Three drill rigs are currently operating as part of a program to improve and increase the current resource. Large diameter drill core is also being collected for metallurgical test work as part of the PFS, scheduled for completion in August 2012.
Significant mineralisation has been identified in the recent drill holes, consistent with similar previously drilled high grade zones. Mineralisation includes veins, breccias, sulphides and gold (122-123SD11, 126SD12).
High-grade zones of gold mineralisation reported from past exploration are anticipated to be repeated, given that a number of drillholes are designed to 'twin' previous holes for metallurgical testwork (see Table 1). However, new assay results may differ from past results due to the nature of gold mineralisation. Two previous drill holes in the same locations as recent holes had assay results which included:
87 metres (m) at 27 grams/tonne (g/t) gold and 39 g/t silver from 27m, including
18 m at 6.0 g/t gold, 117 g/t silver from 40.5m and including
15 m at 148 g/t gold and 59 g/t silver from 81m, including
1.5 m at 1450 g/t gold, 580 g/t silver from 84m (MK99-146);
67.5 metres at 4.0 g/t gold and 85 g/t silver from 46.5m, including
34.5 m at 7.2 grams/tonne gold, 139 g/t silver from 61.5m and including
12 m at 10.3 grams/tonne gold, 62 g/t silver from 82.5m (MK98-132).
Indochine's CEO Stephen Promnitz commented, "We are entering an exciting period with considerable newsflow anticipated over the next 9 months from drill results and from the PFS study."
Drilling, helicopter and camp support have improved markedly this month and local community groups have maintained their support for the project.
Mt Kare has a JORC-compliant total Indicated and Inferred Mineral Resource of 2.1 million ounce gold equivalent (or 1.8 million ounces gold) in 28.3 million tonnes at 2.3 g/t gold equivalent, as released in December 2011 (Table 2). The Mt Kare gold/silver deposit is located 15 kilometres from one of the world's largest gold mines, Barrick's giant Porgera mine. Mt Kare shares similar geology, ore types and structures to Porgera, which has existing infrastructure (road & power). Mt Kare has the potential for a large open cut mine, which will be detailed in the PFS.
For the full announcement click:
About Indochine Mining Limited
Indochine Mining Limited (ASX:IDC) is a gold-copper exploration and development company. In Cambodia, it has the largest mining property holding in a country that has had very limited modern exploration, and is within a region known for world-class gold and copper deposits.
In Papua New Guinea (PNG), also known for large gold and copper deposits, Indochine holds an option over a major gold resource at Mt Kare. In Laos, potential exploration areas are being evaluated.
Indochine Mining Limited