Zinc has been a strong performer in 2014, with predictions of the best to come in 2015. The scale of drilling at Citronen has been impressive.
Ironbark Zinc (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.
Zinc has been a strong performer in 2014, with predictions of the best to come in 2015. The scale of drilling at Citronen has been impressive.
The increase in ownership of the Captains Flat zinc, lead and copper project to be on par with Glencore could be the key to new exploration on the under-explored base metals project that saw significant base metals intercepts returned in 2013.
Rising zinc prices have placed an enviable spotlight on Ironbark Zinc and its Citronen Base Metal Project in Greenland. The company is progressing the granting of the Mining Licence against a backdrop of under investment in zinc supply should support the zinc price and development of Citronen into production.
Ironbark shares should continue to be well bid after lodging a Mining License for the world class Citronen Base Metal Project. The ML encompasses all aspects of the proposed mine such as the environmental permitting and social commitments.
Ironbark Zinc has received a Speculative Buy Recommendation from Perth broker Hartleys, who have placed a 12 month price target of $0.34 on the company and said it is leveraged to rising zinc prices. The company last traded at $0.10.
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Ironbark Zinc Limtied ("Ironbark" or "the Company") is a dual listed resources company (ASX:IBG) (OTC US: IRGBY) developing into an emerging leader amongst Australia's mineral resources companies.
Ironbark's board of directors and managment are focused on delivering shareholder value through the development of the Company's major base metal mining operation at its Citronen Zinc-Lead deposit in Greenland, and the acquisition of quality base metals projects.
Highlights from the Citronen Project include the release of both its January 2012 JORC resource and the results from the Feasibility Study in April this year.
Ironbark has acquired three projects in northern and eastern Greenland targeting base metals - the world class Citronen Zinc-Lead deposit, the Mestersvig Project containing the historic Blyklippen Lead-Zinc mine and the prospective Washington Land Project.
Washington Land Project
Greenland geology ranges from the Archaean to present. Ironbark has focused primarily on projects within the Paleozoic Franklandian Basin in northern Greenland. This sequence of Ordovician (~400Ma.) rocks spans roughly 2,000km, running E-W across northern Greenland into northern Canada. This stratigraphic sequence is well mineralised with base metals (zinc-lead-silver) and hosts several Mississippi Valley type (MVT) and SEDEX type deposits.
Further geological descriptions can be obtained from the Greenlandic Bureau of Minerals and Petroleum website.
The Citronen Zinc-Lead Project represents one of the world’s largest undeveloped zinc-lead resources with a resource in excess of 13 billion pounds of contained zinc and lead metal. The project is located in northern Greenland, a self-governed part of the Kingdom of Denmark and has a low level of sovereign risk.
To date in excess of 67,000m of diamond drilling has been completed at the Citronen Project. Citronen is a sedimentary exhalative (SEDEX) deposit- a potentially very large type of deposit. The mineralisation at Citronen starts from surface, is flat lying and is currently open in almost all directions. The deposit is adjacent to a deep water fjord that may provide near mine ship docking and loading opportunities.
The current resource (January 2012) for Citronen is:
Medium grade resource of:
Using Ordinary Kriging interpolation and reported at a 3.5% Zn cut-off
Figures rounded to one decimal place
within a larger resource of:
Using Ordinary Kriging interpolation and reported at a 2.0% Zn cut-off
Figures rounded to one decimal place
For further information relating to the resource estimate, please see the ASX Announcement #132- Resource Upgrade at Citronen on the Investor Relations page.
Citronen Project's Feasibility Study
In April 2013, Ironbark was pleased to release the results of the Citronen Project's Feasibility Report, which confirmed the Citronen Project as a globally significant lead-zinc project.
Highlights of the Feasibility Report included:
NPV: US$609 Million (US$354M post tax)
IR: 32.0% (22.2% post tax)
Equity Return: 37.9% (Geared NPV after tax)
Capital Cost: US$429.3 Million inc contingency (US$484.8M with First Fills)
Operating Cost: US$0.68/lb Zn (Payable, Net of by-product credits, Years 1-5, Smelter fees additional US$0.22/lb Zn)
Mine Life: 14 years
Life of Mine Operating Costs: US$3.42 Billion
Life of Mine Revenue: US$5.65 Billion
The Citronen base metals project benefits from the following favourable characteristics:
Located in Greenland – low sovereign risk
Located adjacent to deep, protected water on the doorstep of Europe and North America
Simple, flat and continuous ore zones
Open-pit fresh sulphide potential with very low strip ratios to supplement higher grade underground mined mineralisation
Long mine life, with resource open to further mineralisation in almost every direction
Simple, predominantly underground room and pillar mining operation
One of few world class deposits wholly owned by a junior company
Production scheduled at a time of many planned zinc mine closures, a shortage of zinc supply and anticipated high zinc prices
Ironbark is working with China Nonferrous under a MOU to deliver an EPC fixed price contract and financing for the project
For full details of the results from the Citronen Project's Feasibility Report, please dowload a copy of the ASX announcement dated 29 April, 2013.
