Strong DFS metrics The projected returns from development of...

Strong DFS metrics

The projected returns from development of Citronen befit a project of this size:

Life of Mine Revenue: US$5.65 billion
NPV: US$609 million
IRR: 43%
Mine life: 14 years+
Payback period: 18 months
Operating cost: $0.71/lb
Production Rate: 3.3mtpa ROM ore


Analysis
Credits are difficult to come by in the current challenging share market but Ironbark continues to make progress in Greenland with the recognition of Citronen as one of the world's largest credible zinc development projects at an advanced post-feasibility stage.

The global drawdown in the zinc stockpiles which has moved towards a supply deficit is widely expected to accelerate following the closure of several large mines. This provides momentum for development of Citronen as well as a catalyst for share price gain.

The current focus at Citronen continues to be the granting of a Mining Licence which provides a further share price catalyst.

Greenland’s authorities have demonstrated sustained support for the development of Citronen, the country has a history of zinc and lead mining.

Citronen is a fairly simple project with flat and continuous ore zones. There is open pit sulphide potential with low strip ratios to augment higher grade underground mined ore.

The mining operation is predominantly underground room and pillar mining operation. Proven DMS and flotation techniques can be used to produce zinc and lead concentrates.

The MOU with China NFC to provide assistance in acquiring project funding provides further upside potential.