IRL - India Resources

[adobee]

Some better news today - director buys on market 1 million shares

APPENDIX 3Y NOTICE
In accordance with ASX Listing Rule 3.19A.2, please find enclosed an Appendix 3Y notice in respect of the on-market purchase by the Chairman, Mr Michael Kiernan, of an additional 1 million shares in India Resources Limited

That works out $145 k ?? big deal it is chicken feed for him .. I could have bought that many if I hadnt paid 40c originally.. those mother f*&^^

Lets see him but $1million dollars worth and Ill take some notice

 

[sharemadder]

SP seems to be turning corner with positive movement today continuing from yesterday. Oppies also doing the same. Damn nice if it would get back to the placement price (20c) by Friday close.

 

[sharemadder]

Base metals likely to ride on demand from China

MARKET OUTLOOK

Dilip Kumar Jha / Mumbai December 16, 2007



Base metals, led by copper, are likely to recover this week on speculation that sporadic buying from China may bring a fresh lease of life ahead of the new year. At present, base metals are oversold and no fresh sales are being offered by stockists.

A greater-than-expected 0.3 per cent gain in November industrial production in the US and a strong rebound from the 0.7 per cent decline in October are likely to provide support this week.

Traders in developed countries also find the present levels attractive and analysts believe that they may also add to their existing stocks before Chrismas leave.

+++++++++++++++++++++++++++++++++++++++++++++++
Chinese demand will ensure copper does not fall further as the country needs has infrastructure projects to implement. When copper touched a low of $6,500 a tonne in March, Chinese traders turned a net buyers which resulted into its price touching a fresh high above $8,000 in July.
+++++++++++++++++++++++++++++++++++++++++++++++

China’s imports of copper, including semi-finished products, jumped 58 per cent in the first quarter of calender 2007 to 776,576 tonnes.

“The time has come when China may start taking buying positions,” said Praveen Singh, an analyst with Sharekhan.

+++++++++++++++++++++++++++++++++++++++++++++++
Copper concentrate, the only raw material for making virgin copper, is expected to remain in tight supply for at least the next three years.
+++++++++++++++++++++++++++++++++++++++++++++++

Therefore, Asian copper smelters are signing annual contracts with global mining giants for treatment and refining charges (TC/RC) - treatment and refining fees for copper concentrate - at about $40 a tonne and four cents a pound next year. This indicates that the red metal producers will hardly offer any sale for their existing stocks.

“Lead is oversold and, therefore, will move up. Nickel has already bottomed out below $26,000 a tonne. Zinc may follow copper’s move, said Singh.

“Copper is expected to touch $7,200 by early next month but panic selling at the current level may see it slip to $5,900 by February end,” said another local trader.

In contrast, a school of thought was found apprehensive on rising price in anticipation of slower global economic growth.

The Federal Reserve’s decision to cut interest rate by 25 basis point on December 11 resulted into a drastic decline in stock markets followed by a slump in industrial metals.

Last week, US copper futures extended early declines on Friday following the dollar’s rise when consumer inflation jumped more than the forecast. Subsequently, traders said activity died down and prices remained range bound.

Copper inventories monitored by the London Metal Exchange rose by 5,150 tonnes, or 2.73 per cent, to 193,900 tonnes, the highest since March 16. Last week, stocks had declined by 5.8 per cent to $6,420 while aluminium fell 2.40 per cent to $2362. Tin, zinc, lead and nickel also followed suit and lost 2.91 per cent, 1.73 per cent, 8 per cent and 1.89 per cent to $16,480, $2,330, $2,461 and $25,900 a tonne, respectively.

The dollar’s advance against the euro, following a 0.8 per cent rise in the US consumer price index in November, pushed copper down further.

In the domestic spot market, however, base metals declined by 2 per cent across all sectors in response to the market movement in London and New York. On the Multi Commodity Exchange (MCX), too, copper for delivery on February 29, 2008 sank 9 per cent to Rs 258.25 a kg.

Tin, zinc, lead and nickel for March delivery slumped by 1.20 per cent each at Rs 656.25, Rs 93.85, Rs 97.35 and Rs 1,010.5 a kg respectively.

