MEDIA
RELEASE
17 JULY 2007
INDIA RESOURCES TO COMMENCE PRODUCTION EARLY 2008 -
MARKET UPDATE
Diversified minerals developer India Resources
(ASX:IRL) is on track to commence copper production in the first quarter of
2008, with promising geological analysis of historical mine data at its primary
Surda project, and refurbishment of the plant continuing ahead of schedule.
India Resources Chairman Michael Kiernan said several
high grade zones had been identified which are now the target of further
testing.
“Production is expected to
commence in the first quarter of 2008 with the review of the Mosaboni
concentrator plant at the Surda mine now complete and refurbishment
underway,” Mr Kiernan said.
“We have hit the ground
running from our ASX listing last month and have also gathered a clearer
understanding of the Surda mine area, with several high grade zones identified
which we will selectively target for exploration and mining.”
The Mosaboni concentrator, which is where
the Surda copper is processed, has a total annual capacity of just over 900,000
tonnes of ore.
For the six years prior
to its 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 metal in concentrate.
The company advises it
is also ramping up exploration at its Aravalli base metals project, which is
being targeted for copper, lead and zinc deposits. Geological Survey of India
(GSI) summary reports have identified highly prospective areas within the Relmagra
Reconnaissance Permit. A drilling program is aimed to commence in early August.
Mr Kiernan said development of these and other
projects in India would
allow shareholders to capitalise on the huge potential of the India resources industry.
“We believe that
investors have a great opportunity within this sector – India has world class ore bodies
with others yet to be discovered. India’s resources industry is
relatively underdeveloped using modern exploration and mining
techniques,” Mr Kiernan said.
IRL is pleased to provide shareholders with the
following further operational update:
Surda Copper
Project
Preliminary work continues on compiling the assay and
geological data from the mine. A primary objective is to develop an improved
structural understanding which should assist in targeting high grade
zones. Several high grade zones have now been identified in underground
sample data (see attached figure which is an oblique view from the southeast).
The data is from mine grade control channel samples,
taken at each face. The underground drives were constructed as openings in
the ore and were then mined between levels. The ore appears to dip at a fairly
constant 35 degrees to the northeast.
There are 12,334 samples shown in the diagram, taken
from 10 of the 13 levels over a strike length of 2kms. The samples are
coloured by copper grade and the diagram shows higher grade within linear
zones, bolstering a structural interpretation of copper distribution.
From a statistical point of view, the mean value of the 12,334 drive samples is
1.42% Cu, the median is 1.29% Cu, the standard deviation is 0.74, variance
0.54. Samples were tested in an on-site lab at the Mosaboni facility and
were not independently verified by inter lab checks. No calibration or
verification data is available.
One possible explanation is that these linear zones
represent minor corrugations in the mainly tabular shear zone. These
corrugations could have focused fluid flow during mineralisation. They
appear to mimic a kink-band style of deformation. Work is continuing with
the capture of geological and assay data from hard copy material provided by
the previous operator Hindustan Copper Limited. A new mine survey, to be
carried out in August, will provide an accurate base for this
compilation.
Aravalli Base
Metals Project
Compilation of Geological Survey of India (GSI)
summary reports has identified several highly prospective areas lying within
the Relmagra Reconnaissance Permit (RP). The GSI have been very active in
the area, and are currently drilling in two locations in the RP (Bharak and Gangas).
While no definitive data is available, the
prospectivity is such that an early drill program was considered essential, and
has been contracted. The drilling program is due to commence in early
August and will seek confirm mineralisation from some of the most prospective
areas.
A portable NITON XRF unit has been purchased and will
be used for preliminary drill results, as well as to screen samples to be sent
for assay. It will also be used for geochemical soil surveys to identify
specific drill targets and may also eventually have a role in the Surda
underground mine as a grade control device.
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 Geologists. 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.
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:
0418 904
165
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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