Lefroy Exploration Limited (ASX: LEX) ('Lefroy' or 'the Company') is pleased to report initial results from the multi target drill program that Gold Fields Limited (NYSE: GFI) ('Gold Fields') commenced in July 2020 on the Company's tenements over Lake Lefroy.
The program is a follow up to the extensive foundation AC drilling that commenced in late January 2019 and is part of the AUD25 million Farm-In and Joint Venture (JV) agreement between Lefroy and Gold Fields that commenced in June 2018.
Gold Fields has completed the AUD4 million minimum exploration spend and is required to fund an additional AUD6 million for AFY2021 to earn a 51% interest in the Western Lefroy Joint Venture (WLJV) (refer: LEX ASX release 29 June 2020).
The tenements form part of the Western Lefroy tenement JV package that covers 372km2 adjoining the +10Moz St Ives gold camp. Western Lefroy is part of the wholly owned greater Lefroy Gold Project (LGP) located 50km south east of Kalgoorlie. The Company is actively exploring the non-JV Eastern Lefroy that includes priority prospects Lucky Strike, Havelock and Hang Glider Hill that are located along or near to the Mt Monger Fault.
Program Update
Gold Fields commenced a 9000m reverse circulation (RC) drill program in July 2020 to evaluate five key targets generated in Lake Lefroy (refer LEX ASX release 27 July 2020). Each target area will be evaluated by one or more traverses of angled deep reverse circulation (RC) or diamond holes (+200m) to gain a greater appreciation of the primary (fresh) bedrock.
A diamond drill rig was mobilised in September to support the program. The diamond drilling method is providing improved productivity and quality of sample information. It has now replaced the RC rig and will continue the remainder of the program. The drill core from the diamond drilling will provide superior geological, geochemical and structural information which will improve the understanding of the geological framework beneath Lake Lefroy.
During the September 2020 Quarter, 21 drill holes were completed totalling 4507m on the Western Lefroy JV(WLJV). Four target areas were evaluated with wide spaced drilled traverses. Nineteen of the holes were RC and totalled 3586m. Two diamond holes and 1 diamond tail were completed that totalled 921m.
A validated drill database export that includes results for the initial 10 RC holes has been provided by Gold Fields. The export and results are as of 30 September 2020. Drill results for the remaining 11 holes, including the 2 diamond holes drilled during the quarter are pending.
WLJV Exploration Background
Gold Fields commenced a major aircore (AC) drilling program in late January 2019 (refer: LEX ASX release 31 January 2019). That initial program involved completing approximately 350 vertical holes spaced 200m apart on traverses 1km apart to cover most of the JV tenure in Lake Lefroy using a specialised lake drilling rig. In August 2019 Gold Fields completed the aircore (AC) drilling program on tenements within Lake Lefroy and Lake Randall with 776 vertical air core holes totalling 40,421m being completed. The program yielded foundation geological and geochemical information that has been interrogated in conjunction with the geophysical data to deliver specific drill targets for deeper drill testing and hence termed foundation drilling.
The results of that foundation program yielded multiple new gold anomalies in Lake Lefroy and expanded the footprint of the anomalies identified by the Company during its 2017 lake drilling campaign. These include the Zanex, LLT04 and LLT06 prospects and the new Eastern Shoreline trend. A follow up AC program of 66 holes for 4300m was completed in April 2020 to further evaluate seven target areas (refer: LEX ASX release 29 June 2020). That program yielded encouraging results including 5m @ 1.85g/t Au from 84m to end of hole (EOH) in SAL 1741 along the growing Eastern Shoreline trend and outlined a new large gold anomaly known as LLT08, that has a strike length of 1500m and a width of 1000m
Systematic compilation and interrogation by Gold Fields of the data captured from the foundation AC drilling and detailed geophysical surveys completed during 2019 has outlined five priority targets within the WLJV in Lake Lefroy for initial reverse circulation drilling. Importantly, detailed and thorough interpretation of the multi-element data collected from the end of hole (EOH) from each of the foundation AC holes, combined with geological observations has established a comprehensive understanding of the basement geology beneath the lake surface to assist target ranking. This lithogeochemistry or geochemical fingerprinting has confirmed that the rocks beneath Lake Lefroy are similar to the rocks hosting the multiple gold deposits at the +10Moz St Ives Gold Mine, 15km to the west.
