
Lexington Gold began the period with the continuation of its drilling programme at the Bothaville project located in the Witwatersrand Gold Basin, South Africa. The percussion drilling phase, which is crucial for cost-effective penetration of the overlying Karoo sediments, was then successfully completed by the end of January.
In late February, Lexington Gold announced that it had completed the first two diamond drill holes and four associated deflections. Both drill holes and their deflections were successful in intersecting the targeted Kimberley Formation, including the A-Reef.Initial inspections of the core showed signs of mineralisation in both holes, indicating the potential presence of gold.
In May, Lexington Gold confirmed that it had completed four drillholes, totalling 2,355 m of drilling. This comprised 1,433 m of percussion drilling through the overburden and 922 m of core drilling. Three of the four holes were completed successfully with a total of eight intersections of the A-Reef from three motherholes and five deflections. Due to the presence of an unexpected geological structure the fourth hole was abandoned before it could intersect the A-Reef.
The drilling was undertaken to test for a gold-bearing channel at shallow depth in the target A-Reef horizon at Bothaville, as postulated by the drilling of two historic holes, which returned 7.1 g/t Au over 71 cm and 5.53 g/t over 77 cm, respectively.
The drilling proved the concept of A-Reef channels occurring at Bothaville. It also provided significantly more information on the presence and orientation of one such channel first intersected by historic third-party drilling. Three new successful drillholes intersected gold mineralisation approximately 250 m towards the north west, north east and south east of the historical drillholes. This has considerably expanded the potential area of mineralisation and indicated the possibility of a significant gold system.
Key intercepts included 1.2 g/t Au and 111 cmg/t over 92.7 cm from 275.89 m (Hole CD03D2) and 0.76 g/t and 160 cmg/t over 209 cm from 442.68 m (Hole CD02AD1).
The new drillholes only tested a localised portion of the entire Bothaville project site which covers an area of over 180 km2. Historical drilling identified other areas with significant gold mineralisation such that the overall project represents a sizeable gold exploration opportunity.
Jelani Resources JV project
In May, Lexington Gold announced the renewal of the Jelani Resources Prospecting Right until May 2026. This is a testament to our commitment to long-term value creation and strengthens our position in the region.
The licence covers an area of approximately 956 hectares adjacent to Harmony Gold's Target Mine in the north-western portion of the Welkom Gold Fields. An historic independently estimated resource, formally adopted and released post the reporting period, suggests a potential 6.02 million ounces of gold at an average grade of 6.47 g/t of which 4.88Moz at 6.48 g/t relates to a Buffer Zone and 1.14 Moz at 6.41 g/t relates to the current JV area. The JV project represents a significant component of our strategic asset base in South Africa.
The renewal led to the issue of, in aggregate, an initial tranche of 25,806,451 deferred consideration shares in respect of the Company's acquisition of WRE, as follows:
Lexington Gold Ltd: Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda.
Registration No: EC33385 Website: www.lexingtongold.co.uk
- 19,387,703 new common shares to Mark Creasy or his nominee; and
- 6,418,748 new common shares to Sunswell Holdings Pty Limited ("Sunswell") or its nominees.
Accordingly, further to the issue of such shares:
- Mr Creasy and his nominees are interested, in aggregate, in 53,254,768 common shares representing approximately 13.35 per cent. of the Company's enlarged issued share capital; and
- Freefire Technology Ltd, one of Sunswell's nominees, owns 15,250,947 common shares representing approximately 3.82 per cent. of the Company's enlarged issued share capital.
USA Projects
During the period, activity in the USA was focused on our Jennings-Pioneer project in South Carolina. Having commenced a drilling programme at the end of 2023, this was duly completed with the corresponding assay results showing promising extensions of the Barite Hill Trend gold mineralisation. These results validated our geological models and reaffirmed the potential of our regional exploration strategy. We continue to have excellent relations with our US partners, URI and Carolina Gold Resources, and have agreed with them an extension of three months to the period in which we are due to meet certain Minimum Funding Contributions in respect of the GAR Projects (see note 9).
