MEDIA
RELEASE
15 JANUARY 2008
IRL
DISCOVERS NEW DIAMOND INDICATORS
Diversified
minerals developer India Resources (ASX:IRL) has continued its diamond
exploration success, with the discovery of further kimberlitic indicator
minerals at its Bhandara Diamond Project in eastern India.
The results
include the discovery of multiple diamond indicator minerals at multiple sites.
The findings continue India Resources’ momentum as it builds an expanding
diamond portfolio in one of the world’s key diamond markets.
Nine of the
fourteen samples tested were positive, with minerals including picro-ilmenite -
a strong indicator of proximity to a kimberlite source. The positive samples
were all from a small 10km x 10km area in the central part of Reconnaissance
Permit (RP) 71B. Samples of up to 40kg were collected at individual trap sites
and reduced using a Wilfley Table, before being observed in Perth by Global Diamond Exploration
(GBE).
India
Resources has an ongoing diamond drilling program across three primary
exploration projects – Bundelkhand, Bhandara and Dharwar – which
are located in the region of known kimberlite fields.
The results
at Bhandara are from the northern part of the project, and the RP is only 10km
north of the recently discovered Nuapada diamondiferous kimberlite which was
awarded to De Beers.
India
Resources Chairman Michael Kiernan said the new discovery was further progress
for the Company, which was establishing a strong diamond portfolio in India
alongside its producing and expanding copper projects.
“India’s
reputation as a home of diamonds is well known, and we believe there remains
great potential, using modern exploration techniques, for India Resources to
capitalise on this,” Mr Kiernan said.
“Results
such as this are very encouraging, and will continue to be the target of
further exploration to drive long-term value for shareholders,” Mr
Kiernan said.
GBE Senior
Mineralogist Dearn Lee said the results from the Bhandara regional sampling
were particularly encouraging given the spread of minerals observed and their
freshness.
“I would
say that the source for some of these minerals is close to surface and within a
few hundred metres of the sample location and there are indications of several
kimberlites in the RP.” Mr Lee said.
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
PROJECT DETAILS
Bhandara Project
The figure shows locations of the RPs
comprising IRL’s Bhandara Project. Regional sampling has now been
completed, but observation results are still being compiled for RP 71A.
Note that RP81, which lay further east, has been relinquished.
The image below shows the location of the
regional sampling against a topographic backdrop coloured by elevation.
The samples were all taken from streams draining the central part of the RP
which forms a low ridge. The elevation data is from Shuttle Radar
Tomography (SRTM).
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 joined the
ranks of producers by re-opening and operating 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.
Askot
Project
IRL
has taken a placement comprising about 17% of the share capital of Pebble Creek
Mining Ltd. (TSX-V – PEB), a Canadian company listed on the Toronto
Venture Exchange. Pebble Creek’s main asset is the Askot Project: a
VMS deposit of copper, lead, zinc, gold and silver mineralisation in northern India.
Pebble Creek is currently compiling a resource estimation.
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 six granted
Reconnaissance Permits in Orissa, as well as three Reconnaissance Permit
applications in Chhattisgarh, located in the region of several kimberlite
fields.
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.
Visit: www.indiaresources.com.au
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