The Washington Land Project in North West Greenland contains the Cass Fjord base and precious metals prospect which was discovered in 1999 during helicopter reconnaissance. Zinc, lead and barium mineralisation was found at surface along a lineament. A single diamond hole was drilled vertically into one of the mineralised areas shortly after discovery and returned 1.2m @ 8.4% Zn and 98 g/t Ag from 2m depth.
No follow up work was performed until Ironbark drilled the prospect in August 2011. Eleven widely spaced holes over a 2.7km strike length were drilled and all were mineralised with intercepts at depth.
New Base Metals Province - Exploration Success
In 2011, Ironbark announced the assay results from its drilling programme at Washington Land. Significant widths of high-grade, primary zinc-lead-silver-barite mineralisation were drilled around and along strike from the single discovery drill hole completed by Rio Tinto PLC (“Rio Tinto”) in 1999 at the Cass Fjord Prospect.
All holes drilled over a 2.7km strike were mineralised with follow up drilling planned for 2012. The results validate the Washington Land project as having the potential to host a large scale base metal resource.
Significant intercepts included:
CAS011 - 3m @ 16.4% zinc + lead, 77 g/t silver within 17m @ 4.1% zinc + lead, 23 g/t silver from 48m,
CAS002 - 2.5m @ 8.7% zinc + lead, 134 g/t silver within 9.5m @ 4.9% zinc + lead, 65 g/t silver from 17.5m,
This prospect was identified during brief helicopter reconnaissance in 1999 by Rio Tinto and only one drill hole was completed before pre-planned demobilisation of the regional exploration programme 80km away. No follow-up work occurred until Ironbark's drilling programme in 2011.
Mineralisation and drill intercepts at the Cass Fjord Prospect
The Mestersvig Base Metal Project in eastern Greenland comprises two 100% Ironbark owned tenements which contain the historic high-grade Blyklippen Zinc-Lead Mine and the outcropping Sortebjerg Zinc-Lead Prospect.
In 2011, Ironbark announced high-grade base metal drilling results from the historic Blyklippen lead-zinc mine and regional exploration at its 100% owned Mestersvig project in Greenland. These results confirmed the continuation of high-grade mineralisation at depth below the Blyklippen mine and open ended mineralisation from regional prospects.
Significant intercepts reported included:
BK03: 1.1m @ 12.2% zinc + lead and 8.2 g/t silver from 263m. This is significant because it proves a down dip extension of over 200m for mineralisation below the historical workings.
SB017 2.5m @ 8.9% zinc + lead, 2 g/t silver
SB019 1.0m @ 17.3% zinc + lead, 4 g/t silver
The results are encouraging and justify further exploration work to be planned for the project area.
The Blyklippen base metal mine perated between 1956 and 1962 and produced 544,600 tonnes of high-grade ore in excess of 20% zinc + lead for a recovered grade of 9.9% zinc and 9.3% lead. Previous explorers identified additional mineralised structures near the main mine and the project area is considered prospective. In its 2011 exploration programme, Ironbark drilled under the historic mine to test for deep extensions. Three diamond holes were drilled and all intersected a mineralised structure at depth as shown in the figure below.
Plan and Long section showing the Blyklippen mine and Ironbark drilling
The Sortebjerg prospect is located 8km south of the Blyklippen mine on the same north-trending fault zone. During the 1950’s a 16 hole drilling program was conducted in the area that returned significant zinc and lead grades. During the 2011 exploration season, Ironbark followed up on these results and drilled three diamond holes that returned significant intercepts including 2.5m @ 8.9% Zn+Pb and 1.0m @ 17.3% Zn+Pb & 4 g/t Ag.
Location plan of mapped fault zones and base metal mineralisation within the Blyklippen/Sortebjerg area
Ironbark’s mineral assets in Australia comprise three base and precious metal projects in New south Wales. The Captains Flat Project contains the historic Lake George Mine and together with the adjoining Peakview project, which contains several base and precious metal prospects, covers a strike length of over 80km of prospective geology. The Belara Project hosts 2 historic base and precious metal mines. In 2007 Ironbark released a maiden resource at the Belara Deposit after successful drilling in 2006.
