MEDIA
RELEASE
10 JUNE 2008
MARKET UPDATE
Surda delivers record daily
copper production
Diversified minerals developer and producer India
Resources Limited (ASX:IRL) has continued successful production
increases at its Surda copper mine in western India.
IRL achieved record daily production at Surda during
May, along with steadily increasing grades and recovery rates, and has now
delivered nearly 90,000 tonnes of ore to the mill since production commenced at
the refurbished mine late last year.
India Resources Managing Director Eoin Rothery said
the Company remained on track to meet its first year production targets, and to
deliver on proposed substantial production increases over the coming two years.
Mr Rothery said May production at the mine achieved a
number of major milestones on its planned path to doubling of production at
Surda.
?Production is steadily increasing in line with our
budgets ? in May, we transported more than 22,000 tonnes of ore to the mill
taking the total to just under 90,000 tonnes,? Mr Rothery said.
?Toward the end of the month, we set a daily record of
1300 tonnes, which highlights the steady increase in our operational efficiency
and improving mining processes.
?Production at this rate confirms our increased
capacity to hoist ore from the shafts, and that we remain on track to deliver
our target production increases as we improve production consistency,? Mr
Rothery said.
During May, IRL delivered an average grade of 1.1%,
which was ahead of the forecast, and a recovery rate of 94.5%, against a May
target of 95%.
?Significantly, we also delivered an increase in grade
and recovery rate, which also highlights that the procedures are in place to
achieve our targets,? he said.
?The production rates we are now achieving indicate
that IRL can currently hoist our targeted 39,000 tonnes per month of ore from
the shafts, and we are working on further improvements which will see hoisting
capacity increasing further,? Mr Rothery said.
IRL continues to introduce new mining and processing
equipment and undertake further refurbishment of mine and plant to facilitate
production increases.
IRL is aiming to double production at
Surda. The Company is initially targeting production of 450,000 tonnes of ore
per annum, to deliver 4,500 tonnes of copper concentrate. Longer term, and with
further development, the Company?s ultimate production target is 900,000 tonnes
(9,000 tonnes of copper in concentrate).
To help deliver this target, Mr Rothery said IRL now
had more than 815 people on site at Surda. To reach targets and operate at full
capacity by mid year, it is planned to employ a further 60 to make a full
complement of more than 870.
IRL is currently mining six stopes at Surda, bringing
four new stopes into production during the first quarter of 2008. In April, IRL
announced it had scoped out mining blocks for at least a further six years of
production. This follows the review and modern analysis of all historic
geological data from project partner Hindustan Copper Limited (HCL), which was
then entered into IRL?s mine plan. This data review identified mining
blocks sufficient for at least the next six years of production.
Mr Rothery said IRL was now assessing its mine plan
and development options ? one of which was planning for a decline between the
two primary shafts at Surda, with a feasibility study currently underway.
At the Mosaboni Concentrator, IRL recently completed
the overhauling and recommissioning of two further ball mills with capacity for
500 tonnes per day (tpd). This brings total current capacity to 1,700 tpd ? more
than enough to meet the current target of 450,000 tonnes per year. Two further
500 tpd ball mills remain to be commissioned.
These continued successes at the Surda Mine underline
the increasing opportunity and potential for IRL to become a major participant
in the Indian mining industry.
Andrew
Simpson
Eoin
Rothery
Warrick Hazeldine
Chairman
Managing Director
Purple Communications
Tel: +61 (0) 8 9450 8822 Tel:
+61 (0) 8 9327
7444
Tel: +61 (0) 8 9485 1254
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?s head office is located at 989
Wellington St., West Perth, WA
6005.
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
metal in concentrate.
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 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
The
Company has acquired two Reconnaissance Permits (RPs) in Rajasthan (north
western India).
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.
Diamonds
The
Company?s diamond initiative focuses on the Bhandara Diamond Project which
currently consists of five granted RPs in Orissa, as well as three RP
applications in Chhattisgarh, located in the region of several kimberlite
fields. In addition bulk sampling is planned at two diamondiferous kimberlites
on IRL?s granted PLs of the Dharwar Project in Andhra Pradesh.
Coal,
Iron Ore
As has
happened in China, India?s
rapidly growing economy is driving a surge in demand for power and steel. IRL
is currently seeking suitable projects for rights to explore and develop coal
or iron ore in India.
Visit: www.indiaresources.com.au
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.
***
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