Jennings-Pioneer project
In March, the Company announced signing of a new drilling contract with Logan Drilling Group. The agreement related to the commencement of our 2024 drilling programme at the Jennings-Pioneer project on the Carolina Slate Belt. Drilling was concluded in April for a total of 495 m comprising three diamond core holes as part of testing for gold mineralisation adjacent to the historic Barite Hill Main open pit gold-silvermine. The drilling targeted three distinct gold ore zones that lie along and marginal to the contact between the Lower Pyroclastic Unit and the Upper Pyroclastic Unit of the Persimmon Fork Formation.
In mid June, we received the assay results for the three drill holes which confirmed the along strike and down plunge continuation of the Barite Hill Trend gold mineralisation onto the Jennings-Pioneer project area.
All three target zones of the Barite Hill Trend were successfully intersected, namely the Middle Ore Zone, the Foot Wall Ore Zone and the Red Hill Ore Zone. Massive sulphides, semi-massive sulphides and associated quartz barite veins were found in all three drill holes.
Significant intercepts from drill core gold (Au) and Tellurium (Te) assays included:
-
Hole JP24-2: 23 m at 1.14 g/t Au from 127 m to 150 m including: o 10 m at 2.11 g/t Au from 127 m to 137 m
o 2 m at 5.66 g/t Au from 133 m to 135 m - Hole JP24-3: 39 m at 0.80 g/t Au and 60.49 ppm (60.49 g/t) Te from 14 m to 53 m including: o 11 m at 1.03 g/t Au and 79.54 ppm (79.54 g/t) Te from 42 m to 53 m
Potential by-product intercepts from drill core Ag, Cu and Zn assays included:
- Hole JP24-1: 10 m at 1.33% Zn, 22.17 g/t Ag and 0.11 g/t Au
- Hole JP24-2: 6 m at 0.52% Cu, 13.16 g/t Ag and 0.35 g/t Au
Lexington Gold Ltd: Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda.
Registration No: EC33385 Website: www.lexingtongold.co.uk
Trading facility for unlisted Warrants
In June 2024, Lexington Gold announced the admission of its existing unlisted 10 pence warrants expiring on 20 July 2026 to trading on JP Jenkins' securities matching platform. The warrants were issued to the participants in the Company's circa £2.5 million (gross) fundraise in July 2023, affording the holders the opportunity to subscribe for up to a further 41,938,334 new common shares at a price of 10 pence per share.
5. Post Period End
In mid September 2024, we were pleased to announce the formal adoption of the Independent JORC (2012) Mineral Resource Estimate for our Jelani Resources JV project. The JV is between Lexington Gold's subsidiary, WRE, and certain of Harmony Gold's subsidiaries, being the largest gold mining company in South Africa.
The estimate, prepared as at 27 August 2018, detailed a total combined Inferred, Indicated and Measured JORC (2012) Mineral Resource Estimate of 6.02 Moz of gold with an average grade of
6.47 g/t comprising of:
- 4.88 Moz at 6.48 g/t gold located in the Buffer Zone; and
- 1.14 Moz at 6.41 g/t gold located in the JV area.
Accordingly, the net attributable ounces to Lexington Gold's effective 76% interest in the current JV area are 0.56 Moz of gold, potentially increasing to 2.24 Moz of gold should the JV parties proceed to future production, on a revised ownership interest of 49% for WRE, with the Buffer Zone then included as part of such arrangement.
This significant resource underlines the vast potential of both the Jelani Resources JV project and Lexington Gold's South African assets as a whole.
Dr Bernard Olivier
Chief Executive Officer
30 September 2024
Lexington Gold Ltd: Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda.
Registration No: EC33385 Website: www.lexingtongold.co.uk
Interim Consolidated Financial Statements
Lexington Gold Ltd
Condensed Consolidated Statement of Profit and Loss and Other Comprehensive Income
For the Half-Year ended 30 June 2024
(Unaudited)
Unaudited | Unaudited | ||
Six | Six | ||
months | months | ||
Notes | ended 30 | ended 30 | |
June 2024 | June 2023 | ||
CONTINUING OPERATIONS | $'000 | $'000 | |
Operating expenses | 3 | (416) | (397) |
Fair value gain on derivative liability | 135 | - | |
Net finance income/(cost) | 5 | (5) | |
Loss before income tax | (276) | (402) | |
Income tax credit/(charge) | - | - | |
Loss for the period | (276) | (402) | |
Other comprehensive income | |||
Loss for the period | (276) | (402) | |
Items that may be reclassified to profit or loss: | |||
Foreign currency reserve movement | 22 | (6) | |
Total comprehensive loss for the period | (254) | (408) | |
Loss per share attributable to the owners of the | |||
parent | |||
Basic and diluted loss per share from continuing | |||
operations (cents per share) | 4 | (0.02) | (0.14) |
The accompanying notes form part of these financial statements.
