Lefroy Exploration Limited (ASX: LEX) has announced the commencement of a large RC drilling program by Gold Fields Limited at its Zanex prospect in Lake Lefroy in WA.
The program is part of the $25million Farm-In and Joint Venture (JV) agreement between Lefroy and Gold Fields at Western Lefroy.
About Gold Fields
Gold Fields is a South African based gold producer with seven operating mines in Australia, Ghana, Peru, and South Africa and a total attributable annual gold-equivalent production of 2.2million ounces
Lefroy Gold Project
Lefroy Gold Project covers 598km2 in the heart of the world class gold production area between Kalgoorlie and Norseman. It is located 50km south east of Kalgoorlie in Western Australia.
The Project is divided into the Western Lefroy package and the Eastern Lefroy package. The Western Lefroy tenement package is a Joint Venture with Gold Fields.
The Project is in close proximity to Gold Fields’ St Ives gold camp, which contains the Invincible gold mine located in Lake Lefroy and is also immediately south of Silver Lake Resources’ Daisy Milano gold mining operation.
Lefroy and Gold Fields JV Terms
The Farm-In and Joint Venture (JV) agreement between Lefroy and Gold Fields commenced on 7 June 2018.
As per the terms of the JV, Gold Fields can earn up to a 70% interest in the Western Lefroy tenements by spending up to a total of $25million on exploration activities within 6 years of the commencement date.
This includes a minimum expenditure requirement of $4 million within 2 years before Gold Fields can elect to withdraw.
Exploration on Western Lefroy
Gold Fields had commenced exploration on Western Lefroy in July 2018, involving multi-disciplinary ground and airborne geophysical surveys (gravity and magnetics) primarily located on or near Lake Lefroy.
To complement this foundation geophysical data, Gold fields also commenced a large full field aircore drill program on Lake Lefroy within the Western Lefroy JV tenements in January 2019.
Since commencement of drilling, 776 vertical air core holes totaling 40,421m have been completed on both Lake Lefroy and the adjacent Lake Randall. Results are pending for 33 holes at Lake Randall.
The Zanex prospect is the most advanced of a number of gold prospects identified by Gold Fields from aircore drilling during 2017 in Lake Lefroy.
Further extensive foundation aircore drilling by Gold Fields earlier this year significantly enhanced and extended the strike of the Zanex trend to 4000m under the sediments of Lake Lefroy.
Multiple strong shallow gold intersections by Gold Fields along the strike of the Zanex prospect include 9m @ 2.73g/t Au from 32m to end of hole Including 2m @ 8.78g/t Au from 36m; 8m @ 1.56g/t Au from 36m; and 34m @0.44g/t Au from 32m.
RC drilling at Zanex
Gold Fields had now commenced a large reverse circulation drilling program at the Zanex prospect within its tenements over Lake Lefroy. The tenements form part of the Western Lefroy JV package that covers 372km2 adjoining the St Ives gold camp.
The drill program involves approximately 6800m of RC drilling in wide spaced drill traverses to cover the full extent of the Zanex trend.
The program is designed to test beneath and along strike of the gold anomalous trend defined from early stage wide spaced air core drilling. The drilling will penetrate into fresh rock to gain an understanding of the style and extent of any primary mineralisation.
This RC drill program is a part of the JV between Lefory and Gold Fields Limited and is expected to take two months to complete.