Indo Mines updates Jogjakarta iron sands project

The following is an excerpt taken from Australian firm Indo Mines Limited?s quarterly report released on Wednesday.

The Board of Indo Mines Limited (?Indo Mines) is pleased to present its Quarterly Report for the period ending 30 June 2008. Progress continues on the development of the Company?s Jogjakarta Iron Sands Project (?Project?) in Indonesia including:

? The Pilot Plant in Jogjakarta was commissioned and 50 tonnes of concentrate at a grade of 55% Fe was produced and dispatched to Germany for large scale confirmation test work by Outotec. The results of this should be available for inclusion in the Feasibility Study for the 1 million tonne per annum Pig iron Plant that is due for completion in the first half of 2009.

? Gadjah Mada University in Jogjakarta has commenced the Rehabilitation Study Program on the Project Site that will be used to demonstrate in a practical way the environmental and agricultural improvements that are included in the Company?s proposed Mine Plan.

? Engineering and financial modelling continued on the Feasibility Study with the project value expected to improve significantly based on the increase in pig iron pricing and the competitive advantage of our low cost raw materials.

? The Contract of Works application continues to progress through the various Indonesian Government approvals.

Activities for the coming months include:
? Continue with the Contract of Works application;
? Continue with the Social and Environmental studies;
? Update the Scoping Study, completed by Promet in May 2007, to reflect the significant increase in pig iron pricing and its impact on the Project?s NPV.
? Continue negotiations to acquire additional iron sands land holdings and supply arrangements for bulk consumables and infrastructure. (end of edited excerpt)