Lefroy Exploration Limited (ASX: LEX), is a focused explorer of gold deposits in the Yilgarn block of WA. The Lefroy Gold Project and the Lake Johnston Project are group’s flagship projects. The Lefroy Gold Project has its location at the close proximity to Gold Fields’ St Ives gold camp. The camp contains the Invincible gold mine located in Lake Lefroy, and it is situated next to the south of Silver Lake Resources’ Daisy Milano gold mining operation.
The Lefroy Gold Project is divided into the Western Lefroy package, subject to a Farm-In Agreement with Gold Fields and the 100% owned Eastern Lefroy package. Commencement of the Farm-In Agreement with Gold Fields over the Western Lefroy tenement package began on June 7, 2018. Beta Hunt underground mine, surrounded by the world-class 15 million-ounce St Ives gold camp, owned by major miner Gold Fields recently was very much in news on account of the recent discovery done by RNC. RNC discovered one of the richest and most prolific gold veins at Beta Hunt mine surrounded by St Ives gold camp. The discovery of gold veins includes a 95kg stone containing about 2440oz of gold and a 63kg stone containing about 1620oz of gold. Gold Fields can achieve an interest of 70% in the package with an approximate investment of $25 million on exploration activities. In an interval of less than a week, the haul was worth approximately $16 million which is almost equal to the half the market cap of RNC. RNC which was in the process of selling the mine has now paused the process and is now aggressively taking the exploration activities beneath Lake Lefroy under its lease holding.
For the last 40 years, almost 700km of historic drilling has been done but no major steps have been taken at the periphery where the gold is found which is located at 100m below the contact.
The discovery of gold veins is an excellent news for both the explorers and the land holders. The Western Lefroy JV tenements covering 372km2 adjoining the Gold Fields tenements make up the St Ives mining operation. The success of this transformative deal will help LEX to focus on its exploration activities at its 100% owned Eastern Lefroy Project.
In September 2018, the Company completed an early stage auger drilling program to capture and record the ultra-detailed magnetic data across the project. Gold Fields in house unmanned aerial system ‘TRAMPE’ (Tethered Rotary Airborne Magnetic Platform for Exploration) is used to acquire the data. This program will help in providing the key data for drill target generation with the expected commencement of the first drilling at Western Lefroy in early 2019.
The success of the transformative deal will help LEX to participate in 30 percent of the resources, production and reserves from new discoveries. LEX is currently trading at the levels of $0.19 and has been up 8.6% in the past five days, as at November 09, 2018.
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