EM SURVEY COMPLETED AT JERANGLE – BROAD STRONG BEDROCK ANOMALISM IDENTIFIED
ASX Announcement 6 February 2019
Ironbark Zinc Limited (ASX: IBG) (“Ironbark” or “the Company”), is pleased to announce the Heli-SAM electromagnetic survey has been successfully completed at the Jerangle Prospect within the Captains Flat base metals project.
Geophysical group, Gap Geophysics completed a HeliSAM electromagnetic (EM) survey over the proven large-scale Jerangle Prospect at Captains Flat (Figure 1). Preliminary interpretations show anomalies in several adjacent loops indicating the presence of a large, broad bed rock anomaly. Results from Loop 5 are shown in Figure 2 where there is a clear broader bedrock anomaly apparent on the north east section, at approximately 713,500mE and at depth. The broadening wavelength on the northern side of the anomalism would suggest some degree of plunge/deepening in the northerly direction.
The interpretation of the data is ongoing with a final report with drill targets expected shortly.
The survey was financed jointly by Ironbark and New South Wales Base Metals (NSW BM – a subsidiary of Glencore) on an equal basis which is the same as the project ownership.
The Captains Flat project hosts the historic and significant Lake George Mine as well as numerous highly prospective exploration targets.
Ironbark and NSW BM have already enjoyed historic exploration success with significant base metal intercepts returned from the Jerangle Prospect earlier drilling and look forward to continuing their work on this significant and underexplored proven high-grade base metals province. The geophysical survey is anticipated to better identify and detail the location, scale and geometry of the identified anomaly.
Figure 1: Exploration Licence 6381 showing prospect locations and the location of the HeliSAM survey at the Jerangle Prospect (left) and individual loop locations (right).
Figure 2: Preliminary results from Loop 5 of the HeliSAM survey showing broad bedrock anomalism.
QUARTERLY ACTIVITIES REPORT PERIOD ENDING 31 DECEMBER 2018
ASX Announcement 31 January 2019
Ironbark Zinc Limited (“Ironbark, the Company”) (ASX: IBG) hereby provides a report on its activities for the period ending 31 December 2018. During this reporting period the Company maintained focus towards developing the world class Citronen zinc project (Citronen). The zinc price remains strong and with a granted Mining Permit over one of the largest zinc deposits in the world and current Feasibility Study –the current resource stands at 70.8Mt @ 5.7% zinc + lead using a 3.5% zinc cut-off (Measured 25Mt, Indicated 26.5Mt and Inferred 19.3Mt) which compares favourably against a global average underground primary zinc mine head grade of 4.9% zinc (S&P Global, October 2018). This places the Citronen project as a globally significant, open ended in terms of actual size, unmined asset that is uniquely wellplaced moving forward to achieve long life and large-scale production
The Company is now working hard to secure finance in order to develop the large scale Citronen zinc project.
Ironbark reports on the following activities during the Quarter:
- Metso Memorandum of Understanding
- Financing Update
- Board Nominee resignation and update
- Captains Flat Project Update
- Citronen Project Expansion
- Capital Raising
- Zinc Market Update
Memorandum of Understanding with Metso Sweden AB
Ironbark announced that it entered into a Memorandum of Understanding with Metso Sweden AB (“Metso”).
The agreement provides a framework to negotiate a commercial agreement regarding services and equipment to be provided to Ironbark by Metso. This Memorandum of Understanding seeks to:
- Provide a platform to negotiate a commercial and binding agreement regarding services and equipment to be provided by Metso to Ironbark for the Citronen Zinc Project.
- Enable Metso to commence engineering tasks which shall precede the completion of detailed engineering of processing equipment, including the provision of technical specifications for specific third party supplied equipment. The completion of the design works, and manufacture of the key process equipment is contingent upon the parties entering into a commercially binding agreement to design, manufacture and supply the Citronen processing plant.
Ironbark is also in discussions with other highly regarded groups regarding the supply of all components for the Citronen Facility. These companies have the potential to significantly assist with the overall project financing.
Metso have collaborated with Ironbark for several years and were instrumental in the preparation of the Process Flow Sheet for the Citronen Feasibility Study. The two groups have maintained open communication during this time. A Metso technical representative visited the project site in August 2018.
Metso is a world-leading industrial company offering equipment and services for the sustainable processing and flow of natural resources in the mining, aggregates, recycling and process industries. Metso’s unique knowledge and innovative solutions, Metso helps its customers improve their operational efficiency, reduce risks and increase profitability. Metso is listed on the Nasdaq Helsinki in Finland and had sales of about EUR 2.7 billion in 2017. Metso employs over 12,000 people in more than 50 countries.
