Aim-listed Lexington Gold reports that the mining right application for Jelani Resources, the company’s joint venture (JV) with JSE-listed Harmony Gold Mining Company, has been accepted by South Africa’s Department of Mineral and Petroleum Resources (DMPR).

The Jelani JV project is an incorporated JV between Lexington’s subsidiary White Rivers Exploration (WRE), as well as Lorraine Gold Mines and Avgold – both subsidiaries of Harmony.

Lexington nonexecutive chairperson Edward Nealon describes the formal acceptance of the mining right application as a very pleasing and important milestone for the Jelani JV project, noting that it confirms that the application has been accepted for processing and can now progress through the next phases of the statutory regulatory process.

He adds that this represents the culmination of a significant amount of technical, environmental and permitting work completed by the JV team, noting that Lexington continues to work closely with Harmony on the mining right application and related regulatory processes.

“I would like to thank Harmony for its constructive engagement and support. As previously noted, any further advancement of the project remains subject to the company's and Lorraine, Avgold and Harmony's ongoing internal assessment and approval pursuant to our JV agreement,” he comments.

He adds that the proposed mine works programme has been developed with reference to the proximity of Harmony's adjacent Target operations, including the potential use of existing shafts and processing infrastructure, where available and appropriate, and subject to prior approval by Lorraine, Avgold and Harmony.

Lexington CEO Dr Bernard Olivier describes the receipt of formal acceptance from the DMPR as an important step forward and provides confirmation that the mining right application, lodged ahead of the scheduled expiry of the current prospecting right, has been accepted for processing under Section 22(2) of the Minerals and Petroleum Resources Development Act (MPRDA).

In accordance with Section 19(1)(b) of the MPRDA, he points out, Jelani has the exclusive right to apply for and be granted a mining right in respect of the relevant mineral and prospecting area and duly exercised that right by lodging the application prior to expiry of the prospecting right.

As a result, the Jelani JV project's tenure and regulatory position has been preserved while the mining right application progresses through the statutory process.

"Our team continues to work closely with Harmony's technical and permitting specialists as the application progresses through the regulatory process, and we greatly appreciate Harmony's collaboration, expertise and ongoing support,” says Olivier.

The Jelani project hosts a Joint Ore Reserves Committee- (Jorc-) compliant mineral resource estimate of about 6.02-million ounces of gold, comprising 1.14-million ounces within the JV area and 4.88-million ounces within the Buffer zone, with the Buffer zone currently covered under Harmony's existing mining right.