Exploration Update - Ghana Lithium Portfolio

RNS Number : 2417D

IronRidge Resources Limited

08 October 2018

 

8 October 2018

Additional High-Grade Lithium Drilling Results

Broad Lithium Pegmatite Intersections

Ewoyaa Project, Ghana, West Africa

IronRidge Resources Limited (AIM: IRR, 'IronRidge' or the 'Company') is pleased to announce additional high-grade lithium drilling results from the Ewoyaa Project in Ghana, West Africa.

HIGHLIGHTS:

Ø Additional results received for a further 2,206m of drilling (13 drill holes) of a total 8,090m first phase reverse circulation ('RC') drilling programme completed at the Ewoyaa Project.

Ø Results reported herewith are in addition to the 4,180m of drilling results reported previously (refer to RNS 28 of August 2018).

Ø Multiple broad, high-grade drill intersections returned at a 0.5% Li₂O cut-off and maximum 10m of internal dilution including:

o  GRC0048: 72m @ 1.27% Li₂O from 24m including:

56m @ 1.5% Li₂O from 28m (incl. 38m @ 1.65% Li₂O from 36m)

o  GRC0049: 67m @ 1.21% Li₂O from 70m including:

41m @ 1.2% Li₂0 from 70m (incl. 5m @ 1.57% Li₂O from 82m and 8m @ 1.4% Li₂O from 100m)

18m @ 1.47% Li₂O from 114m (incl. 7m @ 1.69% Li₂O from 114m)

o  GRC0051: 36m @ 1.04% Li₂O from 64m including:

14m @ 1.47% Li₂O from 64m (incl. 11m @ 1.59% Li₂0 from 67m)

8m @ 1.11% Li₂O from 92m

o  GRC0050: 20m @ 1.41% Li₂O from 70m including:

13m @ 1.51% Li₂O from 73m

o  GRC0052: 16m @ 1.08% Li₂O from 45m including:

7m @ 1.34% Li₂O from 46m

o  GRC0047: 26m @ 0.64% Li₂O from 76m including:

8m @ 1.33% Li₂O from 77m

o  GRC0056: 18m @ 0.78% Li₂O from 31m and 15m @ 0.86% Li₂O from 61m including:

11m @ 0.94% Li₂O from 38m

4m @ 1.7% Li₂O from 62m (incl. 3m @ 1.89% Li₂O from 63m)

Ø North Extension is showing good continuity of grade and width from the Central Zone, with mineralisation open to the north and west.

Ø Additional results are pending for the remaining holes within the North Extension and North-East Zone.

Ø Pitting programme commenced around the North Extension to test for strike and width extensions.

Ø Regional exploration programmes ongoing; field teams finalising Laser Induced Breakdown Spectroscopy ('LIBS') soil sampling programmes.

Ø Ideal infrastructure support; projects located within 100km of the operating Takoradi deep-sea port, within 100km of the capital Accra and, within 1km of a bitumen highway and below grid power.

Ø Highly supportive government; long mining history, strong diversification drive and pro-renewable and stored energy space initiatives.

Reference to figures and tables relate to the PDF version of this release visible in PDF format by clicking the link below:

http://www.rns-pdf.londonstockexchange.com/rns/2417D_1-2018-10-8.pdf 

Commenting on the Company's latest progress, Len Kolff, Chief Operating Officer of IronRidge, said:

"Ongoing positive drilling results including 72m @ 1.27% and 67m @ 1.21% Li₂O as well as high-grade intersections including 38m @ 1.65% Li₂O continues to confirm Ewoyaa as a significant discovery and provides the Company with confidence for further exploration success within the portfolio."

"High grades over significant intervals and proximity to essential infrastructure coupled with the pro-mining and stable jurisdiction of Ghana bodes well for the future development of the Cape Coast Lithium Portfolio."

"Essential infrastructure including roads and power, within 100km trucking distance of an operational deep-sea port and a well-trained local workforce is a significant advantage for the project with potential for a low capital and operational intensity start-up." 

