TIDMIRR
RNS Number : 9306F
IronRidge Resources Limited
23 May 2017
23 May 2017
Due Diligence on Barari, Obotan and Merlink Completed
Farm-in and Joint Venture Agreements Signed, Ghana, West
Africa
First Pass Exploration Reveals Exceptional High-Grade, Broad
Lithium Pegmatite Trenching Results
IronRidge Resources Limited (AIM: IRR, "IronRidge" or the
"Company") is pleased to report that Farm-in Agreements with Barari
Developments Ltd ("Barari"), Obotan Minerals Ltd ("Obotan") and
Merlink Resources Ltd ("Merlink") for the Saltpond, Apam and
Winneba Projects (collectively called the "Cape Coast Project") are
now binding and unconditional. Exceptional high-grade and broad
lithium pegmatite trenching results have been reported at the Cape
Coast Project in Ghana, West Africa.
The Joint Venture arrangements provide IronRidge with exclusive
rights to three exploration licenses and two applications for
lithium and associated minerals in Ghana, West Africa, and access
rights to a highly prospective historic (non JORC) lithium
(spodumene) pegmatite resource of 1.48Mt at 1.66% Li(2) O.
Conditional Term Sheets were first announced on 6(th) September and
20(th) October 2016.
HIGHLIGHTS:
Ø Barari, Obotan and Merlink satisfy all terms to binding and
unconditional farm-in arrangements with IronRidge, providing access
rights to 314km(2) of highly prospective ground.
Ø High-grade 'hard rock' lithium pegmatite results received in
trenching and bulk surface rock-chip sampling over broad,
continuous widths and multiple mapped pegmatites.
Ø Access rights secured for 3 licenses and 2 applications
covering 314km(2) within a rediscovered and highly prospective,
high-grade 'hard rock' lithium pegmatite field.
Ø First pass exploration programme including 86 individual rock
chip samples, 100m of trenching, 270m of channel sampling and over
130m of bulk surface rock-chip sampling for a combined total of
1,545kg of samples across the project areas completed.
Ø Broad, continuous and high-grade whole-rock trenching results
received of 100m at 1.57% Li(2) O (at 1% Li(2) O cut-off) over the
entire trench length; including 40m at 1.93% Li(2) O and 15m at
2.18% Li(2) O and remains open in both directions.
Ø Exceptional high-grade, whole-rock bulk surface rock-chip
sampling results over 10m width at 2.41% Li(2) O, 25m at 2.29%
Li(2) O and 25m at 2.41% Li(2) O across a second pegmatite.
Ø High-grade pegmatite outcrops and boulder float zones
identified over 100m x 400m area.
Ø Multiple untested pegmatite occurrences identified with
anomalous lithium rock-chip sampling results, in addition to tin,
tantalum, niobium caesium and beryllium targets throughout the
Project portfolio.
Ø Hard-rock, pegmatite hosted mineralisation with dominant
coarse grained, lithium rich spodumene mineralogy; simple process
flow-sheet envisaged.
Ø Licenses and applications adjacent to the coast and within
100km of the capital city of Accra; excellent infrastructure,
logistics and services support for potential rapid development.
Ø Supportive Government with a pro-mining investment framework
and rich mining history.
Ø Global demand for lithium is increasing at an unprecedented
rate.
Reference to figures and tables relate to the version of this
release on the Company's website (www.ironridgeresources.com.au) or
visible in PDF format by clicking the link below:
http://www.rns-pdf.londonstockexchange.com/rns/9306F_-2017-5-23.pdf
Commenting on the Company's latest progress, Vincent Mascolo,
Chief Executive Officer of IronRidge, said:
"This recent discovery is a resounding endorsement of our global
search initiatives and the IronRidge team.
"We are ideally positioned to take advantage of the current and
expanding renewable energy initiatives in Ghana and globally. We
see huge potential in stored energy with the potential of
complementing the circa 280MW solar farms spread across Ghana,
including the 20MW Onyadnze solar farm within 5km of our project
area.
"We look forward to working with the relevant Ghanaian
authorities across the mineral and energy sectors."
Project Area and Geology
The project area is located on the southern margin of the Cape
Coast Batholith, a major 100km by 200km granitic intrusive complex
occurring along the southern-central coastline of Ghana and part of
the West African shield. A window of older Birimian metasediments
is surrounded by the batholith and occurs along the intrusive
contact; possibly representing a roof pendent of older
metasediments underlain by granitic intrusives.
