TIDMIRR
RNS Number : 7713H
IronRidge Resources Limited
12 June 2017
12 June 2017
IronRidge to Acquire Tekton Minerals
New Artisanal Mining Sites Discovered
Analogue to the Tintina Gold Province, Alaska - Yukon
Territory
Project Update, Chad Central Africa
IronRidge Resources Limited (AIM: IRR, 'IronRidge' or the
'Company') is pleased to announce that it has entered into a
conditional agreement with the main shareholders of Tekton Minerals
Pte Ltd ("Tekton"), to acquire their interests in Tekton.
The agreement is conditional on IronRidge securing agreements
from the remaining shareholders of Tekton, representing 10% of
Tekton's issued share capital, which will give 100% ownership of
Tekton and its promising underlying gold exploration projects in
Chad.
HIGHLIGHTS:
Ø IronRidge to acquire 100% of Tekton Minerals Pte Ltd.
Ø As part of the acquisition, Tekton's highly skilled technical
and logistics team will join the IronRidge team to advance the
projects and future growth strategies.
Ø Dorothe key target zone 1km x 3km artisanal workings and 1km x
200m parallel vein zones.
Ø Extensive 10,652m trenching and 9,768 soil sampling programmes
completed over the Dorothe and Echbara license areas prior to onset
of wet season.
Ø Approximately 15 tonnes for 10,562 samples have been packed
and ready for shipment to an accredited lab for preparation and
analysis.
Ø Field mapping observations and mineral occurrence
multi-element geochemistry metal associations indicate potential
for an Intrusion Related Gold System ("IRGS") exploration model;
potential for significant scale and high-grade discoveries
inferred.
Ø The Ouaddaï Province represents a potential analogue of the
'Tintina Gold Province' in the Alaska and Yukon Territory.
Ø New artisanal mining sites discovered showing ubiquitous
visible gold.
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/7713H_-2017-6-12.pdf
Commenting on the Company's latest progress, Vincent Mascolo,
Chief Executive Officer of IronRidge, said:
"We are extremely pleased with this latest acquisition which is
part of the execution of our vision and growth strategy for
Africa.
"The Chad portfolio represents a highly prospective ground
holding with high-grade gold targets within an underexplored yet
highly prospective gold Province, potentially analogous to the
world class Tintina Province in the Alaska and Yukon Territory.
"The size and extent of artisanal gold workings and the
ubiquitous occurrence of free, visible gold endorse our
strategy.
"The Tekton team offers extensive francophone exploration,
logistics and government relations expertise gained throughout West
and Central Africa, providing valuable synergies with the IronRidge
team and its growth strategy.
"We are very pleased with the work programs completed to date
and look forward to keeping shareholders and investors updated as
more news becomes available."
Commercial Terms of Acquisition
As announced on 21 September 2016, IRR entered into an
investment arrangement with Tekton under which IRR had rights to
invest US$3.5 million in Tekton over an 18-month period to acquire
up to a 58% interest in Tekton. IRR also announced that it had
separately acquired a 6% interest in Tekton. Ownership in Tekton
provides IRR with access to exclusive rights to an extensive
granted tenure package with first mover advantage and associated
exciting gold exploration targets with large scale and high grade
potential (the 'Projects') in Chad, Central Africa.
Under the new agreement, IRR proposes to acquire 100% of Tekton
in return for the issue of 10,000,000 shares in IRR. This will
equate to a 4.1% interest in the share capital of IRR. The initial
agreement has been entered into with the 4 principal shareholders
of Tekton ("Sellers"), of which 3 are on the board of directors of
Tekton and hold a combined total of 84% of the issued share capital
of Tekton. This agreement is subject to IRR securing sale
agreements with the 14 remaining shareholders in Tekton who hold
the balance 10% of Tekton shares. IRR and the Sellers will now
embark on securing these agreements to enable completion of the
acquisition of Tekton.
The new agreement is also subject to IRR entering into new
employment agreements with the Sellers with respect to their
on-going management roles with IRR and IRR shareholder approval for
the acquisition.
The acquisition of Tekton will supersede the current investment
arrangements with Tekton which will be terminated upon completion
of the acquisition of Tekton.