"Results received to date indicate the development of a broad, continuous high-grade zone within the Central and North Extension zones which remains open to the north, with additional drilling results pending."

"Field teams have commenced a pitting programme to further define the Ewoyaa pegmatite footprint along the North Extension ahead of drilling programmes."

"Planning is underway for a metallurgical diamond drilling programme, which is planned to commence post receipt of the remaining 1,704m of drilling results."

"Field teams are finalising the regional soils programme across the Cape Coast Lithium Portfolio and rapid analysis using our handheld LIBS lithium analyser to define exploration targets ahead of pitting and drilling."

"The Ewoyaa Project occurs within one of nine lithium licenses the Company holds in Ghana and represents the most advanced exploration project in the portfolio." 

Additional Drilling Results

Additional assay results have been received for a further 2,206m of drilling completed as part of the initial 8,090m RC drill programme completed at the Ewoyaa Project (refer to RNS on 29 May 2018 and 28 August 2018). All samples were analysed by SGS Canada Inc. Results have passed internal quality assurance and quality control ("QAQC") checks including certified standards, blanks and duplicates.

Multiple high-grade, continuous broad lithium mineralised intersections were returned at a 0.5% Li₂O cut-off and maximum 10m of internal dilution (refer to Figure 1 and Table 1) including highlights of:

·     GRC0048: 72m @ 1.27% Li₂O from 24m including 56m @ 1.5% Li₂O from 28m (incl. 38m @ 1.65% Li₂O from 36m)

·     GRC0049: 67m @ 1.21% Li₂O from 70m including 41m @ 1.2% Li₂0 from 70m (incl. 5m @ 1.57% Li₂O from 82m and 8m @ 1.4% Li₂O from 100m), and 18m @ 1.47% Li₂O from 114m (incl. 7m @ 1.69% Li₂O from 114m)

·     GRC0051: 36m @ 1.04% Li₂O from 64m including 14m @ 1.47% Li₂O from 64m (incl. 11m @ 1.59% Li₂0 from 67m), and 8m @ 1.11% Li₂O from 92m

·     GRC0050: 20m @ 1.41% Li₂O from 70m including 13m @ 1.51% Li₂O from 73m

Very coarse spodumene crystal fragments are clearly visible in the RC drill chips for the reported intervals. This observation, coupled with the initial mineralogical characterisation study completed (refer to RNS on 17 January 2018), indicates spodumene is the dominant lithium mineral phase; the preferred feedstock from hard-rock pegmatite projects which bodes well for a simple process flow-sheet design.

Drill intersections received to date indicate that the Ewoyaa deposit consists of steeply east dipping to sub-vertical pegmatite dykes with interpreted true widths between 20m up to 80m where in the Central zone they appear to widen at surface on the basis of trench intersections (refer to RNS on 29 May 2018 and 28 August 2018, Figure 2 and Figure 3).

Additional results received continue to confirm the developing broad, continuous, high-grade lithium mineralised zone within the Central and North Extension zones, which remains open to the north and north-east.

Additionally, the mineralised pegmatite intersected within the northern-most drill section of the North Extension zone remains open to the north (refer Figure 4).

All drill intersections reported to date are included in Appendix 1 (refer to Table 2 and Figure 6).

Proximity to Essential Infrastructure

The Ewoyaa Project is strategically located within 1km distance of a bitumen highway, in close proximity to grid power, within 100km of the Takoradi deep sea port and within 100km of the capital city of Accra (refer to Figure 4 and Figure 5).

The proximity of known lithium bearing pegmatites to essential infrastructure including road, power and operational deep-sea port, in addition to a well-trained local workforce and stable, pro-mining jurisdiction of Ghana is a significant advantage for the potential rapid, low capital and operational intensity of the project.

