India Resources has interests in a number of projects around India, including the Aravalli base metals project in Rajasthan state.
THE Department of Industrial Policy and Promotion (DIPP) in India has advised India Resources that it will sponsor the Aravalli Lead-Zinc Project before the Project Monitoring Group (PMG), a mechanism set up by the Indian Government to remove implementation bottlenecks for large, strategic projects on a fast track basis.
The DIPP comes under the Ministry of Commerce and Industry and its roles are to facilitate investment and technology flows and to monitor industrial development in the liberalized environment.
Through its 100%-owned subsidiary India Resources has the preferential right to be granted a mining licence on the Aravalli project area following expiry of the existing reconnaissance permit. India Resources is seeking an area of 2500 hectares and reports submitted to the Rajasthan State Government indicate that 667 hectares are available to it.
Subject to the State’s cancellation process of two overlapping prospecting licence applications submitted by Hindustan Zinc, a total of 1500 hectares would be available. India Resources is continuing to seek all 2500 hectares in accordance with its preferential rights.
The company says the decision of the DIPP highlights the significance of the project as the PMG restricts its interests to critical project in excess of 1000 Indian Crores (about Aus$180 million). The PMG is a mechanism formed to proactively pursue stalled projects and remove implementation bottlenecks so that they can be developed in a timely fashion.
Aravalli contains a significant lead-zinc occurrence. India Resources previously reported an exploration target in the range of 95-135 million tonnes at between 2.2-4.5% zinc and 0.7-1.8% lead. It says that the target should not be mistaken for an estimate of mineral resources or ore reserves and that the figures are based on historic (not JORC) estimates by the Geological Survey of India (GSI), company drilling, a consulting report by SRK and the company’s interpretation of the available geological and drilling data, much of it purchased from GSI.
Further drilling will be required to established JORC-compliant estimates or resources. The deposit is of a SEDEX style similar to Mt Isa in Queensland, Australia. There is potential to upgrade the target substantially in both tonnes and grade by further drilling and higher grade zones can be identified within it.
India Resources says the mineralized zone is essentially continuous with the adjacent Sindesar Khurd and Rajpura Dariba mines where grades in excess of 10% lead plus zinc are being mined by Hindustan Zinc.
The company’s managing director Arvind Misra says the project has the potential to be a world-class lead-zinc mine boosted by increasing prices for lead and zinc.