Ironbark says Citronen project in Greenland needs $514m


Australia's Ironbark Zinc has announced that around $514m is required to fund the development of its Citronen project in Greenland, based on the outcome of an updated feasibility study.  

The 3.3Mtpa project is expected to produce up to 200,000tpa zinc metal and has projected revenue of $6.3bn over a mine life of 14 years.

It comprises an exploitation licence 2016/30 (Mining Permit), which was granted by the Greenland Government in December last year for a period of 30 years.

According to the feasibility study, the project has a net present value (NPV) of $1.03bn and an internal rate of return (IRR) of 36%.

"One of the project’s most exciting aspects remains its exceptional exploration potential with identified mineralisation remaining open in almost every direction."

Ironbark Zinc managing director Jonathan Downes said: "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." 

The project is an underground room and pillar mining operation, concentrating the ore through dense media separation (DMS) and flotation techniques in order to produce separate zinc and lead concentrates.

To date, the company’s drilling programme at the site has covered more than 66,000m and 166 diamond holes.

Under the existing memorandum of understanding (MoU), Ironbark is working with China Nonferrous to deliver an engineering, procurement and construction (EPC) fixed-price contract, as well as assist in project financing.