West Perth-based mining company India Resources Ltd will commence copper production in the first quarter of 2008, with plant refurbishment at its Surda project continuing ahead of shcedule, the company has announced.
West Perth-based mining company India Resources Ltd will commence copper production in the first quarter of 2008, with plant refurbishment at its Surda project continuing ahead of shcedule, the company has announced.
The full text of an India Resources announcement is pasted below
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.