The Citronen Zinc Project (Project) represents one of the worlds largest undeveloped zinc resources. The project is located in northern Greenland (Figure 1), a self governed part of the Kingdom of Denmark and has a low level of sovereign risk.
The most recent resource estimate stands almost 17 million tons at 7.8% zinc and 0.9% lead. Approximately ~33,000 metres of diamond drilling has been conducted between 1993 and 1996 returning intercepts such as 28.8 metres @ 9.7% zinc (including a higher grade zone of 8.5 metres @ 19.0% zinc).
Ironbark considers that the Project offers exceptional large scale, low risk, long life and high margin production potential as well as an outstanding exploration opportunity with the extent of mineralisation yet to be determined.
The mineralisation is considered to be of a SEDEX style zinc deposit and this model is potentially very large. The mineralisation starts from surface, is shallow, flat lying and adjacent to a deep water fjord that may provide near mine ship docking and loading opportunities.
Following successful due diligence, Ironbark has the ability to purchase 100% interest in the Project.
The Citronen Zinc Project was discovered in 1993 by Platinova AS (partially owned by the Government of Greenland) and was the subject of 4 field exploration campaigns of investigation until 1998. Discovery was made through location of outcropping zinc-rich sulphide gossans. At a time of exceptionally low base metal prices (1997-8 Zinc ~US$0.40/lb) the project was drill tested (see Figure 2) and the extents of mineralisation are yet to be determined. Mineralisation is characterized by large, thick concentrations of strata-bound sulphide assemblages. Gravity and EM geophysical surveys have been conducted at Citronen and are ideally suited to identifying further extensions of mineralisation.
As a result of being a recent discovery (1993) and the poor prevailing metal prices until recently having depressed global exploration activity, the Project is considered to offer a rare level of true exploration potential as it is under-explored and mineralisation is open-ended. Ironbark cannot comment on potential size of the Project at this time. Exploration to date (1993-1997 drilling) was curtailed prior to delineation of the extents of mineralisation. A target resource of at least 20 to 25 million tons at +7% zinc was estimated by Platinova A/S based on surface mapping and gravity data to date within the main project area. This figure is referenced in the Greenland Geological Survey publications listed in the Resource section below.
There is considerable further exploration potential such as identified by the most south-eastern drill hole that intercepted 12% zinc over 2 metres from 98 metres depth (see Figure 2). This hole is located 550 metres from the next closest drill hole. There is no drilling beyond this point.
Geophysical surveys conducted to date (ground magnetics and EM) have proven to be very effective at delineating areas of high sulphide concentration (Figure 3) and shows the immediate, highly prospective exploration targets that will be drill tested as soon as possible.
The Project resource estimate prepared after completion of all field work was reported to the Toronto Stock Exchange in 1999 and has been calculated from 147 diamond drill holes for 32,826 metres of diamond core. The majority of the drilling is vertical and mineralised intercepts represent close to true width of the ore body that dips at between 5 and 7 degrees to the North (Figure 4). The ore body starts from surface and has been recorded as deep as +300 metres, with the majority of resources estimated between 0 and 200 metres depth.
Mineralisation is readily identifiable amongst the host sedimentary sequence and is laterally very continuous. All assays were obtained from half diamond core which was assayed in Canadian assay laboratories.
Citronen Project Resource Estimate (1)
Million tons (Mt) |
% Zinc (Zn) |
% Lead (Pb) |
Category |
7.1 |
8.8 |
1.1 |
Indicated (2) |
9.7 |
7.1 |
0.7 |
Inferred (3) |
16.8 |
7.8 |
0.9 |
Total |
Notes
1) Resource estimate taken from the Platinova A/S 1999 Annual Report as lodged with the Toronto Stock Exchange (TSX). Estimate was produced using polygonal estimation techniques.
2) Indicated Resources estimated using >2m vertical thickness @ 6% Zn
3) Inferred Resources estimated using >1m vertical thickness @ 5% Zn outside Indicated areas
The mineralisation is hosted by Ordovician sediments of the Franklinian Basin and is considered to be contemporaneous with other base metal deposits in Canada such as Polaris (operated by Teck Cominco between 1980 and 2002).
Further information on the geology of the Citronen Zinc Project is readily obtained from the Geological Survey of Denmark and Greenland (GEUS) by going to the following link and opening or downloading the PDF document at the bottom of the page:
www.geus.dk/publications/review-greenland-96/gsb176p44-49-dk.htm
Ironbark has engaged SRK Consulting to assist in the due diligence process and to work with Ironbark in developing exploration targeting, and resource/optimisation studies.
Ironbark has entered into a purchase agreement to acquire a private company, Bedford Resources Partners Inc (Vendor), the sole owner of the Citronen Zinc Project.
Ironbark has agreed to pay the Vendor $6 million cash, 8 million shares in Ironbark and 16 million options in Ironbark with an exercise price of $1.50 at any time prior to 1 February 2010. The project has a 2.5% NSR.
Working and operating in northern Greenland is not dissimilar to those conditions experienced in numerous operations in northern Canada and Ironbark has secured the services of Mr Andrew Stocks in the role of Logistical Consultant. Mr Stocks spent several years working as the Vice President of Operations for Crew Gold Corporation. In this role, Mr Stocks was responsible for the commissioning of the first gold mine and associated ship loading facilities in Greenland, the Nalunaq Gold Mine, which was also the first mine to be commissioned in 30 years. The mine remains in operation. Mr Stocks has previously run mines throughout the world for Barrick Gold. Several new mines are now operating or preparing to operate in Greenland.
Access to the site is by aircraft or boat – with the last explorers utilising the services of various aircraft including helicopters, Boeing 727, C-130 Hercules and Twin Otter aircraft. The climate is very dry with minor rain or snowfall and during the 1997 field program the temperature averaged ~ 1 degree Celsius between 20 May and 20 September (5 months) with a highest recorded temperature of 9 degrees Celsius and a lowest recorded temperature of -13 degrees Celsius.
During winter pack ice will limit the access to the Project by ship as is the case with many northern Canadian mining operations. Readers interested in further understanding the logistics of operating in such a climate please refer to an excellent summary of the Polaris operation (one of the lowest cost zinc mines in the world) that was partially owned by Teck Cominco at the following website:
www.teckcominco.com/articles/operations/pol-pd-overview.htm
Ironbark is planning to commence exploration drilling and advance the project through Pre-Feasibility as soon as possible.