Ironbark Zinc (ASX: IBG) has received a major vote of confidence from substantial shareholder L1 Capital, with the fund manager boosting its stake to 15.45% from 14.4%.
The increase was due to L1 purchasing 365,000 shares for a consideration of around $92,400, for an average entry price of just over $0.25 - which is around Ironbark's last traded price.
The increased interest from L1 is no doubt due to Ironbark returning some very promising results recently at the wholly owned Mestersvig project in Greenland, including visible base metal mineralisation over multiple metre true widths.
Highlighting the prospectivity at Mestersvig is historical mining and production, which included 544,600 tonnes at 9.9% zinc and 9.3% lead in the six years to 1962.
New drill samples from late July were being air-freighted from Greenland for assay by ALS Chemex in Europe, with results currently pending.
Ironbark drilling activity for 2011 is now focused on the Citronen base metal project.
Exploration at Citronen is ongoing and primarily aimed at resource definition and infill drilling at the Esrum zone, in conjunction with extensional drilling around areas of higher-grade mineralisation at the Beach zone.
Citronen currently has a Inferred JORC Resource of 59.9 million tonnes at 5.9% zinc plus lead, with the latest exploration targeting the conversion to the higher confidence categories of Measured and Indicated.
At the Washington Land project, Ironbark will target follow-up exploration at the Cass prospect from work conducted by Rio Tinto (ASX: RIO) in the late 1990's, with the big miner withdrawing due to the low zinc and lead prices.
Mineralisation at Cass occurs over a four kilometre strike, where continuous rock chip composite samples returned; 25 metres at 8.9% zinc, 11.1% lead and 95g/t silver.