IronRidge Resources* (LON:IRR) 35p, Mkt Cap £85m – IronRidge raises £8.25m for development of gold and lithium portfolio
• IronRidge Resources has raised £8.25m in a subscription and placing at 35p representing a premium to the share price on 29 June.
• The subscription of 20.7m shares was supported by Sumitomo Corporation of Japan, Assore Limited of South Africa and DGR Global of Australia as well as Nick Mather, Chairman and Vincent Mascolo, CEO in addition to a number of existing shareholders.
• The company also placed 2.9m new shares with a number of new shareholders.
• The company will have 241.8m shares following the placing.
• IronRidge has come on allot since its original listing taking on new licenses and assets across Africa.
• Strong ongoing support from major names in the mineral industry gives credence to management’s strategy to develop a portfolio of projects ranging from gold to lithium, iron ore and bauxite.
• The most exciting of these assets are the gold projects in Chad, where little Western-style exploration has been done outside the oil & gas industry, and the lithium assets in Ghana where an historic hard-rock pegmatite field has been rediscovered.
Chad (Tekton Gold 100%)
• Tekton holds a total of 5 exploration permits covering approximately 1000 sq km in the Quaddai Province in Chad.
• We are currently waiting on results from samples taken from trenching on the Dorothe and Echbara licence areas. These licenses hold extensive artisanal workings in soft unconsolidated material. The implication is that gold grades continue into the unmined hard rock at very little depth. The extent of the artisanal workings indicates potential for a very large and potential million ounce gold deposit underneath.
• Exploration work suggests an Intrusion Related Gold System (“IRGS”) with the Ouaddaï Province potentially representing a metallogenic belt with possible analogy to the world class Tintina Gold system.
• Dorothe: previous sampling shows 14.12g/t of gold over 4m, 16m at 3.1g/t, 6m at 9.5g/t and 1m @ 63.2g/t Au,
• Grades up to 103g/t, 99.6g/t and 94.5g/t in rock chips
• Echbara: shows 58m at 1.31g/t Au and 30m at 1.25g/t Au over a 2km long 100ppb to 300ppb gold in soil anomaly,
• Am Ouchar: extensive artisanal gold workings over approximately 250m of strike length in addition to historic trench results including 20m @ 6.8g/t,
• Nabagay: ~25km north of Dorothe and considered highly prospective for gold mineralisation.
Ghana (Cape Coast Lithium project agreement to acquire up to 100%)
• IronRidge has a potential near-term development opportunity in Ghana. The project has the historic Egyasaminku Hill Lithium resource which may prove to be an underestimation in terms of scale and lithium grade. This project could more than justify the valuation of the company if check drilling confirms the resource and the value of developing the project. The Ghana Geological Survey defined a non-JORC compliant resource of 1.48mt at an average grade of 1.66% Li2O in 1962.
• A more recent 40m wide trench intersection at an average grade of 1.93% lithium oxide which includes a higher grade section of 15m at an average grade of 2.18%.
• Initial sampling and trenching work has identified up to 100m wide outcrops of lithium bearing pegmatites with grades in excess of 1.5% lithium oxide.
Ivory Coast (gold)
• In partnership with Eburnea Gold Resources and Kestrel Mining Exploration over the Marahui, Kineta and Bouna licence applications in the north-east of Ivory Coast.
• The licence areas cover 75 km of a prospective north-south trending gold bearing shear zone along strike from Centamin’s 3.3moz Konkera deposit and Azumah’s 2.2moz Wa-Lawra deposit.
• Recent results include rock chip assays of 35.1g/t, 32g/t,27.4g/t and 27.3g/t gold over an area measuring 400m x 100m within the Marahui licence.
• IronRidge now holds some 3,510sq km of licenses in the Ivory Coast straddling over 70 km of a belt of Birimian age rocks which host multiple +Moz operating gold mines.
• Kineta North (100%): The Kineta North appears to be located on the same structural shear as the Wa 2.2moz and Konkera 3.3moz which is now held by Centamin.
• Bianouan (100%): lies at the south-western extension of a structural setting which hosts the Ahafo 23moz, Bibiani, 7Moz and Chirano 5moz.
• Bodite (100%): gold seen in Birimian metasediments where thicker turbidite rocks are intruded by more fractionated granitic intrusives.
• In addition to these projects IronRidge also hold the Vavoua, Vavoua South and Gboguhue portfolio in the west of the country which straddles the strike extensions of a 700,000oz (JORC compliant resource).
Australia (gold, copper and bauxite)
• May Queen Prospect intersections of 4m at 38.8g/t (at end of hole), 3m at 18.9g/t, 2m at 73.4g/t and 1m at 145g/t.
• Drilling results showed short high grade gold intersections along the contact zone and in close proximity to the porphyry dykes. Copper-gold was intersected in the NE of the target (1m at 1.3% Cu and 0.62g/t).
• The company drilled eight Reverse Circulation holes for a total of 567m
• 2m @ 13.5 g/t Au in hole MQN5
• 3m @ 6.95 g/t Au in MQN5
• 3m @ 2.58 g/t Au in MQN6
• 1m @ 0.62 g/t Au & 1.3% Cu in MQN2
• These are good gold grades with a particularly interesting copper grade in the last hole though they are over relatively short intersections at present
• Bauxite: IronRidge also has a maiden JORC compliant bauxite resource of 54.9mt grading 37.5% total Al and 8.5% total Si.
Gabon (iron ore)
• Tchibanga iron ore: average 45.2% Fe close to the coast with low capex to start production if sufficient tonnage is proven. The iron ore varies in thickness from 2-10m.
• Belinga Sud (100%): lies directly along strike from the huge Belinga iron ore deposit which contains a non-JORC resource of 860mt of high-grade 63% Fe. This is one of the world’s major undeveloped high-grade iron ore deposits. Belinga Sud appears to show an average 40-55% Fe with moderate continants in the rock.
Conclusion: IronRidge is closing in on significant potential for a >1moz gold discovery in Chad and a potential near-term development project in Ghana. Other projects in the Ivory Coast and in Australia show good potential for value.
*SP Angel act as Nomad and Broker to IronRidge Resources