Lefroy Exploration (ASX: LEX) has struck high grade gold during reverse circulation (RC) drilling at the Lucky Strike deposit in Western Australia’s Eastern Goldfields region.
The gold explorer today reported that the recovery of further multiple shallow intersections has served to strengthen and expand a previous discovered gold system hosted within a banded iron formation (BIF).
Highlights from the drilling program included a 5m intersection grading at 13.6 grams per tonne of gold from a depth of 84m, including 3m at 22.3g/t gold from 85m.
Drilling also returned a 7m intersection grading at 3.64g/t gold from 82m, including 2m at 10.2g/t gold from 85m, and 14m at 2.81g/t gold from 78m including 3m at 9.37g/t gold from 81m.
The six-hole program was completed in April to evaluate a 60m gap in coverage from an earlier RC drilling campaign undertaken by Lefroy.
The drilling of the gap was considered a high priority target after a reinterpretation of the nature of the higher tenor gold mineralisation associated with sulphide-altered BIF host units in two earlier RC holes.
According to Lefroy, the results from this most recent campaign have confirmed a coherent high-grade zone with a strike length of 100m and remaining open at depth.
To further advance the understanding of the BIF hosted gold mineralisation, Lefroy has now commenced a diamond drilling program at Lucky Strike. This program is expected to be completed by the end of the month.
In addition, the company has lodged an application for a mining lease to cover the Lucky Strike deposit and its extensions. Lefroy said this application was a very important step in the potential early development of Lucky Strike and anticipated the granting of the lease in about nine months.
Lucky Strike lies within the Lefroy gold project, located about 50km south east of the goldfields town of Kalgoorlie, WA. The prospect is about 3km north west of the high grade Lucky Bay open pit which was mined by Silver Lake Resources (ASX: SLR) during 2015. It is also close to Silver Lake’s operating Randalls processing plant.
Lefroy shares have been on the decline since the end of last year, hitting a low of A$0.11 at the start of May.
However, the market has reacted positively to today’s news, with the share price bouncing up 42% to A$0.185 by midday trade and end of trade, shares in Lefroy finished up 15.4% at A$0.15.