A base case has been made for a mine which holds today. The upside is that in a few months we may be looking at a reserve (according to recent announcements) of some thing like 1,400,000 oz to be mined over 9 odd years. So this is a production target of 150,000 oz and a potential minimum IRR of about 70% if bonanza roscolite (500,000 oz) is included in the resource figurs. You will see a lot of speculation and opinion from now on in as to funding for the project. I suspect the company has already advanced funding proposals in principal. A gold loan and not equity finance is the likely outcome. Certainy there wil be no impediment from the land owners or the PNG government. Finance, I think, will not be a problem.
IDC Price at posting:
9.5¢ Sentiment: LT Buy Disclosure: Held