West Perth-based minerals explorer India Resources Ltd is on track to commence full time mining at its Surda copper mine in India by the end of the year, the company has announced.
West Perth-based minerals explorer India Resources Ltd is on track to commence full time mining at its Surda copper mine in India by the end of the year, the company has announced.
The full text of a company announcement is pasted below
Diversified minerals explorer India Resources (ASX:IRL) has raised the first ore from its Surda copper mine in India, and is on track to commence full time mining by year end.
India Resources Chairman Michael Kiernan said refurbishment work at the previously operated mine in eastern India was well advanced, with restoration of the Mosaboni concentrator at Surda to be completed next month.
"Our Indian team have extracted 900 tonnes of copper ore from the Surda mine, with full scale mining expected to start ahead of schedule in December. We are into copper having hoisted the first ore from the Surda mine, which is excellent progress for India Resources and our shareholders".
"With more than 200 people on the ground in India, we are making great strides towards completing the refurbishment of the mine and the Mosaboni concentrator plant," Mr Kiernan said.
"IRL aimed to capitalise on a quality project, leading edge mining techniques, and access to one of the world's largest markets. We are bringing cost effective Australian mining techniques and know how to India, and by so doing, will be able to deliver a lower cost copper product for the awakening tiger's economy," Mr Kiernan said.
IRL currently employs approximately 70 personnel directly and approximately 170 through contractors. It has been able to attract quality expatriate staff to help set up the project, including key engineering, surveying and maintenance people. IRL has a full geology team on site, working towards a JORC compliant resource and reserve model.
Mr Kiernan said IRL was also exploring potential expansion opportunities in India with its alliance partner Hindustan Copper Limited (HCL), and had been short-listed in the tender process for the rich Banwas Project, at the Khetri Copper Complex. The project involves development of a new mine with a target of 10,000 tonnes of metal in concentrate per year. Tenders are expected to be issued by November this year.
"This represents a great expansion opportunity, where we can further leverage Australian exploration and mining expertise in India," Mr Kiernan said
Surda Mine
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 concentrate.
IRL has selected two initial mining targets which are estimated to contain between 500,000 and 600,000 tonnes averaging around 1% Cu.
Resurvey of the whole mine is underway to create a three dimensional survey model and is expected to finish during the first quarter of 2008.
Mosaboni concentrator plant
The Mosaboni concentrator has a total annual capacity of more than 900,000 tonnes of ore. The initial production at Surda is projected at 450,000 tonnes per year. Ultimately IRL would like to double annual production from the Surda Mine.
All major components of the plant have been fully assessed and overhauled, and are now in good condition. All required long lead items have been secured. The plant currently has five ball mills, three of which were selected for refurbishment. These will provide production capacity of 1500 tonnes per day.
