Indochine Mining Limited (ASX:IDC) Progresses Option to Acquire 1.9 Million Ounce Gold Equivalent Resource At Mt Kare Gold Project
Sydney, Mar 4, 2011 AEST (ABN Newswire) - Indochine Mining Limited (ASX:IDC) progressed its option to acquire the Mt Kare Gold Project in Papua New Guinea (PNG). The payment of approximately A$4 million by Indochine to Summit Development Limited (Summit), a private PNG company, was made as a secured loan, as set out in the Company's announcement of 30 December 2010. Finalisation of contractual arrangements with the remaining parties with an interest in the Project are planned to be completed within the next 21 days, at which point full details of the transaction will be provided.
A foreign, non-JORC code compliant resource statement was prepared in 2007 over the Mt Kare Gold Project within exploration license EL1093, 20 kilometres southwest of Barrick's (NYSE:ABX) (TSE:ABX) multi-million ounce Porgera gold mine. This foreign resource statement is the most recent, relevant assessment of this significant deposit based on almost all drilling to date (340 drillholes), prepared by an internationally respected organization in the sector, and no further estimates have been prepared since the date of this report. A waiver was sought from the ASX listing rule 5.6 to release this foreign resource statement consistent with the Companies Update 11/07 and 05/04.
A Canadian NI 43-101 resource statement was prepared by Snowden in August 2007 with an indicated and inferred resource of 1.7 million ounces of gold in 24.5 million tonnes at 2.1 grams per tonne gold or 1.9 million ounces of gold equivalent, at a 1 gram/tonne gold equivalent (AuEq) cutoff grade. At a 3 gram/tonne AuEq cutoff grade, there is an Indicated Resource of 740,000ozs in 4.6 million tonnes at 5 grams/tonne gold.
Upon completing the transaction, Indochine and Summit will commence work immediately on a JORC-code compliant resource statement by a competent person based on the prior drilling with completion of the work expected within the next six months. However, although the same categories are used in this foreign resource statement as in the JORC Code, it is uncertain that following evaluation, the resource will be able to be reported in accordance with the JORC Code.
The company will also commence a full feasibility study focusing on metallurgy, processing options and environmental studies, which will include an updated independent genealogical and social mapping study.
The Company is excited as to the future potential of the project given that the previous resource statement was calculated using a cut-off grade based on a gold price of US$300 per ounce.
"This asset has the potential to transition the company from explorer to developer more quickly than anticipated at listing 3 months ago", said the CEO Stephen Promnitz
For the complete Indochine announcement including resource tables, please view the following link:
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
Barrick Gold Corporation