Related Party Transaction
Two of IronRidge's directors, Nicholas Mather and Vincent
Mascolo are directors of Tekton. The Tekton Board arrangements may
give IronRidge control of the Tekton board. This transaction is
therefore being treated as a related party transaction pursuant to
AIM Rule 13. The independent directors of IronRidge (being all the
directors of IronRidge other than Mr Mather and Mr Mascolo)
consider, having consulted with the Company's nominated adviser,
that the terms of the transaction are fair and reasonable insofar
as the Company's shareholders are concerned
Project Update
Since announcing commencement of the trenching programme at the
Dorothe Project (announced 23 February 2017), the Company has moved
aggressively to complete a total of 10,652m of trenching and
collection of over 9,768 soil samples at the Dorothe and Echbara
Projects over the last 3 months.
Trenching was completed utilising a 30 tonne excavator with a
total of 4,444 x 2m composite samples (including duplicate,
standard and blank samples for QA/QC) sampled across both project
sites and employing channel sampling techniques of 'fresh rock'
exposed along the trench walls or floor.
In addition to the completion of trenching, the Company
completed systematic soil sampling programmes across significant
portions of both license areas, targeting key structural corridors,
lithological target zones and/or new artisanal mining sites. A
total of 9,768 soil samples (not including QA/QC samples) were
collected across the Dorothe and Echbara license areas over a
nominal 400m x 25m sampling grid.
With the completion of the 2016 - 2017 field season and the Wet
Season rains now commencing, all samples generated have been packed
and readied for shipment to a certified laboratory for sample
preparation and analysis. Over 10,562 samples (for approximately 15
tonnes of material) have been selected to be submitted for initial
assay.
Ongoing field mapping, detailed trench mapping and preliminary
portable XRF analysis in the field has provided valuable insights
into the style of mineralisation being explored. The strong spatial
association of known gold occurrences with late granitic intrusive
bodies and through-going fault structures along structurally and/or
lithological corridors, Au+/-Pb-Cu-W-As metal signatures associated
with known gold prospects, the occurrence of sheeted vein systems
and the presence of skarns and hornfels suggests potential for an
Intrusion Related Gold System ("IRGS") type exploration model.
This assessment is regionally and globally significant as the
Ouaddaï Province could represent a metallogenic belt with possible
analogies to the world class Tintina Gold Belt and associated IRGS
deposits of Alaska and the Yukon Territory (e.g. Pogo 5.5Moz @
12.6g/t Au, Donlin Creek 12.3Moz @ 2g/t Au and Fort Knox 8Moz @
0.9g/t Au).
At Dorothe, a total of 5,204m of trenching has been completed
and 4,138 soil samples collected. A total of 9 trenches were dug
utilising a track mounted 30 tonne excavator; with the longest
single trench (DOR_CH22) being 1.74km long. The trenching programme
was primarily designed to assess the extent and average surface
grade of the large 3km x 1km artisanal pitting zone, as well as to
understand potential controls on mineralisation therein.
Visible gold was reported in spoil from several trenches during
the Dorothe programme; in particular in trenches cross-cutting the
north-south striking "Main Vein" zone. Assay results are
pending.
The Dorothe soil sampling programme was designed to test a
structural corridor along the eastern flank of a major north-west
striking tectonic contact (potential thrust fault) along which the
Dorothe project occurs and new artisanal mining sites have been
discovered further north. A total of 4,138 soil samples were
collected along the corridor with assay results pending.
At Echbara a total of 5,448m of trenching has been completed and
5,630 soil samples collected. A total of 9 trenches were dug
utilising a track mounted 30 tonne excavator; with the longest
single trench being 920m. The trenching programme was designed to
test a 2km long +100ppb up to 300ppb gold soil anomaly defined by
the UNDP and possible strike extensions. A single trench was
extended into the marble contact where potential skarn
mineralisation and alteration had been observed. Assays results are
pending.
The soil sampling programme at Echbara was initially designed to
test the schist-gneiss contact zone along the north-western
quadrant of the license area where the Echbara Project UNDP +100ppb
Au soil anomaly occurs. As the programme advanced, it became
apparent that mineral occurrences were associated with the central
granitic intrusive body and accordingly the soil sampling programme
was extended around this contact zone. A total of 5,630 soil
samples were collected with laboratory assay results pending.
