THE BOURSE WHISPERER: Ironbark Zinc (ASX: IBG) has renegotiated the Joint Venture agreement covering the Captains Flat base metals project in New South Wales.
Ironbark is to take on equal joint title of the project and will continue exploration in an equal JV agreement with Glencore.
The project comprises one Exploration Licence, which was previously held by Rutila Resources (ASX: RTA), with Ironbark and NSW Base Metals earning up to 75 per cent of the project.
The new JV agreement replaces the Rutila-Ironbark-Glencore JV agreement and will result in Ironbark issuing one million Ironbark shares to Rutila and a minor cash adjustment.
Both JV partners will pay a proportional share of a 0.25 per cent trailing production royalty to Rutila.
The Captains Flat base metal project is located 45 kilometres south east of Canberra.
“The project covers a strike length of 49 kilometres of a highly-endowed Volcanic Massive Sulphide horizon that hosts numerous historic mineral occurrences and mines, including the Lake George mine that produced 4 million tonnes of high-grade ore until closure in 1962 and was at one time Australia’s second largest producer of copper,” Ironbark Zinc said in its ASX announcement.
“Within the project area prospects include the Jerangle, Lake George and Vanderbilt Hill prospects where previous explorers have returned high-grade copper and zinc drill intercepts.
“Drilling by Ironbark in 2013 also returned high-grade base metal results that will be followed-up.”
Prospect locations and significant diamond drill hole intercepts of the Captains Flat project. Source: Company announcement
The Jerangle Prospect 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 per cent copper.
Recent drilling has returned results including:
4.4 metres at 12.05 per cent zinc and 5m at 4.6 per cent zinc and lead, 0.13 per cent copper and 4.2 grams per tonne silver.
The Lake George mine produced approximately four million tonnes of ore at 10 per cent zinc, 6 per cent lead, 0.7 per cent copper, 1.8g/t gold and 55g/t silver.
Ironbark considers it to remain prospective for remnant ore at current base metal prices as well as at depth where results such as 1.22m at 12.4 per cent zinc, 5.4 per cent lead were returned beneath historical workings over a strike length of at least 300m from diamond drilling.
Mineralisation is open at depth and may represent possible repeats of the historically mined areas.
The Vanderbilt Hill prospect is located to the east of the Lake George mine and drilling has returned results such as 3.9m at 10 per cent zinc, 5.3 per cent lead.
Ironbark considers it to be highly prospective with open ended historic high-grade drill results yet to be followed up.
The Anembo prospect is located 12km north of the Jerangle prospect.
Historic drilling returned 3m at 6.9 per cent zinc, 5.5 per cent lead, 21g/t silver and 2g/t gold which has not been followed up.