Lefroy extends gold-copper discovery target exploration

ASX-listed explorer, Lefroy Exploration has kicked off an initial diamond drilling program to follow up on the exciting mineralised “eastern porphyry” zone recently uncovered at its Burns gold-copper prospect in Western Australia. The company hopes the planned 14 diamond holes can shed further light on the newly discovered eastern porphyry that fired up its share price about two months ago. A thick RC drill hit of 60 metres at an average grade of 5.22 grams per tonne gold and 0.38 per cent copper from 112m down-hole sparked a stampede of on-market buying with nearly the entire market cap of the company turning over in a single day.

The spectacular intersection from the prospect’s eastern porphyry also contains a higher-grade segment of 20m grading an average 12.2 g/t gold and 0.87 per cent copper from 144m.

Perth-based Lefroy will be looking to probe the potential for both along strike and depth extensions to the bonanza hole, LEFR260.

The diamond drilling program now under way will evaluate the eastern porphyry over a 200m strike length on 40m spaced drill sections.

Lefroy says the diamond drilling totalling an aggregate coverage of about 2,000m along the eastern porphyry will generate foundation data towards developing a geological model for the “intriguing” gold-copper system. It will also be used to guide further exploration at the new setting.

Burns is one of several prospects within the company’s Eastern Lefroy package of tenements, which forms part of its greater Lefroy gold project about 50km south-east of Kalgoorlie.

Lefroy’s share price soared more than 300 per cent from a previous closing price of 20.5 cents to 90 cents during trading on February 23 when the outstanding intercept was unveiled.

Since that initial surge, the stock has continued to stretch skywards lifting Lefroy’s market cap more than 500 per cent higher to greater than $150 million.

According to the company, the high-grade discovery hole occurs on the under-explored eastern side of the Burns magnetic anomaly.

The eastern porphyry remains open at depth and to the north and south, with its eastern extent unknown.

The copper-gold mineralised eastern porphyry is part of the broader Burns system, which we are yet to define limits to.

The Burns gold-copper prospect sits on the eastern margin of a large interpreted felsic intrusion, called the Burns intrusion.

Lefroy has its footprint on much of the fertile ground via its wholly owned Eastern Lefroy project area and its joint-ventured Western Lefroy project with one of the world’s largest gold producers, Gold Fields Ltd.

Both adjoining projects cover approximately 620 square kilometres and lie in close proximity to Gold Fields’ St Ives gold camp, which takes in the Invincible gold mine at Lake Lefroy.

Gold Fields has the right to earn up to a 70 per cent stake in Lefroy’s Western Lefroy tenements package by spending up to $25 million on exploration within six years of the farm-in start date of June 2018.

Whilst talk of mega mergers always swirl around the major gold miners such as Gold Fields, if the South African-based giant opts not to go that route in a bid to lift its global annual gold production from 2.2 million ounces, then more eastern porphyry drilling success by Lefroy next door may present another JV opportunity.

Lefroy’s latest drilling at Burns will take about two months to complete, with initial assay results expected in June. Given the hive of activity generated to date, it seems fair to say the market will be keeping a close eye on those results.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au