viewIronRidge Resources Ltd

IronRidge Resources - Final Results

RNS Number : 1234O
IronRidge Resources Limited
30 September 2019

30 September 2019


IronRidge Resources Limited


2019 Financial Results


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 2019, the full version of which can be viewed by clicking on the link below:




Financial and Corporate Highlights:


Ø Exploration and evaluation expenditure for the year ended 30 June 2019 was A$24.7 million representing an increase of A$8.3 million over the prior year with continued exploration programs conducted across the Company's projects in Ghana, Ivory Coast, Chad and Australia.

Ø Grant of 29.75 million share options and 12.15 million performance rights as incentives to Directors and management

Ø Cash position at 30 June 2019 of A$6.7 million


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


"It has been another productive year for the Company, during which we continued to mature and grow our project base, particularly in Africa.


The Company is pleased with the progress it continues to make in relation to its African gold and lithium projects.  The continued exploration and drilling of our Ewoyaa Lithium Project in Ghana has delivered favourable lithium grades, and the metallurgical testwork has demonstrated that the project can deliver a premium lithium concentrate product.  Furthermore, the project is well located with excellent local infrastructure including pave roadways, power and a port facility.


Another highlight of the past year for me has been the successful acquisition of the Zaranou Gold Project in Cote d'Ivoire.  The project is located approximately 200km north-east of the capital of Abidjan, covers approximately 400km2 of highly prospective Birimian geology, and is in proximity to major multi-million ounce gold mines across the border in Ghana.  Preliminary work has started on the project in preparation for drill testing.

Additionally, the US$4m drilling for equity program entered into with GeoDrill, one of West Africa's premier drilling contractors, is a resounding endorsement of the IronRidge exploration business model, our commodity and jurisdictional portfolios and the team.


I am pleased with the progress the Company continues to make across its project portfolio, and I am confident that we have an exciting year ahead of us.  I look forward to sharing news of developments with shareholders and interested investors."



Chairman's Statement from Neil Herbert:


"Over the last year the management team have made significant advances with our projects in Africa, demonstrating the potential for our strategically located high-grade Ghanaian lithium project to deliver a premium lithium concentrate while also seizing the opportunity to acquire a major new high-grade gold discovery in Cote d'Ivoire.  In summary:


Ø At Ewoyaa in Ghana, lithium exploration results established the existence of high-grade spodumene mineralization within the pegmatite formations encountered over a wide area.  The Ewoyaa Project is ideally located within 1km of a bitumen highway, adjacent to grid power, and within 100km of the operating deep-sea port at Takoradi.  Drilling is ongoing across the broader project area.  Independent metallurgical testing undertaken have provided highly encouraging results to date, and has demonstrated that Ewoyaa can deliver a premium lithium concentrate product with low level contaminants using simple gravity beneficiation on a coarse crush.


Ø In Cote d'Ivoire, the Company secured the 400km2 Zaranou Gold Project, itself a potential company-making asset.  As a result of preliminary exploration work, IronRidge geologists have identified a 9.8km strike length high-priority target zone defined with coincident high-grade gold results, extensive hard-rock artisanal mining sites and favourable geology.  The Company is currently undertaking a high-resolution drone survey and follow-up field mapping, and is preparing for the commencement of an air core drill program in October 2019.


Ø In Chad, IronRidge continued its trenching program, identifying a number of large-scale high priority gold anomalies within the Dorothe Gold Project area.


Ø In August 2019 the Company entered into a Memorandum of Understanding with drilling contractor GeoDrill for up to USD4m in drilling to deliver up to 40,000m of drilling across IronRidge's portfolio of projects.  As a result of an approval granted by shareholders, the Company now has the capacity to issue up to 15% of its share capital for non-cash consideration purposes for value adding contracts such as this.  This initiative will allow IronRidge to continue to advance the exploration of its projects in Ghana and Côte d'Ivoire, whilst maintaining cash resources and benefiting from GeoDrill's extensive experience operating throughout West Africa.


