Information  X 
Enter a valid email address

Vedanta Resources (VED)

  Print      Mail a friend       Annual reports

Thursday 17 April, 2008

Vedanta Resources

Exploration Success

Vedanta Resources PLC
17 April 2008


                                                                   17 April 2008


                      Announcement of Exploration Success


Highlights

•   Increase in reserves and resources by 28.7 million tonnes containing 
    4.0 million tonnes of zinc-lead metal, prior to depletion

•   Increase in mine life by nearly four years

•   Total reserves and resources now at 232.3 million tonnes
    containing 27.5 million tonnes of zinc-lead metal

•   Rampura Agucha mine achieves landmark of crossing 100 million
    tonnes with certified reserves and resources of 107.3 million tonnes


Vedanta Resources plc ('Vedanta') announces that ongoing exploration activities
at its subsidiary, Hindustan Zinc Limited ('HZL') have yielded significant
success with an increase of 28.7 million tonnes to its reserves and resources,
prior to a depletion of 5.8 million tonnes in FY 2008. Contained zinc-lead metal
has increased by 4.0 million tonnes, prior to a depletion of 0.6 million tonnes
during the same period. Total reserves and resources at 31 March 2008 were
232.3 million tonnes containing 27.5 million tonnes of zinc-lead metal. The
reserves and resources position has been independently reviewed and certified as
per JORC standard.

The success of exploration has primarily been in the Sindesar Khurd and Rampura
Agucha mines. The sustained exploration and aggressive drilling programme at
Sindesar Khurd mine has successfully augmented the resource base to the current
level of 37 million tonnes, making it the second largest ore body in HZL's
portfolio after Rampura Agucha, with potential for further additions, through
ongoing exploration. In FY 2008, the drilling programme increased the strike
length, by 300 metres, to 1,600 metres averaging 5.8% zinc, 3.8% lead and
215 ppm silver.

At Rampura Agucha, 28,000 metres of drilling in 32 holes were carried out to
outline mineralisation below a depth of 550 metres. Of these, 29 holes
intersected ore widths with significant grades averaging 15.5% zinc and 2.0%
lead. The combined reserves and resources at Rampura Agucha alone have been
augmented to 107.3 million tonnes at 31 March 2008, achieving the landmark of
crossing 100 million tonnes in reserves and resources.

The group's exploration philosophy has been to replace every tonne of ore mined
with at least one tonne of resource. HZL has dynamically increased its
exploration focus, through a team of 40 geologists employing the latest
geophysical, geochemical and GIS technologies and high speed deep drilling
equipment. This has resulted in an addition of 110.7 million tonnes of reserves
and resources, before depletion of 22.1 million tonnes, in the period from
April 2003 to March 2008.


For further information, please contact:

Sumanth Cidambi                               sumanth.cidambi@vedanta.co.in
Associate Director - Investor Relations       Tel: +91 22 6646 1531
Vedanta Resources plc

James Murgatroyd                              
Robin Walker
Finsbury                                      Tel: +44 20 7251 3801


About Vedanta Resources plc

Vedanta Resources plc is a London listed FTSE 100 diversified metals and mining
group. Its principal operations are located throughout India, with further
operations in Zambia and Australia. The major metals produced are aluminium,
copper, zinc, lead and iron ore. For further information, please visit
www.vedantaresources.com.


Disclaimer

This press release contains 'forward-looking statements' - that is, statements
related to future, not past, events. In this context, forward-looking statements
often address our expected future business and financial performance, and often
contain words such as 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,'
'seeks,' 'should' or 'will.' Forward-looking statements by their nature address
matters that are, to different degrees, uncertain. For us, uncertainties arise
from the behaviour of financial and metals markets including the London Metal
Exchange, fluctuations in interest and or exchange rates and metal prices; from
future integration of acquired businesses; and from numerous other matters of
national, regional and global scale, including those of a political, economic,
business, competitive or regulatory nature. These uncertainties may cause our
actual future results to be materially different that those expressed in our
forward-looking statements. We do not undertake to update our forward-looking
statements.




                      This information is provided by RNS
            The company news service from the London Stock Exchange