IronRidge Resources Limited (AIM: IRR, ‘IronRidge’ or the ‘Company’) is pleased to announce that it has signed a Joint Venture Agreement (‘JVA’) with Gail Exploration SA (‘Gail’), a local Ivorian exploration company.
The Agreement grants IronRidge exclusive rights over a granted license prospective for gold (the ‘Project’) in Côte d’Ivoire, West Africa. The signing of the Heads of terms in respect of the JVA was announced on 24 November 2016.
Ø Gail executes an earn-in agreement following successful completion of due diligence by IronRidge
Ø Company secures access rights to a granted license covering 385km2
Ø High-grade rock chip sampling results of up to 46.4g/t gold; hard-rock artisanal workings defined over 1.2km strike length within the newly acquired license, occurring within a broader 12km strike target corridor of anomalous gold rock chips and artisanal workings
Ø Contiguous to 3 existing applications previously secured by the Company and providing access to over 70km strike of highly prospective geology
Ø Good access via sealed bitumen road and well-established infrastructure, electricity and communications
Ø Côte d’Ivoire represents an underexplored and highly prospective gold-rich terrain within the prolific West African Birimian Greenstone sequence, with a diversified economy and pro-mining investment framework
Reference to figures and tables relate to the version of this release on the Company’s website (www.ironridgeresources.com.au) or visible in PDF format by clicking the link below:
Commenting on the Company’s latest progress, Vincent Mascolo, Chief Executive Officer of IronRidge, said:
“Securing the Gail license has been one of the key strategic priorities for the Company. It represents a valuable addition in consolidating our position along the prospective Wa-Lawra (2.2Moz Au) – Konkera (3.3Moz Au) shear corridor.
We are pleased to have secured and finalised this agreement, as we see enormous potential in this area and consider it as a spectacular strategic opportunity for the company. We look forward to successfully working with Gail to commence field work on this granted license.
We believe that Côte d’Ivoire represents a hugely prospective and supportive jurisdiction with pro-mining investment framework.”
The Gail Kineta North license covers 365km2 within the Company’s established Bouna-Kineta-Marahui project portfolio in the north-east of the Country. Securing the Kineta North license represents an important step in consolidating the company’s’ position along this prospective structural corridor with significant artisanal gold workings and high-grade gold rock chip results.
Due Diligence Results
Technical and legal due diligence programmes were successfully completed. Comprehensive field programmes including reconnaissance mapping, inspecting of artisanal workings and rock chip sampling were completed across the license area. All samples were submitted for analysis by ALS laboratory in Ghana.
Significant artisanal workings including pitting and underground workings were observed within the license area and are visible on google Earth imagery. Multiple rock chip samples collected from within artisanal pits and from underground workings returned high-grade gold results including 46.4g/t gold, 32.4g/t gold and 15g/t gold from underground workings (see Figure 2).
Reconnaissance mapping, the presence of artisanal workings and rock chip sampling results have identified a high-priority, 12km strike length target corridor across the Kineta North license and Kineta license application. Within this zone, a high-priority, high-grade gold 1.2km long rock chipping and artisanal mining target has been identified for follow-up (see Figure 2).
The Company has secured, via earn-in Agreements, access rights to nine (9) licenses and applications prospective for gold covering a total of approximately 3,475km2 within Côte d’Ivoire, West Africa. The tenement portfolio covers major shear zones and associated second and third order structures along proven, gold bearing shears.
Four principal gold bearing structures have been targeted:
Ø Two significant splay structures off the Sassandra Shear Zone that effectively separates the older Archean Craton of the Leo Shield in Liberia from the younger intrusive and metasedimentary rocks of the West African Birimian Sequence to the east. Similar splay-off structures host the world-class Syama (7Moz) and Tongon (5Moz) gold mines to the north (Gboguhue and Vavoua Projects).
Ø The southern extension of the hugely gold prolific Ahafo (23Moz) – Bibiani (7Moz) – Chirano (5Moz) structure into Côte d’Ivoire (Bianouan Project).
Ø The southern extensions of the north-south striking Wa (2.2Moz) – Konkera (3.3Moz) gold bearing structure (Bouna, Kineta North, Kineta and Marahui Projects).
Ø An area of more thickly preserved metasedimentary rocks and underlying granitic intrusives (Bodite Project).
All projects are well serviced, with an extensive bitumen road network, well-established cellular network and good high-voltage transmission line network.
Commercial Terms of JVA
The Company has entered into the JVA with Gail Exploration SA, whereby IronRidge can acquire up to 100% of the projects through staged earn-in arrangements and staged expenditure to Feasibility Study, subject to Gail retaining a Net Smelter Royalty, (“NSR”) of 2.5%, of which 40% may be acquired for US$2million at any time. IronRidge shall be responsible for maintaining the properties during this agreement and up to the completion of the Feasibility Study.
The Board is pleased with the progress that the Company has made in 2017 and looks forward to keeping shareholders updated as further news becomes available.
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