viewIronRidge Resources Ltd

IronRidge Resources - Corporate Update - 2020 Financial Results

RNS Number : 4114A
IronRidge Resources Limited
29 September 2020

29 September 2020


IronRidge Resources Limited


2020 Financial Results

Well Financed for Another Highly Productive and Progressive Year Ahead


IronRidge Resources Limited (AIM: IRR, "IronRidge" or the "Company"), the African focussed minerals exploration company, is pleased to announce its audited results for the year ended 30 June 2020, the full version of which can be viewed by clicking on the link below:




Financial and Corporate Highlights:


Ø Exploration and evaluation expenditure held on the balance sheet for the year ended 30 June 2020 was A$34.0 million, representing an increase of A$9.3 million over the prior year with continued exploration programmes conducted across the Company's projects in Ghana,  Côte d'Ivoire , Chad and Australia.

Ø Successful capital raisings during the financial year for approximately A$12.5 million in cash, together with the drill-for-equity arrangements implemented with GeoDrill, meant the Company was active in the field throughout the period, and in a strong financial position at year end.

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


Ø Cash position at 30 June 2020 of A$7.3 million.

Vincent Mascolo, Chief Executive Officer of IronRidge, commented:

"This year has seen sustained progress for IronRidge as we continue to make great strides in the development and exploration of our gold and lithium assets, despite global challenges.


"We were quick to implement strict COVID-19 measures, not only to ensure the safety of our staff but also to minimise disruption to our operations. I believe management chose the correct, necessary steps and all staff members adapted well to changes to working practices. I would therefore like to take this opportunity to thank them for their hard work during these challenging times.


"The Company's flagship Zaranou Gold Project continues to deliver exceptional high-grade drilling results across the project area, and with only 10% of the shear zone tested, we have great optimism for the further exploration of the Project. The third phase of our drilling programme commenced earlier this month, so we will update the market on these results in due course. We have also been pleased to note the increasing strength of the gold price over the period, which undoubtedly supports our ongoing development of the Zaranou project.


"In Ghana, we are proud to have delivered our maiden Mineral Resource Estimate for the Ewoyaa Project during the period; 14.5Mt at 1.31% Li2O. The lithium project, which is exceptionally well located, presents the Company with significant value upside and, as such, we look forward to further derisking this compelling asset. The growing worldwide demand for lithium and our acceptance into the European Battery Alliance subsequent to the reporting period, provides IronRidge with a sizeable strategic opportunity in this commodity.


"The Company's strong cash position and focus on the exploration of our African portfolio provides me with great confidence for the year ahead. We have proven our ability to add significant value to each of our projects with our exploration and development strategy, which we believe is the right one to take the Company forward. I would like to thank our loyal shareholders for their continued support and I look forward to updating the market of our progress in the year ahead."



Adding, Chairman Neil Herbert said:

"This year we continued to improve the quality of our asset portfolio through strategic exploration, along with the acquisition of several gold and lithium projects of an economic interest which have added to the impressive prospect inventory contained in the Côte d'Ivoire gold portfolio and in the Ghanaian Cape Coast lithium portfolio.


"One of the most encouraging aspects of this year's hard work has been the consistent and regular delivery of outstanding drill results at the Zaranou Gold Project in Côte d'Ivoire, which holds promise for a multi-million ounce gold resource likely to be amenable to low cost bulk open pit mining in the future.


"Notwithstanding the travel, logistical and access restrictions widely experienced this year as a result of COVID-19, IronRidge has had a highly productive year. The IronRidge teams are to be applauded for their exemplary and tireless efforts in 2019/20, which have helped advance the Company's fortunes in a difficult working environment.


"During the year, the Company raised capital from existing and new investors, and on behalf of the Board, I would like to thank all participants for their support of the Company.  This capital, together with the Company's drill-for-equity arrangements with GeoDrill, have enabled IronRidge to continue to actively explore and develop its projects at a time when many other junior industry participants have struggled to make progress.


"With drilling continuing at Zaranou, and with various other field and desk top work being undertaken across numerous other projects, I look forward to the delivery of further news over the next 12 months."


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 exploring for gold and lithium in Côte d'Ivoire, lithium in Ghana and gold in Chad.


In Côte d'Ivoire, the Company holds 3,982km2 of granted and under application gold tenure and a further 774km2 of under application lithium tenure within highly prospective Birimian terrain.


In Ghana, the Company holds 684km2 of granted and under application tenure where a 14.5Mt at 1.31% Li2O maiden Mineral Resource Estimate (reported in accordance with the JORC Code) in Indicated and Inferred status was defined at the Ewoyaa Project within close proximity to operational infrastructure.