This is an exciting time for IronRidge and I would like to take this opportunity to thank the Company's Board, its executive team, the invaluable management personnel we have advancing our interests in Africa, and the small team at the Company's head office for their continued hard work and dedication.  I would also like to thank you, our loyal shareholders, for providing the funding and support to facilitate the ongoing delivery of the Company's objectives.


The Company's Board and management remain committed to the corporate strategy of creating and sustaining shareholder value through the discovery and advancement of our significant mineral deposits of globally demanded commodities through to production or onward sale.  We look forward to keeping investors up to date as we advance both our ongoing drilling programmes and our corporate initiatives."


IronRidge Project Portfolio Summary:


IronRidge is a multi-commodity mineral exploration and development company with assets in Africa and Australia. In Africa, the Company is currently exploring for lithium in Ghana - West Africa, gold and lithium in Côte d'Ivoire - West Africa and gold in Chad - Central Africa.


In Ghana the Company holds 684km2 of granted and under application tenure through direct applications and Earn-In Agreements where it has intersected high grade lithium pegmatites in drilling within proximity to operational infrastructure corridors.


In Côte d'Ivoire the Company holds 3,584km2 of granted and under application gold tenure through Earn-In Agreements and a further 1,172km2 of under application lithium tenure through direct applications and Earn-In Agreements within the highly prospective Birimian terrain.


In Chad the Company holds 900km2 of highly prospective granted tenure where trenching has defined broad, high-grade zones of gold mineralization and structural repetitions.


In Australia, the Company holds 704km2 of granted tenure in south-eastern Queensland, where it is exploring for bauxite, titania, and gold within its 100% owned Monogorilby and May Queen Project areas where a Maiden bauxite (JORC) Resource of 54.9Mt @ 37.5% total Al and 8.5% total Si has been defined.


The Company holds 3,396km2 of iron ore tenure renewals and applications in Gabon, West Africa.


IronRidge's corporate strategy is to create and sustain shareholder value through the discovery and evaluation of significant mineral deposits of globally demanded commodities and continues to advance its project portfolio across the jurisdictions it works in as well as the ongoing review of new opportunities.



Figure 1: Global project country locations and targeted commodities.


Further details of the project portfolio and specifically the progress made during the period can be found within the Operations Report in the Annual Report, available by clicking the link above.



Operational Highlights:


Ghana - Lithium


Ø During the period, the Company completed its first phase 8,210m, second phase 4,684m reverse circulation ('RC') drilling and 1,000m diamond core ('DD') drilling programme at the Ewoyaa and Abonko projects, part of its Cape Coast Lithium portfolio.


Ø Multiple broad, high-grade drill intersections were returned at a 0.5% Li2O cut-off and maximum 10m (Phase 1) or 4m (Phase 2) of internal dilution including 128m @ 1.21% Li2O from 3m in hole GRC0004, 111m @ 1.35% Li2O from 37m in hole GRC0027, 80m @ 1.52% Li2O from surface in hole GRC0081, 56m @ 1.71% Li2O from 48m in GRC0034, 72m @ 1.27% Li2O from 24m in GRC0048, 45m @ 1.57% Li2O from 70m in GRC0042 and 45m @ 1.51% Li2O from 41m in GRC0039.


Ø Preliminary metallurgical testwork of the Ewoyaa material has been carried out at NAGROM Laboratories in Perth, Western Australia.  A 54kg P1 bulk sample composite at 1.68% Li2O head-grade was generated from the initial test-work samples for pilot scale DMS100 gravity test-work.  The testwork results were favourable, and this represents a significant step closer in the demonstration of the amenability of the Ewoyaa type P1 mineralisation to beneficiate to a high-grade and clean concentrate via a simple gravity process flowsheet using industry standard crushing, screening and cyclone technology.


