IronRidge Resources Limited (AIM:IRR) has reported some stellar lithium grades from “first-pass” exploration of its Cape Coast Project in Ghana.

Trenching work uncovered 100 metres grading 1.57% lithium oxide (Li2O), including 40 metres at 1.93% Li2O, and 15 metres at 2.18% Li2O. Whole-rock bulk surface rock-chip sampling results returned grades above 2.4% Li2O.

In addition the geologists found:

High-grade pegmatite (a type of crystalline rock) outcrops and boulder float zones identified over a 100 metre by 400 metre area

Multiple untested pegmatites thought to also contain tin, tantalum, niobium caesium and beryllium targets throughout the Project portfolio

Hard-rock mineralisation with dominant coarse grained, lithium rich-spodumene material

In all the programme asssessed 86 individual rock chip samples and carried out 100 metres of trenching, 270 metres of channel sampling and completed 130 metres of bulk surface rock-chip sampling for a combined total of 1,545kg of samples.

Chief executive Vincent Mascolo said: "This recent discovery is a resounding endorsement of our global search initiatives and the IronRidge team.”

The company said the terms of its farm-in to the asset are now binding. The deal allows the AIM-listed company to acquire 100% of the Cape Coast Project by taking the asset to feasibility study stage in four years. Its partners will receive a net smelter royalty of 2.55, half of which may be acquired for US$3mln.