IronRidge Resources Limited (AIM: IRR, ‘IronRidge’ or the ‘Company’) is pleased to announce that the joint venture earn in arrangements with Enchi Proci SARL (‘Enchi’) for the Adzope license application is now unconditional.
Additionally the Company is pleased to announce that 2 of its wholly owned applications have now been registered on the cadastral map. This provides IronRidge with exclusive rights to a prospective lithium license portfolio covering 1,177km2 in Ivory Coast, West Africa, complementing the Company’s exciting lithium portfolio in neighbouring Ghana.
The conditional agreement with Enchi was first announced on 13th September 2016 and the Company’s wholly owned applications were first announced on 25th November 2016.
Ø Enchi satisfies all earn in agreement terms to successfully ratify the partnership with IronRidge.
Ø Access rights secured to one application through the partnership covering 400km2.
Ø Access rights secured to two wholly owned applications covering a further 777km2 for a total 1,177km2 prospective lithium portfolio in Ivory Coast.
Ø Technical due diligence programme including 54 rock chip samples completed across the project area.
Ø 1,177km2 Ivory Coast exploration portfolio complements the Company’s advanced and exciting 314km2 high-grade lithium exploration portfolio in Ghana.
Ø Project well positioned within 75km of the capital Abidjan; excellent infrastructure, logistics and services support for potential rapid development.
Ø Global demand for lithium is increasing at an unprecedented rate.
Ø Ivory Coast represents an underexplored and potentially highly prospective lithium rich terrain, with a diversified economy and pro-mining investment framework.
Commenting on the Company’s latest progress, Vincent Mascolo, Chief Executive Officer of IronRidge, said:
“The addition of these strategic and highly prospective licences to our lithium portfolio dovetail nicely into our exciting and advancing Lithium projects in Ghana, where we see enormous potential in the stored energy space and beyond.
”The formula is right with revolutionary power initiatives expanding in Africa and globally; pro-mining jurisdictions, excellent proximity and infrastructure imply the potential for rapid development and first quartile costings.”
Lithium Project Portfolio
The Company has secured through partnership and its wholly owned local subsidiary (Khaleesi Resources SARL), access rights to three applications covering a total of 1,177km2 for lithium and associated minerals within the Ivory Coast.
The tenement portfolio covers highly prospective fractionated granitic intrusive centres with historical lithium and columbite-tantalum occurrences and confirmed outcropping pegmatites.
The applications constitute part of a broader West African Lithium strategy with the high-grade spodumene bearing pegmatite portfolio in Ghana (refer announcement 23 May 2017) for a total 1,491km2 landholding over highly prospective and proven lithium bearing pegmatite terrains.
All projects are well serviced, with an extensive bitumen road network, well established cellular network and high-voltage transmission line network. Drive time from Abidjan to the project area takes approximately 1 ½ hours.
Due diligence including reconnaissance field mapping and submission of 54 rock chip samples returned low level Li anomalism with results up to 67ppm Li (0.014% Li2O). Despite the low level Li results returned, experience from surface rock-chip sampling in Ghana and associated low level Li anomalism with inadequate sample size collected in tropical weathering climates, coupled with weakly Li anomalous trends observed in pegmatites at Adzope and historic reference to Li occurrences provides sufficient confidence to explore the portfolio further.
The Company and its joint venture partner will now lobby the Ministry of Mines to accelerate the conversion of application areas to granted mineral exploration licenses prior to commencement of field programmes. Upon grant of the licenses, reconnaissance mapping and bulk surface rock-chip sampling will be carried out to define key target areas and pending results, a high resolution airborne magnetics and radiometrics survey may be flown.
Commercial Terms of JVA
The Company entered into an Agreement with Enchi of Côte d’Ivoire, West Africa, under which IronRidge can acquire up to 100% of the projects through staged earn-in arrangements and expenditure to Feasibility Study within a 4-year period. Enchi will retain a Net Smelter Return Royalty of 2% capped at US$2m with IRR having the right to acquire the royalty prior to the Feasibility Study for US$1.5m. IronRidge shall be responsible for maintaining the properties during this agreement and up to the completion of the Feasibility Study.
The Board is delighted 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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