Indochine Mining Limited (ASX:IDC) is an ASX-listed company looking to develop the Mt Kare gold/silver deposit in Papua New Guinea (PNG).
PNG has the world's greatest concentration of world class gold and copper deposits. Indochine owns Mt Kare, a major JORC compliant gold resource currently containing 1.8 million ounces gold plus silver. A pre-feasibility study was completed on the project in September 2012, with positive outcome resulting in the commencement of a bankable feasibility study on the project. Mt Kare has the potential to catapult the company into production status within 3 years. Importantly the deposit is located 15 km from the world-class Porgera gold mine and has a similar geological setting and mineralisation style, suggesting potential to substantially increase the contained gold resource.
The company also has a large tenement holding in Cambodia, and is the largest holder of mining properties in the country. Cambodia is a country that has had very limited modern exploration, within a region of large gold and copper deposits.
- PNG hosts large gold/silver +/-copper deposits in under explored regions
- Indochine completed a PFS on Mt Kare in September 2012 and is moving into a bankable feasibility study phase of the project
- Mt Kare is a major gold resource at 1.8 moz, with numerous untested targets close to the deposit and through the exploration licence, with the potential to add additional ounces to the deposit
Expertise and Backing
- First Mover advantage in Cambodia
- Management with extensive in country experience
- Backed by some of the world's largest Resource funds
Mt Kare Project
Indochine Mining acquired the Mt Kare project in Papua New Guinea (PNG) in 2011 and following a full data review converted the existing Canadian N143-101 compliant resource to a JORC compliant resource. Due to the conversion between reporting jurisdictions a large portion of the resource was classified as inferred at this point, although the deposit contained 339 drill holes.
2012 Drill Programme
Assay results from the 2012 Drill Programme continue to confirm the project's potential, with final results expected in March 2013. Indochine’s 2012 diamond drill programme was completed in August 2012, with 58 diamond drillholes for a total of 7791 metres. The drill programme was focused on ensuring a robust resource and geological model and to compare grade variability and density measurements with pre-Indochine drilling, as well as provide core for metallurgical work.
Landowner Investigation Study
The completed Landowner Investigation Study has been a key focus for the company to formally identify local landowners. Ground identification of claims will be conducted in the first half of 2013, leading to a completed Landowner Investigation Report under the auspices of the Land Act. This reports then allows for full discussions to occur with landowners and the government on future benefits sharing when the project becomes a mining operation. Local communities and the government regulators have been overwhelmingly supportive of this process and it is being considered as a future guideline for unlocking the country’s mineral wealth.
Planning is in place to conduct a full feasibility study during 2013, which will lead to the application for mining leases from the end of 2013, with the aim of potentially commencing production in 2015. Separately, Indochine aims to grow the resource, focussing initially on the bonanza grade zones, which could significantly increase the grade of the early years of production.
Bonanza Zone Drilling
Recent assay results have confirmed the presence of high grade bonanza gold zones at Mt Kare.
- Best results include:
- 21 metres (m) at 33.8 grams/tonne (g/t) gold (over 1 ounce/tonne gold) within 49 m at 22.3 g/t gold;
- Includes 5 m at 105 g/t gold, (3.4 ounces/tonne gold) with up to 600 g/t silver.
- Second major intersection of:
- 7m at 35.2 g/t gold and 83 g/t silver;
- Includes 29.9 m at 9.6 g/t gold and 55.2 g/t silver.
- All six holes intersected thick mineralised intervals.
- Significant mineralisation has been identified in current drilling of a bonanza zone within the WR Zone.
- Drilling results from WR zone expected in early March.
Drilling commenced in December 2012 on two Bonanza gold zones in the B and WR Zones of the deposit. The Bonanza Zones were identified in three places by an experienced consultant, Tony Burgess, who worked at the adjoining world-class Porgera gold mine for 11 years as chief geologist and competent person. He has identified that the high grade quartz-roscoelite gold zones at Mt Kare have an ‘identical signature to the “bonanza” gold quartz-roscoelite zones at Porgera. Six close spaced drillholes have been completed to define the character of the quartz roscoelite bonanza zone within the BZ target around Drillhole 122SD11. Drilling is currently underway around a bonanza zone identified in the south of the WR zone. Drill results expected early March 2013.