TIDMIRR
RNS Number : 0056N
IronRidge Resources Limited
20 October 2016
20 October 2016
Additional Highly Prospective Lithium Tenement Secured in Ghana,
West Africa
IronRidge Resources Limited (AIM: IRR, 'IronRidge' or the
'Company') is pleased to announce the acquisition of an additional
highly prospective 'hard-rock' lithium pegmatite license in Ghana,
West Africa.
HIGHLIGHTS:
Ø Highly prospective license covering multiple lithium bearing
pegmatite vein swarms secured.
Ø License is adjacent to the Company's existing lithium project
portfolio.
Ø License covers a 76km(2) area of highly prospective geology
with outcropping lithium bearing pegmatites.
Ø Historic reports of eight (8) lithium bearing pegmatites
within the license area between 350ft to 560ft strike length, 30ft
to 80ft width and 0.5- 2.2% Li(2) O grade from mapping and bulk
sampling by the Ghana Geological Survey.
Ø Multiple untested pegmatite occurrences identified including
lithium, tin, tantalum, niobium and beryllium targets throughout
the license and project area.
Ø License adjacent to the coast and within 100km of the capital
city Accra; excellent infrastructure, logistics and services
support for potential rapid development.
Ø Global demand for lithium is increasing at an unprecedented
rate.
Reference to figures and tables relate to the version of this
release on the Company's website (www.ironridgeresources.com.au) or
visible in PDF format by clicking the link below:
http://www.rns-pdf.londonstockexchange.com/rns/0056N_-2016-10-20.pdf
Commenting on the Company's latest progress, Vincent Mascolo,
Chief Executive Officer of IronRidge, said:
"This acquisition further consolidates our West African lithium
portfolio and strategy.
"We see enormous potential in supplying the growing energy
industry with lithium. Securing the remaining area of interest
directly complements our recent acquisition activity in this space
in Ghana.
"The asset presents a strategic opportunity that consolidates
and covers resource scale potential, simple mineralogy and
proximity to infrastructure in a mining-friendly jurisdiction of
Ghana. We believe this endorses the potential for the project(s)
success as a first quartile cost producer, with low capital
expenditure requirements and a simple mining and treatment
process."
Project Area and Geology
The project area is located on the southern margin of the Cape
Coast Batholith, a major 100km x 200km granitic intrusive complex
occurring along the southern-central coastline of Ghana and part of
the West African shield. A window of older Birimian metasediments
is surrounded by the batholith and occurs along the intrusive
contact; possibly representing a roof pendent of older
metasediments underlain by granitic intrusives.
Smaller kilometre scale, more fractionated granitic intrusive
bosses occur within the metasediments and are spatially associated
with pegmatitic vein swarms. These intrusive bodies are believed to
be the more fractionated end-members, and accordingly represent
more prospective zones for lithium rich pegmatites.
The outcropping pegmatites are characterised by coarse
crystalline spodumene (a lithium rich pyroxene mineral and the
preferred feedstock of hard-rock lithium mining projects) in
addition to lepidolite (a lithium rich mica mineral), from which
lithium may be leached to precipitate a lithium carbonate product.
In addition to lithium, the licenses are also prospective for tin,
tantalum, niobium, beryllium and gold which occur as accessory
minerals within the pegmatites and host formations.
Historic work completed by the Ghana Geological Survey during
the late 80's and early 90's, identified eight (8) lithium bearing
pegmatites within the license area. Mapping and bulk sampling
completed by the Ghana Geological Survey indicates the pegmatites
are between 350ft to 560ft strike, 30ft to 80ft width and average
0.5% to 2.2% Li(2) O grade.
Pegmatites appear to be associated with kilometre scale
microgranite bosses within the license area. Significant
exploration potential exists along strike, within the pegmatite
vein swarm trend.
Key Financial Terms
The Company has entered into an Agreement with Barari
Developments Limited ("BDL") of Ghana, West Africa, under which
IronRidge can acquire up to 100% of the project through staged
earn-in arrangements and expenditure to Feasibility Study within a
4-year period. Barari Developments Limited will retain a Net
Smelter Return Royalty ("NSR") of 2% of which 50% may be acquired
for US$2m at any stage. Funding will be used to undertake further
exploration work and, pending results, define a maiden resource and
complete project studies.
Completion of the Investment is subject to certain conditions
being met by the Company and Barari Developments Limited,
principally in relation to completion of satisfactory Due Diligence
by IronRidge over the next three months.