Chad - Gold


Ø During the annual period, the Company reported trenching results at 200m spacing for the second phase 9,360m infill programme at Dorothe.  Multiple broad, high-grade trenching intersections were returned at a 0.4g/t gold cut-off and maximum 4m dilution including highlights 84m @ 1.66g/t*, 4m @ 18.77g/t, 32m @ 2.02g/t, 24m @ 2.53g/t, 12m @ 2.32g/t and 4m @ 5.27g/t gold. All reported drill intersections are included in Figure 6.


Ø Six coherent, large-scale high-priority gold anomalies were interpreted in trenching results received to date with observations from geological logging, structural mapping and airborne magnetics defining two broad target types; steeply east dipping 'Main Vein' target and shallow west dipping 'Sheeted Vein' targets.


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


Cote D'Ivoire - Gold and Lithium


Ø At the Kineta Gold Project a total of 3,392 soil samples were collected on a 400m x 50m and infill 200m x 50m grid over an 11 x 4.5km area as part of the first phase soil programme over the Kineta license in the north-east of the Country.  Results defined a broad 7km long by 1.5km wide anomalous gold corridor at >30ppb up to 3.7g/t gold with coincident artisanal workings.

Ø At the Bianouan Gold Project broad trenching intervals of 47m @ 0.16g/t (including 14m @ 0.23g/t Au), 7m @ 0.18g/t and 4m @ 0.21g/t at the Ketesso target and 11m @ 0.7g/t, 9m @ 0.16g/t, 1m @ 1.1g/t, 3m @ 0.14g/t and 1m @ 0.42g/t at a 0.15g/t Au cut-off with maximum 2m of internal dilution were returned at the Yaw target. No significant results were returned from the 19 pits completed

Ø The Company completed acquisition of 100% of the share capital of each of Marlin Minerals SARL, Booster Minerals SARL and CAPRI Metals SARL (collectively the "Vavoua Gold Projects"), which gives IronRidge full ownership of this portfolio.  The Company announced on 18 April 2017, 28 March 2017 and 12 April 2017 that it had entered into Earn in arrangement with Bluefin, Major Star and Enchi Proci respectively, under which IronRidge had rights to acquire 100% of the projects with each entity maintaining a residual NSR of 2.5% of which 40% to 50% can be acquired for between US$2.5m to US$3m at any time.

Ø The Company entered into a binding agreement with GeoServices Cote d'Ivoire SA ("GS") and Atlas Resources SARL ("AR") jointly, whereby IronRidge has the option to acquire up to 100% of the Zaranou Gold Project through staged earn in arrangements and expenditure to Feasibility Study subject to each company retaining an aggregate net smelter royalty, ("NSR") of 2.5% of which 50% may be acquired for US$4 million. IRR has the right to make milestone payments in shares and/or cash.


Post Period-End Highlights:


In August 2019 the Company entered into a Memorandum of Understanding for drilling for equity with drilling contractor GeoDrill Limited.  The agreement is based on competitive quotation process and provides for the issue of ordinary shares in IronRidge for 50% of the drilling cost up to a value of US$4 million two US$2 million stages.


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: +61 7 3303 0610

Karl Schlobohm (Company Secretary)




SP Angel Corporate Finance LLP

Tel: +44 (0)20 3470 0470

Nominated Adviser and Broker


Jeff Keating

Charlie Bouverat


Yellow Jersey PR Limited

Harriet Jackson

Felicity Winkles





 Tel: +44 (0)20 3004 9512



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.



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.



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.



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.



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.



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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

Quick facts: IronRidge Resources Ltd

Price: 11.45

Market: AIM
Market Cap: £38.36 m

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...



Morning Report: SDX Energy’s OYF-2 well in Morocco hits commercial gas...

Headlines from the Proactive UK newsroom. SDX Energy’s (LON:SDX) OYF-2 well in Morocco has encountered commercial quantities of gas in excess of pre-drill estimates. The discovery also confirmed the company's core productive area extends to the north. Avacta (LON:AVCT) has demonstrated...

3 weeks, 2 days ago