 

[Miner]

Base metals likely to ride on demand from China

MARKET OUTLOOK

Dilip Kumar Jha / Mumbai December 16, 2007



Base metals, led by copper, are likely to recover this week on speculation that sporadic buying from China may bring a fresh lease of life ahead of the new year. At present, base metals are oversold and no fresh sales are being offered by stockists.

A greater-than-expected 0.3 per cent gain in November industrial production in the US and a strong rebound from the 0.7 per cent decline in October are likely to provide support this week.

Traders in developed countries also find the present levels attractive and analysts believe that they may also add to their existing stocks before Chrismas leave.

+++++++++++++++++++++++++++++++++++++++++++++++
Chinese demand will ensure copper does not fall further as the country needs has infrastructure projects to implement. When copper touched a low of $6,500 a tonne in March, Chinese traders turned a net buyers which resulted into its price touching a fresh high above $8,000 in July.
+++++++++++++++++++++++++++++++++++++++++++++++

China’s imports of copper, including semi-finished products, jumped 58 per cent in the first quarter of calender 2007 to 776,576 tonnes.

“The time has come when China may start taking buying positions,” said Praveen Singh, an analyst with Sharekhan.

+++++++++++++++++++++++++++++++++++++++++++++++
Copper concentrate, the only raw material for making virgin copper, is expected to remain in tight supply for at least the next three years.
+++++++++++++++++++++++++++++++++++++++++++++++

Therefore, Asian copper smelters are signing annual contracts with global mining giants for treatment and refining charges (TC/RC) - treatment and refining fees for copper concentrate - at about $40 a tonne and four cents a pound next year. This indicates that the red metal producers will hardly offer any sale for their existing stocks.

“Lead is oversold and, therefore, will move up. Nickel has already bottomed out below $26,000 a tonne. Zinc may follow copper’s move, said Singh.

“Copper is expected to touch $7,200 by early next month but panic selling at the current level may see it slip to $5,900 by February end,” said another local trader.

In contrast, a school of thought was found apprehensive on rising price in anticipation of slower global economic growth.

The Federal Reserve’s decision to cut interest rate by 25 basis point on December 11 resulted into a drastic decline in stock markets followed by a slump in industrial metals.

Last week, US copper futures extended early declines on Friday following the dollar’s rise when consumer inflation jumped more than the forecast. Subsequently, traders said activity died down and prices remained range bound.

Copper inventories monitored by the London Metal Exchange rose by 5,150 tonnes, or 2.73 per cent, to 193,900 tonnes, the highest since March 16. Last week, stocks had declined by 5.8 per cent to $6,420 while aluminium fell 2.40 per cent to $2362. Tin, zinc, lead and nickel also followed suit and lost 2.91 per cent, 1.73 per cent, 8 per cent and 1.89 per cent to $16,480, $2,330, $2,461 and $25,900 a tonne, respectively.

The dollar’s advance against the euro, following a 0.8 per cent rise in the US consumer price index in November, pushed copper down further.

In the domestic spot market, however, base metals declined by 2 per cent across all sectors in response to the market movement in London and New York. On the Multi Commodity Exchange (MCX), too, copper for delivery on February 29, 2008 sank 9 per cent to Rs 258.25 a kg.

Tin, zinc, lead and nickel for March delivery slumped by 1.20 per cent each at Rs 656.25, Rs 93.85, Rs 97.35 and Rs 1,010.5 a kg respectively.

Dear Madd

It looks like you are writing this from Ventore Avenue - the HQ of IRL itself.
That report does not make any sense as the share price is just drooping.
Verbose report typical of IRL management is not helping the shareholders except MK himself and the people who are enjoying free options at the cost of other share holders.
MK and his EMT need to do something more credible.

Regards

 

[sharemadder]

MK and his EMT need to do something more credible.

Agree that the sp is under fire from profit takers and those free options but that must burn out soon. If the article previously posted has some credance then hopefully IRL sp will ride on the back of that. 2008 will be good year I hope for iRL given that Surda will ramp up and exploration will gain momentum. MK I think has already delivered what he promised for IRL dont you think.

See the below article - wonder if IRL have put there name in the hat for any of these???

