Indo Mines earns 30% interest in ironsands project

Australian firm Indo Mines Limited announced Thursday that it has now earned a 30 percent interest in the Ironsands project in Yogyakarta, Central Java, following the statements of the final JORC Code compliant resource.

The company has reached an agreement with Indo Mines? partner in the project, PT Jogja Magasa Mining, to vary the original Earn in Agreement, so that Indo Mines can now earn 30 percent interest in the project upon completion of a Measured JORC Code compliant resource.

The ironsands deposit at Yogyakarta will be used as the basis for the establishment of a liquid iron (?pig iron?) making facility in the Yogyakarta Region to provide feedstock for major regional steel producers.

Indo Mines said that the amount of contained iron could supply a minimum production of 500,000 tons of pig iron annually for a minimum of 20 years.

Indo Mines also said that it has to complete the Bankable level Feasibility stage to earn a further 40 percent in the project, whereby it will have an outright 70 percent interest in the project. A feasibility study is scheduled to commence next month. (denny)