Final Results

RNS Number : 3025C

IronRidge Resources Limited

28 September 2018

 

28 September 2018

IronRidge Resources Limited

2018 Financial Results

Company Transformation Continues

IronRidge Resources Limited (AIM: IRR, ''IronRidge'' or the ''Company''), an AIM listed minerals exploration company with a diversified portfolio of gold, lithium, bauxite, titanium and iron ore in frontier regions of Africa and Australia, is pleased to announce its audited results for the year ended 30 June 2018, the full version of which can be viewed by clicking on the link below:

http://www.rns-pdf.londonstockexchange.com/rns/3025C_1-2018-9-28.pdf

Financial and Corporate Highlights:

Ø In July 2017 the Company successfully raised £8.25 million at a price of 35 pence per share.  These funds were used as working capital and for the on-going development of the Company's pipeline of projects.

Ø In September 2017, the Company acquired 100% of Tekton Minerals Ltd ("Tekton"), giving the Company ownership of its promising underlying gold exploration projects in Chad, West Africa.  Tekton's management team were retained and incentivised via the issue of Performance Rights and Options.

Ø Neil Herbert appointed as Independent Non-Executive Chairman on 24 May 2018.

Ø Cash position (as at 30 June 2018) of AUD8.9 million.

Operational Highlights:

Ø The Company strengthened its ground holdings in Ghana, Ivory Coast and Chad over the course of the year including:

·     On 14 November 2017 the Company announced the Joint Venture agreement with Gail Resources SARL was made unconditional, consolidating the Company's ground holding along the Kineta gold portfolio in Ivory Coast;

·     On 20 April 2018 the Joint Venture agreement with Joy Transporters Ltd was made unconditional, consolidating the Company's ground holding along the highly prospective and newly re-discovered lithium pegmatite field in Ghana;

·     On 24 April 2018 the Company consolidated its ground holding in Chad with the granting on the Nabagay and Kalaka licenses.

Ø The Company announced on 21 September 2017 and on 2 November 2017 multiple high-grade and broad gold results from its maiden trenching programme at the Dorothe and Echbara projects respectively in Chad including 8m @ 4.73g/t⁺, 12m @ 2.87g/t, 10m @ 2.98g/t, 10m @ 2.05g/t and 12m @ 2.71g/t gold confirming significant grade and scale of the mineralised systems.

Footnote: ⁺ logged as transported material from Main Vein target.

 

Ø The Company reported multiple high-grade trenching results including 65m @ 1.1% Li₂O, 25m @ 1.62% Li₂O and 18m @ 1.67% Li₂O at the Ewoyaa and Abonko lithium targets, and completed a high-resolution airmagnetics and radiometrics survey over its Ghana lithium portfolio on 9 November 2017, identifying multiple high-priority geophysical targets for follow-up.

Ø The Company reported positive preliminary mineralogical characterisation results on 17 January 2018, confirming spodumene as the dominant lithium mineral phase in surface samples from its Ewoyaa lithium project in Ghana, with a simple process flow-sheet envisioned.

Ø On 30 April 2018 the Company commenced its maiden drill programme at the Ewoyaa Lithium Project.

Ø On 2 May 2018 the Company was granted four licenses in Ivory Coast at Marahui, Vavoua South, Vavoua North and Adzope.

Post Period-End Highlights:

Ø On 30 July 2018 the Company announced the definition of high-priority soil anomalies at the Kineta North license in Ivory Coast.

Ø On 2 August 2018 the Company reported a new pegmatite extension through step-out drilling at the Ewoyaa lithium project in Ghana which occurs buried with no surface expression, increasing the prospectivity of the pegmatite field.

Ø The Company identified a high-priority lithium pegmatite target in mapping and regional low-cost soils results utilising its handheld lithium analyser in the Apam West license in Ghana as announced on 7 August 2018.

