Quarterly Activities Report
The Feasibility Study Update (2017) was based on the original 2013 Feasibility Study but has incorporated a recent review of capital and operating costs. Several major changes that have been highly favourable include improved global benchmark smelter treatment terms, lower fuel prices (which represents one of the Projects largest forecast costs of operation), and the long-anticipated recovery in the zinc price. There have been some cost increases, including wages and some materials, however, the result is a far more robust project than ever before which is reflected in a post-tax NPV of US$909 million, placing Ironbark in a strong position to become a major new zinc producer.
Commenting on the results of the updated cost evaluation of the Feasibility Study Ironbark Managing Director Jonathan Downes said:
"We are extremely pleased with the confluence of a strong zinc price, which is widely forecast to continue to strengthen, low fuel prices and strongly improved smelter treatment charges. This has sharpened up the project economics and now has the project NPV exceeding US$1B at spot metal prices and using 5 year Wood McKenzie zinc forecasts. Giving real significance to this is the recent grant of a 30 year Mining Licence finally allowing a rapid progression towards financing and production. The Citronen Project shows a highly profitable base metal development potential of global significance. Citronen's mine life of at least 14 years is defined only by the limits of drilling to date. As such, one of the Project's most exciting aspects remains its exceptional exploration potential with identified mineralisation remaining open in almost every direction."
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About Ironbark Zinc Limited
Ironbark Zinc Limited (ASX:IBG) (OTCMKTS:IRBGY) is listed on the Australian Securities Exchange and is seeking to become a base metal mining house. Ironbark has an undrawn US$50M funding facility provided by Glencore to expand its project base through acquisition.
Ironbark seeks to build shareholder value through exploration and development of its projects and also seeks to actively expand the project base controlled by Ironbark through acquisition. The management and board of Ironbark have extensive technical and corporate experience in the minerals sector.
The wholly owned Citronen base metal project currently hosts in excess of 13.1 Billion pounds of zinc (Zn) and lead (Pb). For full details refer to ASX announcement 25 November 2014 –Citronen Project Resource Update – JORC 2012 compliant resource.
Ironbark Zinc Limited