Indochine Mining Limited (ASX:IDC) is an ASX-listed company, whose flagship asset is the Mt Kare gold-silver project in the highlands of Papua New Guinea (PNG).
A major increase in the quality of the resource was recently announced with two substantial high grade zones averaging 5 - 20 g/t gold, with intersections over 100 g/t gold. The current focus is to extend these high grade zones as they allow for a rapid, low cost underground mining option at significantly reduced capital costs than announced in the company's 2012 Pre-Feasibility Study.
Mt Kare is situated 15 km from the adjoining 28 Moz world-class Porgera gold mine, with which it shares many similarities. Porgera is one of the world's top 10 gold mines, with over 500,000 oz/yr production for over two decades, and has developed significant infrastructure, including roads and power lines, nearby to Mt Kare. Porgera started as a high grade underground mine and later developed a major open cut operation, now more than 500 metres deep.
The Mt Kare projects' total Mineral Resource is 43 Mt at 1.5 g/t Au for 2.1 Moz Au, 18 Moz Ag or a 2.5 million ounce gold equivalent, with nearly 75% in the higher confidence Measured and Indicated category, based on 454 diamond drill holes (73,639 m), as at July, 2013.
The company's 2012 Pre-Feasibility Study set out options for development, which will be optimised for underground mining of the high grade zones utilising the recently updated resource model and new integrated geological model.
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.
- The Mt Kare project's total Mineral Resource is 43 Mt at 1.5 g/t Au for 2.1 Moz Au, 18 Moz Ag or a 2.5 million ounce gold equivalent, with nearly 75% in the higher confidence Measured and Indicated category, based on 454 diamond drill holes (73,639 m) as at July 2013.
- Mt Kare is a major gold resource at 2.5 Moz, located 15 km from world-class Porgera gold mine, with which it shares many similarities. To date significant discoveries have been made with "Porgera like" high grades.
- The company's 2012 Pre-Feasibility Study set out options for development, which will be optimised for underground mining of the high grade zones utilising the recently updated resource model and new integrated geological model.
- Two high grade zones have been confirmed, with 400,000 oz gold at 5.4 g/t Au in 2.3 Mt, with alternative modeling showing 10 g/t Au with zones locally grading 20 g/t Au. Both high grade zones are within 150 metres of the surface of the hillside and will be suitable for a rapid underground development which would significantly improve the strong economics of the Mt Kare project. The company is confident of both extending these zones and increasing the average grade with further drilling as well as locating more high grade zones. Drilling is underway on these high grade gold zones.
Expertise and Backing
- Indochine has attracted a group of major offshore investors in the US, UK and Europe, due to the scale and grade of the project, including some of the world's top funds, BlackRock, Baker Steel and Capital Group.
- Management with extensive in country experience:
- Stephen Promnitz, CEO, started in exploration and mine development and was sent to drill the first holes at Mt Kare in early 1988 with CRA (Rio Tinto) when gold was first discovered.
- Heading up the team in PNG is George Niumataiwalu, a mining engineer with an MBA finished in Harvard. George previously delivered a feasibility study, landowner agreement, a fully permitted mining lease and environmental approvals on a similar project, which was the last gold mine permitted in PNG.
- Chief Geological Consultant, Tony Burgess' career spans over 35 years with over 10 years' experience as the Senior Resource Geologist for the Porgera Joint Venture. During his time at Porgera, Tony added nine million additional gold ounces to open pit and underground reserves.
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 continued to confirm the project's potential, with final results in March 2013. Indochine’s 2012 diamond drill programme was completed in August 2012, with 58 diamond drill holes 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.
A major increase in the quality of the resource was announced in July, 2013 with two substantial high grade zones averaging 5-20 g/t gold, with intersections over 100 g/t gold.
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 were conducted in the first half of 2013, leading to a completed Landowner Investigation Report under the auspices of the Land Act. This reports 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.
The current focus is to extend the high grade zones as they allow for a rapid, low cost underground mining option at significantly reduced capital costs than announced the company's 2012 pre-feasibility study.
Constitution of Indochine Mining LimitedClick on the link (below) to download a copy of the Constitution:
Constitution of Indochine Mining Limited