Captains Flat Project
Location of Ironbark’s Projects in New South Wales
The Belara Base and Precious Metal Project is located 100km north-east of Orange in New South Wales in the northern end of the Hill End Trough. Historic mining, predominantly for copper, was conducted at the Belara and Native Bee deposits from 1885-1907 and 1906-1914 respectively.
The prospects were drilled in the late 1960’s with encouraging results, but not re-visited until Ironbark’s drilling program in 2006. Significant drilling intercepts from Ironbark’s drilling include;
4.0m @ 3.7% Zn, 1.13% Pb, 0.71% Cu & 41g/t Ag from 81.0m,
1.5m @ 7.0% Zn, 2.0% Pb, 0.1% Cu & 61g/t Ag from 132.0m and
8.0m @ 4.2% Zn, 1.8% Pb, 0.5% Cu, 62g/t Ag & 0.5g/t Au from 299.0m
The success of the drilling allowed Ironbark to produce a maiden resource at the Belara Project of 2,545,049t @ 3.75% Zn, 1.10% Pb, 0.40% Cu & 39.61 g/t Ag.
Significant drilling intercepts at the Belara Deposit
The Captains Flat Project is located 50km southeast of Canberra in New South Wales and covers an area of over 240 square kilometres surrounding the old mining town of Captains Flat. The town is home to the historic Lake George Mine which was first worked during the period of 1882 to 1899 for a recorded production of 26.7 tonnes of silver, 16,100 ounces of gold and 3,841 tonnes of copper from 114,560 tonnes of ore. It was reopened in 1937 and up to the date of its closure in 1962 produced 406,418 tonnes of zinc, 243,851 tonnes of lead, 27,230 tonnes of copper, 7.4 million ounces of silver and 220,000 ounces of gold from over four million tonnes of ore. The mine is hosted in a narrow north-trending suite of volcanic rocks which extends down into Ironbark’s Peakview Project. Several prospects, including, Vanderbilt Hill, Roaches, Anembo and Jerangle, are present along this faulted suite of rocks that have not to date been followed up.
In June 2011, Ironbark entered into a Joint Venture Agreement in the Project with NSW Base Metals Pty Ltd and Forge Resources Limited in which NSW Base Metals is Project Manager. Since the formation of the Joint Venture, a single deep diamond drill hole at the Jerangle Prospect was drilled and returned several significant intercepts including;
4.4m @ 12.05% Zn from 686.8m
3.3m @ 3.97% Zn & 2.67% Pb from 394.4m
1.4m @ 1.21% Cu from 111.0m
Captains Flat Tenure & Prospects
Lake George Mine
The high-grade Lake George Mine and remains prospective for remnant ore at current base metal prices as well as at depth where results such as 1.22m @ 12.4% Zn, 5.4% Pb were returned over a strike length of at least 300 metres. Mineralisation is open at depth and may represent possible repeats of the historically mined areas.
The Peakview Project is located 25km north east of Cooma in New South Wales and contains several base and precious metal prospects. A drilling program at Peakview in the early 1980’s defined a narrow high grade zinc, lead, copper & silver lode that left the mineralisation open in all directions and was never followed up.
Ironbark completed a drilling program in late 2011 that confirmed the mineralisation at Peakview continued along strike and down dip. Significant intercepts from the project include;
PVD03: 2.1m @ 11.65% Zn, 5.64% Pb, 1.93% Cu & 103g/t Ag
PVD05: 0.5m @ 15.6% Zn, 8.5% Pb, 0.92% Cu & 90g/t Ag
PVD13: 1.45m @ 5.96% Zn, 1.86% Pb, 0.76% Cu & 35g/t Ag
2011 Ironbark Program:
PVI003: 3.2m @ 7.5% Zn + Pb & 2.7% Cu
PVI006: 5.6m @ 4.4% Zn + Pb, 0.8% Cu & 256g/t Ag
PVI008 1.0m @ 25.8% Zn + Pb, 1.0% Cu & 119g/t Ag
Drilling Results from the Peakview Prospect
Jonathan Charles Downes – Managing Director
B.Sc Geol, MAIG
Jonathan has over 18 years experience in the minerals industry and has worked in various geological and corporate capacities. Jonathan has experience in nickel, gold and base metals and has been intimately involved with numerous private and public capital raisings. He was a founding director of Hibernia Gold (now Moly Mines Limited) and Siberia Mining Corporation Limited (Siberia) (which has now merged with Monarch Resources Limited). Jonathan was an Executive director of Siberia and is currently a Non-Executive director of Graynic Metals Limited.
