For personal use only

Transcription

1 The Manager - Company s Announcements Australian Securities Exchange QUARTERLY ACTIVITIES REPORT PERIOD ENDING 30 SEPTEMBER 2016 Ironbark Zinc Limited (ASX: IBG) ( Ironbark or the Company ) hereby reports on its activities for the period ending 30 September 2016 in which the Company remained focused on the advancement of the wholly owned Citronen Base Metals Project ( Citronen ) in Greenland. Mining Licence Approval Status During the quarter, Ironbark continued to focus on an Exploitation Licence (Mining Licence) for Citronen. The Company executed the Impact Benefit Agreement (IBA) which was a significant milestone. The IBA is the framework for local involvement in the Citronen Fjord project in North Greenland. All four municipalities in Greenland, Naalakkersuisut, and Ironbark as licensee for the zinc and lead deposits at Citronen Fjord in North Greenland, have negotiated and signed the IBA to promote Greenlandic involvement in the upcoming mining project. Vittus Qujaukitsoq, Minister for Industry, Labour, Trade and Foreign Affairs, as well as the other Greenlandic parties to the agreement i.e. mayors from all four Greenland municipalities - Jørgen Wæver Johansen from Kommune Kujalleq, Ole Dorph from Qaasuitsup Kommunia, Asii Chemnitz Narup from Kommuneqarfik Sermersooq and Hermann Berthelsen from Qeqqata Kommunia were parties to the negotiations. The Greenlandic parties hope that the agreement will form a basis to enable labour and enterprises from throughout Greenland to take part in the project. The IBA will contribute to developing the Greenlandic mineral-resources sector in many different areas, and aims at ensuring Greenlandic jobs, involvement of Greenlandic enterprises, and skill upgrades for the Greenlandic workforce. Of the 470 people who will be working on the mine in the operating phase, 290 people will stay continuously on site. The goal is that most should be locally recruited workers, starting with 63 local people in the construction phase increasing over time, and this goal is to be underpinned by various initiatives to upgrade the skills of the local workforce. It has been agreed to set up apprenticeships and a training course will be organised for mechanics, electricians, excavator operators and administrators. It is expected that goods and services will be purchased through Greenlandic suppliers. Three funds will be set up, focusing on promoting different objectives. A social and cultural fund will be established to promote Greenlandic culture and social/sports initiatives as well as activities to benefit citizens in the four municipalities. In addition, an education and training fund will be set up to improve job opportunities for skilled and unskilled employees in mining operations, such as engineering, administration, finance, health and safety, as well as environmental and social aspects. Finally, it has been agreed to establish an enterprise fund to promote and support Greenlandic enterprises through courses, competence development, transfer of knowledge, legal assistance and similar activities. Ironbark considers that it has completed the documentation required for a licence application under the Mining Act and has largely settled the key terms for the Exploitation Licence. Ironbark A: Level 1, 329 Hay St. Subiaco WA 6008 P: PO Box 8187, Subiaco East WA 6008 P: F: E: admin@ironbark.gl W: ABN:

2 considers that it has complied with all the requests made and that the relevant documentation has been submitted relating to a mining licence application. This is an exciting time for the company and we remain confident that an Exploitation Licence permit will be granted in the near future. This will facilitate the Company to progress with the development of the Citronen base metal project through the next stages for the mutual benefit of the people of Greenland and the Ironbark shareholders. Ironbark has been working towards the registration of a Greenland company for several months as this will be required to hold the title of the Exploitation Licence, however this process is taking longer than anticipated. We have received advice that this matter is progressing and expect a result shortly. In addition, the Greenland Government has decided to retrospectively apply a royalty on production from the Citronen project and has provided a draft royalty document to the Company. Ironbark is seeking relief from the royalty. Negotiations are ongoing and Ironbark is working towards an outcome that will support the development of the project through to production. Ironbark is working closely with the Greenland Government and is hopeful of a speedy resolution to these remaining matters. Cash Position The Company remains in a strong position with cash available to the Company at the end of the September 2016 quarter of approximately $1.9M with no debt. Cost saving measures remain in place. End. For further information please visit Ironbark s website or contact us: Jonathan Downes James Moses Managing Director Mandate Corporate T T E: info@ironbark.gl E james@mandatecorporate.com.au

3 Schedule of Tenements (as required by ASX Listing Rule 5.3.3) Project Captains Flat (Joint Venture with Glencore) IRONBARK ZINC LIMITED CONSOLIDATED BASIS SCHEDULE OF INTERESTS IN MINING TENEMENTS Mining Location of Beneficial % tenements tenements interest at end held of the quarter EL6381 New South Wales 50% Change in the quarter Fiery Creek EL6925 New South Wales 100% EL8107 Citronen EL2007/02 Greenland 100% EL2007/31 EL2010/47 Mestersvig EL2011/28 Greenland 100% EL2007/32 EL2016/22 Washington Land EL2007/33 Greenland 100%

4 About Ironbark Ironbark is listed on the Australian Securities Exchange and is seeking to become a base metal mining house. Ironbark seeks to build shareholder value through exploration and development of its projects and also seeks to actively expand the project base controlled by Ironbark. The management and board of Ironbark have extensive technical and corporate experience in the minerals sector. The wholly owned Citronen base metal project currently hosts in excess of 13.1 Billion pounds of zinc (Zn) and lead (Pb). The current JORC 2012 compliant resource for Citronen: 70.8 million tonnes at 5.7% Zn + Pb Category Mt Zn% Pb% Zn+Pb% Measured Indicated Inferred Using Ordinary Kriging interpolation and reported at a 3.5% Zn cut-off Including a higher grade resource of: 29.9 million tonnes at 7.1% Zn + Pb Category Mt Zn% Pb% Zn+Pb% Measured Indicated Inferred Using Ordinary Kriging interpolation and reported at a 5.0% Zn cut-off Ironbark is an emerging leader amongst Australia s mineral resource companies, dedicated to the development of its major base metal mining operation in Greenland the world class Citronen Project, and the acquisition of quality base metals projects.

5 Disclosure Statements and Important Information Forward Looking Statements This announcement contains certain statements that may constitute forward looking statement. Such statements are only predictions and are subject to inherent risks and uncertainties, which could cause actual values, results, performance achievements to differ materially from those expressed, implied or projected in any forward looking statements. Competent Persons Statement The information included in this report that relates to Exploration Results & Mineral Resources is based on information compiled by Ms E Laursen (B. ESc Hons (Geol), MSEG, MAIG), an employee of Ironbark Zinc Limited. Ms Laursen has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Ms Laursen consents to the inclusion in the report of the matters based on this information in the form and context in which it appears Competent Persons Disclosure Ms E Laursen is an employee of Ironbark Zinc Limited and currently holds securities in the company.