ASX / MEDIA RELEASE
8 January 2007
First copper sales as Surda steams ahead
Diversified minerals developer and producer India
Resources (ASX:IRL) has commenced first sales of copper concentrate from its
flagship Surda project, as mining and processing advances ahead of target.
The first truck load of concentrate was delivered to
IRL’s project partner Hindustan Copper Limited (HCL) last week, marking
another significant milestone for the Surda copper project west of Kolcata.
IRL Managing Director Eoin Rothery said production
output from the Surda mine and the Mosaboni Concentrator was well ahead of
target following commencement of mining in November.
“IRL’s December mine production has been
130% above its production targets, with 4,614 tonnes of ore hoisted at Surda at
an average grade of 0.95% Cu,” Mr Rothery said.
“Grade quality is likely to further improve
when dilution control measures take effect in coming months,” Mr Rothery
said.
“IRL’s Mosaboni Concentrator Plant has
also been operating ahead of target, with 145 tonnes of copper concentrate
produced in December - 83% above the targeted monthly production,” Mr
Rothery said.
Average concentrate grade achieved for December was
24.5%, with an average recovery rate of 89%. Recovery rates are expected to further
improve as mill parameters are optimised.
The concentrate is being delivered to HCL’s
Moubhandar Smelter, located five kilometres from the Surda Mine. The Smelter has
annual capacity of 18,000 tonnes of copper per annum. By June 2008, it is expected
the Surda project will deliver approximately 25% of Moubhandar smelter capacity,
with IRL ultimately aiming to increase this to 50%.
Mr Rothery said IRL was continuing its planned
production ramp up with substantial improvements in processing capacity
underway.
“We are continuing refurbishment and
improvement of the mine and milling infrastructure to boost capacity, and have
just commissioned the second ball mill which will increase total mill capacity
to 1,200 tonnes per day,” Mr Rothery said.
IRL has set a January
production target of 10,000 tonnes of ore, before gradually increasing
production with new equipment and processes to 40,000 tonnes per month by
mid-2008.
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
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 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.
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 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
***
The new Spam Act commenced
on 10 April 2004. This Act is aimed at reducing the amount of unauthorised
emails you receive. You have been receiving e-mails containing
information and news releases from us on behalf of our clients because you are
an important contact of Purple Communications, a boutique stakeholder
communications consultancy. If you do not wish to receive such
emails from Purple, please click mailto: purple@purplecom.com.au
subject=UNSUBSCRIBE or reply to this email and put UNSUBSCRIBE in the subject
line and we will not email you again.
If you do not reply,
we will continue sending you relevant news and information via email. However,
all future emails will allow you to unsubscribe.
Issued
by
Purple Communications
Level
3, 28 Kings Park Road, WEST
PERTH WA 6005
Ph:
08 9485 1254 Fax: 08 6263 0455
purple@purplecom.com.au