Adrian Paul Byass – Executive Technical Director
B.Sc Hon (Geol), B.Econ, FSEG, MAIG
Adrian has over 18 years experience in the mining and minerals industry. This experience has principally been gained through mining, resource estimation, and mine development roles for several gold and nickel mining and exploration companies. Through his experience in resource estimation and professional association membership, Adrian is a Competent Person for reporting to the ASX for certain minerals. Adrian has also gained experience in corporate finance and financial modelling during his employment with publicly listed mining companies. Adrian was a founder of Siberia (which has now merged with Monarch Resources Limited) and Hibernia Gold (now Moly Mines Limited).
Gregory Clyde Campbell – Director of Engineering
BE (Chem) Hons
Gregory has 19 years engineering experience across Australia primarily in the iron industry. His experience spans from process and chemical engineering, operating, marketing to financial analysis of projects in the metals industry. This experience has been gained in various capacities including eight years with BHP Limited in a range of engineering and technical roles, eight years in senior engineer consultancy roles with Aker Kvaerner and Promet Engineers and process engineering work for Ausmelt Ltd.
Rob Orr - Chief Financial Officer
B Bus Acc, CA
Rob is a Chartered Accountant who commenced working initially for Coopers & Lybrand in Perth. He has subsequently gained a significant level of commercial experience in the roles of Chief Financial Officer and Company Secretary for a number of ASX listed companies, with over 20 years experience in public practise and commerce. He has worked extensively in the resource industry with experience in capital raisings, project development, contract negotiation and mining operations.
Chris James - Non Executive Director
Chris was appointed the Group Manager of Corporate Development for Nyrstar in 2010, and has led the acquisitions of Farallon Mining and Breakwater Resources. He joined the group in 2002, and his background includes mining and metals operations, strategy, business improvement and investor relations. Chris holds a Bachelor of Science and Engineering (Mechanical) from Monash University, and an Executive MBA from London Business School.
Peter Duncombe Bennetto- Non Executive Director
Peter has over 30 experience in banking and investment. He has had deep involvement in capital, currency and commodity markets with Societe Generale and Banque Indosuez. Peter has held company director positions in exploration, mining and manufacturing companies listed on the ASX since 1990. Peter was also a founding director of Anaconda Nickel Ltd.
John McConnell – Non Executive Director
B. Eng (Mining) MBA
John is a Canadian mining engineer with a wealth of experience in developing and operating base metal and precious mineral mining operations in the Arctic. John has more than 30 years of mining experience including exploration, engineering, environmental assessment and permitting, construction and operations. Recently, John was President and CEO of Western Keltic Mines until it was acquired by Sherwood Copper. Prior to that, he was Vice President – Northwest Territories Projects for De Beers Canada where he was primarily responsible for the permitting and development of the Snap Lake Diamond Mine. His experience also includes 12 years with Breakwater Resources Ltd / Nanisivik Mines Ltd in operations at the Nanisivik Zinc and Lead Mine on the northern tip of Baffin Island within the Arctic Circle. In addition to this, Mr McConnell spent six years with Strathcona Mineral Services Ltd. where his work included engineering, feasibility studies and project development. John is currently Executive Vice President and Director of Victoria Gold Corp., a public company engaged in gold exploration and development, with projects in the Yukon, Nevada and Guyana.
David Kelly - Non Executive Director
David has over 9 years experience in finance positions in Australia as well as the United Kingdom, gaining senior roles in companies such as Deloitte Touche Tomatsu, Chartered Accountants and Royal & SunAlliance Insurance Group plc. David is a qualified Chartered Accountant, and is currently working for substantial shareholder, Glencore International.
Gary Comb - Non Executive Director
Gary is an engineer with over 25 years of experience in the Australian mining industry and has a strong track record in successfully commissioning and operating base metal mines. He was recently the Managing Director of Jabiru Metals Limited where he was successful in taking the Jaguar base metal project into production with the commissioning of the mine and processing plant taking place during the Global Financial Crises. Gary was previously the Chief Executive Officer of BGC Contracting Pty Ltd, the mining contracting arm of the West Australian construction group BGC Pty Ltd. He is currently also a director of Zenith Minerals Limited.”
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350 Hay Street,
Subiaco WA 6008
PO Box 935
West Perth WA 6872
T: +61 8 6461 6350
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