Smaller kilometre scale, more fractionated granitic intrusive
bosses occur within the metasediments and are spatially associated
with pegmatitic vein swarms. These intrusive bodies are believed to
be the more fractionated end-members, and accordingly more
prospective zones for lithium rich pegmatites.
The project area is well located, being easily accessible within
100km from the capital city of Accra along a bitumen highway, is
adjacent to grid power with transmission lines traversing the
project areas and well serviced by infrastructure and logistics
needs for potential rapid development.
Due Diligence Results
Results were received for technical and legal due diligence
programmes completed over the Saltpond, Apam and Winneba license
and application areas. Collectively, Barari, Obotan and Merlink
satisfied all terms to agree binding and unconditional farm-in
agreements with IronRidge.
A first pass field programme including 86 individual rock chip
samples, 100m of trenching, 270m of channel sampling and over 130m
width of bulk surface rock-chip sampling for a total of 1,545kg of
sample (not including Quality Assurance/Quality Control 'QA/QC'
samples) and reconnaissance mapping was completed across the
project areas.
Reconnaissance mapping and rock-chip sampling identified
prospective pegmatites within the project areas; however, returned
low level anomalous lithium (Li) assay results. It was recognised
that the small sample volume used in rock chip sampling combined
with tropical weathering could explain the low-level anomalous Li
results and a follow-up sampling strategy was required to
adequately test the targets. Accordingly a combined trenching, bulk
surface rock-chip sampling and channel sampling programme was
designed over three selected pegmatite targets within the Barari
license to confirm or otherwise high-grade lithium results.
A total of 1,545kg for 63 samples was collected at an average
individual sample weight of 24.5kg, over 100m of trenching, 270m of
channel sampling and 130m of surface bulk sample rock-chip
sampling. All samples were delivered in their entirety to ALS Ghana
for sample preparation and representative pulps sent to ALS
Johannesburg for multi-element geochemical analysis by sodium
peroxide fusion (ICP-OES and ICP-MS finish, lab code ICM90A) for 54
elements.
Multiple high-grade lithium results were received over
significant and continuous broad widths over two of the three
pegmatites initially tested. Broad, continuous high-grade trenching
results of 100m at 1.57% Li(2) O including 40m at 1.93% Li(2) O
which includes 15m at 2.18% Li(2) O were returned. Additional
surface bulk rock-chip sampling results over 10m width at 2.41%
Li(2) O, 25m at 2.29% Li(2) O and 25m at 2.14% Li(2) O were
returned from an adjacent pegmatite (see Figure 2 and Figure
4).
Additional multiple mapped pegmatites remain untested with
significant lithium exploration upside within the Barari license
area and across the Cape Coast project portfolio (see Figure
2).
The outcropping pegmatites are characterised by coarse
crystalline spodumene (a lithium rich pyroxene mineral and the
preferred feedstock of hard-rock lithium mining projects).
IronRidge proposes to investigate the leaching of lithium and then
to precipitate a lithium carbonate product (see Figure 3). In
addition to lithium, the licenses are also prospective for tin,
tantalum, niobium, beryllium, caesium and gold which occur as
accessory minerals within the pegmatites and host formations.
Additional anomalous beryllium and caesium was identified within
the multi-element geochemistry assay results.
Historic Lithium Resource
Through the Joint Venture Agreement with Obotan Minerals and
Merlink resources, the Company has secured first rights to apply
for ownership of the historic Egyasimanku Hill lithium resource.
The deposit was drilled by the Ghana Geological Survey during 1962
and a resource estimate of 1.48Mt at 1.66% Li(2) O reported (non
JORC).
The Egyasimanku Hill Lithium deposit occurs within the Yenku
Forest Reserve, a designated forested area set aside for the local
population. Access rights for minerals exploration and development
within a forest reserve are granted to an adjacent exploration
license holder on approval from the Forestry Commission,
Environmental Protection Agency and the local landholders. The
application to access the Yenku Forest Reserve has been lodged by
the Joint Venture partner and approval is pending; no certainty to
the grant of access can be assigned at this stage.
