Ironbark Zinc Ltd (ASX:IBG) continues to make strong progress in driving the world-class Citronen Zinc-Lead Project towards development, including identifying and implementing optimisation initiatives.
In parallel, the company has also commenced several new project initiatives, which include a reassessment of its existing Australian assets as well as exploring new acquisitions.
The aim of this work is to enhance shareholder value while maintaining momentum at the flagship Citronen project.
Further details on these initiatives will be announced in due course.
More milestones ahead
Managing director Michael Jardine said: “The upcoming year should see more regular news flow and some value accretive milestones reached and we look forward to updating the market as these eventuate.
“Citronen is one of the largest zinc deposits in the world and remains a globally significant development asset that is well-placed to enter production in the future.”
Jardine added: “With the ongoing presence of Glencore and Trafigura as shareholders and off-takers the development-ready status of the Citronen project is clear.”
He said the work being done at its flagship project, which includes the declaration of a maiden ore reserve at Citronen shortly, will greatly “improve our chances of a successful financing outcome”
Ironbark’s primary focus in 2020 has been to update the development plan for the Citronen project.
The outcome of the comprehensive mine optimisation study, which was completed in September was very positive and considerably de-risk the mining operation in several key areas.
It also materially improved both the project economics and overall understanding of how the ore body is optimally mined.
The study will form the basis of a full refresh of the existing feasibility study and then, a decision to mine and the securing of financing for Citronen, targeted for 2021.
Zinc price rally
The recent strong rally in zinc prince will support the company’s development strategy.
Ironbark noted that both COVID-19 supply disruptions and forecast stimulus-induced growth are jointly driving base metal prices and sentiment higher.
Ironbark said it considers Captains Flat Base Metals Project (EL 6381) in New South Wales, a 50/50 joint venture with Glencore PLC (LON:GLEN), to be an important asset, given it is proven to host high-grade base metals mineralisation and is accessible year-round.
It also offers another avenue for Ironbark to work with Glencore, one of the world’s largest base metals mining & trading companies.
Captains Flat is 45 kilometres southeast of Canberra, and is jointly held between Ironbark and NSW Base Metals, a wholly-owned subsidiary of Glencore.
The historic high-grade Lake George Mine, which produced around 4 million tons of ore at 10% zinc, 6% lead, 0.7% copper, 1.8 g/t gold and 55 g/t silver, is on the tenement, together with a number of other prospects.
Ironbark is in the process of finalising the renewal for Fiery Creek (EL 6925).
It hopes to update the market on its intentions for the project in the near term.
Fiery Creek, about 90 kilometres southeast of Canberra, is an exploration licence prospective for gold and base metals.
Ironbark has held the licence since 2007.