Indo Mines' (ASX: IDO) Indonesian partner, Jogja Magasa Mining ("JMM"), has signed a 16,000m Drilling Contract with Jakarta based drilling company RB Drilling to drill out the companies' Yogyakarta ironsands deposit located in Central Java on the south coast of Yogyakarta Province, Indonesia.
Subject to feasibility, the ironsands deposit at Yogyakarta which is 22km long by up to 1.8km wide, 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.
The 1000 hole air core drilling program of the ironsands deposit which is expected to commence shortly, will be funded by Indo Mines as part of its earn-in requirement to acquire a 70% interest in the Project. JMM will retain a 30% interest in the Project.
The Company has commissioned consulting geologists, Mackay & Schnellmann, to supervise the drilling program and to bring the deposit to JORC resource definition. Samples will be freighted to Australia to Perth-based laboratory, ALS, which has been awarded the contract to assay 10,000 samples by XRF techniques.
An exploration base and office, central to the location of the ironsands deposit, has been established at Kulong Progo, Yogyakarta, for Indo Mines and JMM. A team of geologists, technicians and field assistants has been employed to service the exploration base for the length of the drilling program and the planned resource definition program.
A department at the local university, Gadjah Mada, is in negotiations with Indo Mines and JMM to complete a digital terrain model of the project area for the purposes of the drilling program and the planned resource definition program.
About INDO MINES LIMITED: Mineral exploration and development.