PERTH (miningweekly.com) – Base metals hopeful Ironbark Zinc has signed a memorandum of understanding (MoU) with mining contractor Byrnecut Offshore over the Citronen zinc/lead project, in Greenland.
The two companies will now work on a commercial agreement for underground contract mining services, underground mine cost modelling, and the provision of the underground mining fleet.
Ironbark on Friday told shareholders the company is working to remove key capital items off the capital cost of the Citronen project, with the ASX-listed company already having identified a number of opportunities to reduce the capital cost.
“We are extremely pleased to have attracted the interest of a group as well regarded and capable as Byrnecut. Byrnecut have the capacity to provide Ironbark with an immediate bolt-on underground mine expertise that will assist Ironbark as we move from financing to active mining,” said MD Jonathan Downes.
“While only at an early stage, we consider this a very positive step towards the project’s development and financing. Byrnecut is aware and supportive of the training and employment obligations that Ironbark is operating under in Greenland,” he added.
Ironbark last year updated the feasibility study for the project, which estimated that a capital investment of $514-million will be required to support a 3.3-million-tonne-a-year operation.