In Chad, the Company holds 900km2 of highly prospective granted tenure where trenching has defined a 1km long by 200m wide, high-grade stacked vein gold target within a broader 3km long by 1km wide lower-grade sheeted vein gold target.


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


Operational Highlights:


Côte D'Ivoire - Gold and Lithium

Ø The Company continued exploration activities at the Zaranou gold license. Field mapping, sampling, aeromagnetics interpretation and drone imagery has defined over 47km strike of highly prospective Shear Zone with coincident alluvial gold workings along its entirety and a 16km long high-priority hard-rock artisanal mining corridor within the central portion of the license area.

Ø As reported, on 2 July 2020, the Company secured unverified historical soils and drilling data from previous explorers AngloGold Ashanti ("AGA") and Etruscan Resources ("EET"), including a data for a total of 279 Rotary Air Blast ("RAB") holes for 8,025m to a maximum depth of 50m and 186 Reverse Circulation ("RC") holes for 9,759m to a maximum depth of 80m over the Yakassé target in the extreme south-west of the Zaranou license area. Historical data includes multiple high-grade RC drill intersections at Yakassé.

Ø The Company completed a first pass exploration drill programme and announced final results on 3 February 2020 at Zaranou for a total of 7,448m of Air-Core ("AC") in 151 holes and 1,593m of RC in 10 holes along seven drill traverses over 8km strike. Drilling intersected multiple broad and high-grade intervals over the 8km strike drill tested including highlights of 6m @ 15.11g/t gold from 26m, including 2m @ 36g/t and 2m @9.29g/t, 22m @ 3.39g/t gold from 8m, including 4m @ 13.55g/t and 4m @ 3.96g/t and 6m @ 6.72g/t gold from surface, including 2m @ 15g/t and 2m @ 3.72g/t. The Company completed 800m and 400m infill line spaced soils at Zaranou across the entire 47km strike length of prospective structure and returned multiple high-priority soil anomalies for follow-up.

Ø On 28 April 2020, the Company commenced a second phase drill programme for a total of 20,312m in 404 AC holes and 2,077m in 12 RC holes at the Zaranou license, which was completed subsequent to the reporting period. Drilling focused within the Ehuasso target in the north-east of the first phase drill programme, along 160m spaced AC and RC drill traverses to test mineralisation continuity, in addition to two exploration AC drill traverses at the Ebilassokro soil anomaly.

Ø On 19 September 2019, the Company announced results for 115 AC drill holes for 3,903m of drilling completed over the Bianouan and Bodite licenses. High-grade results, including 12m @ 5.87g/t gold (including 2m @ 33.8g/t gold), 8m @ 1.29g/t gold (including 2m @ 3.17g/t gold) and 1m @ 3.13g/t gold at end of hole, were returned at Bianouan. At Bodite results returned broad, low level gold anomalism with best results including 10m @ 0.3g/t (including 2m @ 0.59g/t gold) from 12m and 22m @ 0.21g/t gold from surface. Results also returned narrow intervals, including 2m @ 9.01g/t gold from 32m and 2m @ 2.74g/t gold from 14m.

Ø On 2 March 2020, the Company announced the 100% acquisition of the Bodite and Bianouan Gold licenses from Major Star SA.

Ø At Vavoua, auger drilling commenced over high priority coincident geochemical and geophysical targets. Southern Geoscience Consultants of Perth, Western Australia completed detailed litho-structural interpretation, which in-conjunction with field mapping and sampling results, defined 14 targets of which four are Priority one targets.

Ø On 1 July 2020 the Company announced it had completed the acquisition of 100% of the share capital of CAPRI Metals SARL ("CAPRI"), providing IronRidge with full ownership of the Gboguhe license in the south of the Vavoua portfolio.

Ø At Kineta, the Company reported on 1 July 2019 multiple narrow gold intersections in trenching at a 0.12g/t gold cut-off with maximum 2m of internal dilution, including 2m @ 4.04g/t gold and 6m @ 0.24g/t gold.

Ø At Marahui, the Company reported on 1 July 2019,  a total of 5,129 soil samples, including QA/QC samples, were collected on initial 400m x 25m spaced lines and subsequently infilled to 200m and 100m line spacing across prospective trends.

Ghana - Lithium

Ø The Company continued to advance the Ewoyaa Project within the broader 684km2 Cape Coast Lithium portfolio.

Ø On 12 December 2019, the Company completed its third phase 12,669m RC drilling programme and 350m diamond core ("DD") drilling programme at the Ewoyaa, Abonko and Kaampakrom projects, collectively the Ewoyaa Project.

Ø On 28 January 2020, the Company announced a 14.5Mt at 1.31% Li2O maiden Mineral Resource estimate (reported in accordance with the JORC Code) in Indicated and Inferred status at the Ewoyaa Project.

