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Ironbark Zinc Heads To Market

Ironbark Zinc (ASX: IBG) is raising capital following the completion of an earlier encouraging Feasibility Study for its wholly-owned Citronen zinc and base metal project in Greenland.

The company has been granted a trading halt, which will last until the earlier of an announcement being made to the market, or the opening of trade on Wednesday 18th September 2013.

Its Feasibility Study had forecast production of 3.3 million tonnes of feedstock; initial mine life of 14 years and CAPEX $484.9 million from the project, which hosts a JORC Resource of 71 million tonnes at 5.7% of zinc, (Zn) and lead (Pb), containing 13 billion pounds of zinc and lead.

The massive project has attracted major investors that include GlencoreXstrata, the world's largest zinc miner and trader, and Nyrstar which is the world's largest zinc and lead smelter group.

China Nonferrous, which is ranked as one of the world's top engineering firms has executed a Memorandum of Understanding to build and majority fund the process plant.

Life of Mine OPEX is estimated at US$3.42 billion to produce total revenue of US$5.65 billion.

The Internal Rate of Return is estimated at 32.0% (22.2% post tax), and Net Present Value is US$609 million (US$354 million post tax).

Notably, mineralisation remains open in all directions for exceptional exploration upside that could quadruple current resources.

Ironbark Zinc is focussed on completion of EPC with China Nonferrous this year, construction by 2015, and commissioning of concentrate production by 2016.

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