(TheNewswire)
Vancouver, British Columbia – TheNewswire - November 27, 2023 - Lexston Mining Corporation (the “Company” or “Lexston” ) (CSE:LEXT) (OTC:LEXTF) entered into the Project 176 andProject Itza Option Agreement dated November 27, 2023 (the “Agreement” ) with three optionors (the “Optionors” ) toacquire 100% interest in the uranium mineral property, generally knownas "Project 176" (claim 103470) and “Project Itza”(claim numbers 103463, 103478 and 103465) located in the Thelon Basinin Nunavut and occupying a total area of 5661.93 hectares (the “Property” ).
To exercise the option and earn the 100% interest inthe Property, the Company has over a period of two years to pay atotal of $400,000 and issue a total of 6,000,000 shares to theOptionors as follows:
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upon the execution of the Agreement to pay$10,000;
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sixty days from the date of the Agreement to pay$90,000 and issue 1,000,000 shares;
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within one year from the date of the Agreement to pay$100,000 and issue 2,000,000 shares; and
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within two years from the date of the Agreement to pay $200,000 and issue 3,000,000 shares.
The Option is subject to a net smelter return royaltypayable by the Company to the Optionors equal to one percent on theproceeds from production for all minerals derived from the Property. The Company may elect to purchase from theOptionors at any time one-half of the netsmelter return royalty , upon the payment to theOptionors of $1,000,000.
The Optionors are arm’s length parties to theCompany.
The Agreement provides for an investigative period of60 days. The investigative period locks the Property for the Companyfor sixty days in exchange for a payment of $10,000. During theinvestigative period the Company plans to perform furtherinvestigations regarding the Property and can terminate the Agreementby providing a one day’s written notice to the Optionors withoutmaking any additional payments or issuing any shares. If the Companyis satisfied with its investigation, the Company plans to explore theProperty for uranium and to make further payments and issue shares tothe Optionors.
Jag Bal, President and CEO of Lexston states,“ W e remain steadfast inour commitment to exploration, drilling, and value creation throughadvancing our portfolio of properties. This option agreement providesan opportunity to get a foothold in a data-rich part of the ThelonBasin. High-resolution, modern geophysics hasnot been deployed to the project before, providing an advantage forLexston to leverage the $2,000,000 in previous uranium exploration inthe area.”
Both projects s it at the mappedunconformity between the Thelon Formation and the underlying Amer LakeMetasediments. Containing reactivated Faults identified in 2013 -not identified when the properties were last explored(2012) . The intersectionof reactivated faults and unconformities is highly prospective foruranium deposits. e.g., Cigar Lake, Key Lake .
The two projects are within themost prospective region of the Thelon Basin and contain thehighest-grade uranium oxide samples.
Project Opportunity:
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STRONG land position in the up-and-coming ThelonBasin;
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Extensive historical data available to guideexploration planning;
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Historical high-grade uranium occurrences;
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Previous exploration programs terminated withoutextensive drill testing;
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Thelon Basin is experiencing a staking rush, and theseprojects cover the historically most attractive areas; and
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Multiple projects that cover the spectrum fromconceptual exploration targets to near-drill ready targets.
Project 176 – 1708Ha / 17km2
Extremely high-grade boulders discovered: Boulders upto 33% uranium have been found within the project and previousexplorers never identified the source . A 0.88% uranium oxide boulder sits within theproject and planned drilling in 2007 was never completed .
Project 176 isin the Northeastern portion of the Thelon Basin - 176 is within themost prospective region of the Thelon Basin that contains thehighest-grade uranium sample – 380,000ppm u ranium.
Project 176 was previously owned and explored by NexGenEnergy who purchased the project from Mega Uranium in 2012 –following the uranium price collapse, NexGen let the licenses lapsewithout drill testing any anomalies defined in 2012 regionalwork.
The project contains very high-grade boulders withassays up to 38% uranium .
Multiple coincident anomalies:
Magnetic low | VLF Electromagnetic |
Gravity Low | Radiometric |
Uranium in Soil | Track-etch Anomalies |
The combination of the anomalies defined historicallyprovides prime ingredients for discovering a high-grade uraniumdeposit within the project area .
Geophysical work in 2012 defined similar fault arraysin the 176 Project area but market conditions prevented detailedfollow-up.
Proposed Work:
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Re-process geophysical data and evaluate with the newgeological theory proposed by Jefferson et al (2013)
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Complete high-resolution VTEM to add resolution to thebasement conductors and anomalies identified in 2012
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Complete high-resolution Gravity surveys.