Ø On 16 August 2018 the Company reported multiple high-grade infill trenching results from its Dorothe Project in Chad including 4m @ 18.77g/t, 32m @ 2.02g/t, 24m @ 2.53g/t and 4m @ 4.25g/t gold, defining five coherent gold targets over 500m to 1.2km strike length and 100m to 200m widths with targets still open along strike.

Ø On 28 August 2018 the Company reported its maiden high-grade and broad lithium drilling intersections at the Ewoyaa Lithium Project in Ghana including 128m @ 1.21% Li2O from 3m (including 70m @ 1.53% Li2O from 13m (incl. 5m @ 2.57% Li2O from 38m) and 16m @ 1.36% Li2O from 115m) in hole GRC0004 and 111m @ 1.35% Li2O from 37m (including 65m @ 1.58% Li2O from 40m (incl. 32m @ 1.72% Li2O from 57m) and 20m @ 1.51% Li2O from 124m (incl. 5m @ 1.94% Li2O from 131m) in hole GRC0027.

Ø On 3 September 2018, the Company announced the further strengthening of its management team as follows:

·     Chief Executive Officer - Vincent Mascolo commits to a further three years with an option for a further two years.

·     Chief Operating Officer - Len Kolff appointed to the new role of COO under a three year contract.

·     Côte d'Ivoire - Full time Exploration Manager appointed - Moctar Keita with 20 years' experience.

·     Ghana - Full time Exploration Manager appointed - Iwan Williams with 25 years' experience.

·     Australia - Principal Geologist appointed - Steve Cancio-Newton with 20 years' experience.

Ø On 24 September 2018, the Company reported additional multiple high-grade gold trenching results for the remainder of the 200m infill and extensional trenching programme completed at the Dorothe Gold Project in Chad including 84m @ 1.66g/t*, 4m @ 5.27g/t and 6m @ 3.34g/t gold.  The results have reinforced the previously reported large, coherent gold targets and defined an additional sixth high-grade, coherent gold anomaly over 900m in strike and up to 150m in width. 

Footnote: *Sampled down-dip along shallow dipping alteration zone; not true width.

 

Vincent Mascolo, Chief Executive Officer of IronRidge Resources, said:

"It has been an incredibly productive year for the Company, a period in which we have matured significantly having transformed our asset base and building a foundation for future growth.

The Company is pleased with the significant discoveries it has made in the lithium and gold exploration sectors. Our Ghanaian Cape Coast Lithium Project has initially delivered exciting and potentially world class lithium grades and drill intersections, whilst in Chad, we have uncovered a substantial gold bearing province with a surface footprint rivalling some of today's largest operating gold mines.

With the discovery of such projects, which bear significant upside potential, we have set ourselves an ambitious and clear path for the years ahead. To complement our corporate strategy, we have assembled an impressive, highly experienced and African focused team of geoscientists whom will lead the company as it matures and transitions from explorer to developer.

I am delighted with the progress we have made to date and we will continue to focus on advancing our project pipeline and unlocking shareholder value."

Chairman's Statement from Neil Herbert:

"I am pleased to bring you my first report as Chairman of IronRidge Resources, which comes at a time when the Company has reviewed and modified its Board structure and function, adopted a comprehensive Corporate Governance framework, and made several key executive appointments which will be pivotal to the Company's continued journey from mineral explorer to project developer and producer.

In 2016 and 2017, the Board and the senior management of IronRidge carefully planned and then meticulously implemented a strategy to obtain interests in several potential world class projects in Africa, primarily focused on gold and lithium.  The last 12 months have primarily been focused on the Company having "boots on the ground" with a significant range of initial and follow-on exploration programs conducted in Chad (gold), Ghana (lithium) and Cote d'Ivoire (gold and lithium).  The results from these programs - including first phase drilling at one of our lithium projects in Ghana - have been highly encouraging, and IronRidge remains on track to deliver on its stated aim to create and sustain shareholder value through the discovery of world-class and globally demanded mineral commodities.

