TIDMIRR
RNS Number : 4116K
IronRidge Resources Limited
21 September 2016
21 September 2016
Tekton Deal Now Unconditional
IronRidge Increases Stake in Tekton
Extensive and Highly Prospective Tenure Package with Gold
Discoveries in a New Gold
Province in Chad, Central Africa
IronRidge Resources Limited (AIM: IRR, 'IronRidge' or the
'Company') is pleased to provide an update on the partnership with
Tekton Minerals Pte Ltd ('Tekton'), which provides IronRidge with
access to exclusive rights to an extensive existing tenure package
and associated major new gold discovery (the 'Projects') in Chad,
Central Africa. The agreement was first announced on 12(th) August
2016.
Corporate Highlights:
Ø Tekton satisfies all agreement terms ahead of schedule to
successfully ratify the partnership with IronRidge.
Ø IronRidge to proceed with the investment of up to US$3.5m in
Tekton to obtain up to a 58% shareholding in Tekton (the
"Investment").
Ø IronRidge subscribes for a separate pre-Investment interest in
Tekton to increase its post-Investment holding to 60%.
Ø IronRidge directors formally appointed to the board of
Tekton.
Ø Tekton team already in country from late August 2016.
Project Highlights:
Ø First mover advantage with Tekton's secured exploration rights
over 1,400km(2) of gold mineralised, province-scale geological
structures.
Ø Multiple high-priority gold targets defined within the
Dorothe, Echbara and Am Ouchar licences.
Ø One drill ready target defined at Dorothe and additional
untested lithium, graphite, base metal and uranium targets within
the license portfolio.
Ø Extensive active and historic artisanal gold workings observed
over 3km(2) within weathered and fresh rock within the Dorothe
target alone.
Ø 40% of the Dorothe rock chips and 28% of the trench samples
have grades greater than 0.5g/t Au and up to 103g/t Au over a
>3km(2) area.
Ø Trenching results at Dorothe: 14.12g/t Au over 4m, 34.1g/t
over 2m and 63.2g/t over 1m, defined gold mineralised quartz
veining over a confirmed 1km strike at an average of 2m and up to
5m true width across multiple stacked vein zones up to 200m wide.
New hard-rock artisanal workings potentially extending strike to
>3km.
Ø Gold nuggets up to 1cm across, including gold in quartz vein
material and disseminated gold observed in the project areas.
Ø Historical United Nations Development Programme ("UNDP",
1990's) field work defined a 100-300ppb gold in soil anomaly over a
2km strike and 100m to 200m width with best trenching results of
1.29g/t over 28m and 0.61g/t Au over 56m within the Echbara
prospect.
Ø Additional kilometre scale lithium and graphite anomalies
defined within the project portfolio.
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:
http://www.rns-pdf.londonstockexchange.com/rns/4116K_-2016-9-21.pdf
Commenting on today's update, Vincent Mascolo, Chief Executive
Officer of IronRidge, said: "The Company is pleased to have
concluded the deal ahead of schedule.
"Chad represents an underexplored yet highly prospective Country
where we have first mover advantage and access rights to an
exciting pipeline of projects.
"Tekton brings with it a highly professional and experienced
team with a proven track record in target generation, project
development, government relations, logistics and security with
francophone African expertise.
"We are extremely confident with the decision to invest in Chad
and Tekton and believe we have created a remarkable
opportunity.
"With Tekton already in the field, we look forward to providing
updates in due course."
IronRidge announced on 12 August 2016 that it had entered into a
share subscription agreement ("Agreement") with Tekton to enable
the Company to acquire a 58% interest in Tekton in return for the
Investment of US$3.5m over an 18-month period to advance
exploration on Tekton's Chad projects. The Agreement was subject to
a number of conditions to be satisfied by Tekton by no later than
11 October 2016. These conditions have now been satisfied which
enables the Company to proceed with its Investment in Tekton. Nick
Mather, Vincent Mascolo and Lennard Kolff Van Oosterwijk have all
been appointed to the Board of Tekton, with Nick Mather appointed
as Chairman.
IronRidge has also separately subscribed for additional shares
in the Tekton representing an initial 6% interest in Tekton and
which will increase the Company's interest in Tekton to 60% upon
completion of the Investment (after allowing for its dilutionary
effects on the existing capital).
