approached by investors seeking joint venture, page-31

Proactive Investors Australia:

Our 6 month price target is $0.10 - $0.15 and forward target is $0.32 - $0.55 within 12 - 18 months.

Analysis

There are likely to be very few new gold mines brought into production globally in the next 12-18 months; let alone a project resource likely to be circa 1,000,000 ounces grading a whopping 10 grams per tonne gold. Next door Porgera is one and the Eureka Vein Cerro Negro is another. In relative terms, this highlights the undervaluation of Indochine.

Production is targeted for 2015. There is potential to substantially increase mineable ounces and grade <$100 million CAPEX is targeted at half the cost of PFS in 2012. Indochine is on track to rapidly develop high-grade, low cost underground mine.

All-in-sustaining costs are likely to be among the lowest in the world based on the high grade, providing strong after tax cash flows.

Mine life could run 15-20 years or more based on Porgera next door's profile which has the same geological setting as Mount Kare.

CAPEX is also more likely to be achievable based on the high grade and high margin potential of the project. Mt Kare ticks most boxes as well as a strong management team at Indochine and in country team in PNG.

Indochine's share price and market valuation have been held back by concerns about access to capital - this is removed with the raising. As are concerns regarding landowners with the LIS completed.

Proactive Investors has provided an initial estimate of valuation of Indochine based on our calculations of the high grade zone production and likely operating costs and projected cash flows as well as near term catalysts and milestones ahead.

Current share price is $0.068 and market cap. is circa $66 million.

Our 6 month price target is $0.10 - $0.15 and forward target is $0.32 - $0.55 within 12 - 18 months.

http://www.proactiveinvestors.com.au/companies/news/53642/indochine-mining-to-raise-up-to-20m-fast-track-mt-kare-gold-project-53642.html