MEDIA RELEASE
20 December 2007
IRL ACQUIRES STAKE IN INDIAN EXPLORER
Diversified minerals
developer and producer India Resources (ASX:IRL) has expanded its footprint in
the growing Indian resources sector, with the acquisition of a 17% stake in
fellow Indian minerals developer Pebble Creek Mining Ltd.
Pebble Creek Mining is
a Canadian-based minerals exploration company listed on the TSX Venture
Exchange (TSX-V: PEB) with a focus on India. Its primary project is the
Askot base metal project in the Uttaranchal state in northern India.
Askot is a massive sulphide
copper-zinc-lead-gold-silver deposit that was previously drilled and tunnelled
by Indian government agencies and the UN Development Program (UNDP). The full
extent of the mineralised system has not been defined and there is further
anomalism over a wide area.
IRL has acquired a 17% stake in
Pebble Creek Mining via a private placement involving five million units of
Pebble Creek Mining at C$0.40 per unit, for a total consideration of C$2
million.
IRL Chairman Michael
Kiernan said Pebble Creek Mining shared a complementary direction and focus,
and offered an opportunity for IRL to fast track further development in India.
“IRL is focussed
on pursuing strategic partnerships within India, to capitalise on the huge
resource potential in one of the world’s largest and fastest growing
markets,” Mr Kiernan said.
“Pebble
Creek’s Askot project is located in the foothills of the Himalayas in a region where IRL currently has no
presence. The project represents a high grade base metal deposit which will be
leveraged with efficient and low cost mining techniques.”
“This deal is a
natural extension of IRL’s investment in projects in India, and increases the Company’s
exposure to India’s
great potential,” Mr Kiernan said.
The deposit was the
subject of previous drilling and mining activity until the late 1980s. Pebble
Creek recommenced drilling in July this year with the aim of establishing a
JORC standard mineral resource and a Canadian National Instrument 43-101
compliant resource.
Pebble Creek Mining has
also refurbished the previously created underground levels within the project
area and is extending a crosscut into the hanging wall and installing
underground drill stations.
IRL last month entered
producer status with commencement of trial mining at its primary Surda Copper
mine in eastern India,
and has since mined more than 2000 tonnes of ore. It is expected to reach full
scale mining this month, and the Company is on track to achieve an initial
annual target of 4500 tonnes of copper concentrate per year.
More information on Pebble Creek Mining can be found at www.pebcreek.com/about.asp
For further information or a copy of an early warning
report filed with securities commissions in Canada (available at
www.sedar.com), please contact:
Eoin Rothery Warrick
Hazeldine
Managing Director Purple
Communications
Tel: +61 (0) 8 9324 7009 Tel:
+61 (0) 8 9485 1254
Mob: 0420 904 332 Mob:
0417 944 616
Recent Drilling at
Askot
Pebble Creek Mining (TSX-V: PEB) recently completed a
diamond drilling program at Askot where holes were twinned with previous
drilling. Comparable results were achieved. Full results are available from
PEB’s news release dated December 11, 2007. The results for the Pebble
Creek Mining holes are summarised in the table below:
Details of the
Acquisition of Pebble Creek Mining Ltd. interest:
IRL has acquired a 17% stake in
Pebble Creek Mining via a private placement involving five million units of
Pebble Creek Mining at C$0.40 per unit, for a total consideration of C$2
million. Each unit was comprised of one common share of Pebble Creek Mining,
one-half of one series A common share purchase warrant (“A
Warrant”) and one-half of one series B common share purchase warrant
(“B Warrant”). Assuming the exercise of all A Warrants and B
Warrants, IRL would own in the aggregate 10 million common shares of Pebble
Creek Mining, representing approximately 29% of the issued and outstanding
shares of Pebble Creek Mining. IRL has agreed not to exercise any of the
warrants without first obtaining the approval of Pebble Creek Mining’s
shareholders if such exercise would result in IRL holding, in the aggregate,
greater than 20% of the issued and outstanding common shares of Pebble Creek
Mining, representing a deemed change of control of Pebble Creek Mining. Pebble
Creek Mining will call a shareholders’ meeting by June 2008 to obtain
such approval.
IRL’s acquisition
of the units of Pebble Creek Mining was made for investment purposes. IRL may
increase or reduce its investment in Pebble Creek Mining according to market
conditions or other relevant factors. The acquisition of the five million units
of Pebble Creek Mining by IRL is subject to final approval of the TSX Venture
Exchange.
About India
Resources
IRL is headquartered in Perth, Western
Australia with the primary objective to maximize
shareholder wealth by capital growth and dividend through the discovery of
economic mineral deposits and the development of profitable mining operations.
IRL’s head office is located at Level 2, 23 Ventnor Avenue, West Perth
WA 6005, Australia.
IRL is applying Australian
exploration expertise and cost effective mining techniques to project in India, to
capitalise on country huge growth and market opportunities. The Company’s
portfolio of assets comprises:
Hindustan Copper Limited - Surda Mine
The Company has the benefit of an
alliance with Hindustan Copper Limited (HCL - a Government of India enterprise)
with the initial focus on identifying existing operations and areas where
large-scale mineralisation has been proven. HCL is the sole integrated producer
of primary copper in India
and is listed on the Mumbai, Delhi, Kolkata and Madras exchanges.
IRL, in alliance with HCL, plans to
re-open and operate the Surda Mine with an initial objective of delivering
annual production of 4,500 tonnes of copper concentrate. The HCL Surda Mine
closed in January 2003 and for the 6 years prior produced a total of 1,473,000
tonnes at a grade of 0.9% Cu.
Hindustan Copper Limited –
Exploration MOU
IRL has the benefit of a Memorandum
of Understanding (MOU) for general exploration on HCL’s various leases
including tenure around the Surda Mine, and around HCL’s current
operations at Malanjkhand and Khetri. IRL will undertake detailed evaluation of
exploration areas to be determined in consultation with HCL.
Aravalli Project
Through
IRL’s in-country consultants, the Company has acquired two Reconnaissance
Permits in Rajasthan (north western India). The permits cover a
combined total of more than square kilometers. The Aravalli Proterozoic
metamorphic belt is prospective for copper, lead, zinc as well as gold. IRL has
recently completed a reconnaissance drilling program with positive results.
Coal
As has happened in China, India’s rapidly growing
economy is driving a surge in demand for power. IRL is currently seeking
suitable projects for rights to explore and develop coal projects in India.
Diamonds
The Company’s diamond
initiative will focus on the Bhandara Diamond Project which consists of seven
granted Reconnaissance Permits in Orissa, as well as three Reconnaissance
Permit applications in Chhattisgarh, located in the region of several kimberlite
ore bodies.
Visit: www.indiaresources.com.au
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