PANGEA Before the separation of the continents, a rich iron belt formed billions of years ago from what is now Carajas, Brazil, through central Africa and India into Western Australia
Australia-based iron-ore junior IronRidge in May hired exploration consultancy firm SRK Exploration Services to conduct exploration on its flagship Tchibanga project, in south-west Gabon, and the Belinga Sud project, in the north-east of Gabon, states IronRidge CEO Vincent Mascolo.
IronRidge secured $15-million in invest-ment in February, enabling the company to start with exploration activities in Gabon, and, prior to listing on the Aim in the same month, it acquired digital data from the two exploration licence areas.
This data was collected using a Falcon gradiometry system designed by gradiometry equipment supplier CCG. The Falcon Gravity System computes gravity and magnetics factors to establish whether there is metallic presence in the ground.
Using the data, IronRidge has established 21 drill targets, and after SRK has taken earth samples at the targets, Mascolo would like drilling to start by the end of the year.
For the first sixth months of exploration, a team of about 30 people will walk the terrain, after which they will begin drilling the 21 anomalies identified as drill targets.
Mascolo says the main focus is on the Tchibanga coastal project because of the low cost of transporting exploration equipment from port to site and, if the company does discover iron-ore, it will be cheaper to transport the ore for shipping over the shorter distance to port.
The exploration project is led by “like-minded and visionary shareholders” in DGR Global, which owns a 26.3% share in the project, South African iron-ore miner, Assore, with ownership of 29.9%, and integrated trader Sumitomo Corporation, owning 11.7%.
The venture is a “formidable” team, with DGR Global as the explorer, Assore providing the mining, production and marketing experience in the iron-ore market, and Sumitomo providing the financial depth and experience in the commodities space, Mascolo asserts.
In the fourth quarter of 2011, IronRidge identified two areas of interest in Gabon; it received a prospecting licence for the two areas in June 2012 and the exploration rights for them in June 2013.
Mascolo explains that IronRidge took an interest in the West Coast of Africa because of a rich iron belt formed across Pangea – the name of the continental formation before the continents had separated. This 4 000 km geological trend passed from what is now Carajas, in Brazil, to Pilbara, Australia.
He concludes that IronRidge is confident that its margin will be attractive and that the company will overcome the weak price of iron-ore.