Exploration Update - Ghana Lithium Portfolio

RNS Number : 8394H

IronRidge Resources Limited

20 November 2018

 

20 November 2018

Final Drilling Results

Ewoyaa Lithium Project, Ghana, West Africa

Additional Broad High-Grade Lithium Pegmatite Intersections Identified

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

HIGHLIGHTS:

Ø Final results received for a further 13 drill holes of a total 58 hole 8,210m⁺ first phase reverse circulation ('RC') drilling programme completed at the Ewoyaa Project.

Ø Results reported herewith enhance the 45 holes reported previously (refer to RNS released on 28 August and 8 October 2018) and are final results for the first phase programme.

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

o  GRC0034:  56m @ 1.71% Li₂O from 48m including:

16m @ 1.83% Li₂O from 68m & 13m @ 1.9% Li₂O from 90m

o  GRC0035:  67m @ 1.32% Li₂O from 37m including:

33m @ 1.44% Li₂O from 37m & 22m @ 1.65% Li₂O from 81m

o  GRC0042: 45m @ 1.57% Li₂O from 70m including:

38m @ 1.75% Li₂O from 70m (incl. 18m @ 2.3% Li₂O from 89m)

o  GRC0039*: 45m @ 1.51% Li₂O from 41m including:

22m @ 1.77% Li₂O from 44m

o  GRC0041: 52m @ 1.1% Li₂O from 112m including:

20m @ 1.31% Li₂O from 112m (incl. 10m @ 1.64% Li₂O from 116m)

22m @ 1.22% Li₂O from 142m (incl. 9m @ 2.1% Li₂O from 155m)

o  GRC0039*: 33m @ 1.67% Li₂O from 125m including:

7m @ 1.88% Li₂O from 129m

9m @ 2.1% Li₂O from 144m

o  GRC0041: 11m @ 1.72% Li₂O from 32m including:

6m @ 2% Li₂O from 34m

o  GRC0040: 12m @ 1.57% Li₂O from 65m including:

7m @ 1.68% Li₂O from 66m

o  GRC0045: 11m @ 1.27% Li₂O from 49m including:

9m @ 1.38% Li₂O from 49m

⁺ reported as 8,090m erroneously in previous RNS'

* hole drilled down-dip along pegmatite structure; true width approx. 20m to 25m

Ø Mineralisation remains open to the north and north-east; pitting programme underway to test for extensions.

Ø Access and drill pad construction underway for 3,000m exploration RC drill programme at Abonko and Ewoyaa, and 1,000m diamond drill core ('DD') programme for metallurgical test work, density and geotechnical sampling at Ewoyaa.

Ø Ideal infrastructure support; project located within 100km of the operating Takoradi deep-sea port, within 100km of the capital Accra, within 1km of a bitumen highway and adjacent to 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/8394H_1-2018-11-20.pdf 

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

"We are pleased to announce that all results have now been received for the first phase drilling programme. These latest results return high-grade lithium intersections and continue to confirm that Ewoyaa's potential a significant lithium discovery.

"High-grade lithium intersections over significant intervals and in close proximity to essential infrastructure, coupled with the pro-mining and stable jurisdiction of Ghana, bodes well for the future development of the Company's Cape Coast Lithium Portfolio.

"Having access to essential infrastructure, such as roads and power within a 100km distance of an operational deep-sea port, as well as a skilled local workforce, is a significant advantage for the project and allows for a potential low capital and operational intensity start-up.

"Access and drill pad construction has commenced for a 3,000m exploration RC programme at Abonko and Ewoyaa, in addition to a 1,000m metallurgical diamond drill core programme at Ewoyaa with drilling due to commence before the end of the year.

"The Ewoyaa Project represents the most advanced exploration project in the Ghana portfolio, and we look forward to updating the market once we enter the next phase of our programme".