Chad Portfolio
Tekton has secured exclusive rights over five exploration
permits covering a total of approximately 1,000km(2) within the
Ouaddaï Province. This is an under-explored yet highly prospective
domain within the Saharan Metacraton of Central Africa. The Saharan
Metacraton represents an underexplored yet highly prospective gold
and multi-commodity-bearing metallogenic Terrain that has potential
to host significant new discoveries.
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 advanced
exploration target have been defined over the Dorothe, Echbara and
Am Ouchar licenses. Additionally, two further highly prospective
reconnaissance licenses have been awarded within the same province
over the Adé and Nabagay targets.
As part of the Company's consolidation within the Ouaddaï
Province, the Waya Waya permits have been relinquished in favour of
the Nabagay and Adé reconnaissance permits.
Dorothe
Dorothe is characterised by two significant zones of
mineralisation; the north-south striking 'Main Vein Swarm' defined
over a 1km strike with potential extensions to 3km, and the
north-east trending 'Artisanal Pitting Zone' over a 3x1km area.
Previous sampling by Tekton has focussed on the Main Vein Swarm
with significant trenching results over sub-vertical quartz veins
including 14.12g/t over 4m, 16m @ 3.1g/t, 6m @ 9.5g/t and 1m @
63.2g/t Au.
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.
Echbara
The Echbara license covers 199km(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.
Am Ouchar
The Am Ouchar Project is located 70km south-east of Dorothe. The
area has extensive artisanal workings and has significant historic
UNDP trenching results including 20m @ 6.8g/t, 16m @ 4.7g/t and 12m
@ 5.7g/t gold with individual 2m composite grades up to 33g/t Au.
Current mineralisation and artisanal workings are defined over a
250m strike length with gold mineralisation is hosted within 2-5m
thick, shallow dipping, north-east trending quartz veins and within
the adjacent hematitic schists. Follow-up trenching by Tekton has
confirmed historical results with assays including 2m @ 18g/t, 2m @
14.2g/t and 2.3m @ 9.9g/t Au.
Subsequent soil sampling and portable XRF analysis with selected
follow-up laboratory gold analysis has extended the potential
strike length of mineralisation and defined additional 'stacked'
structures within the project area.
Recently granted reconnaissance licenses covering a total of
395km(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.
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 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 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.
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 Tel: +44 (0)20
LLP 3470 0470
Nominated Adviser and
Broker
Jeff Keating
Caroline Rowe
Yellow Jersey PR Limited Tel: +44 (0)
Charles Goodwin 7544 275882
Harriet Jackson
Competent Person Statement:
Information in this report relating to the exploration results
is based on data reviewed by Mr Nicholas Mather (B.Sc. Hons Geol.),
the Chief Executive Officer 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.
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 titanium and
bauxite with an initial maiden resource of 54.9MT of premium DSO
bauxite Monogorilby is 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 IRRs wholly
owned Monogorilby license package and is highly prospective for
gold. 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 an agreement with Tekton Minerals Pte
Ltd of Singapore concerning its portfolio covering 1,000km(2) of
highly prospective gold and other mineral projects in Chad, Central
Africa. IronRidge acquired 100% of Tekton including its projects
and team to advance the Dorothe, Echbara, Am Ouchar, Nabagay and
Ade licenses, which host multiple, large scale 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 over a 250m wide zone with new hard-rock artisanal workings
potentially extending strike to >3km.
Ghana
The Company entered into conditional joint venture arrangements
with Obotan Minerals Limited, Merlink Resources Limited and Barari
Developments Limited of Ghana, West Africa, securing the first
access rights to acquire the historical Egyasimanku Hill spodumene
rich lithium resource, estimated to be in the order of 1.48Mt at
1.67% Li(2) O and surrounding tenements. The portfolio covers some
314km(2) with a further identified 20km strike of pegmatite vein
swarms, 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 conditional joint venture arrangements
in Ivory Coast, West Africa; securing access rights to highly
prospective gold mineralised structures and pegmatite occurrences
covering a combined 3,110km(2) and 400km(2) area respectively. The
projects are well located within access of an extensive bitumen
road network and along strike from multi-million ounce gold
projects and mines.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
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