The generative work and subsequent target ranking during the past 5 months has yielded 5 priority targets for initial wide spaced RC deeper drill testing of the regolith gold anomalies. The multiple targets are stretched over a 15km strike length and all within Lake Lefroy. The targets have been assessed and ranked according to observed geology, multi-element geochemical signature, geophysical response (aeromagnetics and gravity), tenor of gold anomalism and host rock geochemical signature that shares an affinity with the host rock sequence at St Ives.
The Eastern Shoreline trend, that has a strike length of 7km, is the largest of the 6 regolith gold anomalies. The better results from the AC drilling include 6m @1.53g/t Au from 88m in SAL1533 & 5m @1.85g/t Au from 84m in SAL1741.
The gold intersection in SAL1741 was recorded in the April 2020 program (refer: LEX ASX 29 June 2020) comes from the southern end of the trend and is supported by an earlier intersection of 6m @1.53g/t Au in SAL1533, located 400m to the south. Two key target areas have been outlined along this trend for RC drilling. The Eastern Shoreline trend will be further evaluated by four 400m EIS Co funded diamond drill holes later in the year (refer: LEX ASX release 29 June 2020).
Background to the Western Lefroy JV
The Western Lefroy tenement package is a Joint Venture with Gold Fields which commenced on 7 June 2018 (ASX: LEX 7 June 2018). Gold Fields can earn up to a 70% interest in the Western Lefroy tenements by spending up to a total of AUD25million on exploration activities within 6 years of the commencement date. This includes a minimum expenditure requirement of AUD4 million within 2 years before Gold Fields can elect to withdraw.
Gold Fields has met the minimum exploration commitment of AUD4million before withdrawal. This was a requirement of the Stage 1 earn in commitment to sole fund AUD10million to earn a 51% interest in the joint venture. Gold Fields are required to fund an additional AUD6million for AFY2021 to earn that 51% WLJV interest.
Gold Fields is globally diversified gold producer with nine operating mines in Australia, Peru, South Africa and West Africa (including the Asanko JV), as well as one project in Chile. It has a total attributable annual gold-equivalent production of 2.2million ounces, attributable gold-equivalent Mineral Reserves of 51.3Moz and Mineral Resources of 115.7Moz. Mining assets in Australia include a 100% interest in the St Ives, Agnew and Granny Smith mines in the Eastern Goldfields of Western Australia, with a combined annual production of approximately 935koz. Gold Fields also has a 50% interest in the Gruyere mine with Gold Road Resources (ASX: GOR) also in the Eastern Goldfields.
Gold Fields 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. Those surveys built upon the data collected by the Company in 2017 to deliver a foundation detailed geophysical dataset used for target identification. To complement this foundation geophysical data, Gold fields commenced a large full field aircore drill program on Lake Lefroy within the Western Lefroy JV tenements between January and August 2019.
About Lefroy Exploration Limited and the Lefroy Gold Project
Lefroy Exploration Limited is a WA based and focused explorer taking a disciplined methodical and conceptual approach searching for high value gold deposits in the Yilgarn Block of Western Australia. Key projects include the Lefroy Gold Project to the south east of Kalgoorlie and the Lake Johnston Project 120km to the west of Norseman. The 100% owned Lefroy Gold Project contains mainly granted tenure and covers 621km2 in the heart of the world class gold production area between Kalgoorlie and Norseman. 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' (ASX:SLR) Daisy Milano gold mining operation. The Project is divided into the Western Lefroy package, subject to a Farm-In Agreement with Gold Fields and the Eastern Lefroy package (100% Lefroy owned). The Farm-In Agreement with Gold Fields over the Western Lefroy tenement package commenced on 7 June 2018. Gold Fields can earn up to a 70% interest in the package by spending up to a total of $25million on exploration activities within 6 years of the commencement date.
Contact:
Wade Johnson
Tel: +61 8 93210984
Email: wjohnson@lefroyex.com
LEFROY EXPLORATION LIMITED 