+++++++++++++++++++++++++++++++++++++++++++++++++

HCL to enter into mining JVs with two foreign cos
23 Nov, 2007, 0106 hrs IST, TNN

KOLKATA: Hindustan Copper (HCL) may shortly float two joint ventures with overseas partners. One will be for opening a new copper mine at Chabri in Jharkhand on the Singhbhum copper belt””a project that will require an investment of Rs 600 crore””while the other will be for copper and mineral prospecting and exploration in India.

“We’ve already applied for licences of prospecting and have decided to look for foreign partners to enter into copper prospecting and exploration in India. We’ve decided to float a JV with a foreign partner since we do not have adequate expertise in the field.

Such projects can also be taken up near our existing reserves as exploration has been carried out up to a certain depth beyond which reserves remain unexplored,” HCL’s managing director, S C Gupta said.

He was talking to reporters on the sideline of a trilateral mining seminar, Best Practices in the Mining Industry- Australia, Indonesia and India organised by the Australian HC, in Kolkata on Thursday.

On the JV for opening up the Chabri mine in Jharkhand Mr Gupta said, “We have applied for lease which will be followed by an expression of interest. Investment is likely to be about Rs 600 crore and reserves are to the tune of 80 million tonnes. We’ve also decided to open up a new mine, Banwas in Rajasthan. Mine in this location will be done through contract mining with foreign partners and investment here is likely to be between Rs 300-400 crore.”

Additionally, HCL has decided to open four closed mines in Jharkhand. These include the Rakha mine, Pathagora, Kend and Musabani. It has recently opened up its closed Surda mine. Total reserves in these mines adds up to 50 million tonnes. “Leases of all four mines have lapsed and we have applied to the government to renew these. Once the leases are renewed we will rope in foreign mining contractors and reopen these,” he said.

“We are looking at foreign participants in areas opening up of mines, both new and closed, consultancy as well as prospecting and exploration, as well as mine planning and design, upgradation, modernisation and expansion of existingmines,” he added.

 

[sharemadder]

IRL expanding its footprint in India - I like it

MEDIA RELEASE 20 December 2007

IRL ACQUIRES STAKE IN INDIAN EXPLORER​

[FONT=Arial,Arial]Diversified minerals developer and producer India Resources (ASX:IRL) has expanded its footprint in the growing Indian resources sector, with the acquisition of a 17% stake in fellow Indian minerals developer Pebble Creek Mining Ltd.

Pebble Creek Mining is a Canadian-based minerals exploration company listed on the TSX Venture Exchange (TSX-V: PEB) with a focus on India. Its primary project is the Askot base metal project in the Uttaranchal state in northern India.

Askot is a massive sulphide copper-zinc-lead-gold-silver deposit that was previously drilled and tunnelled by Indian government agencies and the UN Development Program (UNDP). The full extent of the mineralised system has not been defined and there is further anomalism over a wide area.
IRL has acquired a 17% stake in Pebble Creek Mining via a private placement involving five million units of Pebble Creek Mining at C$0.40 per unit, for a total consideration of C$2 million.

IRL Chairman Michael Kiernan said Pebble Creek Mining shared a complementary direction and focus, and offered an opportunity for IRL to fast track further development in India.

"IRL is focussed on pursuing strategic partnerships within India, to capitalise on the huge resource potential in one of the world’s largest and fastest growing markets," Mr Kiernan said.

"Pebble Creek’s Askot project is located in the foothills of the Himalayas in a region where IRL currently has no presence. The project represents a high grade base metal deposit which will be leveraged with efficient and low cost mining techniques."

"This deal is a natural extension of IRL’s investment in projects in India, and increases the Company’s exposure to India’s great potential," Mr Kiernan said.

The deposit was the subject of previous drilling and mining activity until the late 1980s. Pebble Creek recommenced drilling in July this year with the aim of establishing a JORC standard mineral resource and a Canadian National Instrument 43-101 compliant resource.

Pebble Creek Mining has also refurbished the previously created underground levels within the project area and is extending a crosscut into the hanging wall and installing underground drill stations.

IRL last month entered producer status with commencement of trial mining at its primary Surda Copper mine in eastern India, and has since mined more than 2000 tonnes of ore. It is expected to reach full scale mining this month, and the Company is on track to achieve an initial annual target of 4500 tonnes of copper concentrate per year.

