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Market:	ASX
Sector:	General Mining
EPIC:	IBG
Latest Price:	0.26 (-1.92% )
52-week High:	0.34
52-week Low:	0.20
Market Cap:	93.94M

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Ironbark Zinc Full Ironbark Zinc profile here

Ironbark (ASX: IBG) is focused on base metal exploration and development in Greenland and Australia. The company's project portfolio includes the Citronen Zinc Project, one of the world's largest undeveloped zinc resources, in Greenland and four base metal and gold exploration licences in New South Wales.

Ironbark Gold lands Nystar as major investor, to develop Citronen zinc project in Greenland

Tuesday, September 29, 2009

World's largest zinc metal producer Nystar has inked a deal with Ironbark Gold (ASX: IBG) to acquire up to 19.9% of the company via a $6.6 million placement at 12.5 cents per share.

Ironbark's Citronen zinc-lead project in northern Greenland has an indicated resource of 29.9Mt @ 5.8% zinc and 0.6% lead and an inferred resource of 25.9Mt @ 5.0% zinc and 0.7% lead.

Jonathan Downes managing director of Ironbark believes Citronen to be one of the world's largest undeveloped zinc resources.

As part of the acquisition agreement, Ironbark has also granted Nyrstar a life of mine off-take agreement, in relation to Ironbark's 35% of the production of the Citronen zinc-lead deposit once commercial production commences.

Nyrstar believes this could be achieved in the next 3 to 5 years, depending on market conditions.

The placement to Nystar will occur in two tranches, the second in November 2009 will require shareholder approval.

The proximity of the project to supply European smelters would also be favourable to development of the project as would Citronen's positioning on the zinc cost curve, factors not likely to be lost on Nystar.

Nystar was formed on 31 August 2007 through a merger between the zinc alloys operations of the Belgian company Umicore and the zinc and lead smelting operations of the Australian zinc miner Zinifex. It is the world's largest producer of zinc and listed on the Euronext Brussels stock exchange.

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