IronRidge Resources Limited acquires Ghana project
IronRidge Resources Limited, the global mineral exploration company with exploration tenements in Gabon, West Africa and Queensland, Australia, has announced the acquisition of a highly prospect hard rock lithium tenement package in Ghana, West Africa.
Global demand for lithium is increasing at an unprecedented rate since the emergence of consumer electronics, the electric vehicle and energy storage markets, driven by a desire to reduce carbon emissions and improve efficiencies.
The project, located on the southern margin of the Cape Coast Batholith, a 100x200km granitict intrusive complex. The company has announced that the site contains multiple untested pegmatite occurrences identified - including lithium, tin, tantalum, niobium and beryllium targets throughout the tenement package.
Speaking of the company’s progress, Vincent Mascolo, Chief Executive Officer of IronRidge, said: “Our global search initiatives continue to yield positive results with this advanced opportunity, an impressive historical lithium resource complimented with adjacent highly prospective licenses and applications is a timely opportunity considering the emerging battery and storage energy markets.
"We are very excited about the emerging energy space and today's news development presents a compelling opportunity covering resource scale potential, simple mineralogy, proximity to infrastructure and mining friendly jurisdiction, all imply the potential for a first quartile, low capital and operating intensity project."
The Company has entered into a Joint Venture Agreement with Obotan Minerals Ltd and Merlink Resources Ltd of Ghana, West Africa, under which IronRidge can acquire up to 100% of the projects through staged earn in arrangements and expenditure to Feasibility Study within a 4-year period subject to Obotan and Merlink retaining a NSR of 2.5% of which 50% may be acquired for US$3 million at any stage. Funding will be used to undertake further exploration work and, pending results, defining a maiden resource and complete project studies.
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British Lithium Pressured Due To Calls for Electric Cars
The British demand for lithium is set to reach 75,000 tonnes by 2035 as the government works towards their ban on the sale of high-polluting diesel and petrol vehicles within the UK. This comes as automakers worldwide continue to insist on the benefits electric vehicles will have on slowing the rate of climate change.
It is estimated that the UK will require 50,000-60,000 MT of lithium carbonate a year by 2035 for battery production to satisfy government needs. This is assuming production remains at 1.2 million vehicles per year, and the amount of lithium required does not increase.
British Lithium, which hopes to begin constructing a quarry to produce 20,000 MT of lithium carbonate a year in a $400 million investment, are not without competitors, both within the UK and abroad.
Competition For Lithium Rises In Europe
After only five years after its initial launch, Cornish Lithium is setting its sights on becoming a UK powerhouse in mining lithium, aiming to begin commercial production in under four years. Jeremy Wrathall, a former investment banker and current managing director of Cornish Lithium, had the future in mind when founding the company.
“In 2016, I started to think about the electric vehicle revolution and what that would mean for metal demand, and I started to think about lithium,” he said in an interview with AFP. “A friend of mine mentioned lithium being identified in Cornwall, and I just wondered if that was a sort of unrecognised thing in the UK.”
Lithium was first discovered in Cornwall around 1864 and has not been mined again since 1914 when it was produced as an ingredient in fireworks. Now, however, Cornish Lithium is reportedly in the testing stage to see if the metal can be produced commercially to meet the growing demand required for the electric car sector.
Despite Cornwall’s close historic ties to mining lithium, Wrathall insists that the project is purely commercial.
Cornish Mining Revival For Lithium Production
“It’s not a mission that drives me to the point of being emotional or romantic,” he says. “It’s vitally important that we do get this technology otherwise Europe has got no lithium supply.”
The European Commission has also stated their goal to end the sale of new petrol and diesel cars by 2035 to aid the environment. That being said, the majority of lithium extraction currently relies on power provided by environmentally damaging fossil fuels─a slight contradiction.
Alex Keynes, from the Brussels-based lobby group Transport & Environment, is adamant that mining for lithium should be done sustainably.
“Our view is that medium-to-long term, the majority of materials including lithium should come from efficient and clean recycling.
“Europe from a strategic point of view should be looking at securing its own supply of lithium.”
Despite growing competition from abroad, British Lithium Chairman, Roderick Smith, continues to place importance on the mining of lithium within the UK.
“Imagine what the UK economy would look like if we lost our automotive industry,” Smith says. “The stakes are high for the UK.”
Smith expects the UK to compete with other European countries to secure a lithium battery plant in the near future.