Astronomical numbers for Lexington Gold
“…this is very exciting. This is a very significant JORC resource and as a Company a major step forward…”
It’s always wise to examine the credentials of the chief executive of a company prior to becoming a shareholder so you know who is the custodian of the cash.
In Lexington Gold’s case it is Dr Bernard Olivier an academic who specialises in economic geology which is the discipline that evaluates the costs and benefits of mining natural resources in terms of their recovery value and availability.
He’s been doing that on projects across the globe for decades. He’s also got form for proving up assets and returning cash to shareholders as he and his team did with a gold prospect in the Philippines when it was sold to OceanaGold for a not inconsiderable sum.
Olivier’s not averse to a takeover and says “If ever there is an approach, we will certainly take it very seriously and we welcome it.”
The cautiousness of an academic typically prevents them from the lexicon of hyperbole, so when Olivier describes the potential of company’s assets in South Africa as ‘astronomical’ and numbers that are ‘staggeringly large,’ then stakeholders and shareholders typically pay attention.
Lexington has five projects in South Africa which are in various stages of verification. An independent geological consultancy has estimated there’s 66 million ounces of gold at Kroonstad based on historical drilling, and Olivier and his team are now working to prove it up into a JORC compliant resource.
The most recent shareholder update relates to another project in the South Africa stable. That of the Jelani Resources joint venture project with Harmony Gold. The total JORC mineral resource estimate is just over 6 million ounces of gold which Olivier describes as, “a very significant resource.”
Jelani is now in a project valuation stage with Harmony which coincidentally is South Africa’s largest gold mining company. If the decision to mine is taken, Harmony will take control of the mining activities while Lexington retains its 49% of the joint venture.
In this video interview with Sarah Lowther, Bernard also reviews progress being made at the company’s projects in the U.S. and explains how Lexington’s entire estate could put the company valuation at $130 million.
Is Lexington Gold set for another positive run? Read our analysis on the company by @TMSreach
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The author was remunerated but does not hold shares in the company
