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IndiOre Limited (ASX:IOR) is a metal and mining company based out in Australia. The company is engaged in iron ore production in India as well as thermal coal exploration in Australia. The company currently focusses on extracting iron ore from its mines located in Southern India.
Its Kurnool Beneficiation plant has opened opportunities for IOR to increase its cash flow through complementary assets and/or third-party ore treatment. The production at this plant is targeted to be 200,000 tonnes per annum.
The company has also established and commissioned a 12-acre central stockyard and processing facility adjacent to the Kuja iron mine. 13 km from the stockyard is the AP23 Deposit containing iron ore material.
The Kuja Project is in the Andhra Pradesh with the production capacity of up to 331,000 tonnes per annum of iron ore. The Mangal project is located about 5 km from the Kuja project has the capacity of mining up to 500,000 tonnes per annum of iron ore.
The TS1 Magnetite Deposit in Telangana comprises of upper Archean rock formations with the mineralization of Banded Magnetite Quartzite (BMQ).
Today, the company provided an update regarding its operations in Andhra Pradesh, India. The company has successfully completed the drilling program associated with the P3 process plant expansion. Earlier it was planned to drill six sites, but the drilling was done on five sites of which two sites were owned by IOR, three areas had agreements with Lease Owners. The remaining one section was not drilled because of lack of permission to access that area.
The company performed 965m of reverse circulation drilling at a depth of 20m and a space of 50m with a target ore grade ranging from 35% Fe within tenements adjacent to the plant, through to 45% Fe on the furthest tenements. Unfortunately, the drilling did not provide any mineralization of adequate grade or thickness to justify mining on any of the project areas due to which IOR has abandoned the P3 project and has reduced the staff and started dismantling the process plant and site equipment.
The company is now reviewing its decision to build the project in India as well as Australia which might be available to the relevant regulators if necessary.Currently, the management is into the process of terminating the purchase orders and selling or safeguarding its newly purchased equipment which is expected to be completed over the coming weeks.
After this significant change, First Samuel, an Australian wealth management company, might leave the facility of $6 million draw-down previously provided to IOR, subject to the agreement into the strategy going forward.
The company had put its securities under a trading halt on 10 December 2018 regarding the announcement to be made on the P3 project which got voluntary suspended the following day. Till date, the security is under suspension, and the company wishes to keep its shares suspended from trading and is expected to make an announcement to inform the market of progress by the 28 of January 2019. Over the past 1 year, the stock price has plunged by 72.94% and was last trading at 6.9 cents per share on 6 December 2018.
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