Lefroy Exploration(ASX: LEX)
Announced details of a significant addition to its growing portfolio of assets in the world-class Goldfields region of Western Australia.
LEX’s wholly owned subsidiaries have entered into an agreement with Franco-Nevada Australia Pty to acquire mineral rights across the Loc45 freehold property, located 35km SE of Kalgoorlie.
|Lefroy Exploration||ASX: LEX|
|Market cap||A$42 m @ 29c|
|Location||Kalgoorlie, Western Australia|
Lefroy is on my early stage watchlist, as it lies close to Karora’s properties, amongst others, in the prolific goldfields south of Kalgoorlie, in Western Australia.
As a result of this transaction I am moving Lefroy up into the second tier of the watchlist, as they are now looking for early stage production, and they are looking to spin out their nickel assets.
ACQUISITION OF MINERAL RIGHTS TRANSFORMS LEFROY
Lefroy Exploration Limited (ASX: LEX; “Lefroy” or “the Company”) is pleased to announce details of a significant addition to its growing portfolio of assets in the world-class Goldfields region of Western Australia.
LEX’s wholly owned subsidiaries Monger Exploration Pty Ltd (MEX) and Johnston Lakes Nickel LTD (JLN), have entered into an agreement with Franco-Nevada Australia Pty Ltd (“Franco-Nevada”) to acquire mineral rights across the East Location 45 (“Loc45”) freehold property, located 35km south-east of Kalgoorlie.
• Strategic acquisition of mineral rights on freehold property ‘East Location 45’ (Loc45)
from Franco-Nevada, located 35km southeast of Kalgoorlie
• Adjoins Company’s flagship Lefroy Gold Project and expands its contiguous land package by 76.3km2 to a total of 631.7km²
• Lefroy’s total mineral resource inventory increased to 1.1Moz Au; 58kt Cu; and 15kt Ni
• Advanced projects acquired include the Mt Martin Gold Mine and Goodyear nickel
deposit, presenting an outstanding platform for future growth in both commodities:
• Mt Martin Mine 8.7Mt @ 1.79g/t Au for 501,175oz
• Goodyear Deposit 391,250t @ 3.78% Ni (14,780t contained Ni)
• LEX’s wholly-owned subsidiary, Johnston Lakes Nickel Ltd (JLN) to hold nickel, lithium and Rare Earth Element mineral rights in Loc45. This enhanced nickel portfolio will support a separate listing from LEX in second half of 2023
• Mt Martin Gold Mine presents the opportunity to fast-track development, which will be
evaluated in a comprehensive review of LEX’s resources, under the view of commencing production as soon as is practicable
Franco-Nevada is a wholly owned subsidiary of Franco-Nevada Corporation (TSX:FNV) (NYSE:FNV), the world’s leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow producing assets.
Loc45 is one of the rare parcels of freehold land in Western Australia in which the registered owner was granted the rights to minerals in the land and does not require the grant of a mining tenement under the Mining Act 1978.
The addition of Loc45 increases Lefroy’s contiguous land holding across the broader Lefroy Gold Project to 631.7 km², which now covers approximately 50km of strike of wholly owned tenure between the Burns Gold-Copper deposit in the far south-east to the Mt Martin Gold Mine in Loc45 to the north-west, which is considered highly
prospective for both gold and nickel mineralisation.
The acquisition notably expands the wholly owned Eastern Lefroy Project to 385.8 km² (Figure 2). Moreover, it elevates the Company’s total gold resource inventory to over 1 million ounces opening up substantial new opportunities for exploration and development options within its growing asset portfolio.
LEFROY MANAGING DIRECTOR WADE JOHNSON COMMENTED:
“This is an absolutely outstanding acquisition that has transformed Lefroy and its subsidiaries.
“Within just a few years, we have successfully attained our goal of a +1Moz gold resource for Lefroy have also curated a highly promising asset portfolio for the intended upcoming JLN nickel IPO.
“This acquisition has positioned both the Company and JLN exceptionally well, offering a diverse range of assets, multiple avenues for development, and strengthened ongoing plans for exploration and resource definition, all of which significantly enhance the value of the Company.
“While we have already undertaken extensive investigation of the resources in Loc45, there is still much work to be done. However, we are already highly confident that we possess sufficient resources to initiate open cut production of gold in the near term.”
To read the full news release, please click HERE
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