The investment provides IronRidge with a significant first mover
advantage within several highly prospective existing tenements in a
province-scale, gold mineralised belts which have undergone little
or no modern-day exploration. These have been largely untouched due
to an historical focus on oil exploration and production in
Chad.
Against this backdrop, Tekton has secured exploration rights
over 1,400km(2) of gold mineralised, province-scale geological
structures. Work to date has indicated the potential for several
multi-million-ounce gold discoveries within the Ouaddaï
Province.
Tekton has extensive in-country exploration, logistics and
government relations experience. They have committed teams in
place, which have demonstrated highly skilled francophone African
expertise.
Multiple high-priority gold targets have been defined within the
Dorothe, Echbara and Am Ouchar licences. These include one
drill-ready target defined at Dorothe and additional untested
lithium, graphite, base metal and uranium targets within the
license portfolio.
Extensive active and historic artisanal gold workings have been
observed over 3km(2) within weathered and fresh rock in the Dorothe
target alone. Over 116 rock chip samples and 302 trench samples
have been collected at the Dorothe prospect to date. Of these, 40%
of the rock chips and 28% of the trench samples have grades greater
than 0.5g/t Au and up to 103g/t Au over an area more than 3km(2)
.
Trenching results at Dorothe, including 14.12g/t Au over 4m,
34.1g/t over 2m and 63.2g/t over 1m, have defined significant gold
mineralised quartz veining over a confirmed 1km strike. This
veining has an average width of 2m to 5m across multiple stacked
vein zones up to 200m wide, with new hard-rock artisanal workings
potentially extending the strike to more than 3km.
Gold nuggets of up to 1cm across have been identified. Gold in
quartz-vein material and disseminated gold has been observed in the
project areas.
There is significant precedent set by an historical United
Nations Development Programme ("UNDP", 1990's) field work. This
previously defined a 100-300ppb gold in soil anomaly over a 2km
strike and 100m to 200m width, with best trenching results of
1.29g/t over 28m and 0.61g/t Au over 56m within the Echbara
prospect, which is yet to be drill tested.
There have been additional kilometre scale lithium and graphite
anomalies defined within the project portfolio.
Commenting on today's update, Vincent Mascolo, Chief Executive
Officer of IronRidge, said: "The Company is pleased to have
concluded the deal ahead of schedule.
"Tekton brings with it a highly professional and experienced
team with a proven track record in geological target generation and
development, government relations, logistics, security and has
local francophone African expertise.
"We are extremely confident with the decision to invest in
Tekton and believe we have created an amazing team. With Tekton
already in the field, we look forward to providing updates in due
course."
About the Projects
Tekton has secured exclusive rights over five exploration
permits covering a total of 1,000km(2) in addition to 400km(2) of
reconnaissance licences within the Ouaddaï Province. This is an
under-explored yet highly prospective domain within the Saharan
Metacraton of Central Africa. The Saharan Metacraton represents a
gold-bearing potential equivalent to the prolific Birimian
Greenstone belt, known for several world-class gold mines in Ghana,
Senegal, Mali, Cote d'Ivoire and Burkina Faso.
Comprehensive exploration activities have been conducted by
Tekton over the last two years. These include geological mapping
and soil, rock-chip, trenching and channel sampling. Mineralogical
studies, ground magnetic and resistivity surveys, high-resolution
Digital Terrain Modelling ("DTM") and aerial photography utilising
drone technology have also been undertaken by the Tekton team.
Three highly prospective gold mineralised areas and one
drill-ready/advanced exploration target have been defined over the
Dorothe, Echbara and Am Ouchar licenses. These include extensive
artisanal workings over areas exceeding 4km(2) , with the potential
to host a multi-million ounce gold deposit. Additionally, two
further highly prospective reconnaissance licenses have been
awarded within the same province over the Adé and Nabagay
targets.
Two further exploration licenses have been granted at Waya Waya
in the Northern Ouaddaï region which possess outcropping and
extensive graphite occurrences. Anomalous zinc and uranium
mineralisation has been identified from preliminary mapping and
rock chip sampling.