In this regard, the recent contract renewal for our CEO, Vincent Mascolo, the contract extension and promotion to COO for Len Kolff, and the recent appointments of Moctar Keita (Exploration Manager - Cote d'Ivoire), Iwan Williams (Exploration Manager - Ghana) and Steve Cancio-Newton (Principal Geologist) will give the Company the added project management guidance and expertise required to continue to maximise the valuable project opportunities in its portfolio.

As I touched on earlier, the Company has recently documented and adopted a comprehensive Corporate Governance framework which is based on the QCA's Ten Principles as published by the Quoted Companies Alliance.  There is a separate Chairman's Statement in the Corporate Governance summary in this Annual Report, as well as in the comprehensive disclosures included on the Company's website.  This initiative, although by no means complete, will stand the Company in good stead as the size, scale and nature of its operations continues to evolve.

The next 12 months will be an exciting time for IronRidge and its shareholders as the Company continues with exploration programs across its project base with the ultimate aim of defining JORC-compliant resources to support a range of commercialisation options.  I look forward to continuing to share the news from our various project locations as this work continues.

In closing I would like to acknowledge the vision and passion of the Company's founding Chairman Nicholas Mather, who I am pleased to say remains a Non-Executive Director of IronRidge.  I would also like to thank Vincent and Len, and the small but hard-working team at the Company's head office, for their ongoing execution of the Board's agreed strategy for the Company.  Finally, I would like to thank you, our loyal shareholders, for providing the funding and support to facilitate the ongoing delivery of the Company's objectives."

IronRidge Project Review

Chad - Gold

During the reporting period, the Company completed the acquisition of 100% of Tekton Minerals Pte Ltd ("Tekton"), providing IronRidge with full ownership of a highly prospective gold exploration portfolio in Chad.  As part of the acquisition, Tekton's highly skilled technical and logistics team joined the IronRidge team to advance the projects and future growth strategies.

The Company reported multiple high-grade gold intersections from a first phase 10,652m trenching programme completed and the definition of extensive soil anomalies and new artisanal workings from 9,768 soil sample programmes completed over the Dorothe and Echbara licenses; highlighting the gold prospectivity of the region.

The Company completed aeromagnetic surveys over the Dorothe, Echbara and part of the Am Ouchar licenses.  The results of the aeromagnetic survey demonstrate a strong structural control on gold mineralisation at Dorothe with gold mineralisation occurring within the nose of a large fold structure; a favourable structural setting, as well as highlighting multiple additional targets.

The Company engaged SRK Consulting Perth, ("SRK") to provide specialist structural mapping expertise to help build a structural model and define potential controls on mineralisation at the Dorothe target, as well as preliminary structural mapping over the high-grade mineralisation historically discovered at Am Ouchar.

The Company was granted the Kalaka license and transferred the Nabagay reconnaissance permit to an exploration license; thus, consolidating the Company's position along this highly prospective gold corridor. The Ade license was relinquished in favour of the Kalaka license.

Field mapping and aerial drone surveys highlighted two extensive artisanal mining centres, now largely abandoned at Kalaka and Guerere; approximately 15km and 6km north of the Dorothe prospect respectively. The largely abandoned artisanal mining centres occur within favourable structural settings within large scale fold closures in the interpreted hanging wall block of the major north-south trending Dorothe shear. At Kalaka artisanal workings occur over a large 1km x 1km area.

The Company's exploration portfolio now covers a combined surface area of 900km² along highly prospective structures and lithological contacts with extensive artisanal workings.

