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Zinc is now nearing a bull market, climbing 20 percent from its recent low on January 12 after production cuts tightened global supplies.
Zinc prices moved to a four month high overnight after a six year low was reached in January.
Mitsui Mining & Smelting Co. says the market will have a deficit of 440,000 metric tons this year, the most in more than a decade.
Zinc added 2.1 percent to $1,781 a tonne in London, extending a 3 per cent gain on Friday. Zinc has one of the most favourable demand and supply equations of any commodity.
This is good news for zinc exploration companies as well as development companies like Ironbark Zinc (ASX:IBG) as it owns the Citronen project which is one of the world’s largest zinc projects by resource size.
The high grade zone alone at Citronen boasts 29.9 million tonnes at 7.1% zinc and 0.5% lead. This is within a larger resource of 132 million tonnes at 4.0% zinc and 0.4% lead.
Ironbark has an MoU with China Nonferrous (NFC) to provide assistance for project development and funding Citronen.
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