indochine 46m @ 5.43g/t gold & 187g/t silver!, page-5

Hey Klogg

Thats right the BFS will commence in October this year, but the drilling is being done while they still have the rigs upthere finishing the PFS.

In almost every exploration/mine development project I have seen BFS drilling starts months after the PFS is completed, then they can commence work on the BFS report for the Final Mining Decision.

This is a significant event, which will save us 6-12 months before the mine construction can commence. That's why mining lease applications will be made between the August to September period, because we are way ahead in the design and development of the mine at Mt Kare.

The 6000m 47 drill holes to come will be very exciting IMHO. Together with the PFS, which will confirm whether we do have a ZERO PRODUCTION COST GOLD MINE will be a game changer and differentiate our gold mine from every other on the ASX and most other exchanges, don't forget we are listed on the Frankfurt Stock Exchange where serious dollars are traded each day.....:).

Then on top of this we have a JORC increase coming after the PFS, while the BFS is being worked on.

The importance of the JORC increase from 2.1million ounce of gold/silver to between 4million to 6 million ounces as has previously been stated by Mr Promnitz is that it allows the annual production level to increase, which increases our annual profit, thereforee significant lift in the share price. Analysts will be using NPV from future cashflows when they begin to invest in IndoChine once the company making milestone of the PFS is completed.

For example, if we lift our JORC to 4million ounces, remember we have the same volcanic event that created Mt Kare sitting next door on the same mountain ridge at the 28million ounce Porgera gold mine.

Most mines, no matter what they mine use an average 8-9% of JORC per annum to calculate their annual production levels. Currently we have 2.1million ounces of gold and silver and the current annual gold prodn is forecast at a conservative 150,000 ounces. This ensures there is enough ore in the ground for a 10 year mine life.

Just like Sundance Resources, its all about lifting the resource to allow you to increase the annual production and $$$$.

If we lift the JORC to only 4million ounces, this would allow George and his team to lift the annual gold production to 8% of 4million = 300,000 ounces.

Now when the PFS comes out, if it does validate that the 20million+ ounces of silver will pay for the gold production, then we have a game changer on our hands.....

300,000 ounces x $1600/oz gold price = $480,000,000 Revenue
$0 Prodution Costs due to silver credit sales
$480million gross profit per annum
Now grab your NPV calculators and discount 10 yrs of cashflow at this conservative 4million ounce JORC.

If we do lift it to 6-7million ounces.

Not only will we be the second biggest gold JORC Resource on the ASX only behind the mighty Newcrest, but we have 1000m-1500metres of Mt Kare to drill to lift the JORC ever closer towards Porgera's 28million ounce deposit.

Yesterday's announcement that once the BFS drilling is finished in the next 2 weeks the XStrata drill team will start to drill along strike and deeper into Mt Kare.........:)

Tuesday's meeting will be interesting to see what has been acheived in the last few months, as well as what we can expect to see going forward.

Cheers Nectar