More information on Pebble Creek Mining can be found at www.pebcreek.com/about.asp
[/FONT]

 

[sharemadder]

First copper sales as Surda steams ahead:alcohol:
Diversified minerals developer and producer India Resources (ASX:IRL) has commenced first sales of copper concentrate from its flagship Surda project, as mining and processing advances ahead of target.

The first truck load of concentrate was delivered to IRL�s project partner Hindustan Copper Limited (HCL) last week, marking another significant milestone for the Surda copper project west of Kolcata.
IRL Managing Director Eoin Rothery said production output from the Surda mine and the Mosaboni Concentrator was well ahead of target following commencement of mining in November.

IRLs December mine production has been 130% above its production targets, with 4,614 tonnes of ore hoisted at Surda at an average grade of 0.95% Cu,� Mr Rothery said.

Grade quality is likely to further improve when dilution control measures take effect in coming months,Mr Rothery said.

IRLs Mosaboni Concentrator Plant has also been operating ahead of target, with 145 tonnes of copper concentrate produced in December - 83% above the targeted monthly production, Mr Rothery
said.

Average concentrate grade achieved for December was 24.5%, with an average recovery rate of 89%. Recovery rates are expected to further improve as mill parameters are optimised.

The concentrate is being delivered to HCLs Moubhandar Smelter, located five kilometres from the Surda Mine. The Smelter has annual capacity of 18,000 tonnes of copper per annum. By June 2008, it is expected the Surda project will deliver approximately 25% of Moubhandar smelter capacity, with IRL ultimately aiming to increase this to 50%.

Mr Rothery said IRL was continuing its planned production ramp up with substantial improvements in processing capacity underway. We are continuing refurbishment and improvement of the mine and milling infrastructure to boost capacity, and have just commissioned the second ball mill which will increase total mill capacity to
1,200 tonnes per day, Mr Rothery said.

IRL has set a January production target of 10,000 tonnes of ore, before gradually increasing production with new equipment and processes to 40,000 tonnes per month by mid-2008.

 

[prawn_86]

Very nice indeed.

There is a lot of upside to this one, based just on the Surda mine at current capacity. When you factor in exploration and mine capacity upgrades it is only a matter of time until market recognition imo.

Check previous posts for my full analysis

I would have liked the ann to be price sensitive though, just to get it in front of a few more eyes.

 

[sharemadder]

A couple of thoughts to ponder on whilst we wait

Because IRL hold a Exploration MOU with HCL for general exploration on HCL�s various leases including tenure around the Surda Mine, and around HCL�s current operations at Malanjkhand and Khetri. Then would it go to say that IRL are in a better position to acquire the mining operations (via tender) for the copper mines at Malanjkhand and Khetri given that it could become very messy for another company to be involved in those projects. Surely IRL hold the 'along strike' leases (not sure)? which technically could prevent the mining contractor from expanding as copper ore feed runs out in the existing mines.

Also the 17% stake IRL have in Pebble Creek which main
asset is the Askot Project: a VMS deposit of copper, lead, zinc, gold and silver mineralization in northern India. Pebble Creek are currently compiling a "resource estimation". Not sure when they anticipated to release the statement (if any one knows pray tell) but surely just the fact of releasing one will then give the IRL sp a jump given that seems to be what people want to even begin valuation of IRL assets.

It just seems IRL sp is just too cheap.

Interesting non compliant resource estimates on Askot, India.

Dont forget IRL have 17% of this via share placement with Pebble Creek who own 100% of this deposit.

The previous work was not NI 43-101 compliant and as a result no mineral resource has been estimated by the Company. Mineralisation has been explored to date by 9,000 meters of drilling in 51 holes and 1,000 meters of exploratory underground workings.

3 various estimations made over the years

1) Geological Survey of India, ca. 1975, 770,000 tonnes containing 2.32% copper, 2.64% lead and 3.93% zinc, based on results of the first 12 drill holes;

2) 1988, (a) by means of polygons based upon underground levels and projected onto a longitudinal section, 1.35 million tonnes grading 2.12% copper, 2.87% lead and 5.14% zinc, and (b) by means of polygons drawn on cross-sections through the mineralized zone, 1.165 million tonnes containing 2.13% copper, 3.47% lead and 5.32% zinc;

3) 1995, by means of polygons drawn on longitudinal section, 1.6 million tonnes with a combined copper plus lead plus zinc grade of +10%.

