re: Ann: Quarterly Activities Report, Appendi... ****Last year...

re: Ann: Quarterly Activities Report, Appendi... ****Last year the adit was halted because of the 400 people on site over Xmas/New Year, this year because various finance discussions – that’s 6 months of “halts” for a variety of reasons. Can you be certain the reasons are not tied into the (then) disgruntled LO’s, as per the article?****

TJ,

Yes, the only reason the adit has not progressed in the last few months is due to the company electing to enter into negotiations with potential cornerstone investors/JV partners, delaying receipt of the funds required.

Also a Variation of Approved Programme for EL 1095 at Mt.Kare must have been granted to Indochine's PNG subsidiary Summit Development Limited by the Papua New Guinea Mineral Resources Authority (MRA) to permit the driving of a 'production scale' exploration adit.

Note that this Variation is not to be confused with a Mining Lease that the company still needs to apply for following a decision to mine, and prior to any construction the company may want to commence specifically for mining purposes.

Thus whatever happened back in October (see below for the other side of the story published prior to the completion of the LIS) is no longer relevant to the current state of play.

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January 14, 2014 · 6:19 pm
Mt Kare Golds refutes fighting claims
Post Courier

Landowners of the Mt Kare Gold project refuted claims that there was fighting between them over the prospect.

Leaders from the six major tribes in the area expressed their concern in the manner ‘outsiders’ and ‘paper landowners’ claimed that there was an issue while the genuine landowners were co-operating and working with the developer, Summit Mining.

Led by Pes Watai, the Chairman of Mt Kare Gold Development Corporation, the recognised landowners’ Umbrella Company, the group said they fully supported the developer.

Mr Waitai said while the people of Enga were happy with the project, individuals from Hela Province were making a lot of unnecessary reports in the media.

He said: “The Mineral Resources Authority and Enga Provincial Government are fully aware that the project is in Enga Province and not Hela. It is so frustrating to see unknown persons like an unknown individual Albert Aliabe claiming to be from our land.”

Tribal leaders Akoma Peke (Pakea Lambia tribe), Baldus Masko (Komai tribe), Diriman Pius (Heldi tribe), August Yalo (Yange Yame tribe), Tyson Yapwa (Pauam tribe) and Joky Akoma and Anton Waiaku from the Yolo tribe challenged Mr Aliabe to come to Mt Kare and point out his land to the local tribes.

Mr Aliabe recently went to the media and reported that he was the chairman of another Umbrella company called the Mt Kare Development Corporation.

“They shouldn’t be misleading the state, developer, Enga Provincial Government and the people of PNG because this project is a problematic one and lasted without any development for years. Many interested companies came and went. Many landowners have died,” Mr Watai said.

“The 6000 plus landowners of Mt Kare appreciate Summit Mining which is speeding up exploration programs and conducting feasibility studies with a lot of money. The MKGDC which is made up of the 69 incorporated landowner groups is happy with the developer and EPG.”

He said the project was in Enga and the people of Mt Kare alone were the genuine landowners and they did not expect outsiders to come in and disturb the project by claiming to be landowners.

“This is not Hela where everybody all of a sudden becomes a chief and every clan wants to be a landowner over the LNG project,” Mr Watai said.

The Mt Kare project is situated in Piala behind the Porgera Gold mine.

Mr Watai’s Yolo tribe owns the portion of land on which the project’s high gold deposit has been discovered.

The 69 ILGs recognised in a genealogy study conducted by the Enga Provincial Government has appointed Mr Watai as the Chairman of the Umbrella Company.