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Ironbark Zinc on road to Mining Licence for Citronen

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Ironbark Zinc's world-class Citronen zinc project is further down the development road in Greenland.

Ironbark Zinc's (ASX:IBG) wholly-owned world-class Citronen zinc project is further down the development road in Greenland, as the company looks to tap into the looming zinc shortage caused by major zinc mine closures.

Ironbark has now received notice from the Greenland Ministry of Industry, Labour and Trade (MILT) that the Social Impact Assessment (SIA) regarding the Mining Licence Application for the project is in compliance with the minimum requirements.

The SIA is now ready for the Public Consultation stage of the Application process.

Demand for zinc is increasing, and this will be a key inflection point driving upward pressure on the zinc price - and therefore supporting new mines.

Greenland has a history of zinc and lead mining and continues to seek to re-establish a mining industry.

Ironbark is finalising and submitting the SIA in order to prepare for a public consultation, and the MILT will review the final Greenlandic and Danish versions before the consultation begins.

The consultation will be coordinated between Ironbark, the Ministry of Mineral Resources, the Environment Agency for Mineral Resources Activities (EAMRA) and the MILT.

Ironbark has also recently formally lodged shipping studies, and completed mine closure reports.


Citronen is world class and strategically located


Citronen currently hosts in excess of 13.1 billion pounds of zinc and lead.

A completed Bankable Feasibility Study confirmed the world-class scale of the project, which is located adjacent to deep, protected water on the doorstep of Europe and North America.

Other advantages are simple, flat and continuous ore zones, with open-pit fresh sulphide potential and very low strip ratios to supplement higher grade underground mined mineralisation.

This would deliver a simple, predominantly underground room and pillar mining operation, with a proven DMS and flotation techniques to produce zinc and lead concentrates.


Greenland a zinc and lead supporter

Greenland is seeking to develop a strong mineral and petroleum industry and has returned very high global rankings on the annual Fraser Institute survey.

Zinc and lead minerals have been approved for exploitation in Greenland, which has a history of zinc and lead mining and continues to seek to re-establish a mining industry.


Mining License applications in Greenland

A Mining Licence application in Greenland is comprehensive and encompasses regulations which cover all aspects of the proposed mine, including environmental permitting and social commitments.

Following approval, the Mining Licence would provide Ironbark with the right to mine at Citronen for a period of 30 years.


Ironbark and China Nonferrous

Ironbark is also working with China Nonferrous on construction and financing solutions for the development of Citronen.

The company is currently operating under a Memorandum of Understanding and is advancing this through to a detailed scope of works.

Ironbark plans to adapt this information into a format suitable for Chinese banks with updated costs and development schedules.


Analysis


Ironbark continues to drive development of Citronen, where a completed Bankable Feasibility Study confirmed the world-class scale and economics of the project.

Citronen has the potential to be a long life base metal mining operation, with a simple process flow sheet with high recoveries.

Ironbark has now received notice that the Social Impact Assessment (SIA) regarding the Mining Licence Application for the project is in compliance with the minimum requirements.

The SIA is now ready for the Public Consultation stage of the Application process.

The mining license is a key price catalyst for Ironbark.

Ironbark also has a pathway to funding under the MOU with China Nonferrous offering minimal shareholder dilution.

Adding further interest, Ironbark also has an undrawn US$50 million funding facility provided by Glencore to expand its project base through acquisition.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Ironbark Zinc demonstrates 'proof of concept that derisks the project in a...

Jonathan Downes, managing director of Ironbark Zinc Ltd (ASX:IBG), speaks to Proactive Investors about development of the Citronen Zinc-Lead Project in northern Greenland, as the emerging producer announces hitting the milestone of demonstrating shipping access. A mining services...

on 3/9/18

4 min read