Indo Mines updates Indonesian ironsands project

JOGJAKARTA IRONSANDS PROJECT ? (Indo Mines earning 70%)

1. Hot Metal Processing Option
The results of the Scoping Study completed by ProMet Engineers Pty Ltd in May 2007 identified three alternative hot metal processing technologies that could significantly reduce the capital and operating costs of the Project. Onyx Projects Pty Ltd have recently completed the review of the various hot metal processing technologies available and recommended that the Outotec CircoSmelt? Technology should be considered as the basis of the Pig Iron Plant design as it is potentially the most viable and cost effective option in the present market conditions.
This technology could have significant operating and capital cost benefits over the existing SLRN technology currently in use in New Zealand. Capital costs may be reduced by up to $60 million and operating cost savings approaching $30 per tonne may be achieved, a significant savings on a 1 million tonne per annum basis.

2. Conceptual Plant Design
Based on the outcome of the Onyx review, two concentrate samples were prepared and dispatched to Outotec in Germany for metallurgical test work. The samples were prepared using techniques being proposed for the full scale concentrator to ensure the grade and physical properties reflected the future feed parameters. Several coal samples were also sourced from potential Indonesian suppliers to determine the suitability of the coal for the reduction processing, this also ensures that the physical properties of the feed stock reflect future raw material supply.
The samples are being processed through a laboratory scale test apparatus to determine the metallurgical properties of the concentrate. The test results will then be used to develop conceptual designs for the Pig Iron Plant based on the CircoSmelt? Technology.

3. Pilot Concentrator Plant
A Pilot plant is currently under construction in Indonesia for the following purposes:
a. To generate a 50 tonne concentrate sample that will be shipped to Germany for large scale test work to confirm the design parameters from the current laboratory testing process. The results of this should be available for inclusion in the Bankable Feasibility Study by March 2008. The Bankable Feasibility Study for the 1 million tonne per annum Pig Iron Plant is due for completion in mid 2008.
b. To process the iron sands from a 3 hectare plot of land, the mined out area will be used for environmental and agricultural research and training.

4. Concentrator Bankable Feasibility Study
The Scoping Study completed by Promet Engineers Pty Ltd also identified that a marketable concentrate could potentially be produced by the concentrate processing facility prior to the commissioning of the hot metal processing plant as mentioned above. Indo Mines has engaged GR Engineering Services to complete a Bankable Feasibility Study for a 1.8 million tonne per year concentrate processing facility. The study is due for completion in early 2008.
The study is examining all aspects of the concentrate production from mining through to final delivery to the shipping facilities, including mining methods, materials handling, grinding technology and waste stream handling.

5. Environmental and Social Studies
URS Australia is continuing with the environmental and social impact studies for the Bankable Feasibility Studies, they have engaged PT Asana Wirasta Setia, an environmental consulting firm based in Jogjakarta, to complete the AMDAL study that is required by the Indonesian Government to gain project approval. The environmental and social studies are due for completion in mid 2008. (end of excerpt)