IronRidge shall be responsible for maintaining the Properties
during this agreement and up to the completion of the Feasibility
Study.
Summary of Key Earn-in and Joint Venture Terms
-- IronRidge to establish a Special Purpose Vehicle (SPV), IronRidge (100%).
-- Satisfied completion of Due Diligence - US$50,000 to BDL by IronRidge.
-- Asset Transfer Fee - US$50,000, BDL earn 20% of the SPV by IronRidge.
-- Commencement of a Scoping Study Fee - US$50,000, IronRidge earn to 85% total of the SPV.
-- Commencement of Pre-Feasibility Study - US$150,000, IronRidge earn to 90% total of the SPV.
-- Commencement of Feasibility Study - US$200,000 IronRidge earn
to 95% total of the SPV at this point BDL can either co-contribute
or dilute down to a NSR of 2% at which time IronRidge will have
earned 100% of the SPV.
Lithium Outlook
Global demand for lithium is increasing at an unprecedented rate
since the emergence of consumer electronics, the electric vehicle
and energy storage markets, driven by a desire to reduce carbon
emissions and improve efficiencies.
In its purified form, lithium (Li) possesses some unique
characteristics. It is the lightest of all metals, has a high
electrochemical potential with an exceptionally small ionic radius
and therefore exceptionally high charge to radius ratio. These
unique characteristics make it ideal for use in lightweight,
rechargeable batteries currently seeing rampant growth in global
demand.
Lithium and its compounds have several industrial, medicinal and
biological applications, including heat-resistant glass and
ceramics, lithium grease lubricants, flux additives for iron, steel
and aluminum production, lithium and lithium-ion batteries, mental
health treatment and bacteriostatic properties. These uses consume
more than three quarters of lithium production.
Commentary from industry experts suggests lithium consumption
will increase significantly over the coming years, especially due
to increasing global battery demand.
The Board is delighted with the progress that the Company has
made in 2016 and looks forward to keeping shareholders updated as
further news becomes available.
For any further information please contact:
IronRidge Resources Limited
Vincent Mascolo (Chief Tel: +61 7 3303
Executive Officer) 0610
Nicholas Mather (Executive Tel: +61 7 3303
Chairman) 0610
SP Angel Corporate Finance Tel: +44 (0)20
LLP 3470 0470
Nominated Adviser and
Broker
Jeff Keating
Yellow Jersey PR Limited
Dominic Barretto Tel: +44 (0)7768
Aidan Stanley 537 739
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 3,396km(2) 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.
Chad
The Company entered into an agreement with Tekton Minerals Pte
Ltd of Singapore concerning its portfolio covering 1,400km(2) of
highly prospective gold and other mineral projects in Chad, Central
Africa. Under the terms of the agreement, IronRidge will acquire an
initial 60% of Tekton, including its projects and team, to advance
the Dorothe, Echbara and Am Ouchar licenses, which host multiple,
potentially nation-building 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 up to 200m
wide with new hard-rock artisanal workings potentially extending
strike to >3km.
Ghana
The Company entered into a joint venture arrangement with Obotan
Minerals Limited and Merlink Resources Limited of Ghana, West
Africa, securing the first access rights to acquire the historical
Egyasimanku Hill spodumene rich lithium resource estimate to be in
the order of 1.48Mt at 1.67% Li(2) O. The portfolio covers some
238km(2) with a further identified 10km pegmatite swarmed veins,
tenure package is also highly prospective for tin, tantalum,
niobium and gold which occur as accessory minerals within the
pegmatites and host formations.
Ivory Coast
The Company entered into a joint venture arrangement with Enchi
ProCI SA of the Ivory Coast, West Africa, securing the first access
to highly prospective multiple untested pegmatite occurrences. The
project area covers some 400km(2) with further identified outcrops
some 25km apart along the interpreted trend. The project is well
located within 75km of the capital Abidjan and has excellent
infrastructure, logistics and services support for potential rapid
development.
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 to the London Stock Exchange on 12 February 2015
(Ticker Code IRR) and currently has 236,612,203 shares and
14,770,000 unlisted options on issue.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCAKKDQQBDKCKB
(END) Dow Jones Newswires
October 20, 2016 02:00 ET (06:00 GMT)
Atlantic Lithium (LSE:ALL)
Historical Stock Chart
From Apr 2024 to May 2024
Atlantic Lithium (LSE:ALL)
Historical Stock Chart
From May 2023 to May 2024