Shares in Ironridge Resources Limited (LON:IRR) surged on Thursday after the metals explorer confirmed it is expanding its footprint in the Ivory Coast by taking on three exclusive gold applications in the West African country.
The company’s partnership with Eburnea Gold Resources and Kestrel Mining Exploration is now unconditional.
It gives the company exposure to 1,200 square kilometres, including some 75 kilometres of strike length along a significant mineralised structure that’s known to host multi-million ounce gold projects nearby.
''Our enlarged gold portfolio is highly prospective and securing these additional gold applications demonstrates our commitment to the Ivory Coast and highlights the upside potential we see in this region,” said Vincent Mascolo, Ironridge chief executive.
“We look forward to providing further updates on our progress as we look to strengthen our footprint in the Ivory Coast."
The conclusion of the partnership follows a successful phase of technical due diligence programme that included 199 soil samples, 67 rock chip samples and 37 auger drill holes.
It is now anticipated that the partners will lobby the Ministry of Mines to convert the application areas to granted mineral exploration licenses, ahead of a new field programme.
Early stage results have been "encouraging", says City broker SP Angel
"The confirmation of IronRidge’s agreements over the Marahui, Kineta and Bouna licence application areas underlines the company’s commitment to exploration in Ivory Coast,” said SP Angel analyst John Meyer.
“The decision to defer field programmes on the licence areas until the applications are confirmed as granted seems prudent and although the results so far are largely from very early stage rock-chip and soil sampling programmes, the results have been encouraging and the structural setting along strike from substantial discoveries by other companies underline the prospectivity of the targets.”
Shares were up 8% to 43p shortly before close on Thursday afternoon.
--Updates for share price and broker comment--