Australian miner Ironbark has reduced capital cost estimates for its Citronen base metal project in Greenland by about 15% following an engineering review of the Citronen processing plant.

The company made the savings after it adopted an industry standard gravity pre-concentration process at the plant.

Significant capital reduction items include reduced steel costs, ship loading facilities as well as crushing, grinding and power generation and floatation equipment, the company said in a statement.

The reduction in capital costs has resulted in an improved net present value of more than $500m, based on a mining rate of three million tonnes a year and a forecast zinc price of $1.08/lb and a lead price of 95c/lb in 2011.

The project has an indicated and inferred resource estimate of 55.8 million tonnes grading 6.1% zinc-lead equivalent.