Dorothe
Mapping and sampling at the Dorothe target to date has defined
two distinct gold mineralising events. Firstly, an early centimetre
scale, shallowly westward dipping quartz vein swarm zone over a
3x1km area. Secondly, a cross-cutting sub-vertical 1-5m true
thickness, north-south striking quartz vein zone up to 200m wide
and over a confirmed 1km of strike with possible extensions up to
3km of strike.
The earlier stage quartz vein swarm zone occurs over an
approximate 3x1km north-east trending zone at the apparent flexure
of a major north-west striking fault, and is clearly defined by
extensive artisanal workings into weathered surface rock. The later
stage cross-cutting sub-vertical quartz vein swarm has been clearly
mapped and sampled by trenching over a 1km strike. This has the
potential for further strike extensions to the north and south
based on recent artisanal mining.
Of the sampling completed to date, over 40% of the rock chip
samples collected at the Dorothe target returned grades over 0.5g/t
Au with grades up to 103 g/t, 99.6g/t, 94.5g/t and 82.2 g/t Au.
Trenching and channel sampling across strike of the north-south
quartz vein system has returned multiple gold intersections over
10g/t Au along a combined 1km strike length, with better
intersections of 4m at 14.2g/t, 2m at 34.1g/t, 2m at 31.1g/t and 1m
at 63.2 g/t Au. The north-south vein set is not restricted to a
single quartz vein, and in places occurs as multiple splays and
sub-parallel veins over a 20m to 50m width.
Preliminary scoping laboratory column leach test-work of 56
auger samples collected over artisanal tailings at the Dorothe
prospect has confirmed an 85% gold recovery within a 10-day period.
This work was completed by Wardell Armstrong in the UK. Additional
mineralogical studies indicate that gold mineralisation is
non-refractory and occurs as free gold within the oxidised, surface
artisanal tailings material.
It is of note that little or no saprolite, nor laterite surface
weathering material, is developed over the project area. The
channel sampling having been done into 'fresh rock' it's gold
content represents potentially the in-situ grades.
Figure 4 | photomicrograph of gold mineralisation (left), gold
mineralised rock-chip samples and gold nuggets (right and below)
from the project areas.
Echbara
The Echbara license covers 200km(2) and is situated 25km west of
the Dorothe license. Historical work completed by the UNDP during
the 1990's defined a 2km long by 150-200m wide 100ppb soil anomaly
with highs of 300ppb. Follow-up trenching by the UNDP has returned
results of 58m at 1.29g/t Au and 28m at 1.29g/t Au. Follow-up
trenching by Tekton returned results of 56m at 0.61g/t Au
(including 10m at 0.9g/t Au and 20m at0.87g/t Au) and 25m at 0.8g/t
Au. This target has not been drill tested.
The target occurs within micaceous schists bound to the west by
quartzites and east by carbonates with interpreted cross-cutting
north-west orientated faults. A large, late granitic intrusion
occurs approximately 3km to the south-east of the known gold
anomaly.
The relationship between granitic intrusions and major
structures are thought to be important in localising gold
mineralisation. Tekton is refining this model for application
across the other targets in the total project area.
Am Ouchar
The Am Ouchar license covers 200km(2) and is 70km south-east of
the Dorothe license. Historical work by the UNDP during the 1990's
indicated that gold mineralisation is hosted within 2-5m thick,
shallow dipping, north-east trending quartz veins and within the
adjacent hematitic schists. UNDP trenching results included
spectacular intersections of 20m at 6.8g/t Au, 16m at 4.7g/t Au and
12m at 5.7g/t Au with individual 2m composite grades up to 33g/t
Au.
Follow-up channel sampling by Tekton, perpendicular to quartz
veins and within the adjacent host rock, returned intersections
including 2m at 18.2g/t Au, 2m at 14.2g/t Au and 2.3m at 9.9g/t Au.
This provides confidence in the reported grades and extension of
mineralisation into the adjacent host rock.
Other targets
Recently granted licenses covering a total of 400km(2) at
Nabagay and Adé cover further exciting and highly prospective
geological targets within the Ouaddaï South project portfolio.