The unconditional binding Farm-in and Joint Venture Agreements
with Barari, Obotan and Merlink on the three license and two
application areas, provides the Company with over 45km strike of
prospective ground with highly anomalous due-diligence sampling
results and exciting exploration targets along rediscovered lithium
bearing pegmatite trends that hosts the historic 1.48Mt Egyasimanku
Hill resource at 1.66% Li(2) O (non JORC).
In addition to the securing licenses and applications, and the
first right to apply for ownership of the historic lithium resource
through the Joint Venture, the Company has also submitted a license
application through its wholly owned local subsidiary Green Metals
Resources Ltd, over an area to the east of the historic resource
and along interpreted extensions of the lithium pegmatite trend.
The application is pending approval.
Next Steps
The Company and its farm-in and Joint Venture counter-parties
are currently planning a staged exploration programme which will
focus on advancing through detailed mapping, trenching and sampling
the currently defined spodumene bearing pegmatites, whilst in
parallel executing a 'ultra-high' definition magnetics and
radiometrics airborne survey over the project areas to facilitate
exploration target definition and target ranking. Pending results
of the detailed trenching programme and exploration activities, the
Company may execute a drilling programme.
Commercial Terms of Farm-in and JVA
The Company has entered into a Farm-in and Joint Venture
Agreement with Obotan Minerals Ltd and Merlink Resources Ltd of
Ghana, West Africa, under which IronRidge can acquire up to 100% of
the projects through staged earn in arrangements and expenditure to
Feasibility Study within a 4-year period subject to Obotan and
Merlink retaining a NSR of 2.5% of which 50% may be acquired for
US$3 million at any stage. Funding will be used to undertake
further exploration work and, pending results, defining a maiden
resource and complete project studies.
The Company has also entered into a Farm-in and Joint Venture
Agreement with Barari Developments Limited ("BDL") of Ghana, West
Africa, under which IronRidge can acquire up to 100% of the
projects through staged earn-in arrangements and expenditure to
Feasibility Study within a 4-year period. Barari Developments
Limited will retain a Net Smelter Return Royalty ("NSR") of 2%
capped at US$2m of which 50% may be acquired for US$2m at any
stage. Funding will be used to undertake further exploration work
and, pending results, define a maiden resource and complete project
studies.
Lithium Outlook
Global demand for lithium is increasing at an unprecedented rate
since the emergence of consumer electronics, the electric vehicle
and energy storage markets, driven by a desire to reduce carbon
emissions and improve efficiencies.
In its purified form, lithium (Li) possesses some unique
characteristics. It is the lightest of all metals, has a high
electrochemical potential with an exceptionally small ionic radius
and therefore exceptionally high charge to radius ratio. These
unique characteristics make it ideal for use in lightweight,
rechargeable batteries currently undergoing rampant growth in
global demand.
Lithium and its compounds have several industrial, medicinal and
biological applications, including heat-resistant glass and
ceramics, lithium grease lubricants, flux additives for iron, steel
and aluminum production, lithium and lithium-ion batteries, mental
health treatment and bacteriostatic properties. These uses consume
more than three quarters of lithium production.
Commentary, from industry experts, suggests lithium consumption
will increase significantly over the coming years; especially due
to increasing global battery demand.
The Board is delighted with the progress that the Company has
made in 2017 and looks forward to keeping shareholders updated as
further news becomes available.
For any further information please contact:
IronRidge Resources Limited
Vincent Mascolo (Chief Tel: +61 7 3303
Executive Officer) 0610
Nicholas Mather (Executive Tel: +61 7 3303
Chairman) 0610
SP Angel Corporate Finance Tel: +44 (0)20
LLP 3470 0470
Nominated Adviser and
Broker
Jeff Keating
Yellow Jersey PR Limited Tel: +44 (0)
Charles Goodwin 7544 275882
Harriet Jackson
Competent Person Statement:
Information in this report relating to the exploration results
is based on data reviewed by Mr Nicholas Mather (B.Sc. Hons Geol.),
an Executive Director of the Company. Mr Mather is a Fellow of the
Australasian Institute of Mining and Metallurgy who has in excess
of 25 years' experience in mineral exploration and is a Qualified
Person under the AIM Rules. Mr Mather consents to the inclusion of
the information in the form and context in which it appears.
