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IronRidge Resources Ltd announces 2020 financial results

Published by , Editor
Global Mining Review,

IronRidge Resources Ltd, the African focused minerals exploration company, has announced its audited results for the year ended 30 June 2020.

Financial and corporate highlights

  • Exploration and evaluation expenditure held on the balance sheet for the year ended 30 June 2020 was AUS$34.0 million, representing an increase of AUS$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.
  • Successful capital raisings during the financial year for approximately AUS$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.
  • 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.
  • Cash position at 30 June 2020 of AUS$7.3 million.

Vincent Mascolo, CEO 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; 14.5 million t at 1.31% lithium oxide. 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."

Chairman, Neil Herbert, added: "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."

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