Ironbark Zinc (ASX:IBG) has received an ASX Price Query after the stock soared 28.8% to $0.085 intra-day today, compared to the closing price last Thursday.
Ironbark said in its response to the ASX: "We note that the London Metal Exchange (LME) warehouse zinc stock levels has fallen by over 25% in 2014 to a level below 660,000 tonnes (representing less than 1 months global zinc consumption)."
The zinc price has recently shown a strong upward trend which mirrors the continuous reduction in the LME warehouse stocks with the price recently achieving US$1.05 per pound, the highest level in almost three years.
The company's Citronen Base Metal Project in Greenland is one of the world's largest undeveloped zinc projects with a growing Resource currently pegged at 71 million tonnes at 5.7% of zinc and lead, or 13 billion pounds of contained zinc and lead.
Ironbark continued: "Recently we have also noted increased media coverage and general public awareness which has focused attention on the zinc shortfall and this has attracted investor attention.
"We also note that despite zinc being a major industrial metal, Ironbark has limited remaining zinc developer and miner peers listed on the ASX and we believe we are the largest sole focused zinc explorer and developer on the ASX."
The company also pointed to its news last month updating the progress in relation to the Mining application process, announcing the lodgement of the Social Impact Assessment for Citronen with the Greenland Government for comment.
Social Impact Assessment Details
The SIA was prepared by the company with the assistance of European consulting and engineering industry company Grontmij.
It is based on engagement with relevant stakeholders and current Greenland social baseline information.
The main objectives for the SIA process are:
- To engage all relevant stakeholders in consultations and public hearings;
- To provide a detailed description and analysis of the social pre-project baseline situation as a basis for development, mitigation and future monitoring;
- To provide an assessment based on collected baseline data to identify both positive and negative social impacts at both local and national level;
- To optimize positive impacts and mitigate negative impacts from the mining activities throughout the project lifetime; and
- To develop a Benefit and Impact Plan (BIP) for implementation of the Impact Benefit Agreement (IBA).
Comments on the SIA by the Greenlandic Government have been received by the company and are being addressed.
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