Plenty of fantastic information as to what was achieved in the last quarter and what we can expect in the next 4-12 weeks by IndoChine Mining and our Baby Mammoth!
Drilling in the Bonanza Zones commenced in December 2012 with the first results being released from mid February onwards. Dr Burgess, the man who found over 10Million Ounces of Gold at Porgera, including the legendary Porgera Zone VII, has identified 3 Bonanza Gold Zones in Mt Kare.
Have a look at the gold and silver intercepts, drill hole after drill hole!
Including 180Metres of Gold at 1.8Grams Per Ton Gold Plus 18 Grams Per Ton of Silver AND Including 205Meteres of Gold at 1.9Grams Per Ton Gold Plus 15Grams Per Ton of Silver
We have $10Million in cash for the quarter with multiple game changer announcements......announcements that you dont hear or see on the ASX everyday!
The next page is very important. It highlights why these Bonanza Zones are so important. They aren't just headline grabbing announcements, they make a real impact on the project.
These Bonanza Zones have the ability to do to Mt Kare, what they did to Porgera when Dr Burgess found Zone VII. A small 500metre x 40metre x 50metre cubed area in Porgera that contained a massive 5.1Million Ounces.
What is so special about this?
Basically this. The mine design at Porgera was designed to crush XXX Hundred Thousand Tons of Rock per year to produce 500,000 ounces of gold bullion per year. That is what the PFS was drawn up with at the time 25 yrs ago. But when Dr Burgess found the Zone VII Bonanza Zone, this all changed!
Instead of processing 500,000 ounces of gold, they were able to process 1,500,000 ounces of gold EACH YEAR for the first 3 years out of the same capital equipment, thereby exponentially increasing the profit and reducing the cash cost of the Porgera Mine at the time! IRR skyrocketed overnight, mine construction payback occurred within a few months! Placer Dome Shareholders made a fortune....and that was when the price of gold was $350-400/Oz! And have since produced 500,000 ounces of gold each year for 22 years!
This is why drilling and defining our 3 Bonanza Zones is a massive game changer for IndoChine Mining, with announcements expected to commence mid to late February! These Bonanza Zones can significantly increase the Gold Resource...the higher the resource the higher the annual production at a low cash cost.
IndoChine Mining's legend Project Manager George Niuwamataiwalu has successfully completed the PFS, with the help of our brilliant Drill Team we pinched from XSTrata, and he also completed the Landowner Investigation Study. The survey of the boundaries on Mt Kare will occur in 2H 2013 with oversight from the PNG Govt as per the PNG Mines Act! First time ever in PNG this has been done!
The PNG Govt will be using IndoCHine Mining process of Landowner Investigation for future mining projects in PNG. An incredible achievement by the company and its team.
The best sentence is the last one, Mining Lease Applications will commence end of 2013!
NOW! Another Game Changer we need to keep an eye on for the project. Have a look at those Silver Grades, hole after hole after hole.....
AND WE STILL HAVE THE 23 DRILL HOLES BEING REASSAYED AND DUE FOR RELEASED AT THE END OF FEBRUARY 2013. THEY HAD TO BE REASSAYED TO VALIDATE THEIR INCREDIBLE GRADES THAT CONTAIN MORE THAN 100GRAMS PER TON OF SILVER OR MORE!
WITH THREE HOLES CONTAINING BETWEEN 400GRAMS PER TON OF SILVER AND 1500GRAMS PER TON!
(Im sorry for screaming with the UC, but this is important!)
Then we have the Bonanza Gold drilling announcements to come from Week 3 in February!
The last sentence in blue is very interesting by Dr Burgess. He states that silver to gold ratios of <2 signifies we are sitting in Bonanza Gold Zones. What does he mean by this?
If you look at the silver grades above. 30, 50, 70, 100 Grams Per Ton of Silver....if we are hitting zones where the Gold Assays are 2 Times Higher than these incredible Silver Grades, then WE ARE IN GOLD BONANZA TERRITORIES IN MT KARE!
The Bonanza Drilling Commenced in December in the Black Zone around Drill Hole 122SD11, this was completed and we should get the assays in around 4-6 weeks time.
Drilling is now focussed in the Bonanza Zone beneath the WRZ Pit. This will prove that the Bonanza Gold came from diagonally deep within Mt Kare and plenty still lies there!
Now have a look at the cracking gold and silver grades below in and around this current WRZ drilling area! Drill Hole 122SD11 -
Cheers Nectar
IDC Price at posting:
11.4¢ Sentiment: LT Buy Disclosure: Held
