life cycle of a mining share theory vs idc

Hey Guys

Now that IDC will be announcing its maiden JORC Gold Resource, it is important we understand how these small cap mining share move on such news and why currently IDC's share price is significantly undervalued.

If you look at the chart below, "Life Cycle of a Mining Share" is shows the different share price points in the mining company's life cycle.

At its IPO it commences exploration, hence the share price lingers at a very low level at or in most cases just above or just below the IPO price on the left of the chart.

Then when a handful of high grade/large depth drilling results come through it spikes up.

Then the company has to issue more shares to begin the long and onerous, usually 2-4 years resource definition stage of building a JORC Compliant Resource.

This onerous task was already completed by the Canadian Gold Explorers Buffalo and Madison over a period of 10 years and at a cost of $75m! And they defined a resource of 2million ounces of gold at a low gold price cut off $300 per ounce.

As we have seen in recent presentations, IDC will recalculate these drilling assays at $950-1000 per ounce gold price, thereby increasing the resource to between IMHO 5-7 million ounces in the next few weeks. Their announcements and reports of the last 9 months have been aiming at an October/November JORC Resource Release.

IDC already has 2million ounces of gold of established gold resource!

Yet its share price is below its IPO price and recent Institutional Capital Raising of 30c in April to acquire Mount Kare!

We are set for an incredible share price increase guys!

Our goal is to keep loading up on IDC while its still low!