IronRidge Resources Limited (LON:IRR) is to take a stake in Tekton Mineral, giving it exclusive rights to a major new gold discovery in Chad.
IronRidge will pay up to US$3.5mln for a 58% stake in Tekton, securing it control of the company and giving it the first shot at several highly prospective, province-scale, gold mineralised belts.
IronRidge said little or no modern-day exploration has been done on these assets, which have been largely forgotten due to Chad's historical oil exploration and production focus.
Tekton has secured exploration rights over 1,400 square kilometres of land in the Ouaddaï Province of the Saharan Metacraton. Work to date indicates the potential for several multi-million ounce gold discoveries within the Ouaddaï province alone.
As well as acquiring the rights to the land, IronRidge is welcoming the Tekton team on board, described by IronRidge chief executive Vincent Mascolo as a “world-class management team”.
“Tekton brings with it a highly professional and experienced team with a proven track record in geological target generation and development, government relations, logistics and security,” Mascolo said.
"The team's expertise has been fostered over decades of experience in the major and junior arena and in particular within Francophone West and Central Africa,” he added,
Tekton has extensive in-country exploration, logistics and government relations expertise, with experienced and committed teams in place and demonstrated highly skilled francophone African expertise, IronRidge told investors.
More than two years of comprehensive exploration work has been completed to date by Tekton. Multiple high-priority gold targets have been defined within the Dorothe, Echbara and Am Ouchar licences, including one drill ready target defined at Dorothe and additional untested lithium, graphite, base metal and uranium targets within the licence portfolio.
In excess of 116 rock chip samples and 302 trench samples have been collected at the Dorothe prospect to date, of which 40% of the rock chips and 28% of the trench samples have grades greater than 0.5 grams per tonne (g/t) gold, or Au, and up to 103 g/t Au over an area greater than three square kilometres.
Trenching results at Dorothe, including 14.12 g/t Au over four metres (m), 34.1 g/t over 2m and 63.2 g/t over 1m, have defined significant gold mineralised quartz veining over a confirmed 1km strike at an average of 2m.
Gold nuggets up to one centimetre in width, including gold in quartz-vein material and disseminated gold, have been observed in the project areas.
As a bonus, kilometre scale lithium and graphite anomalies have also been defined within the project portfolio.
"Chad represents a highly prospective, under-explored destination for minerals with obvious gold endowment, largely forgotten due to the focus on oil, with an attractive mining code and investment framework where major oil companies (including Total, Chevron and Glencore) have been operating for decades,” IronRidge’s chief executive officer said.
The shares rose 11.5% to 17p on the news in early deals.
More to follow ...