Exploration Update - Ghana Lithium Portfolio

RNS Number : 4932U

IronRidge Resources Limited

25 November 2019

 

25 November 2019

Drilling and Exploration Update

Multiple High-Grade Lithium Drilling Results Received

Ewoyaa, Abonko and Kaampakrom Projects

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 report multiple high-grade reverse circulation ('RC') drilling intersections from the third phase drilling programme at the Ewoyaa, Abonko and Kaampakrom projects within the Cape Coast Lithium Portfolio in Ghana, West Africa.

HIGHLIGHTS:

Ø Multiple broad and high-grade drilling results received for third phase reverse circulation ('RC') drilling programme completed at the Ewoyaa, Abonko and Kaampakrom Projects

Ø Total 12,669m of RC drilling completed in 97 drill holes for the third phase programme and reported herewith

Ø Multiple high-grade drill intersections* reported at Ewoyaa and Abonko including highlights of:

o  40m @ 1.45% Li2O from 54m

o  34m @ 1.43% Li2O from 76m

o  31m @ 1.5% Li2O from 72m

o  28m @ 1.49% Li2O from 37m

o  19m @ 1.82% Li2O from 103m

Ø Highest grade interval drilled to date of 1m @ 4.47% Li2O in hole GRC0164

Ø Results at Ewoyaa and Abonko have extended known mineralisation along strike and at depth from previously reported results with mineralisation remaining open in most directions

Ø Visual observations from RC drill chips and diamond drill core confirms coarse spodumene as the dominant lithium mineral

Ø New discovery confirmed at Kaampakrom; 1km north of Ewoyaa with high-grade drill intersections* reported including highlights of:

o  7m @ 1.82% Li2O from 92m

o  6m @ 1.64% Li2O from 65m

Ø Kaampakrom discovery confirms further spodumene pegmatite exploration potential within the Cape Coast Portfolio

Ø Targeting JORC compliant Maiden Mineral Resource Estimate ('MRE') for Q1 2020

*Reported at a 0.4% Li2O cut-off with maximum 4m of internal dilution

References to figures and tables relate to this release visible in PDF format by clicking the link below:
http://www.rns-pdf.londonstockexchange.com/rns/4932U_1-2019-11-25.pdf

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

"We are delighted with the third phase drilling results, which will be incorporated into the MRE and have significantly enhanced the Ewoyaa North-East target as well as extended the Ewoyaa Main and Abonko targets.

"First pass high-grade results returned for Kaampakrom confirm the new discovery 1km north of Ewoyaa, and significantly the potential for additional spodumene pegmatite discoveries within the tenement portfolio.

"We returned our highest grade 1m drill interval to date at 4.47% Li2O in hole GRC0164 within the Ewoyaa North-East target; this represents a near solid 1m interval of spodumene.

"We are now working towards delivering our maiden MRE in Q1 2020. In the meantime, field teams continue to develop and advance the project portfolio with ongoing regional exploration programmes, baseline monitoring and drill site re-vegetation works."

Third Phase Drilling Programme

The Company has now completed its third phase drill programme for a total 12,669m of Reverse Circulation ('RC') in 97 holes and 350m of Diamond Drill core ('DD') in 2 holes. The Company has drilled three phases of RC and DD drilling to date for a total of 25,563m of RC in 198 holes and 1,394m of DD in 11 holes (refer RNS' of 28 August 2018, 8 October 2018, 20 November 2018 and 5 March 2019).

Results reported herewith are for the RC component of the third phase drilling programme completed at the Ewoyaa and Abonko projects, and for the first drilling programme completed at the Kaampakrom target. Assay results are pending for the DD component.

Multiple broad and high-grade drilling results were returned across the Ewoyaa and Abonko projects, and confirmed Kaampakrom as a new spodumene pegmatite discovery.

Highlight drill intersections at a 0.4% Li2O cut-off and maximum 4m of internal dilution are summarised in Table 1 below and in Figure 1, with all intersections listed in Table 2.

The newly reported drill intersections have significantly enhanced the Ewoyaa North-East target as well as adding considerable strike length to the Ewoyaa Main and Abonko targets.

The Ewoyaa North-East, Ewoyaa Main and Abonko targets delivered multiple high-grade drill intersections along strike and down dip from previously reported drilling.

Mineralisation remains open along strike and down dip at the Ewoyaa Main and Abonko targets, and down-dip at the Ewoyaa North-East target.

Visual observations from diamond drill core and RC drill chips confirms coarse spodumene as the major lithium bearing mineral which is consistent with results returned from the metallurgical test-work and visual observations from the first and second stage drill programmes.

High-grade intervals were reported at the new Kaampakrom discovery approximately 1km north of the Ewoyaa deposit. This is significant as it demonstrates exploration potential within the tenement portfolio and the presence of additional high-grade spodumene pegmatites outside of the known areas (refer Figure 1).

Drilling at the Ewoyaa West target intersected significant pegmatite intervals in each of the nine holes completed, with true widths estimated between 10m to 20m thick and dipping gently to the east. No significant lithium mineralised intervals were reported, however, anomalous intervals included 1m @ 0.79% Li2O from 50m and 1m @ 0.41% Li2O from 40m. A decision was made during the programme to reallocated meterage from Ewoyaa West towards Ewoyaa and Abonko, with approximately 500m of planned meterage not drilled.

Although no longer intervals were reported at Ewoyaa West, the presence of anomalous lithium results in the deepest intervals drilled is encouraging as they are located close to the base of oxidation and within a consistent, thick pegmatite sill that dips towards the Ewoyaa Main deposit. Additional drilling to test further down-dip has been recommended at the Ewoyaa West target; especially as the pegmatite is trending towards the Ewoyaa Main spodumene deposit.

Next Steps

The Company is compiling and reviewing all of the geological data in preparation for the MRE, whilst waiting for the remaining DD results. All the data and geological interpretations will be provided to the Competent Person for resource estimation. The Company is targeting release of the MRE for Q1 2020.

The Company will use this time wisely to advance the projects whilst maintaining field activities and managing budgets carefully. Field teams will continue to progress the exploration programmes, baseline monitoring and drill site remediation activities including re-planting.

The Company installed a water bore and piezometer for continuous ground water level monitoring alongside the weather station. The piezometer is operational and collecting valuable baseline data (refer Figure 2).

The Board is delighted with the progress that the Company has made in 2019 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.

 

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) Karl Schlobohm (Company Secretary)	Tel: [phone]
SP Angel Corporate Finance LLP Nominated Adviser Jeff Keating Charlie Bouverat	Tel: [phone]
SI Capital Limited Company Broker Nick Emerson Jon Levinson	Tel: [phone] Tel: [phone]
Yellow Jersey PR Limited Harriet Jackson Dominic Barretto Emma Becirovic	Tel: [phone]

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 earn-in 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.

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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