The Adé license, located approximately 40km east of Dorothe,
occurs within an interpreted 'pressure-shadow' adjacent to a large
15km diameter late granitic intrusion. Regional soil sampling by
the UNDP during the 1990's identified multiple lithium soil
anomalies up to 5km in strike length in addition to multiple
coincident and isolated gold in soil anomalies adjacent to the
granitic intrusive contact.
The Nabagay license is located approximately 25km north of
Dorothe and is considered prospective for gold mineralisation in
similar geological settings to the Dorothe project.
The Waya Waya licenses cover 400km(2) within the Ouaddaï North
Region, approximately 260km north of the Dorothe project area.
Historical work by the UNDP during the 1990's and follow-up mapping
and rock-chip sampling by Tekton has identified a 15km long and
approximately 50m wide surface graphitic schist occurrence.
Reconnaissance rock chip and channel sampling completed by Tekton
has returned results of 11% to 12% total carbon content (Ct) with
historical results by the UNDP up to 18% Ct.
Multi-element geochemical analysis has also indicated potential
anomalous uranium and associated pathfinder elements typically
observed in sandstone hosted uranium deposits. Furthermore,
anomalous zinc and lead results associated with pegmatites have
been identified.
Project access
Access to the project area is via a sealed and well maintained
900km bitumen toll road from the capital city N'Djamena to Abéché,
followed by a 200km maintained laterite road to the project area.
Travel time from N'Djamena to the project area is approximately 15
hours by road. International air carriers Air France, Royal Air
Maroc, Turkish Airlines and Ethiopian Airline facilitate frequent
travel into N'Djamena. The project area is serviced by charter
flights and UN aircraft into Goz Beïda, with travel time of
approximately 2 hours.
About Tekton
Tekton is a private Singapore registered company, which was
established in 2013 and is majority owned by its management
team.
About Chad
With a population of 13.6 million (World Bank, 2016), Chad
covers a surface area of 1.2 million km(2) . It is a stable
Republic with a US$2,500 GDP per capita per annum (2013 estimate),
is a member of the OHADA and EITI, and has a projected economic
growth of 11.2% (African Economic Outlook, 2014). Major oil
companies including Total, Exxon, Chevron and Glencore have been
active in Chad for several decades and the region is a major oil
producer and refiner for the domestic and international
markets.
Chad has an attractive Mining Code and investment framework.
Mineral exploration licenses are granted for 5 years and are
renewable twice for a total of 10 years. Mining licenses are
granted for a 25-year term and are renewable. The licenses offer a
tax holiday period up to a maximum of 10 years and a corporate tax
rate of 35% (negotiable). The State has the right for a 10% free
carry and 2% royalty.
The Company looks forward to keeping its shareholders updated on
progress and will announce results of the field programmes as news
becomes available.
Qualifying Person Statement:
Information in this report relating to the exploration results
is based on data reviewed by Mr Nicholas Mather (B.Sc. Hons Geol.),
an Executive Director of the Company. Mr Mather is a Fellow of the
Australasian Institute of Mining and Metallurgy who has in excess
of 25 years' experience in mineral exploration and is a Qualified
Person under the AIM Rules. Mr Mather consents to the inclusion of
the information in the form and context in which it appears.
For any further information please contact:
IronRidge Resources Limited
Vincent Mascolo (Chief Tel: +61 7 3303
Executive Officer) 0610
Nicholas Mather (Executive Tel: +61 7 3303
Chairman) 0610
SP Angel Corporate Finance
LLP
Nominated Adviser and Tel: +44 (0)20
Broker 3470 0470
Jeff Keating
Yellow Jersey PR Limited
Dominic Barretto Tel: +44 (0)7768
Aidan Stanley 537 739
Notes to Editors:
IronRidge Resources is an AIM listed mineral exploration company
with frontier assets in both Australia and West Africa, with two
province scale projects in Gabon, and promising and advanced
titanium and bauxite projects in Queensland Australia. IronRidge's
corporate strategy is to create and sustain shareholder value
through the discovery of world-class and globally demanded
commodities.
Australia
Monogorilby is prospective for province scale titania and
bauxite, with an initial maiden resource of 54.9MT of bauxite.
