Exploration Update - Ghana Lithium Portfolio

RNS Number : 8655C

IronRidge Resources Limited

20 June 2019

 

20 June 2019

Significant Trenching Intersections and Drill Programme

Ewoyaa West Target - Cape Coast Lithium Portfolio

Ghana, West Africa

IronRidge Resources Limited (AIM: IRR, 'IronRidge' or the 'Company'), the African focussed minerals exploration company, is pleased to announce that trenching has defined wide and long pegmatite intersections at the Ewoyaa West target, just one of the multiple pegmatite targets within the Cape Coast Lithium Portfolio, located in Ghana, West Africa.

HIGHLIGHTS:

Ø Over 940m of new trenching completed and 1,640 pits dug over the Ewoyaa Project area; both ongoing as an effective exploration tool.

Ø Continuous pegmatite intersected in trenching and pitting over 840m strike length and up to 100m wide on surface at the newly defined 'Ewoyaa West' target.

Ø Additional extensions for a further 1.25km strike defined in pitting to the south of the Ewoyaa West target.

Ø Ewoyaa West target is within 540m from the main Ewoyaa Project and dipping shallowly to the east.

Ø Additional trenching has also intersected 65m of pegmatite at the new 'Ewoyaa Middlings' target which lies in-between Ewoyaa and Ewoyaa West; trenching ongoing with the potential to add significantly more pegmatite.

Ø Phased 13,200m Reverse Circulation ('RC') and Diamond Core Drilling ('DD') drill programme designed dependent on initial drilling results, to test new targets as well as strike extensions at the Ewoyaa and Abonko deposits.

Ø Weather permitting, drilling to commence during Q3 2019; access and drill pad planning underway.

Ø Ghanaian environmental consultancy NEMAS engaged and baseline environmental and social studies commenced.

References to figures relate to this release visible in PDF format by clicking the link below:

http://www.rns-pdf.londonstockexchange.com/rns/8655C_1-2019-6-20.pdf

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

"Pegmatites often occur in clusters and pitting and trenching are proving to be a successful tool for defining additional pegmatites within the immediate Ewoyaa Project area through weathered cover where no outcropping pegmatite is visible.

"We have effectively increased the known outcropping pegmatite surface area by approximately 50% with the addition of the Ewoyaa West target and with trenching ongoing at the Ewoyaa Middlings target there is potential for further increases.

"We have planned a phased RC drill programme to test the new targets as well as extensions at the Ewoyaa deposit, with drill access and pad planning underway, and commencement of drilling planned for Q3 2019 weather permitting.

"Given the Projects significant mineralised intersections, positive metallurgical results, proximity to infrastructure and favourable jurisdiction, we are pleased to have awarded long lead environmental and social baseline studies for future mine permitting to Ghanaian consultants NEMAS Ltd which have now commenced."

Commenting on the Company's latest progress, Vincent Mascolo, Chief Executive Officer of IronRidge, said:

"The discovery of Ewoyaa West and Ewoyaa Middlings targets is extremely encouraging, and we look forward to the next phase of drilling.

"The decision to advance the Ewoyaa Project area ahead of a maiden resource estimate was predicated by the ongoing success with the discovery of new pegmatites in the immediate project area, exceptional metallurgical test work results and a robust treasury."

New Target Areas

Ongoing pitting and trenching activities within the Ewoyaa Project area has defined over 840m strike of continuous weathered pegmatite up to 100m wide at surface at the Ewoyaa West target, which dips shallowly towards the east. A total of 525m in four (4) trenches was completed at the Ewoyaa West target (refer Figure 1).

Additional pegmatite has been intersected in pitting to the south, providing potential for a further total of 1.25km strike at the Ewoyaa West target (refer Figure 1).

A fifth trench was extended 190m east to test pitting intersections in-between Ewoyaa and Ewoyaa West. Over 60m of continuous weathered pegmatite was intersected in the fifth trench which remains open to the north and south in what is now called the Ewoyaa Middlings target (refer Figure 1).

Both new targets coincide with a low-lying ridge, with no pegmatite visible at surface. This is significant as it increases the potential for additional 'blind' pegmatite discoveries that have not yet been tested by pitting. Additional sub-parallel ridges are evident within the topography in the immediate project area which will be tested by ongoing pitting programmes (refer Figure 2). 

The newly identified pegmatite zones are significant as they enlarge the surface area by 50% within the immediate Ewoyaa project area; allowing for potential resource increases and within easy trucking distance for potential future mine development.

Not only does pitting and trenching provide valuable geological observations of the pegmatites which are otherwise not seen at surface nor in auger drilling programmes, but it also provides youth employment within the local communities rather than utilising machinery (refer Figure 3).

Drill Planning

A phased Reverse Circulation ('RC') and Diamond Core Drilling ('DD') drill programme has been designed to test the Ewoyaa West target, Middlings target and strike extensions over the known Ewoyaa and Abonko deposits. Final meterage will be commensurate with initial confirmation of spodumene or other lithium mineral phases below base of weathering at Ewoyaa West and Middlings targets to justify the second phase.

Additional DD drilling has been planned over the Ewoyaa West target and Abonko for future metallurgical test-work and geological control.

Drilling is planned to commence during Q3 2019 after the current wet season, weather permitting. Drill access and pad planning is underway and a total 13,200m of RC and DD drilling has been planned (refer Figure 3).

Location

The Ewoyaa deposit is well located within 1km of a bitumen highway and adjacent to grid power, within 100km of an operating deep-sea port and within the pro-mining, stable jurisdiction of Ghana (refer Figure 4). Multiple additional pegmatite targets occur adjacent to Ewoyaa including the drill tested Abonko deposit, the developing Ewoyaa West target and additional exploration targets, as well as the historical Egyasimanku Hill deposit (1.48Mt @ 1.66% Li₂O, non JORC) further to the east.

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 Harriet Jackson Felicity Winkles	Tel: [phone]

Competent Person Statement:

Information in this report relating to the exploration results is based on data reviewed by Mr Lennard Kolff (MEcon. Geol., 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, Africa focussed minerals exploration company with a lithium pegmatite discovery in Ghana, extensive grassroots gold portfolio in Cote d'Ivoire and a potential new gold province discovery in Chad. The Company holds legacy iron ore assets in Gabon and a bauxite resource in Australia. IronRidge's strategy is to create and sustain shareholder value through the discovery and development of significant 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. The 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 3,584km² 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.

 

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