Ironbark updates Greenland project’s feasibility study
PERTH (miningweekly.com) – An updated feasibility study (FS) into the Citronen zinc-lead project, in northern Greenland, has estimated that a capital investment of $514-million would be required to support the 3.3-million-tonne-a-year operation.
With a production rate of up to 200 000 t/y of zinc metal and a mine life of 14 years, the Citronen project was expected to generate life-of-mine revenues of some $6.36-billion, ASX-listed Ironbark Zinc said on Tuesday.
The FS estimated that the project would have a net present value (NPV) of over $1-billion and an internal rate of return (IRR) of 36%.
A 2013 FS estimated that the project would require a capital investment of $429.3-million, based on 3.3-million-tonne-a-year operation, delivering a NPV of $609-million and an IRR of 32%.
The project will consist of a predominantly underground operation with concentrates to be treated through a dense media separation and flotation plant, to produce saleable separate zinc and lead concentrates.
“We are extremely pleased with the confluence of a strong zinc price, which is widely forecast to continue to strengthen, low fuel prices and strongly improved smelter treatment charges,” said Ironbark MD Jonathan Downes on Tuesday, adding that this had sharpened up the project economics.
“Giving real significance to this is the recent grant of a 30-year mining licence finally allowing a rapid progression towards financing and production. The Citronen project shows a highly profitable base metal development potential of global significance.”
Downes said that the project’s mine life of at least 14 years was defined only by the limits of drilling done 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.”
Ironbark will now look to appoint a financing adviser to assist with establishing a debt facility to fund the construction of the Citronen project, and the company was also working with China NonFerrous under an existing memorandum of understanding to deliver an engineering, procurement and construction fixed price contract, and to assist with project financing.
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