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INDO MINES LIMITED

ASX: IDO

The data on Australian Shares.com is intended as a guide only and is compiled from information in the public domain. Data on this website should not be used to make an investment or trading decision.

Description

Indo Mines Limited (ASX: IDO) is an Indonesian-focused mining and metals company committed to developing projects to provide steel-making materials to the burgeoning Indonesian steel industry and wider Asian markets.

Indo Mines holds a Contract of Works to mine and process iron sands throughout Indonesia and operates a small, high calorific coal mine in South Kalimantan.

It is currently focusing its activities on its 70%-owned Jogjakarta Iron Project in southern Java where it has defined a 605 million tonne resource.

In mid-2011 a bankable feasibility study examining the development of a 2 million tonne a year iron concentrate operation will be completed with production at this rate targeted from mid-2012.

Trial mining of commercial volumes of iron concentrate will begin by June this year.

In parallel, Indo Mines is also studying the prospect of producing pig iron from the Jogjakarta Project in later years.

The Jogjakarta Project will be one of the lowest decile cost producers of iron concentrate and pig iron.

In addition to its high-quality asset base, Indo Mines has one of the strongest boards of any listed, Australian junior mining company.

Indonesia Pig Iron

Indo Mines Limited, through its Joint Venture Company PT Jogja Magasa Iron, owns a 70% interest in the Jogjakarta Pig Iron Project located approximately 30 kilometres from the major city of Jogjakarta, Indonesia. Access to the site is via bitumen roads, there are also rail lines and high voltage power lines servicing the area.

The Project centres on a 22 kilometres long by 1.8 kilometres wide stretch of beach between the Kulon Progo and Serang Rivers. The area within the Project boundaries is considered extremely marginal for farming with only minor areas that support traditional farming. The Company believes the Project will have a positive impact on these activities with the rehabilitation support proposed.

In November 2008, Indo Mines signed a Contract of Work with the Indonesian Government to develop the Project which provides security of tenure over the property and agreed guidelines for the development and operation of the Project. The Project has a JORC compliant mineral resource of 605 million tonnes and the initial focus of the Project is to mine and process the 273 million tonne surface sand unit down to a maximum depth of 9 metres.

In 2006 international geological consultants, Mackay & Schnellmann Pty Limited estimated a JORC Code compliant global resource at Kulon Progo of 605 million tonnes of magnetite-bearing sediment grading 10.8% Fe for the 22km long by up to 1.8km wide deposit. This is based on 929 holes for a total of 14,468m of air core drilling and equates to an equivalent contained iron of 65 million tonnes of Fe.

This global resource includes a JORC Code compliant mineral resource of 273 million tonnes of magnetite-rich near surface sand grading 14.2% Fe (at a cut-off of 9% Fe) which is estimated to an average 6m depth from surface and contains the equivalent of about 39 million tonnes of Fe, sufficient to support a 1 million tonne per annum pig iron plant for more than 30 years.

Nangali Gold Project, Peru (Terrace Gold - 30%)

Nangali is a highly prospective epithermal gold vein system with a number of established but undrilled prospects defined by Newmont. The gold targets are high level, low sulphidation epithermal vein system with high grade gold and silver values at the surface assaying up to 98.2 g/tonne gold and 814 g/tonne silver.

The zone of gold mineralisation has a discontinuous strike extent of approximately 2km. No drilling of these gold targets was ever undertaken by Newmont although drill sites were identified and prepared.

The completiion of this acquisition enables exploration planning to commence for a drilling program to test the high grade Nangali gold vein system against an improving political and social background.

Chinguela Gold Project, Peru (Terrace Gold - 100%)

The Chinguela gold lies adjacent to the Nangali Gold project in norhtern Peru. Previous joint venture partner, Newmont, had identified a robust gold anomaly at Chinguela up to 1,100 ppbAu in soils over an area of 1000m x 400m. The exploration programs carried out by Newmont also identified drill targets at Chinguela.

Mine For

iron ore, gold, silver

Location of operation(s)

Peru, Indonesia

Address

Level 1, 15 Rheola St
WEST PERTH, WA, AUSTRALIA

Phone

08 9322 1825

Email

Website


Last Updated

12/5/2011

 

The data on Australian Shares.com is intended as a guide only and is provided purely as an indication of what information can be found through official announcements. Data on this website should not be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. The publisher (Intaanetto Pty Ltd) will not be held liable for any loss arising from the use of this website.