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(Sharecast News) - Lexington Gold announced on Monday that it has been granted a new consolidated prospecting right for its Bothaville gold project in South Africa's Free State Province, streamlining tenure and permitting as the company advances one of its key exploration assets.
The AIM-traded firm said the right, valid until May 2030 and renewable for a further three years, was issued by the South African Department of Mineral and Petroleum Resources to Lexington's local subsidiary, Reef Exploration.
It replaced and consolidated two previous licences formerly held by White Rivers Exploration.
Located within the world-renowned Witwatersrand Basin, the Bothaville Project hosts a JORC 2012 exploration target of 16 million to 30 million tonnes grading 3.26 grams to 6.03 grams of gold per tonne, equating to a potential 1.68 million to 5.82 million ounces.
The A Reef alone could contain up to 3.79 million ounces, based on drilling results and geological modelling.
"We are pleased to confirm this formal grant of a new consolidated prospecting right for the Bothaville Project," said chief executive officer Dr Bernard Olivier.
"This represents an important milestone in retaining and advancing this high potential gold exploration asset."
Lexington said the new right spanned 18,627 hectares, covering the same footprint as the previous licences, and was underpinned by recent drilling, 3D geological modelling, and validated historical data.
At 1220 BST, shares in Lexington Gold were up 4.23% at 3.7p.
Reporting by Josh White for Sharecast.com.
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