MEDIA
RELEASE
4 December 2007
INDIA BOOSTS DIAMOND PROSPECTS
Diversified minerals developer India Resources
(ASX:IRL) has further advanced its diamond interests in India, with the
granting of five prospecting leases in a known diamond region in Andhra
Pradesh, part of the eastern Dharwar Archaean Craton of South India.
India Resources Chairman Michael Kiernan said the
area was within a highly prospective diamond region, and included two mapped
kimberlite pipes identified by previous drilling.
The original prospecting lease applications were
submitted by the ASX-listed Dwyka Diamonds in May 2004, after it had completed
a regional exploration over a much larger area. The two mapped and drilled
kimberlite pipes are known as CC4 and CC5 of the Chigicherla cluster.
“Preliminary drilling shows diamond associated
indicator minerals within the project area, which displays diamond bearing
potential,” Mr Kiernan said.
“The region is highly prospective for diamonds,
and we have several strong anomalies which will be tested as part of an
extensive exploration program to investigate for further pipes within the
cluster.“
“We expect to commence an aggressive
exploration program in early 2008,” Mr Kiernan said.
IRL is fast developing a high quality suite of
potential diamond projects in India
as part of its strategy to commercialise a diverse range of resources projects
within one of the worlds fast growing markets. The Company has three primary
diamond projects under exploration – Bundelkhand, Bhandara and Dharwar.
“India remain s the home of diamonds
and the world’s largest diamond processor,” Mr Kiernan said.
“We have been able to acquire a number of
highly prospective landholdings across the country, and with modern exploration
and mining techniques, aim to capitalise on the huge diamond production and
market potential within India,”
Mr Kiernan said.
Dharwar Project
The area consists of
Archaean gneisses and greenstone facies schist belts of metavolcanics and
metasediments. Relatively undeformed and weakly metamorphosed Proterozoic
sedimentary basins occur to the east of the license areas. This includes the
Cuddapah basin, which is known for alluvial diamonds. The schist belts are
intruded by younger potassic granites and dolerite dykes and in a late stage by
kimberlite and lamproite bodies.
A report by Mineral Services Canada Inc in 2003
looked at samples from kimberlites CC5 and CC4. Indicator minerals recovered
included kimberlitic ilmenites, diamond associated G10 garnets, high Cr
diamond-inclusion type chromites and one high Na diamond associated eclogite
garnet (from CC4).
Geobarometric analysis showed that 27% of 48 selected
G10 garnets from CC4 were considered to be derived from the diamond stability
field. Overall abundances of these indicator minerals were considered low
to moderate and so suggested a low to moderate diamond bearing potential.
However, compositional analysis of the low calcium G10 garnets
“established the presence of highly prospective mantle lithosphere within
the cratonic area where CC4 and CC5 occur”.
For further
information, please contact:
Michael
Kiernan
Eoin Rothery
Warrick Hazeldine
Chairman
Managing
Director
Purple Communications
Tel:
+61 (0) 8 9324
7002
Tel: +61 (0) 8 9324
7009
Tel: +61 (0) 8 9485 1254
Mob:
0418 904
165
Mob: 0420 904 332
Mob: 0417 944 616
Andhra Pradesh
– Prospecting Licenses
The geological and
assay statements and commentary in the above update are based on information
compiled by Eoin Rothery who is a member of the Australian Institute of
Geoscientists. Mr Rothery has reviewed the information and has satisfied
himself that the values quoted and the parameters used in the study are
reasonable and accurately reflect the operations involved. Mr. Rothery is a
full-time employee of India
Resources Ltd and holds the position of Managing Director. Mr. Rothery
has sufficient experience which is relevant to the style of mineralisation and
type of deposit under consideration to quality as a Competent Person as defined
in the 2004 Edition of the “Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves”. Mr. Rothery consents to
the inclusion in the report of the matters based on his information in the form
and context in which it appears.
About India
Resources
The company 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 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, has re-opened 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
six years prior produced a total of 1,473,000 tonnes at an average grade of
0.9% copper.
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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