Ironbark Zinc Limited (ASX:IBG) is confident its 100%-owned Citronen Zinc-Lead Project in Greenland offers a rare scale and grade combination with a long mining life in a unique jurisdiction – and plans to make the most of it.
The company considers Citronen the ‘jewel in the crown’ because the project has a 30-year mining lease and has 18 million tonnes at 8.24% zinc and lead% with 14 million tonnes in measured and indicated resources.
The high-grade zone is within a significantly larger resource of 132 million tonnes at 4.5% zinc and lead% with potential for further regional exploration.
Previous diamond drilling by the company over 67 kilometres resulted in 73% of holes hitting a minimum of 2 metres at 3.5% zinc - and many geophysical and structural targets remain untested.
Optimising mine plan and processing
Currently, the company is refreshing the mine plan to potentially include new and improved mining methods developed since the original mine plan was released.
The main objective with the optimisation study was to evaluate a production schedule for an initial 1 million tonnes per annum scenario, targeting an increased head grade in the opening three years of production.
This study has since highlighted several areas where the existing mine plan can be improved with new mining methods and techniques.
As part of this study, the maiden JORC 2012 ore reserve statement will be completed and this is likely to be followed by a revised processing plan to reflect advancements over the decade since Citronen was first studied in detail.
Improving ESG credentials
The new mine plan is investigating a range of options to improve its environmental and social governance (ESG) including the return of tailings to underground voids, minimising waste on surface.
Ironbark is also working with major EU-based wind providers on alternative power solutions and is discussions with the Government of Greenland on finding a solution to heavy fuel oil (HFO) usage in the Arctic.
The company is also progressing towards country employment targets.
Ironbark believes that once the mine is developed it will be the largest zinc mine operating under EU standards.
Location and demand
The company considers Greenland ‘hungry for investment’ as a self-governing territory within the Kingdom of Denmark which sits between Europe and North America.
There are several historic zinc-lead mines in-country and the government is strongly pro-development with multiple resource companies actively pursuing developments in Greenland.
The company’s board is focused on finalising all pre-final investment decision permits in-country by mid-year.
Ironbark is confident in the future of the project, with Tier 1 offtakers already in place.