Lexington Gold Ltd: Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda.
Registration No: EC33385 Website: www.lexingtongold.co.uk
Lexington Gold Ltd
Consolidated Statement of Financial Position
As at 30 June 2024 (Unaudited)
Unaudited | Audited | ||
30 | 31 | ||
Notes | June | December | |
2024 | 2023 | ||
Non-current assets | $'000 | $'000 | |
Exploration and evaluation assets | 5 | 16,223 | 15,490 |
Total non-current assets | 16,223 | 15,490 | |
Current assets | |||
Other receivables | 35 | 79 | |
Restricted cash and cash equivalents | 47 | 45 | |
Cash and cash equivalents | 1,482 | 2,617 | |
Total current assets | 1,564 | 2,741 | |
Total assets | 17,787 | 18,231 | |
Equity | |||
Share capital | 1,198 | 1,121 | |
Share premium | 67,293 | 65,425 | |
Shares to be issued | 6 | 3,113 | 5,058 |
Share option reserve | 651 | 651 | |
Foreign currency translation reserve | (88) | (98) | |
Accumulated loss | (57,698) | (57,624) | |
Total equity attributable to equity owners of the | |||
parent | 14,469 | 14,533 | |
Non-controlling interest | 2,443 | 2,633 | |
Total equity | 16,912 | 17,166 | |
Current liabilities | |||
Trade and other payables | 618 | 673 | |
Derivative liability | 7 | 257 | 392 |
Total current liabilities | 875 | 1,065 | |
Total equity and liabilities | 17,787 | 18,231 |
The accompanying notes form part of these financial statements.
Lexington Gold Ltd: Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda.
Registration No: EC33385 Website: www.lexingtongold.co.uk
Lexington Gold Ltd
Consolidated Statement of Changes in Equity
For the Half-Year Ended 30 June 2024
(Unaudited)
Foreign | Total | ||||||||
equity | |||||||||
Issued | Share | currency | Accumu- | attribu- | Non- | ||||
Share | Shares to | trans- | table to | Total | |||||
share | option | lation | lated | share- | controllin | ||||
capital | premium | be issued | reserve | reserve | loss | holders | g interest | equity | |
Six months ended 30 June | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
2024 (unaudited) | 1,121 | 65,425 | 5,058 | 651 | (98) | (57,624) | 14,533 | 2,633 | 17,166 |
At start of period | |||||||||
Total comprehensive loss for | |||||||||
the period | - | - | - | - | 10 | (74) | (64) | (190) | (254) |
Loss for the period | - | - | - | - | - | (74) | (74) | (202) | (276) |
Foreign exchange gain on | |||||||||
translation | - | - | - | - | 10 | - | 10 | 12 | 22 |
Contingent shares issued | 77 | 1,868 | (1,945) | - | - | - | - | - | - |
At end of period | 1,198 | 67,293 | 3,113 | 651 | (88) | (57,698) | 14,469 | 2,443 | 16,912 |
Six months ended 30 June | |||||||||
2023 (unaudited) | 851 | 60,163 | - | 651 | (2) | (57,674) | 3,989 | 970 | 4,959 |
At start of period | |||||||||
Total comprehensive loss for | |||||||||
the period | - | - | - | - | (6) | (402) | (408) | - | (408) |
Loss for the period | - | - | - | - | - | (402) | (402) | - | (402) |
Foreign exchange loss on | |||||||||
translation | - | - | - | - | (6) | - | (6) | - | (6) |
At end of period | 851 | 60,163 | - | 651 | (8) | (58,076) | 3,581 | 970 | 4,551 |
The accompanying notes form part of these financial statements.
Lexington Gold Ltd: Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda.
Registration No: EC33385 Website: www.lexingtongold.co.uk