Notes to Editors:
IronRidge Resources is an AIM listed mineral exploration company
with frontier assets in both Australia and West Africa, with two
province scale projects in Gabon, and promising and advanced
titanium and bauxite projects in Queensland Australia. IronRidge's
corporate strategy is to create and sustain shareholder value
through the discovery of world-class and globally demanded
commodities.
Australia
Monogorilby is prospective for province scale titanium and
bauxite with an initial maiden resource of 54.9MT of premium DSO
bauxite Monogorilby is located in central Queensland, within a
short trucking distance of the rail system leading north to the
Port of Bundaberg. It is also located within close proximity of the
active Queensland Rail network heading south towards the Port of
Brisbane.
May Queen is located in Central Queensland within IRRs wholly
owned Monogorilby license package and is highly prospective for
gold. Historic drilling completed during the 1980s intersected
multiple high-grade gold intervals including 2m @ 73.4 g/t Au
(including 1m at 145g/t), 4m @ 38.8g/t Au (at end of hole) and 3m @
18.9g/t Au, over an approximate 100m strike hosting numerous
parallel vein systems, open to the north-west and south-east.
Wholly owned Quaggy contains highly anomalous platinum,
palladium, nickel, cobalt and copper exploration targets and is
located in Central Queensland within a short trucking distance of
the dormant rail system to the Port of Bundaberg. It is also
located within close proximity of the active Queensland Rail
network heading south towards the Port of Brisbane.
Gabon
Tchibanga is located in south-western Gabon, in the Nyanga
Province, within 10-60km of the Atlantic coastline. This project
comprises two exploration licenses, Tchibanga and Tchibanga Nord,
which cover a combined area of 3,396km(2) and include over 90km of
prospective lithologies and the historic Mont Pele iron
occurrence.
Belinga Sud is Located in the north east of Gabon in the
Ogooue-Ivindo Province, approximately 400km east of the capital
city of Libreville. IRR's licence lies between the main Belinga
Iron Ore Deposit, believed to be one of the world's largest
untapped reserves of iron ore with an estimated 1bt of iron ore at
a grade >60% Fe, and the route of the Trans Gabonese railway,
which currently carries manganese ore and timber from Franceville
to the Port of Owendo in Libreville.
Chad
The Company entered into an agreement with Tekton Minerals Pte
Ltd of Singapore concerning its portfolio covering 1,400km(2) of
highly prospective gold and other mineral projects in Chad, Central
Africa. Under the terms of the agreement, IronRidge currently owns
6% and will acquire a total of 60% of Tekton, including its
projects and team, to advance the Dorothe, Echbara and Am Ouchar
licenses, which host multiple, potentially nation-building gold
projects. Initial trenching results at Dorothe, including 14.12g/t
Au over 4m, 34.1g/t over 2m and 63.2g/t over 1m, have defined
significant gold mineralised quartz veining over a confirmed 1km
strike at an average of 2m and up to 5m true width across multiple
stacked vein zones up to 200m wide with new hard-rock artisanal
workings potentially extending strike to >3km.
Ghana
The Company has farm-in and joint venture arrangements with
Obotan Minerals Limited, Merlink Resources Limited and Barari
Developments Limited of Ghana, West Africa, securing the first
access rights to apply for the ownership of the historical
Egyasimanku Hill spodumene rich lithium resource, estimated to be
in the order of 1.48Mt at 1.67% Li(2) O and surrounding tenements.
The portfolio covers some 314km(2) with a further identified 20km
strike of pegmatite vein swarms, tenure package is also highly
prospective for tin, tantalum, niobium and gold which occur as
accessory minerals within the pegmatites and host formations.
Ivory Coast
The Company entered into conditional joint venture arrangements
in Ivory Coast, West Africa; securing access rights to highly
prospective gold mineralised structures and pegmatite occurrences
covering a combined 3,110km(2) and 400km(2) area respectively. The
projects are well located within access of an extensive bitumen
road network and along strike from multi-million ounce gold
projects and mines.
Corporate
IronRidge made its AIM debut in February 2015, successfully
securing strategic alliances with three international companies;
Assore Limited of South Africa, Sumitomo Corporation of Japan and
DGR Global Limited of Australia. Assore is a high- grade iron,
chrome and manganese mining specialist. Sumitomo Corporation is a
global resources, mining marketing and trading conglomerate. DGR
Global is a project generation and exploration specialist.
This information is provided by RNS
The company news service from the London Stock Exchange
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