MEDIA RELEASE 6
June 2007
INDIA RESOURCES LISTS ON ASX – SURDA OPERATIONS UPDATE
India Resources Limited
(IRL) today listed on the Australian Stock Exchange (ASX:IRL), following its
raising of A$11 million to develop its suite of resources opportunities in India.
Through its heavily
oversubscribed Initial Public Offer, IRL offered 50 million shares at an issue
price of $0.20 each with an additional oversubscription facility of $1 million.
IRL Chairman Michael
Kiernan said the company was now focussed on driving the projects in India
to the next phase, with work already underway on its primary Surda copper mine
project.
“I’d like to
welcome all investors to India Resources and thank the market for support of
the opportunities to develop the resources industry in India,” Mr Kiernan said.
“We believe that
investors have a great opportunity within the Indian resources industry –
it has world class ore bodies which are comparatively underdeveloped using
modern mining techniques, with many more waiting to be discovered.
“The Board has hit
the ground running with our Indian partner Hindustan Copper Limited (a Government
of India enterprise) on the Surda copper mine project in the Singhbhum copper
belt.
“We also have a
number of projects under early development in India, and look forward to growing
our local relationships to mine resources using Australian cost effective
mining techniques,” Mr Kiernan said.
Work has commenced at the Surda
Project, a previously producing mine, with a major clean up underway at the
Mosaboni concentrator involving more than 120 contract staff. Copper ore left
in the plant when it was shut down in 2003 has been removed and stockpiled. The
clean-up will allow a thorough inspection and review of the concentrator before
commencing the refurbishment.
The Mosaboni concentrator has a
total annual capacity of just over 900,000 tonnes of ore, using five small ball
mills in its operation. The initial production at Surda is projected at around
400,000 tonnes per year. The priority for IRL is to identify the ball mills
that are in best condition to allow trial production to commence as soon as
feasible. The review is expected to be completed by end of July 2007.
For the six years prior
to it closure in 2003, the Surda mine produced 1,473,000 tonnes at an average
grade of 0.9% copper. IRL, in alliance with Hindustan Copper Limited, has
an annual production target of 4,500 tonnes of copper concentrate.
IRL also has a number of
other identified resources opportunities in India which will be further
explored following today’s ASX listing. These include potential projects
involving coal, diamonds, copper, zinc and gold.
For
further information, please contact:
Michael
Kiernan Warrick
Hazeldine
Chairman Purple Communications
Tel: +61
(0) 8 9324 7002 Tel:
+61 (0) 8 9485 1254
Mob: 0417 944 616
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.
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 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 first permit is 50 kms North East of Udaipur with 1,900 square kms in area
and the second permit is 20 kms South East of Ajmer with 670 square kms in
area. The Aravalli Proterozoic metamorphic belt is prospective for copper,
lead, zinc as well as gold.
Coal
IRL is currently holding
discussions with Cook’s Construction Pty Ltd, Australia’s largest privately
owned earth moving and mining contracting company with extensive coal mining
experience, with a view to establishing a joint venture. It is intended that
any resulting joint venture entity would apply 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. The projects will be acquired by IRL shortly, subject
only to some formalities to be completed by the current holders.
Visit: www.indiaresources.com.au
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