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IronRidge Resources reports interim results

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Global Mining Review,

IronRidge Resources Ltd, an African focused minerals exploration company, has announced its unaudited interim results for 2H20.

Financial and corporate highlights

  • Exploration and evaluation expenditure during the period was AUS$8 million, resulting in an overall total of AUS$42 million at period end, with continued exploration programmes conducted across the company's projects in Ghana, Côte d'Ivoire and Chad.
  • Cash position of AUS$1.5 million at 31 December 2020 (prior to the exercise of fundraise warrants, as announced on 22 February 2021, raising net proceeds of £3.6 million, the equivalent of AUS$6.4 million).
  • Acquisition of the Bodite and Bianouan gold licenses in Côte d'Ivoire from Major Star SA.
  • Acquisition of the Vavoua gold license in Côte d'Ivoire from CAPRI Metals SARL.
  • Appointment of Amanda Harsas as full-time Chief Financial Officer.
  • Appointment of Christelle Van Der Merwe to the Board as Non-Executive Director.
  • Accepted as a member of the European Battery Alliance (EBA250).

Post period-end highlights

  • Completion of a scoping study on the Ewoyaa Lithium Project in Ghana, West Africa which supports a business case producing an average of 295 000 tpy of 6% lithium oxide (Li2O) spodumene concentrate, with life of mine revenues exceeding US$1.55 billion.
  • On 30 March 2021, the company announced the completion of the third phase drill programme at Zaranou for 51 539 m of drilling including 20 323 m in 110 RC holes and 31 216 m in 611 AC holes at the Ehuasso, Ebilassokro, Yakassé, M'Basso and Coffee Bean/Super pit targets. The company also completed a 645 m diamond drilling programme in three holes at the Ehuasso target for geology, RC twinning and density work.
  • Appointment of Amanda Harsas as full-time Company Secretary.
  • Change of the company's registered office, in line with the company's strategy to migrate all management and administrative services in house.
  • Exercise of fundraise warrants, raising net proceeds of £3.6 million.
  • Completion of the sale of the non-core May Queen gold project in South East Queensland to Australasian Gold Ltd (AGL).
  • Completion of the acquisition of 100% of the share capital of Joy Transporters Ltd, providing IronRidge full ownership of the highly prospective Saltpond license and Cape Coast license application in Ghana.

Vincent Mascolo, CEO of IronRidge, said: "The period ended 31 December 2020 saw momentous progress made across the company's portfolio of gold and lithium assets in Africa.

"In Ghana, where the company has defined a spodumene pegmatite maiden mineral resource estimate of 14.5 million t at 1.31% Li2O in the inferred and indicated category (JORC 2012 compliant) at the flagship Ewoyaa Lithium Project, further metallurgical test work improved the recovery of lithium whilst maintaining a product grade of 6% Li2O. This test work also defined a potential valuable by-product stream in high-quality feldspar concentrate with low contaminants, which is in demand in the local and European ceramics industry.

"Post period end, we were delighted to announce scoping study results from Ewoyaa, which support a business case for a 2 million tpy production operation, producing an average of 295 000 tpy of 6% Li2O spodumene concentrate, with life of mine revenues exceeding US$1.55 billion. This landmark scoping study provides outstanding asset fundamentals and confirms our belief that Ewoyaa is an industry-leading asset. Additional drilling is now underway to increase the resource scale and improve the project's economics and we are in the process of evaluating available options in order to fast track the project to production.

"Post period end, we were also pleased to complete the acquisition of 100% of the share capital of Joy Transporters Ltd, providing IronRidge full ownership of the Saltpond license and Cape Coast license application within the current portfolio. The portfolio, situated adjacent to Ewoyaa, provides exploration upside with similarly robust infrastructure support and valuable synergies for our team to advance. Having been accepted as part of the European Battery Alliance during the period, IronRidge is well-positioned to take advantage of the increasing demand for lithium and its role in the stored energy transition.

"During the period, we continued drilling activities at the Zaranou gold license in Côte d'Ivoire. Drilling was focused on the Ehuasso target, where artisanal workings are most developed, but also commenced drilling at the Ebilassokro, Mbasso, Coffee Bean and Yakassé targets. Drilling has returned very encouraging results and, with only 12 km of 47 km of potential strike having been drill tested to date, we are confident that the license presents considerable further exploration upside. The acquisitions of the highly prospective Bodite and Bianouan gold licenses, which strongly complement our flagship Zaranou gold license, and the Vavoua gold license, also present us with a significant opportunity.

"In Chad, the company successfully renewed its Dorothe, Echbara and Am Ouchar licenses for a further four years and additional gold targets have been identified within the Echbara, Am Ouchar, Kalaka and Nabagay licenses. Now that travel restrictions have eased and access is permitted into N'Djamena, we intend to undertake a maiden drilling programme to test the Dorothe target prior to the onset of the wet season in July 2021.

"Management continues to closely follow the situation regarding COVID-19 as it continues to evolve, with measures in place to safeguard all employees and communities with which we operate. During these uncertain times, we would like to once again echo our previous thanks to all our staff who have worked tirelessly during this period.

"This is a truly exciting and significant period for the company as we further de-risk and add value to our portfolio of assets in Ghana, Côte d'Ivoire and Chad, and we retain the upmost confidence in our strategy for developing and sustaining value for the company and its shareholders. We look forward to updating the market with our continued progress."

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This article has been tagged under the following:

African mining news Lithium mining news Gold mining news