India Resources inks major joint venture with RBG Minerals over Aravallia zinc project, India
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India Resources Limited (ASX:IRL) has signed a Joint Venture agreement over the Aravalli lead zinc project with RBG Minerals Industries Ltd (RBG), a majority owned subsidiary of Binani Zinc Limited, part of the Binani Group. Binani operate a zinc refinery in Kerala and also a diverse range of businesses including a copper mine, a glass fibre plant, a lignite project and cement plants with a total annual turnover of Rs. 17540 million ($A 490 million).
RBG is also part owned and backed by Rajasthan State Mines & Minerals Limited, Udaipur (RSMML) (A Government of Rajasthan Undertaking) and Gujarat Mineral Development Corporation, Ahemdabad (GMDC) (A Government of Gujarat Undertaking). RSMML & GMDC are State-owned mining companies engaged in exploration and exploitation of industrial minerals i.e. phosphate, gypsum, lignite, etc. and both have lead-zinc-copper metal projects, with turnover of about Rs. 6360 million ($A178 million) & 10500 million ($A293 million) respectively.
RBG have agreed to spend 5.144 crore Rupees ($US1.1 million) to earn 51% of IRL’s subsidiary Crown Mining Private Ltd. under a four stage farm-in arrangement. Crown holds the preferential right to a Prospecting License (PL) and Mining Lease (ML) over the area surrounding the lead-zinc mines of Rajpura Dariba and Sindesar Khurd. These mines are excised from within the application area and are operated by Vedanta Resources.
A recent list of the world’s largest SEDEX deposits included Rajpura Dariba as well as the Sindesar Kalan East deposit which occurs in the Crown application area1. Vedanta’s Sindesar Khurd deposit was not on that list, but a recent single year resource increase2 there of 24.6 million tonnes of Indicated plus Inferred Resources over that reported in 2007, bringing Sindesar Khurd to 37.2 million tonnes at 5.81% zinc, 3.82% lead, means that this deposit would have now joined the list of world’s largest.
In the application area IRL has previously announced an exploration target of between 95-135 million tonnes at between 2.2 to 4.5% Zn, 0.7 – 1.8% Pb in several discrete areas, including the Sindesar Kalan East deposit. This is based on historic resource estimates by Geological Survey of India (GSI), over 400 historic diamond holes that IRL has compiled into a 3D model and on IRL’s own diamond drilling.
Higher grade lenses occur in the area and will be especially targeted. IRL intersected a best result of 7m at 7.6% Zn and 1.0% Pb from 424m depth in its own drilling at North Sindesar Ridge, showing the potential. RBG will assist the grant process of the PL and ML applications, and will fund further exploration drilling targeting mineral resources.
IRL has welcomed the interest and commitment from one of India’s premier metals companies, and particularly the backing from State owned mining enterprises, and looks forward to a positive relationship in developing a new mine in this area. |
