IronRidge upbeat on latest data from Ghana portfolio
By Josh White
Date: Tuesday 28 Jan 2020
(Sharecast News) - Africa-focussed minerals exploration company IronRidge Resources reported a maiden mineral resource estimate of 14.5Mt at 1.31% lithium oxide for the Ewoyaa, Abonko and Kaampakrom deposits within the Cape Coast Lithium Portfolio in Ghana, West Africa on Tuesday.
The AIM-traded firm said the estimate was reported in accordance with the JORC code, and was in indicated and inferred status at the Ewoyaa and Abonko deposits.
It explained that the estimate included 4.5Mt at 1.39% lithium oxide in the indicated category, while 3.7Mt at 1.38% lithium oxide occurred within the central portion of the Ewoyaa Main deposit, within a single continuous pegmatite body broadly coincident with a hill.
Low strip ratios were implied for a likely starter pit location.
The company said there was "good" continuity of mineralisation at the Ewoyaa Main deposit, with high-level Whittle optimisation said to demonstrate reasonable prospects for eventual economic extraction.
It described coarse spodumene dominant mineralogy with low contaminants, and at least 6% lithium oxide concentrate grades at over 80% recovery achievable in coarse pegmatite using conventional DMS gravity process at a coarse 6.3mm crush, and an implied low capital intensity.
IronRidge said the resource was "exceptionally well located", with adjacent high-power transmission lines, a national highway with 800 metres, and 110 kilometres of sealed road separating it from the operating deep-water port of Takoradi, implying low operating costs.
It explained there was "significant" exploration upside within the broader 645 square kilometre Cape Coast lithium portfolio, inclusive of the historic 1.48Mt at 1.67% lithium oxide Egyasimanku Hill deposit which was only drilled to 30 metres, the Ndasiman and Krofo pegmatite targets, and multiple exploration targets.
"We are proud to deliver our maiden mineral resource estimate for the Ewoyaa Project - 14.5Mt at 1.31% lithium oxide is a significant milestone from making the initial lithium pegmatite discovery, Ghana's lithium resource, and further de-risking this compelling project," said chief operating officer Len Kolff.
"The reported Indicated mineral resource of 4.5Mt at 1.39% lithium oxide predominantly occurs within the central part of the Ewoyaa Main deposit and is coincident with a hill.
"This is significant as it represents the likely starter pit location, with greatest mineable widths up to 100 metres, mineralisation at surface with best mineralisation continuity and low strip ratios."
Kolff said high-level Whittle shell optimisations demonstrated "reasonable prospects" for eventual economic extraction, confirming its favourable geological characteristics.
"Thanks to the coarse nature of the spodumene dominant mineralisation, metallurgical test-work to date has consistently delivered high-purity, low contaminants [of more than] 6% lithium oxide spodumene concentrate at a coarse 6.3mm crush utilising conventional DMS gravity separation; boding well for low-capital intensity.
"Further test-work at ANSTO has demonstrated that the Ewoyaa concentrate is highly amenable to conventional conversion producing battery grade lithium carbonate and lithium hydroxide products.
"The mineral resource is exceptionally well located in Ghana, being only 800 metres from the sealed national highway and 110 kilometres from the operating deep-sea port of Takoradi with adjacent high-power transmission lines; it is challenging to find other lithium pegmatite projects better located."
Chief executive officer and managing director Vincent Mascolo added that, given the magnitude of the indicated mineral resource, along with "exceptional" geology and proximity to operational infrastructure, the company had further enhanced its optionality in respect of start-up and production scenarios.
"We are pleased that we are in line and generally better than market assumptions in respect of tonnage, grade and recoveries.
"The mineral resource estimate also reaffirms our pursuit of becoming a dominant West Africa spodumene source for the emerging electric vehicle and stored energy space, and we look forward to updating the market on our progress in this regard in due course."
At 1218 GMT, shares in IronRidge Resources were down 4.39% at 12.19p.
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