IronRidge reports high-grade intersections from Ewoyaa drilling

Africa-focussed mineral exploration company IronRidge Resources reported multiple high-grade lithium pegmatite drill intersections at new targets adjacent to the Ewoyaa Lithium Project in Ghana on Tuesday.

The AIM-traded firm had previously defined a JORC-compliant mineral resource estimate at Ewoyaa 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.

It said multiple high-grade lithium pegmatite intersections were reported in initial reverse circulation drilling results from the new targets tested.

At a lithium oxide cut-off of 0.4% and a maximum internal dilution of four metres, it highlighted 34 metres at 1.54% lithium oxide from 32 metres on hole GRC0219, including 13 metres at 1.8% lithium oxide from 51 metres and one metres at 4% lithium oxide from 62 metres.

At hole GRC0221, it reported 36 metres at 1.44% lithium oxide from 83 metres, including 10 metres at 1.8% lithium oxide from 87 metres, while on hole GRC0223 it highlighted 31 metres at 1.59% lithium oxide from 31 metres.

IronRidge also reported 14 metres at 1.59% lithium oxide from 33 metre on hole GRC0217, as well as seven metres at 1.73% lithium oxide from 101m, 12 metres at 1.74% lithium oxide from 118 metres, and nine metres at 1.44% lithium oxide from 131 metres, all at hole GRC0220.

The highest reported grade to date at Ewoyaa of 4% lithium oxide over one metre in hole GRC0219 from a depth of 62 metres was also highlighted by the board.

IronRidge said drilling was ongoing, with assay results reported for an additional 1,455 metres of the current programme designed to add resource tonnes within the immediate Ewoyaa resource area, and test new exploration targets within the adjacent Saltpond licence.

An additional 4,000 metres of drilling was planned to test strike extensions where mineralisation remained open and test new targets, for a total planned reverse circulation programme of 16,500 metres.

The company said the project had “ideal” infrastructure support, being located 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, as well as high-power transmission lines.

“We are very pleased with the ongoing results received, which have confirmed high-grades and mineralisation continuity over 400 metres of strike, with true mineralised pegmatite widths up to 25 metres which remains open at depth and along strike to the east,” said chief executive officer Vincent Mascolo.

“We have seen our highest grade, of over 4% lithium oxide, intersected to date at the Ewoyaa Lithium Project.

“Drilling is ongoing with approximately 10,000 metres of the expanded 16,500 metres completed 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.

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

“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.

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

At 1127 BST, shares in IronRidge Resources were down 4.02% at 22.7p.