And the good news on this deposit:

Previous drilling did not reach deep enough to find the base of the deposit. Nor did drilling determine the extent along strike to the northwest nor at some distance to the southeast where subsequent work found several electromagnetic anomalies.

 

[prawn_86]

I personally think that the market is not really aware of this stock, and the 'smart money' that is aware is wary of India, as this is one of a few stocks on the ASX which operates solely in India.

However, if you look at their Top 20 there are a few big names on there who you would hope know what they are doing.

This is a long term hold for me.

 

[sharemadder]

prawn

I agree - seems market not awake to it. The Tiger is awakening thats for sure though. IRL well positioned now. Best to be in it now of course.

Cheers

 

[jonojpsg]

Totally agree people! Have been watching this one slowly dwindle and wondering what it will take to get some positive movement in the SP

With the continued strength in the Cu price it seems only a matter of time

 

[sharemadder]

Prawn

Have a look at these calcs I did for the Pebble Creek data. Are they reasonable?

Quick calcs on Pebble Creek Askot deposit using below data

3) 1995, by means of polygons drawn on longitudinal section, 1.6 million tonnes with a combined copper plus lead plus zinc grade of +10%.

1.6 mill X 10% = 160,000 tonnes of metal

X 80% recovery in process = 128,000 tonnes of metal

128,000 tonnes of metal X 1000 kg X 2.2 lb = 281,000,000 lb

Say 281,000,000 X $2.20 lb (abstract figure) = US$ 619,520,000

less 40% mining costs and royalties = US $317,712,000

X 17% IRL share $63,191,040

So about 35.9c per share on existing Pebble Creek data. If options converted then fully diluted around 17c a share.

Shares Outstanding: 175,646,966 undiluted
Market Cap: 27.2 Million

Not bad really. Need to factor other things such as extensions to known deposit, variation of costs and royalities etc.

I know it aint really great method to calculate value but trying to put some figures to it.

Add that to the Surda up and running copper mine (figures yet to be released) and other Indian base metals and diamond exploration projects and it seems IRL is very much undervalued, yet it struggles to break 16c, why,why,why.

 

[Lucky_Country]

2007 year of TTY
2008 year of MON
2009 year of IRL
Too much on MKs plate at the momment stretching his resources too the max.
So is every other person involved in resources

 

[doctorj]

Too much on MKs plate at the momment stretching his resources too the max.

Interesting point that. While IRL has some of its own staff, it does share staff and ofcourse Kiernan's time with all the others. Will IRL suffer as a result?

 

[oz_canuck]

Hi All,
I have been reading this thread about IRL and decided to jump onboard. Last night bought some shares at market and it took quite a while to fill them 15.5c. Even though there seems to be good volume, there is not much momentum going on with this stock. I believe one of the main reasons maybe due to their primary focus being on Copper at the Surda mine. Copper seems to be out of favour at the moment with the big money chasing Iron Ore and Gold explorer/producers.
That being said, IMO we are getting on the bottom floor and should see a good appreciation of this stock. The following i believe are positive factors for IRL:

1. It is a Developing Country play with management based in Australia
2. I do not see india's needs for Copper slowing anytime soon
3.They currently turned producer. This should hopefully provide funding for further exploration activities.
4. They seem to have quite a bit of help from Indian Government Agencies.
5. Low cost production

The only two negatives I can see that could impact the bottom line is low Copper and high oil prices.

Cheers

 

[Lucky_Country]

IRL a bottom draw stock for 18 months but will reward shareholders long term.
A real think outside of the box company with proven management and well connected in India.
A variety of projects maybe Indias BHP of this centuary.

 

[sharemadder]

MEDIA RELEASE 15 JANUARY 2008​

IRL DISCOVERS NEW DIAMOND INDICATORS​

Diversified minerals developer India Resources (ASX:IRL) has continued its diamond exploration success, with the discovery of further kimberlitic indicator minerals at its Bhandara Diamond Project in
eastern India.