Monogorilby located in central Queensland, within a short trucking
distance of the rail system leading north to the Port of Bundaberg.
It is also located within close proximity of the active Queensland
Rail network heading south towards the Port of Brisbane.
May Queen is located in Central Queensland, within its wholly
owned Monogorilby license package and is highly prospective for
gold, with drill ready targets defined. Historic drilling completed
during the 1980s intersected multiple high-grade gold intervals
including 2m @ 73.4 g/t Au (including 1m at 145g/t), 4m @ 38.8g/t
Au (at end of hole) and 3m @ 18.9g/t Au, over an approximate 100m
strike hosting numerous parallel vein systems, open to the
north-west and south-east.
Wholly owned Quaggy contains highly anomalous platinum,
palladium, nickel, cobalt and copper exploration targets and is
located in Central Queensland within a short trucking distance of
the dormant rail system to the Port of Bundaberg. It is also
located within close proximity of the active Queensland Rail
network heading south towards the Port of Brisbane.
Gabon
Tchibanga is located in south-western Gabon, in the Nyanga
Province, within 10-60km of the Atlantic coastline. This project
comprises two exploration licenses, Tchibanga and Tchibanga Nord,
which cover a combined area of 3,396km(2) and include over 90km of
prospective lithologies and the historic Mont Pele iron
occurrence.
Belinga Sud is Located in the north east of Gabon in the
Ogooue-Ivindo Province, approximately 400km east of the capital
city of Libreville. IRR's licence lies between the main Belinga
Iron Ore Deposit, believed to be one of the world's largest
untapped reserves of iron ore with an estimated 1bt of iron ore at
a grade >60% Fe, and the route of the Trans Gabonese railway,
which currently carries manganese ore and timber from Franceville
to the Port of Owendo in Libreville.
Chad
The Company entered into a conditional agreement with Tekton
Minerals Pte Ltd of Singapore concerning its portfolio covering
1,400km(2) of highly prospective gold and other mineral projects in
Chad, Central Africa. Under the terms of the agreement, IronRidge
will acquire an initial 58% of Tekton, including its projects and
team, to advance the Dorothe, Echbara and Am Ouchar licenses, which
host multiple, potentially nation-building gold projects. Initial
trenching results at Dorothe, including 14.12g/t Au over 4m,
34.1g/t over 2m and 63.2g/t over 1m, have defined significant gold
mineralised quartz veining over a confirmed 1km strike at an
average of 2m and up to 5m true width across multiple stacked vein
zones up to 200m wide with new hard-rock artisanal workings
potentially extending strike to >3km.
Ghana
The Company entered into a joint venture arrangement with Obotan
Minerals Limited and Merlink Resources Limited of Ghana, West
Africa, securing the first access rights to acquire the historical
Egyasimanku Hill spodumene rich lithium resource estimate to be in
the order of 1.48Mt at 1.67% Li(2) O. The portfolio covers some
238km(2) with a further identified 10km pegmatite swarmed veins,
tenure package is also highly prospective for tin, tantalum,
niobium and gold which occur as accessory minerals within the
pegmatites and host formations.
Ivory Coast
The Company entered into a joint venture arrangement with Enchi
ProCI SA of the Ivory Coast, West Africa, securing the first access
to highly prospective multiple untested pegmatite occurrences. The
project area covers some 400km(2) with further identified outcrops
some 25km apart along the interpreted trend. The project well
located within 75km of the capital Abidjan; excellent
infrastructure, logistics and services support for potential rapid
development.
Corporate
IronRidge made its AIM debut in February 2015, successfully
securing strategic alliances with three international companies;
Assore Limited of South Africa, Sumitomo Corporation of Japan and
DGR Global Limited of Australia. Assore is a high- grade iron,
chrome and manganese mining specialist. Sumitomo Corporation is a
global resources, mining marketing and trading conglomerate. DGR
Global is a project generation and exploration specialist.
The Board of Directors is represented by mining industry
professionals with a broad range of corporate, exploration,
production, contracting and capital markets experience. The Company
was admitted on 12 February 2015 (Ticker Code IRR) and currently
has 236,612,203 shares and 14,770,000 unlisted options on
issue.
This information is provided by RNS
The company news service from the London Stock Exchange
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