NSL Consolidated has secured access to an additional large scale mining lease in the Kurnool region of India. The lease, designated AP3, is only 10km from to its wet beneficiation plant and stockyard, and has been secured through a run of mine (ROM) royalty based agreement.
Under the agreement, the lessee agrees to grant ASX-listed NSL exclusive operation and management rights over the subject mining assets for a period equal to the length of the mining lease (ML) and any extensions thereto.
The AP3 mine is the second largest ML in the area, hence a significant milestone for the company as it further consolidates the region and feed for production expansion.
Combined with AP26 and 27 land area, these MLs represent an 800% increase on existing MLs, Kuja and Mangal. The securing of AP3, 26 and 27 in addition to AP23 provides significant upside to the company, and moves NSL another step closer to achieving its strategy.
The material is hosted as both Banded Hematite Quartzite (BHQ) and in-situ ore, which is within the mining lease of 31.16 hectares. In addition, there is a further 11.9 hectare mining lease which lies adjacent to the existing mine lease and is held by the same lessee. This second lease is still being processed through the required environmental and forest clearances.
The AP3 project is ready to operate with all clearances obtained from relevant departments. The ML was issued on August 3, 1974 for a 30 year period, with the first renewal taking place during 2010 for a period of 20 years, with effect from August 3, 2004. All government clearances pertaining to the mine lease have been completed and mining operations are at initial stages.
The AP3 project further supports and potentially enhances NSL’s regional production plan.
AP3 is approximately 10km northwest of AP2 mine and the stockyard and can be approached by a well metalled road, which is running adjacent to the lease area.
The mining lease area covers the plateau and northern slope of hillock. The highest and lowest elevations are 500 metres and 375 metres above mean sea level. There is no river or major nallahs within or near the lease hold area. There are few seasonal nallahs which drains the rain water during the monsoon period and there are two small earthen dams towards southern side of the lease.