The results include the discovery of multiple diamond indicator minerals at multiple sites. The findings continue India Resources’ momentum as it builds an expanding diamond portfolio in one of the world’s key diamond markets.

Nine of the fourteen samples tested were positive, with minerals including picro-ilmenite - a strong indicator of proximity to a kimberlite source. The positive samples were all from a small 10km x 10km area in the central part of Reconnaissance Permit (RP) 71B. Samples of up to 40kg were collected at individual trap sites and reduced using a Wilfley Table, before being observed in Perth by Global Diamond Exploration (GBE).

India Resources has an ongoing diamond drilling program across three primary exploration projects – Bundelkhand, Bhandara and Dharwar – which are located in the region of known kimberlite fields.

The results at Bhandara are from the northern part of the project, and the RP is only 10km north of the recently discovered Nuapada diamondiferous kimberlite which was awarded to De Beers.

India Resources Chairman Michael Kiernan said the new discovery was further progress for the Company, which was establishing a strong diamond portfolio in India alongside its producing and expanding copper projects.

“India’s reputation as a home of diamonds is well known, and we believe there remains great potential, using modern exploration techniques, for India Resources to capitalise on this,” Mr Kiernan
said.

“Results such as this are very encouraging, and will continue to be the target of further exploration to drive long-term value for shareholders,” Mr Kiernan said. GBE Senior Mineralogist Dearn Lee said the results from the Bhandara regional sampling were particularly encouraging given the spread of minerals observed and their freshness.

“I would say that the source for some of these minerals is close to surface and within a few hundred metres of the sample location and there are indications of several kimberlites in the RP.” Mr Lee said.​

 

[Miner]

MEDIA RELEASE 15 JANUARY 2008​

IRL DISCOVERS NEW DIAMOND INDICATORS​

Diversified minerals developer India Resources (ASX:IRL) has continued its diamond exploration success, with the discovery of further kimberlitic indicator minerals at its Bhandara Diamond Project in
eastern India.

The results include the discovery of multiple diamond indicator minerals at multiple sites. The findings continue India Resources’ momentum as it builds an expanding diamond portfolio in one of the world’s key diamond markets.

Nine of the fourteen samples tested were positive, with minerals including picro-ilmenite - a strong indicator of proximity to a kimberlite source. The positive samples were all from a small 10km x 10km area in the central part of Reconnaissance Permit (RP) 71B. Samples of up to 40kg were collected at individual trap sites and reduced using a Wilfley Table, before being observed in Perth by Global Diamond Exploration (GBE).

India Resources has an ongoing diamond drilling program across three primary exploration projects – Bundelkhand, Bhandara and Dharwar – which are located in the region of known kimberlite fields.

The results at Bhandara are from the northern part of the project, and the RP is only 10km north of the recently discovered Nuapada diamondiferous kimberlite which was awarded to De Beers.

India Resources Chairman Michael Kiernan said the new discovery was further progress for the Company, which was establishing a strong diamond portfolio in India alongside its producing and expanding copper projects.

“India’s reputation as a home of diamonds is well known, and we believe there remains great potential, using modern exploration techniques, for India Resources to capitalise on this,” Mr Kiernan
said.

“Results such as this are very encouraging, and will continue to be the target of further exploration to drive long-term value for shareholders,” Mr Kiernan said. GBE Senior Mineralogist Dearn Lee said the results from the Bhandara regional sampling were particularly encouraging given the spread of minerals observed and their freshness.

“I would say that the source for some of these minerals is close to surface and within a few hundred metres of the sample location and there are indications of several kimberlites in the RP.” Mr Lee said.​

Thanks for your post and fantastic announcement.

Ironically the announcements of great happenings from IRL and MON came at the same time - headed by same chairman. Was it a pure coincidence or a calculated shot to woo investors in a sagging share price?
ASX will remain silent as it was a not a speeding ticket and looked fine by the book rule !!

Rea

 

[sharemadder]

India Resources ahead of schedule - corporate profile file attached​

http://www.indiaresources.com.au/files/RS_Jan_07_LR_India_Resources.pdf​