Ø On 12 March 2020, the Company entered into agreement with Joy Transporters Ltd ("Joy Transporters") for the acquisition of 100% of the share capital of Joy Transporters giving IronRidge full ownership of the Saltpond license and Cape Coast application.

Ø On 30 June 2020, the Company announced that its wholly owned Ghanaian entity Green Metals Resources Limited was granted the Mankessim South exploration license, providing full ownership of a contiguous prospective lithium exploration license adjacent to the Ewoyaa Project.

Ø The Company continued to engage Ghanaian consultancy NEMAS for baseline studies over the project area and received a draft copy report of the wet season environmental and social baseline studies completed. Dry season baseline studies are now underway.

Ø The Company completed bulk sample test-work and delivered a high-grade spodumene concentrate at 6.29% Li2O with low level contaminants using gravity separation.

Ø The concentrate produced was sent to Australia's Nuclear Science and Technology Organisation (ANSTO) for preliminary battery grade conversion test-work, from which battery grade 99.92% lithium carbonate and 56.5% lithium hydroxide monohydrate were successfully formed.

Chad - Gold

Ø At the Dorothe target, six coherent, large-scale high-priority gold anomalies have been defined in trenching within the steep east dipping 'Main Vein' target and shallow west dipping 'Sheeted Vein' targets with multiple broad, high-grade trenching intersections at a 0.4g/t gold cut-off and maximum 4m dilution including highlights of  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.

Ø A ground based Induced Polarization ('IP') geophysical survey was conducted over the Dorothe prospect which defined a high priority 1km long low resistivity with coincident chargeability anomaly over the Main Vein target zone.

Post Period End Highlights:


Ø At Zaranou, subsequent to the reporting period, multiple drill intersections were returned from the second phase drill programme at a 0.1g/t cut-off and maximum 1m of internal dilution (with remaining results pending for the programme).

Ø A third phase drilling programme commenced in September 2020 with approximately 20,000m of infill RC resource drilling planned at the 1.7km long Ehuasso Main target, and approximately 30,000m of exploration AC drilling planned at the Ebilassokro, Yakassé, M'Basso and Coffee Bean/Super pit targets at broad 160m spaced AC drill traverses, to be completed by end Q4 2020.

Ø Subsequent to the reporting period, in August 2020 the Company was accepted as a member of the European Battery Alliance ("EBA250"); an organisation committed to driving a competitive and sustainable battery industry in Europe by 2025. The EBA250 network brings together interested stakeholders, industry specialists and participants from both the public and private sectors; a collaboration of more than 400 participants across the European Union's ("EU") battery value chain.

Ø On 14 September 2020, the Company announced that it had entered into a binding agreement with Australasian Gold Limited ("AGL") for the sale of the Company's non-core May Queen gold project in South East Queensland, Australia.


Competent Person Statement:


Information in this report relating to the exploration results is based on data reviewed by Mr Lennard Kolff (MEcon. Geol., 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.


Information in this report relating to metallurgical results is based on data reviewed by Mr Noel O'Brien, Director of Trinol Pty Ltd. Mr O'Brien is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Mr O'Brien consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears.


Information in this report relating to Mineral Resources was compiled by Shaun Searle, a Member of the Australian Institute of Geoscientists.  Mr Searle has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Searle is a director of Ashmore. Ashmore and the Competent Person are independent of the Company and other than being paid fees for services in compiling this report, neither has any financial interest (direct or contingent) in the Company.



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)

Karl Schlobohm (Company Secretary)


Tel: +61 7 3303 0610



SP Angel Corporate Finance LLP

Nominated Adviser

Jeff Keating

Charlie Bouverat

Tel: +4 (0)20 3470 0470



SI Capital Limited

Company Broker

Nick Emerson

Jon Levinson

Tel: +44 (0) 1483 413 500

Tel: +44 (0) 207 871 4038



Yellow Jersey PR Limited

Henry Wilkinson

Dominic Barretto

Matthew McHale 



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 Côte 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.


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 3,982km2 and 774km2 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. The Company's most advanced project is the Zaranou gold project which includes high-grade gold drilling intersections along 8km strike including 6m @ 6.44g/t gold from 132m, 6m @ 15.11g/t gold from 26m, 4m @ 5.16g/t gold from 110m and 22m @ 3.39g/t gold from 8m within a broader 47km long gold anomalous structure.



The Cape Coast Lithium portfolio covers some 684km2 and includes the newly discovered Ewoyaa Lithium Project with a maiden Mineral Resource estimate of 14.5Mt at 1.31% Li2O in the inferred and indicated category including 4.5Mt @ 1.39% Li2O in the indicated category (reported in accordance with the JORC Code). 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 tenure package is also 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.



Monogorilby is prospective for 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.



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.


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