Citronen

Updated Feasibility Study

In September 2017, Ironbark was pleased to release the updated financial results of the Citronen Project’s Feasibility Report.

Highlights of the Feasibility Report included:

  • NPV8: US$1,034  Million (US$909M post tax*)
  • IRR: 36.0% (35% post tax*)
  • Capital Cost: US$514 Million**
  • Large Scale Production: 3.3Mtpa Mine Rate/Production up to 200,000tpa zinc metal
  • Site Cost: US$0.52/lb Zn (Payable, Net of by-product credits)***
  • Mine Life: 14 years (open ended and with further inferred resources that could potentially be converted to reserves)
  • Life of Mine Revenue: US$6,364 Million
  • Life of Mine Operating Costs: US$3,025 Million
  • Life of Mine NPAT: US$1,836 Million*

 

* Excluding dividend withholding tax (Corporate tax rate of 30%, dividend withholding tax 37%). All costs and prices indexed at a CPI rate of 2.5% pa

** Compared against the last Western Calculation dated 2011 is a 2.4% increase. NFC are currently working on a Chinese Feasibility study which is expected to have a lower Capital Cost

*** Smelter fees an additional US$0.14/lb Zn Payable

Project Highlights:

  • 100% owned Exploitation Licence 2016/30 (Mining Permit) Granted by the Greenland Government – 30 year term
  • Open-ended, simple, consistent resources
  • Simple mining, simple processing using standard technology
  • Ironbark is working with China Nonferrous under a MOU to deliver an EPC fixed price contract and assist in project financing
  • Major industry shareholders – Glencore International AG & Nyrstar NV

For full details of the results from the Citronen Project’s Feasibility Report, please download a copy of the ASX announcement dated 12 September, 2017.

Citronen January 2012 Resource

The Citronen Zinc-Lead Project represents one of the world’s largest undeveloped zinc-lead resources with a resource in excess of 13 billion pounds of contained zinc and lead metal. The project is located in northern Greenland, a self-governed part of the Kingdom of Denmark and has a low level of sovereign risk.

To date in excess of 67,000m of diamond drilling has been completed at the Citronen Project. Citronen is a sedimentary exhalative (SEDEX) deposit- a potentially very large type of deposit. The mineralisation at Citronen starts from surface, is flat lying and is currently open in almost all directions. The deposit is adjacent to a deep water fjord that may provide near mine ship docking and loading opportunities.

The current JORC 2004 compliant resource for Citronen is:

Medium grade resource of:

Category

Mt

Zn%

Pb%

Zn+Pb%

Measured

25.0

5.0

0.5

5.5

Indicated

26.5

5.5

0.5

6.0

Inferred

19.3

4.9

0.4

5.3

Total

70.8

5.2

0.5

5.7

Using Ordinary Kriging interpolation and reported at a 3.5% Zn cut-off

Including a higher grade resource of:

Category

Mt

Zn%

Pb%

Zn+Pb%

Measured

8.9

6.6

0.6

7.2

Indicated

13.7

6.8

0.5

7.3

Inferred

7.3

6.2

0.5

6.6

Total

29.9

6.6

0.6

7.1

Using Ordinary Kriging interpolation and reported at a 5.0% Zn cut-off

For further information relating to the resource estimate, please see the ASX Announcement #132- Resource Upgrade at Citronen on the Investor Relations page.

1.1