sp bust to boom, page-2

I found this..................very good food for thought.


Feeling disappointed that the market is vastly ignoring the massive potential in the M Kare project on the very eve of the mountain giving up its secrets.

There seems to be almost no appetite for risk out there but all of that could very quickly change in the new year.

In the meanwhile it seems everything is going to schedule for an application for the mining lease given the near completion of the land owners study and pending/attendant agreement.

BTW, it was announced on numerous occasions that the land owner study and agreement was schedule for completion around about this time.

It seems that given the manner in which IDC has conducted its community relations program an agreement will be signed off on in Q2 of 2014 opening the door on the submission of a mining lease application.

No doubt there are lots of things happening right now on the technical front.

Thought I would share a little story about Mt Kare.
Some years ago I was discussing the Mt Kare Project with the head of the PNG Chamber of Mines, Mt Greg Anderson.

Greg was formally with the PNG Geological Survey.

Mt Kare had a very colourful history and clearly the project at that time held big potential.

However one thing that mystified Greg was that the actual source of the gold at Kare (as a sedimentary deposit) had never been identified.

There were a million oz of nuggets laying on the surface of the ground around the base of the mountain in 1989-90 and a massive gold rush.

But no one had then actually understood exactly were it had all come from.

Then comes some 20 years and 65,000 metres of drilling and still, no mapping of the mineralization pathways.

IDC also started out on that same path, making all the same fundamental assumptions, based on previous data.

In late 2012 everything changed with the arrival of the "A Team" who very promptly re-modleled and re-mapped the entire project on the basis of it being a sedimentary gold deposit.

So what does all this mean for us now.

Let's put it this way.

If we are in a hurry to discover at least another 500,000 oz at better than 10 gpt (which we are, before the end of Q2 or some time early in Q3) one thing the company needs to have done before further drilling starts underground is to complete a study of the profile of mineralization pathways delineating early and late deposition.

The later depositions hold the high grade stuff.

A stated above no study of this kind was done in the past.

The imperative thus was that the company needed to very accurately map/identify and target the control systems (faults and bulges) within Mt Kare which may hold high grade ore as in the C7 zone at Porgera and the current IDC technical team has a huge advantage in this respect having been through the process previously.

This study would have been scheduled for completion at the end of November 2013 (I assume) prior to the finalisation of the adit plan and its commencement, which has commenced.

IDC have made no announcement re the completion of such a study but they probably assume that it is not in itself a material and price sensitive event.

For those of us who know the history of this project and the fact that it is sedimentary gold we are going after we might take a slightly different view of the relevance of such information.

Be that as it may I think it reasonably safe to assume that the study has been done and we now have some very clearly identified targets to go after once the adit has been completed.

The next 20-30 weeks are going to be a very exciting time for those who have hung with this company for the last three years because there is an identified and very substantial bulge system dipping below and beyond the C9 pipe on strike with the Black Zone and within the high grade profile.

One does not have to be an Albert Einstein to understand the implications and potential for a further and very significant discovery of high grade dirt.

Ok, this is speculative for some.

But a further discovery at Mt Kare I feel is imminent, all things being equal.

Such will be based on a very rigourous tried and proven modelling process carried over to Mt Kare from 15-120 years of experience at Porgera which shares identical geology to Kare.

How big is any ones guess but I would feel disappointed if by the end of 2014 and at the time of grant of a mining lease the reserve was not sitting at 1,500,000 oz at 10 gpt or better.

Some of you cynics will say I am "pumping" this stock.

The real question as I see it is not whether "the stock is being pumped" but rather, whether there is any basis for confidence in a prediction of a further discovery, two entirely different positions.