LONDON (ShareCast) - (Sharecast News) - Africa-focussed minerals exploration company IronRidge Resources reported multiple high-grade lithium pegmatite drill intersections at new targets adjacent to the Ewoyaa Lithium Project on Tuesday.
The AIM-traded firm had previously defined a JORC-compliant mineral resource estimate of 14.5 million tonnes at 1.31% lithium oxide in the inferred and indicated category, including 4.5 million tonnes at 1.39% lithium oxide in the indicated category at the project in Ghana.

It said highlights of the new intersections at a 0.4% lithium cut-off and maximum four metres of internal dilution included hole GRC0199, with 13 metres at 1.86% lithium oxide from 34 metres, hole GRC0204 with 12 metres at 1.74% lithium oxide from 75 metres, and GRC0206 with 12 metres at 1.63% lithium oxide from 79 metres.

The highlights also included hole GRC0201, with 13 metres at 1.44% lithium oxide from 34 metres, GRC0202 with 12 metres at 1.5% lithium oxide from 70 metres, and GRC0200 with 10 metres at 1.71% lithium oxide from 75 metres.

IronRidge said the drilling was ongoing; with assay results reported for 1,350 metres of the 12,500 metres reverse circulation drilling programme designed to add resource tonnes within the immediate Ewoyaa resource area, and test new exploration targets within the adjacent Saltpond license.

It said the area had "ideal" infrastructure support, with the projects within 110 kilometres of the operating Takoradi deep-sea port, within 100 kilometres of the capital Accra, and adjacent to the sealed Takoradi-Accra highway and high-power transmission lines.

IronRidge also described Ghana's government as "highly supportive", with a long mining history, "strong" diversification drive, and initiatives in the renewables and stored energy spaces.

"We are very pleased with the initial results received, which have confirmed the high-grades and mineralisation continuity seen in the first pegmatites drill tested," said chief executive officer Vincent Mascolo.

"High-grade mineralisation has been confirmed over a combined 440 metres of strike, with true widths between 10 and 12 metres which remains open at depth and along strike to the east.

"Drilling is progressing well with approximately 7,800 metres in 70 holes of the planned 12,500 metre reverse circulation programme completed to date, with the remaining drilling estimated to be completed in April."

Mascolo said drilling was ongoing, with coarse grained spodumene observed in multiple drill holes within several of the new pegmatite targets tested to date.

"We are confident the additional targets will increase resource scale and improve project economics, where we have defined Ghana's first lithium JORC-compliant resource of 14.5 million tonnes at 1.31% lithium oxide, and within 110 kilometres of an operating deep-sea port.

"This drilling programme is a key part of our work towards expanding the resource base on what we consider to be an industry-leading asset.

"We are now evaluating options to fast-track the project to production."

Mascolo said targeting a more-than-10 year mine life, it was estimated that every additional year of production would add around $40m in net present value per year on a scoping study that defined a post-tax 8% discounted net present value of $345m over an eight-year life-of-mine.

"The company is well positioned to take advantage of the increasing demand for lithium and its role in the stored energy transition."

At 1227 GMT, shares in IronRidge Resources were up 14.29% at 22.4p.

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