Final Drilling Results

Final assay results have been received for a further 13 drill holes completed as part of the initial 8,210m RC drill programme completed at the Ewoyaa Project (refer to Figure 1 and the RNS released on 28 August 2018 and 8 October 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 and broad lithium 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:

·     GRC0034:             56m @ 1.71% Li₂O from 48m including 16m @ 1.83% Li₂O from 68m and 13m @

1.9% Li₂O from 90m

·     GRC0035:             67m @ 1.32% Li₂O from 37m including 33m @ 1.44% Li₂O from 37m and 22m @

1.65% Li₂O from 81m

·     GRC0042:             45m @ 1.57% Li₂O from 70m including 38m @ 1.75% Li₂O from 70m (incl. 18m @

2.3% Li₂O from 89m)

·     GRC0039:             45m @ 1.51% Li₂O from 41m including 22m @ 1.77% Li₂O from 44m

33m @ 1.67% Li₂O from 125m including 7m @ 1.88% Li₂O from 129m and 9m @

2.1% Li₂O from 144m

·     GRC0041:             11m @ 1.72% Li₂O from 32m including 6m @ 2% Li₂O from 34m

52m @ 1.1% Li₂O from 112m including 20m @ 1.31% Li₂O from 112m (incl. 10m @

1.64% Li₂O from 116m) and 22m @ 1.22% Li₂O from 142m (incl. 9m @ 2.1% Li₂O

from 155m)

Coarse spodumene crystal fragments visible in the RC drill chips coupled with the initial mineralogical characterisation study observations (refer to RNS released on 17 January 2018), suggests spodumene is the dominant lithium mineral phase. Spodumene is the preferred feedstock from hard-rock pegmatite projects and suggests a simple process flow-sheet design.

New drilling results including 56m @ 1.71% Li₂O in hole GRC0034 and 67m @ 1.32% Li₂O in hole GRC0035 as well as additional high-grade intersections in holes GRC0039, GRC0040 and GRC0041 have confirmed high-grade lithium pegmatites in the north-east zone, which remains open to the east (refer to Figure 1 and Figure 2).

Final results received for the first phase drill programme indicate that the Ewoyaa deposit consists of steeply east dipping to sub-vertical pegmatite dykes and bodies in the southern, central, north extension and north-east zones with interpreted true widths between 20m up to 100m and remains open to the north (refer to RNS released on 28 September 2018 and 8 October 2018).

Additional targets including the Abonko pegmatites and Substation Pegmatite occur within close proximity of the Ewoyaa Project. Previous reported exploration results at the Abonko target have returned significant intersections including 25m @ 1.62% Li₂O in trenching and up to 2.95% Li₂O in rock chip sampling (refer to Figure 2 and RNS released on 9 November 2017).

A 3,000m exploration RC programme has been planned to test the Abonko target and includes step out resource drilling to test the northern extensions at Ewoyaa where mineralisation remains open. Access tracks and drill pad construction is underway, with RC drilling to commence prior to the end of the year. 

Pitting programmes are currently underway to define the extents of mineralisation to the north and north-east (refer to Figure 2).

A 1,000m metallurgical diamond drill core programme has been planned over Ewoyaa with drill pad construction underway and drilling to commence after completion of the RC programme; likely in the new year. The metallurgical drill holes will be twinned with selected existing RC drill holes to meet several objectives including; RC drill hole twinning and density measurements for resource estimation, metallurgical test-work samples, and geotechnical measurements for future mining studies.

All drill intersections for the first phase programme are reported in Appendix 1 (refer to Table 2 and Figure 7).

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 5). The Takoradi port includes a dedicated Cape Size vessel dock with handling and loading facilities (refer to Figure 6).

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 the stable, pro-mining jurisdiction of Ghana is a significant advantage for the potential rapid, low capital and operational intensity of the project.

Regional Exploration Update

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. Approximately 16,000 soil samples have been collected across the portfolio to date, with LIBS and pXRF analysis ongoing within our dedicated lab at the Mankessim office/residence.

On completion of the LIBS programme and data review, coincident lithium soils with airborne geophysical anomalies will be identified and prioritised for detailed mapping and pitting follow-up.

Field teams are continuing to pit the Hweda LIBS anomaly (refer to RNS released on 7 August 2018), with visible pegmatites reported in pitting.

Field mapping teams are continuing to cut access lines onto the historical Egyasimanku Hill deposit (1.48Mt @ 1.66% Li2O, non-JORC) to define and map pegmatite extents in outcrop and historical trenches. Soil sampling on a 100m x 100m grid for LIBS and pXRF analysis is also underway.

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. 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 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. 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 3,187km² 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.

 

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