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Ironbark Zinc Increases Ownership Of NSW Base Metals Play

Ironbark Zinc (ASX:IBG) has increased its ownership in the little explored Captains Flat Project in New South Wales to 50% following negotiations with Glencore Plc.

Ironbark and Glencore have already enjoyed exploration success with significant base metal intercepts returned from the Jerangle Prospect drilling in 2013.

Captains Flat has a 49 kilometre strike length of zinc, lead and copper prospective geology and contains 26 identified prospect including the historic Lake George Mine, which was Australia's second largest copper producer at one time.

Under the renegotiated joint venture agreement, Ironbark will take on equal joint title of the Project and will continue exploration in an equal Joint Venture Agreement with Glencore.

The Project, which comprises one Exploration Licence, was previously held by Rutila Resources Limited, with Ironbark and NSW Base Metals (a wholly owned indirect subsidiary of Glencore) earning up to 75% of the Project.

Ironbark will issue 1 million IBG shares to Rutila and a minor cash adjustment. Both JV partners will pay a proportional share of a 0.25% trailing production royalty to Rutila.

Captains Flat Project

The Captains Flat Base Metal Project is located 45 kilometres southeast of Canberra in New South Wales.

It covers a strike length of 49 kilometres of a highly endowed volcanic massive sulphide (VMS) horizon that hosts numerous historic mineral occurrences and mines.

This includes the Lake George Mine that produced 4 million tonnes of high-grade ore grading 10% zinc, 6% lead, 0.7% copper, 1.8 grams per tonne gold and 55g/t silver until closure in 1962.

Lake George remains prospective for remnant ore at current base metal prices as well as at depth.

Diamond drilling below historical workings has returned results such as 1.22 metres at 12.4% zinc and 5.4% lead over a strike length of at least 300 metres

Mineralisation is open at depth and may represent possible repeats of the historically mined areas.
Drilling by Ironbark in 2013 also returned high-grade base metal results at the Jerangle Prospect that will be followed-up.

Jerangle is located at the southern end of the project area and drilling over a strike length of 1.5 kilometres has returned drill intercepts assaying up to 5.25% copper.

Drilling by Ironbark has returned results including 4.4 metres at 12.05% zinc and 5 metres at 4.6% zinc+lead, 0.13% copper and 4.2g/t silver.

Other prospects include the Vanderbilt Hill and Anembo prospects.

Vanderbilt Hill is located to the east of the Lake George Mine and drilling has returned results such as 3.9 metres at 10% zinc and 5.3% lead.

The prospect is considered to be highly prospective with open ended historic high grade drill results yet to be followed up.

The Anembo Prospect is located 12 kilometres north of the Jerangle prospect.

Historic drilling returned 3 metres at 6.9% zinc, 5.5% lead, 21g/t silver and 2g/t gold, which has not been followed up.

Analysis

Ironbark Zinc's increase in ownership of Captains Flat to be on par with Glencore reflects the potential of the under-explored base metals project.

This is unsurprising given that its drilling in 2013 returned significant base metals intercepts 4.4 metres at 12.05% zinc and 5 metres at 4.6% zinc+lead, 0.13% copper and 4.2g/t silver.

Further support comes from the historic Lake George Mine that was at one time Australia's second largest copper producer.

Lake George remains prospective for remnant ore at current base metal prices while drilling at depth has returned such as 1.22 metres at 12.4% zinc and 5.4% lead over a strike length of at least 300 metres.

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