Step out drilling at Lefroy Exploration’s (ASX: LEX) Lucky Strike prospect has pulled up thick intersections of high-grade gold.
The company has completed a 27-hole for 4,274m reverse circulation program at the prospect and identified mineralisation extends a further 320m along strike to the south-east.
Better intersections were 18m at 6.57 grams per tonne gold from 68m, including 4m at 21.9g/t gold from 77m; 22m at 2.49g/t gold from 63m, including 2m at 15.2g/t gold from 65m; and 12m at 2.97g/t gold from 147m, including 2m at 8.58g/t gold from 151m.
According to Lefroy, the 18m intersection is the highest gram metre intercepted at Lucky Strike to-date.
Advancing Lefroy gold project
Lucky Strike lies on the eastern tenements of Lefroy’s wider namesake gold project, which encompasses 598 square kilometres and is 50km south-east of Kalgoorlie in Western Australia.
The prospect and its extensions are within a recently granted mining lease and about 35km of Gold Fields’ St Ives processing plant, and 5km of Silver Lake Resources’ (ASX: SLR) Randalls plant.
Additionally, Lucky Strike is 5km along strike of Silver Lake’s former Lucky Bay open pit mine that was operated in 2015.
Lucky Strike mineralisation correlates to a linear gravity anomaly that has been traced over 3,000m of strike.
Planning for follow-up drilling is underway, with a program scheduled to begin in October.
Lefroy’s western tenements are subject to a farm in with Gold Fields.
Gold Fields can earn up to 70% in the tenements by spending $25 million on exploration over six year with the agreement kicking off mid-last year.
Cashed up to fund exploration
Last month, Lefroy took advantage of the investors’ interest in gold juniors due to the prevailing record high gold price which has been above A$2,000/oz since July.
Lefroy managed to raise $3.8 million via an oversubscribed placement. Lefroy’s largest shareholder Gold Fields’ subsidiary St Ives Gold Mining took part in the placement to retain its 18.12% holding in the company.
Investors reacted positively to Lefroy’s drill results, with the company’s share price rocketing more than 30% to reach $0.245 in early morning trade.