Potential Investment

RNS Number : 8237G

IronRidge Resources Limited

10 August 2016

 

10^th August 2016

IronRidge Resources Limited

Potential Investment by IronRidge

IronRidge Resources Limited (AIM: IRR, 'IronRidge' or the 'Company') announces that it is in very advanced discussions with Tekton Minerals Pte Ltd ('Tekton')  about making a potential investment in Tekton which would provide IronRidge with access to exclusive rights to an extensive land package and associated major new gold discovery in Chad, Central Africa.

Under the terms being discussed IronRidge will invest up to US$3.5m in Tekton for an up to  58% shareholding. It is intended that the funding will be used to undertake further exploration work and to prepare a NI 43-101 technical report or a JORC report.

Tekton has secured exclusive rights  over five exploration permits covering a total of 1,000km² within the Ouaddaï Province, an under-explored yet highly prospective domain within the East African Metacraton of Central Africa. Tekton's focus has so far been on its Dorothe license with additional work over the Echbara and Am Ouchar licenses. Trenching results at Dorothe include 14.12g/t Au over 4m, 34.1g/t over 2m and 63.2g/t over 1m along a 1km strike with additional extensions up to 3km strike. Further artisanal hard rock workings define a 3km x 1km gold mineralised area for follow-up. Trenching results at Am Ouchar include intersections of 20m @ 6.8g/t Au, 16m @ 4.7g/t Au and 12m @ 5.7g/t Au with individual 2m composite grades up to 33g/t Au. Follow-up channel sampling by Tekton returned intersections including 2m @ 18.2g/t Au, 2m @ 14.2g/t Au and 2.3m @ 9.9g/t Au.

There is no certainty that a transaction with Tekton will be completed or completed on the terms outlined above. The Company expects to make a further announcement very shortly.  

For any further information please contact:

IronRidge Resources Limited
Vincent Mascolo (Chief Executive Officer)	Tel: [phone]
Nicholas Mather (Executive Chairman)	Tel: [phone]
SP Angel Corporate Finance LLP	Tel: [phone]
Nominated Adviser and Broker
Jeff Keating Yellow Jersey PR Limited Financial PR Dominic Barretto	Tel: [phone]

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 titania 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 its wholly owned Monogorilby license package and is highly prospective for gold with drill ready targets defined. 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.

The Board of Directors is represented by mining industry professionals with a broad range of corporate, exploration, production, contracting and capital markets experience. The Company was admitted on 12 February 2015 (Ticker Code IRR) and currently has 236,612,203 shares and 14,770,000 unlisted options on issue.

 

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