Aravalli Base Metals

Aravalli Base Metals Project

The Aravalli Project is made up of three components which were discovered during IRL’s exploration of Reconnaissance Permit RP RP1/2004.  

  • The Aravalli lead – zinc deposit, subject of a Mining License (ML) application was applied for after the expiration of RP1/2004. IRL’s wholly owned subsidiary, Crown Mining Private Limited (CMPL) has the preferential right to be granted the ML and,
  • The Sathuddia Copper deposit is subject to a Prospecting License (PL) application and CMPL also has the preferential right to be granted the PL.
  • Hindoli the ground has been prospected for base metals and now an RP application is nearing the final stages of execution.
aravalli1Aravalli Base Metals Project, Rajasthan, India

 

Aravalli (lead-zinc):

 

 IRL’s Aravalli Lead-Zinc mineralisation



aravalli3Aravalli cross section

IRL has previously reported an exploration target for this project in the range of 95-135 million tonnes at between 2.2 to 4.5% zinc, 0.7-1.8% lead 1. The work carried out so far gives IRL confidence that this can be achieved and that smaller, higher grade zones can be identified. (The exploration target does not include mineralisation in the excised areas of existing mines and the Bamnia Kalan Block).

The ore body is of a SEDEX style similar to Mt Isa in Australia. It is emphasised that the resource estimate is expected to be upgrades substantially in both tonnes and grade by further drilling and that higher grade zones can be identified within it. These mineralised zones are essentially continuous with the adjacent Sindesar and Dariba mines where the grades in excess of 10% Pb plus Zn are being mined by Vedanta Resources PLC’s subsidiary Hindustan Zinc Limited.

CMPL has applied for the Mining Lease, over the lead-zinc mineralisation located along the same mineralization trend as the Sindesar- Khurd and Rajpura- Dariba Mines.

A reflection of the tremendous potential of IRL’s Aravalli Project is highlighted by its neighbor, Vedanta’s overall exploration success which resulted in the increase in Reserves plus Resources at the Rajpura- Dariba and Sindesar- Khurd excised Mining Leases from 117.4 million tonnes in the 2011 financial year to 133.7 million tonnes in 2012.

1 Note Note, as per ASX guidelines: “Exploration targets” should not be mistaken for an estimate of Mineral Resources or Ore Reserves. The figures are based on historic (not JORC) estimates by the Geological Survey of India (GSI), the current drilling and IRL’s interpretation of the available geological and drilling data. The potential quantity and grade is conceptual in nature, there has been insufficient exploration as yet to define a Mineral Resource, and it is uncertain if further exploration will result in the determination of a Mineral Resource. Extensive further drilling will be required to establish JORC standard estimates of Resources and this will take place on Prospecting Leases or Mining leases that IRL have now applied for through its wholly owned subsidiary Crown Mining India Private Limited. IRL has a preferential right to PLs and MLs from holding a granted Reconnaissance Permit over the area under the Mines and Minerals (Development and Regulation) Act 1957.

Recent Developments:

Highlights from the 2012-2013 annual report:

  • The comprehensive geological report at the conclusion of the RP is well regarded by Geology Committee of the Government of Rajasthan.
  • A pre-feasibilty report was submitted to the Department of Mining and Geology Rajasthan early in the 2012-2013 year
  • Detailed legal presentation to Mine Secretary of Rajasthan and Central Government Secretary about the supportive legal grounds of CMPL’s ML application compared to other competitive applications.
  • Secretary of commerce acknowledged IRL’s issues and sent a letter to concerned officials including the Principle Secretary of Mines Rajasthan, requesting expedition of the Aravalli Sathuddia and Hindoli applications. In response DMG has explained that it would be suitable to grant PL in place of ML
  • IRL in June 2013 through Crown in reply to the State Government of Rajasthan sited many precedence’s why the above is not the case and offered solutions to the DMG’s concerns.
  • In July 2013 in follow up a meeting was held with the Chief Secretary of Rajasthan, the Mines Secretary, Mines Minister, Director of Mines and Geology and Investment Commissioner. The matter is now under consideration.

SATHUDDIA (Base Metal)

The Sathuddia base metals project falls within the area of the Aravalli Project’s RP 01/2004. Following IRL’s RC drill program at Sathuddia which gave positive exploration results for copper mineralization a Prospecting License (PL) application was made. CMPL on behalf of IRL has the preferential right to be granted the PL after expiration of RP01/2004. Previously reported drill results presented exciting copper grades with the best intercept being 9m at 1.6% copper. The Sathuddia PL application has great potential because drilling is limited and focused on old workings and there is great potential to expand the known copper mineralization at depth and along strike. 



aravalli4
 Sathuddia long section, historic and IRL drilling results.



Recent Developments:

Highlights from the 2012-2013 annual report:

  • In the previous year the Rajasthan State Government declined granting the PL under the IRL name as the RP work was done by IRL’s subsidiary Crown. This setback was anticipated and Crown had already lodged an application for the PL. This year IRL filed a Revision petition in the court for its declined application and Crown has requested an extension to the RP period to cover the time it has taken to file its PL application

HINDOLI (Base Metal)

The Hindoli reconnaissance permit (RP) application was placed with the Government of Rajasthan approximately two years ago and has now been accepted by IRL’s subsidiary Crown Mining Pvt. Ltd and the approval of the Government of Rajasthan is pending. It is in close proximity to the Aravalli leases and Crown are in the process of executing the RP License the application. The license is located in the Bhilwara, Tonk and Bundi Districts of Rajasthan. The Hindoli RP is located between large Anglo American, HZL and ACC Rio Tinto RPs.

The Hindoli RP has excellent structural settings, prospective lithological units and numerous recorded instances of surface mineralisation, primarily copper, lead, zinc, silver and gold. IRL believe that this area has the potential to be a substantial project for the company.

Recent Developments:

Highlights from the 2012-2013 annual report:

After negotiations with the Government of Rajasthan the area of the RP was reduced from that which was reported in the previous year to 692 km2 this was done to expedite the execution of the RP application.

The geological and assay statements and commentary in this report are based on information compiled by Andrew Kohler who is a member of the Australian Institute of Geoscientists. Mr Kohler has reviewed the information and has satisfied himself that the values quoted and the parameters used in the report are reasonable and accurately reflect the operations involved. Mr Kohler is a geological consultant to the Company who formerly held the position of Geology Manager. Mr Kohler has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration to quality as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Kohler consents to the inclusion in the report of matters based on his information in the form and context in which it appears.