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Gold/Mining/Energy : Mining News of Note

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To: LoneClone who wrote (31314)	1/16/2009 2:07:19 PM
From: LoneClone	Read Replies (1) of 194260

MEL Australian unit acquires 40% stake in Lincoln Minerals steelguru.com ET reported that Bangalore based iron ore miner Mineral Enterprises Limited’s holly owned subsidiary Mineral Enterprises Australia has acquired 40% stake in the gum flat iron ore project of Australian mining firm Limited. As per report, ASX listed LML entered into a JV agreement with MEL, in December 2007 for iron ore exploration in South Australia. Although a joint venture agreement for the project was signed between the two more than a year ago, formal acquisition of stake by MEL was subject to specified funding of $2.5 million. This was for meeting initial drilling and exploration expenses. MEL has also doubled its stake in LML to 10.17%. The acquisition of additional stake makes MEL along with its subsidiary MEA the largest shareholder of Lincoln after Australian mining firm South Cove which holds 18% stake in the company. Mr A John Parker MD of Lincoln Minerals said that "MEA has fulfilled its obligations with respect to funding a total of $2.5 million of exploration expenditure on gum flat, and in accordance with the JV agreement is now a 40% participant in the tenement. While LML will meet 60% of the future expenses on the project, MEA will fund the remaining 40%. LML retains the right to operate and manage the project.” Mr Basant Poddar MD of MEL said that "We funded the initial exploration work through internal accruals. The drilling and exploration of iron ore is expected to get over next year following which the mining would begin.” The drilling and exploration work on the block, which is estimated to have iron ore reserves of close to 250 million tonnes, has started. So far 25% of the area has been covered and the remaining 75% would require another 1-1.5 years. The actual reserve after final processing would narrow down to about 100 million tonne and annual production would be 5 million tonne.

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