Ironbark Zinc raising $2.2M for its Citronen Zinc Project
Summary
China is the growth driver, and only uses one quarter of the zinc used by western brands to galvanise a unit of local steel. Average mine grade for zinc has also dropped sharply from 7.0% to a current 5.8% and provides additional pressure on metal pricing.There are few large projects under development, and many of these are located in countries with high sovereign risk. The Belara project includes two historic base and precious metals mines where a maiden resource was developed in 2007.Peakview includes high grade targets at Fiery Creek and Macanally Prospects that have returned up to 235 grams per tonne gold and 14.9% copper from sampling along historic workings. Sampling and mapping have identified a 7 kilometre strike line that includes multiple parallel zones of mineralisation. Planning and permitting for a drilling program are well advanced to test these structures.AnalysisThe fund raising highlights the strong interest in Ironbark Zincs Citronen Zinc Project as global zinc stockpiles continue to fall.It also positions the company to take advantage of this strong demand with the project currently forecast to commission concentrate production by 2016.Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX Small and Mid-cap stocks with distribution in Australia, UK, North America and Hong Kong / China.