Ghana - Lithium

During the period, the Company identified and acquired a highly prospective lithium pegmatite tenement package ('Cape Coast Lithium Project') through earn-in agreements and direct applications over 645km², and associated access rights to an historic 1.48Mt at 1.66% Li₂O lithium deposit (non-JORC compliant) in Ghana, West Africa. The projects are well serviced within 100km along bitumen roads from an operating port and capital city Accra.  The Company completed infill trenching and pitting over the Ewoyaa and Abonku prospects, returning additional high-grade lithium intersections, received positive results from preliminary mineralogical studies completed on a suite of surface samples from the Ewoyaa project confirming spodumene as the dominant lithium bearing phase, expanded the Cape Coast portfolio through the Joy Transporters Ltd ('Joy Transporters') earn-in agreement, commenced an initial reverse circulation ('RC') drilling programme at the Ewoyaa Project and identified multiple geophysical targets from deliverables received for the high-resolution helicopter magnetics survey.

In relation to the regional exploration program, results were received for an ultra-high resolution, 50m line spaced helicopter borne magnetics and radiometrics survey for 3,804 line kilometres flown over the Mankessim and Apam licence areas during the period.  From the known lithium pegmatites mapped and sampled to date, coincident radiometrics thorium lows, potassium highs and topographic high features appear to largely map known mineralisation.  Preliminary review of the survey results has identified multiple additional target areas for field follow-up.

Ivory Coast - Lithium and Gold

The Company has secured via Earn-In Agreements, access rights to twelve (12) licences and applications covering an area of 3,235km² for gold and 1,177km² for lithium within the Ivory Coast, West Africa.  All projects are well serviced, with an extensive bitumen road network and well-established cellular network.

Civil aviation permitting was commenced for a regional geophysical aeromagnetics survey over the highly prospective Vavoua gold portfolio, however adverse weather delayed aircraft mobilisation with the survey pending.

The Company was also granted four licences at Marahui, Vavoua South, Vavoua North and Adzope.

Australia

IronRidge Resources has an extensive ground holding in central-southern Queensland prospective for bauxite, titanium, gold and iron ore.  The portfolio includes the JORC compliant Monogorilby Bauxite resource of 54.9Mt at 37.5% total alumina and 8.5% total silica and the May Queen gold prospect.

Ongoing mapping and rock-chip sampling across the Monogorilby Bauxite portfolio has discovered additional high-grade bauxite mineralisation at surface within two new areas, collectively called the Koko targets.

Field reconnaissance mapping and sampling has returned multiple high-grade bauxite results up to 43 - 52.8% available alumina and 2 - 5.4% reactive silica over two distinct topographic features within the Koko, and within 25km of the currently defined resource footprint.  The two target areas cover approximately 1.2km and 1.8km strike and 200m to 300m width respectively. Additional high-grade rock-chip sampling results up to 42.6 - 48.7% available alumina and 1.4 - 3.1% reactive silica were returned over the known target of Monogorilby West; within 5km of the currently defined resource footprint.

The ongoing review of historic work completed over the May Queen prospect highlighted the Bat Cave target and workings, approximately 1km south-east of May Queen with historic reported peak rock chip values of 3.16g/t and 22.2g/t gold. Reconnaissance field mapping and rock-chip sampling confirmed the Bat Cave target and returned anomalous results including 0.673g/t gold.

Gabon

The Company is awaiting licence renewals with the pre-requisite 50% licence area reductions over the Tchibanga, Tchibanga Nord and Belinga Sud licences.

Tchibanga is located in south-western Gabon, in the Nyanga Province, within 10-60km of the Atlantic coastline.  This project comprises two exploration licences, 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.

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.

Market Abuse Regulation (MAR) Disclosure

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)	Tel: [phone]
SP Angel Corporate Finance LLP	Tel: [phone]
Nominated Adviser and Broker
Jeff Keating Charlie Bouverat Yellow Jersey Charles Goodwin Harriet Jackson	Tel: [phone]

Katie Bairsto

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 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.

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. 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 over a 250m wide zone, with new hard-rock artisanal workings potentially extending strike to >3km.

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 resource, estimated to be in the order of 1.48Mt at 1.67% Li₂O and surrounding tenements. The portfolio covers some 645km² 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.

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 3,235km² and 1,177km² 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.

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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FR LIFERAVITFIT