Exploration Upside

Additional targets including the Abonko pegmatites and Substation Pegmatite occur within close proximity of the Ewoyaa Project. Previous reported exploration has returned results including 25m @ 1.62% Li₂O in trenching and up to 2.95% Li₂O in rock chip sampling at the Abonko target (refer to RNS on 9 November 2017).

The regional Laser Induced Breakdown Spectroscopy ('LIBS') and portable X-ray fluorescence, ("pXRF") soils programme is progressing steadily across the granted tenements within the Cape Coast portfolio. To date in excess of 12,460 soil samples have been collected across the granted licenses, with LIBS and pXRF analysis ongoing within our dedicated lab at the Mankessim office/residence (refer to RNS on 7 August 2018).

Results are pending for the remainder of the North Extension and North-East Zone where visual logging of RC drill chips indicates the presence of coarse spodumene crystal fragments within drilled pegmatite intervals.

Assay results for the remaining 1,704m of drilling will be reported as soon as they are received from the laboratory and have passed internal QAQC review.

The Board is pleased with the progress that the Company has made to date and looks forward to keeping shareholders updated as further news becomes available.

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

For any further information please contact:

IronRidge Resources Limited
Vincent Mascolo (Chief Executive Officer)	Tel: [phone]
Karl Schlobohm (Company Secretary)
SP Angel Corporate Finance LLP	Tel: [phone]
Nominated Adviser and Broker
Jeff Keating Charlie Bouverat Yellow Jersey PR Limited Charles Goodwin Harriet Jackson Katie Bairsto	Tel: [phone]

 

Competent Person Statement:

Information in this report relating to the exploration results is based on data reviewed by Mr Lennard Kolff (MEcon. Geo., BSc. Hons ARSM), Chief Geologist of the Company. Mr Kolff is a Member of the Australian Institute of Geoscientists who has in excess of 20 years' experience in mineral exploration and is a Qualified Person under the AIM Rules. Mr Kolff 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.

Ghana

The Company entered into earn-in arrangements with Obotan Minerals Limited, Merlink Resources Limited, Barari Developments Limited and Joy Transporters Limited of Ghana, West Africa, securing the first access rights to acquire the historical Egyasimanku Hill spodumene rich lithium deposit, estimated to be in the order of 1.48Mt at 1.67% Li₂O and surrounding tenements. The portfolio covers some 684km² with the newly discovered Ewoyaa project including drill intersections of 128m @ 1.21% Li₂O from 3m and 111m @ 1.35% Li₂O from 37m, and a further identified 20km strike of pegmatite vein swarms. Tenure package is also highly prospective for tin, tantalum, niobium, caesium and gold, which occur as accessory minerals within the pegmatites and host formations.

Chad

The Company entered into an agreement with Tekton Minerals Pte Ltd of Singapore concerning its portfolio covering 900km² of highly prospective gold and other mineral projects in Chad, Central Africa. IronRidge acquired 100% of Tekton including its projects and team to advance the Dorothe, Echbara, Am Ouchar, Nabagay and Kalaka licenses, which host multiple, large scale gold projects. Trenching results at Dorothe, including 84m @ 1.66g/t Au (including 6m @ 5.49g/t & 8m @ 6.23g/t), 4m @ 18.77g/t Au (including 2m @ 36.2g/t), 32m @ 2.02g/t Au (including 18m @ 3.22g/t), 24m @ 2.53g/t Au (including 6m @ 4.1g/t (including 2m @ 6.2g/t) and 2m @ 6.14g/t), 14.12g/t Au over 4m, 34.1g/t over 2m and 63.2g/t over 1m, have defined significant gold mineralised quartz veining zones over a 3km by 1km area including the steep dipping 'Main Vein' and shallow dipping 'Sheeted Vein' zones.

Côte d'Ivoire

The Company entered into conditional joint venture arrangements in Côte d'Ivoire, West Africa; securing access rights to highly prospective gold mineralised structures and pegmatite occurrences covering a combined 3,187km² and 1,172km² 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.

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 IRR's 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 3,396km² 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.

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.

 

END

 

 

DRLFSESLAFASESS