Project Itza – 3955ha / 39.6km2
Project Itza is located in theNortheastern portion of the Thelon Basin - Itza was identifiedbefore the staking rush took place and is within the most prospectiveregion of the Thelon Basin that contains the high-grade uranium oxidesamples .
A 0.88% uranium oxide boulder sits within the projectand planned drilling in 2007 was never completed . At least 3 radioactive bouldertrains are located, and the source is yet to be tested. Project Itzasits at the mapped unconformity between the Thelon Formation and theunderlying Amer Lake Metasediments . Itcontains reactivated Faults identified in 2013 -not identified when the properties were last explored(2012) . The intersectionof reactivated faults and unconformities is highly prospective foruranium deposits. e.g. Cigar Lake, Key Lake . Historical assessment reports showexpenditures > $10m in the area, with at least $2m on the ItzaProject . Multipleradioactive boulders were measured, including a 10,400ppm Uranium /1.27% uranium oxide.
Previous explorers (Titan and Mega) focused only onAmer Lake geology based on data acquired from previous operators, thepotential for Neoarchean Rumble formation to underly part of thelicence is high which presents a high-quality unconformity target.
The project requires evaluation using conceptsdeveloped since exploration stopped in 2012.
The project has yet to be explored since the 2007geophysical surveys or the 2013 revised geological framework byJefferson et al. The only drilling on theproperty was in 1980 and the aim then was to understand stratigraphy– Not hunting for a deposit. No explorer has tested the Neoarcheanrocks that are projected to underlie the project area - These rockshost the nearby Tatiggaq discovery and Kiggavik Deposit.
The Company is a Canadian mineral exploration company,focused on the acquisition and development of mineral projects, withthe objective to enhance value to all its stakeholders. The Companyhas a mineral exploration project in British Columbia, Canada.
The technical information contained in this newsrelease has been reviewed by Mr. Richard Walker, a director of theCompany and a Certified Professional Geologist with the AmericanInstitute of Professional Geologists and a member of the GeologicalSociety of Nevada, a Qualified Person for the Company as defined inNational Instrument 43-101.
On Behalf of the Board of Directors
LEXSTON MINING CORPORATION
Jagdip Bal
Chief Executive Officer
Telephone: (604) 928-8913
The Canadian Securities Exchange hasnot reviewed and does not accept responsibility for the adequacy oraccuracy of the content of this news release.
Forward-looking statements:
This news release contains"forward-looking information" under applicable Canadiansecurities legislation. Such forward-looking information reflectsmanagement's current beliefs and are based on a number of estimatesand/or assumptions made by and information currently available to theCompany that, while considered reasonable, are subject to known andunknown risks, uncertainties, and other factors that may cause theactual results and future events to differ materially from thoseexpressed or implied by such forward-looking information. Readers arecautioned that such forward-looking information are neither promisesnor guarantees and are subject to known and unknown risks anduncertainties including, but not limited to, general business,economic, competitive, political and social uncertainties, uncertainand volatile equity and capital markets, lack of available capital,actual results of exploration activities, environmental risks, futureprices of base and other metals, operating risks, accidents, labourissues, delays in obtaining governmental approvals and permits, andother risks in the mining industry.
These statements include but are notlimited to possible acquisitions and exploration of uranium or otherproperties, liquidity of the common shares of the Company and futurefinancings of the Company. These statements reflect management'scurrent estimates, beliefs, intentions, and expectations. They are notguarantees of future performance. The Company cautions that allforward-looking statements are inherently uncertain and that actualperformance may be affected by many material factors, many of whichare beyond the Company’s control. Such factors include, among otherthings: risks and uncertainties relating to the acquisition of newproperties, liquidity of the common shares of the Company, financings,the market valuing the Company in a manner not anticipated bymanagement of the Company. Accordingly, actual and future events,conditions and results may differ materially from the estimates,beliefs, intentions and expectations expressed or implied in theforward-looking information. Except as required under applicablesecurities legislation, the Company does not undertake to publiclyupdate or revise forward-looking information.
The Company is presently anexploration stage company. Exploration is highly speculative innature, involves many risks, requires substantial expenditures, andmay not result in the discovery of mineral deposits that can be minedprofitably. Furthermore, the Company currently has no reserves on itsproperties. As a result, there can be no assurance that suchforward-looking statements will prove to be accurate, and actualresults and future events could differ materially from thoseanticipated in such statements.
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