The future commercial agreement will, inter alia, contain and address the following matters:
- Scope of Metso’s supply of services and equipment;
- Price for Metso’s supply of services and equipment and payment terms, including a lump sum cost for remaining engineering works and project management scope;
- Delivery terms;
- Provision of Process Guarantee;
- Metso compliance with Greenlandic Government requirements and guidelines as applicable.
Ironbark is moving towards building on the long running relationship with Metso and the Citronen zinc project. Metso is exceptionally well regarded internationally and has direct experience with operations which are very similar in commodity/grade/scale to the Citronen project. Metso is also located in Scandinavia and therefore is well positioned to comply and assist with the training and employment obligations that Ironbark is operating under in Greenland.
CITRONEN PROJECT EXPANSION
ASX Announcement 11 December 2018
Ironbark Zinc Limited (ASX: IBG) (“Ironbark” or “the Company”), is pleased to announce it has expanded the project region held under licence application to dominate the district (Figure 1).
Figure 1: Citronen Expanded Licence Application
The Citronen project remains open ended at depth (repeat lodes), laterally and also on strike to the north-west. Mineralised outcropping gossans identified in the far North West (“The Western Gossans”) occur over an extensive region overlying the interpreted source fault that follows the trend of the licence. This new licence application covers the identified areas that are considered prospective and the trend of the Western Gossans
In discussions with several groups, the open-ended nature of the resource and the Exploration Target of 302- 347 Mt @ 4.4-5.0% Zinc + Lead is of interest (refer to ASX release dated 28 January 2010). The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration completed to date to estimate a Mineral Resource in accordance with the JORC 2012 Edition Guidelines. It is uncertain if further exploration will result in the delineation of a Mineral Resource (Figure 2).
Ironbark now controls the district which places the Company in a very strong position as Ironbark moves to determining the scale of the project in the future.
Figure 2: Plan view of the Captains Flat Licence and prospects
Jonathan C. Downes – Managing Director
Mr Downes has over 25 years’ experience in the minerals industry and has worked in various geological and corporate capacities. Experienced with nickel, gold and base metals, he has also been intimately involved with numerous private and public capital raisings. Mr Downes is on the board of several ASX-listed companies; he was a founding director of Hibernia Gold (now Moly Mines Limited) and Siberia Mining Corporation Limited (now merged with Monarch Resources Limited) and is a non-executive director of Corazon Mining Limited and Galena Mining Limited.
Michael Bourguignon – Project Director
Michael has over 20 years’ experience in Project Management within the Mining Industry both in Australia and Internationally. Michael’s most recent role was as the Capital Project Manager for Syrah Resources Limited’s Balama Graphite Mine. Michael was responsible for the planning, coordination and execution of multiple contracts for the construction of the Balama Processing plant which is the largest graphite processing plant in the world. The project scope also included the construction of external infrastructure which was self-managed. In this role, Michael was responsible for 2000 personnel with an owners of team of 96 staff reporting directly to him through to successful completion.
Peter Duncombe Bennetto- Non Executive Chairman
Peter has over 35 years’ 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.
David Kelly – Non Executive Director
Mr Kelly has over 9 years’ experience in finance industry in Australia and the United Kingdom; he has held senior roles at Deloitte Touche Tomatsu, Chartered Accountants and Royal & SunAlliance Insurance Group plc. Mr Kelly is a qualified Chartered Accountant, and is currently working for Ironbark’s substantial shareholder, Glencore International.
Gary Comb – Non Executive Director
Mr Comb is an engineer with over 25 years’ experience in the Australian mining industry, with a strong track record in successfully commissioning and operating base metal mines. Whilst he was Managing Director of Jabiru Metals Limited, he successfully took the Jaguar base metal project into production with the commissioning of the mine and processing plant taking place during the Global Financial Crises. Mr Comb 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.
Kelly Strong – Non Executive Director
Mr. Kelly Strong is the Vice President for mining operations at Nyrstar located in Tennessee. In his current role Mr Kelly Strong is responsible for all of Nyrstar’s zinc mining and milling operations in Canada and the United States, operating the mining of polymetallic ore bodies, and associated products. Mr Strong’s appointment is ideally suited to support Ironbark’s planned transition into mining.
Rob Orr – Chief Financial Officer & Company Secretary
Mr Orr is a Chartered Accountant with a significant level of commercial experience in the roles of Chief Financial Officer and Company Secretary for a number of ASX listed companies. Mr Orr has over 25 years’ experience in public practise and commerce and has worked extensively in the resource industry and is experienced in capital markets, project development, contract negotiation and mining operations.
