MEDIA
RELEASE
15
AUGUST 2007
INDIA RESOURCES ACQUIRES DIAMOND LEASES
Diversified minerals developer India Resources
(ASX:IRL) has extended its footprint in India, with the acquisition of
prospective diamond leases.
The company has exercised its option over the AMIL
Mining India Private Limited leases and is moving to acquire 100% of the
controlling company. The leases were previously controlled by Dwyka
Resources Ltd with an agreement by BHP Billiton.
This agreement was terminated earlier than its formal
November 2007 finish date, which has allowed India Resources to exercise its
option ahead of schedule. Under the terms of the option agreement, a 2.5%
royalty will be due to Dwyka on production with no up-front acquisition cost is
payable.
India Resources Chairman Michael Kiernan said
acquisition of the leases expanded and diversified the company’s presence
in one of the world’s most pivotal growth markets.
“India Resources
has taken the opportunity to acquire several prospective leases in the vicinity
where kimberlite occurrences are known to occur,” Mr Kiernan said.
“Clearly India is a key growth market; it is
one of the world’s largest economies, with a growth rate of 6% expected
over the coming years - It is also the home of diamonds and remains the
world’s largest diamond processor,” Mr Kiernan said.
Mr Kiernan said work would now begin in earnest over
the diamond properties, initially at the Bhandara Project where India Resources
controls more than 8,000 km2 in Orissa along the margin of the
Bhandara Craton. Kimberlite occurrences have been recorded here over 300km of
strike, including that at Nuapada (see figure) where De Beers Exploration have
an active lease holding.
A reconnaissance stream sampling program will be
carried out and samples analysed for microdiamonds and indicator minerals in
the first and second quarters 2007-2008.
India Resources is also continuing the development of
its primary Surda Copper mine project in India. The company is one track to
commence copper production in the first quarter of 2008, with promising
geological analysis of historical mine data at Surda, and refurbishment of the
plant continuing ahead of schedule.
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
Figure
1. Bhandara Project - IRL leases and kimberlite occurrences
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). 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.
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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