MEDIA RELEASE
21 AUGUST 2007
INDIA RESOURCES COMMENCES DRILLING NEW TARGETS
Diversified minerals developer
India Resources (ASX:IRL) has commenced drilling on copper prospects in its
Aravalli Project in Rajasthan.
The scout RC program is designed
to test several prospects identified by the Geological Survey of India (GSI) in
the Reconnaissance Permit (RP). The first prospects to be tested are Sathuddia
and Rewara, both are in the top 10 ranked prospects identified in the RP and
among the most accessible.
India Resources Chairman Michael
Kiernan said the exploration program would target highly prospective copper
regions to drive long term value for shareholders.
“Our in-country team is
driving the development of India Resources’ projects in a timely fashion.
We have really hit the ground running in India and the launch of this
drilling program is another major step forward for shareholders.” Mr
Kiernan said.
“We are also continuing
the development of our primary Surda Copper mine project with promising
geological analysis of historical mine data at Surda, and refurbishment of the
plant continuing ahead of schedule.
“We are on track to
commence mining in late 2007 with copper production in the first quarter of
2008,” Mr Kiernan said.
At the Sathuddia prospect,
copper mineralisation occurs in amphibolite grade metasedimentary metamorphic
rocks likely to be from the Palaeoproterozoic age. It is one of a number of
prospects on a NE-SW linear schist belt that stretches from the permit boundary
in the NE to Rajpura Dariba mine in the SW. The GSI reportedly drilled 12 holes
here previously and intersected 2 lenses of Cu mineralisation.
At Rewara, several ancient
workings occur across 300m strike on a flat plain, again with thin cover. GSI
drilled 29 holes here for approximately 6700m targeting an airborne geophysical
anomaly.
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
Background
India Resources Limited
(ASX: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 has assembled a diverse range of projects to take
advantage of the prospectivity and potential growth of the Indian economy which
is opening up to foreign investment. 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), the sole integrated producer of primary copper in India, listed on the Mumbai, Delhi,
Kolkata and Madras
exchanges. IRL are focussed on re-opening and operating HCL’s Surda Mine
and Mosaboni Concentrator in Jharkhand
State, with target of
delivering annual production of 4,500 tonnes of copper concentrate. Trial
mining is scheduled for late 2007, with first production early 2008.
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.
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 northeast of Udaipur
(1,900 square km) and the second permit is 20 km southeast of Ajmer (670 square km). Compilation of
Geological Survey of India (GSI) summary reports has identified several highly
prospective areas for copper, zinc, lead as well as gold lying within the
Relmagra Reconnaissance Permit (RP). Efforts are being made to procure some of
the background GSI reports that contain the raw data. These are normally
charged for on a cost-return basis.
Coal
India produces
8% of the world’s coal and is hungry for more energy. Recently, the
Government of India announced that captive coal blocks would be allocated to
the private sector to supply power, cement and steel plants. 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
India was
the major supplier of world diamonds in historic times and India is still the largest
processor of diamonds – 11 out of every 12 diamonds are cut there. To
date only one primary source has been mined and most of the major global
diamond mining companies such as De Beers, Rio Tinto and BHP Billiton, have
been searching in recent years for further primary kimberlite sources. IRL has
taken the opportunity to acquire several prospective leases where kimberlite
occurrences are known from the vicinity.
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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