comparing andean resource$3.74bill t/over&idc

Hey IDC Holders

As posted by Dirtminer on another forum, enjoy the read below!

While we wait for these drilling results over the next few weeks and months, its important to use other explorers to get an idea of where IndoChine Mining will sit in terms of market cap once they complete their BFS and get closer to production.

A mate of mine earlier tonight told me about a company called Andean Resources ASX:AND) that was taken over for $3.74Billion in 2010 by GoldCorp! We need to compare Andean's Cerro Negro Gold/Silver Deposit on the ASX with IndoChine Mining's Mt Kare.

Currently IndoCHine has 788Million Shares Outstanding. I would expect another 200Million to be issued between now and end of BFS bringing up to 1Billion. A similar priced takeover, if it ever happens, of $3.74Billion takeover would means a share price around $3.74 for IndoChine Mining once the BFS is completed.....

They are very similar sizes and grades of gold and silver, excellent for comparison.

When Andean Resources was taken over in 2010, they had just completed the BFS. The were not in production!
Within the next 9-12 months, IndoChine Mining will complete their BFS.

The price of Gold in 2010 was $1100-1200/Oz and Silver $12-15/Oz.
The Price of Gold is now $1675-1750/Oz and Silver $30-35/Oz

Andean Resources & IndoChine Mining Deposit Comparison 1

Andean had a JORC Resource of 2.54Million Ounces of Gold and 23Million Ounces of Silver.
IndoChine has a JORC Resource of 1.9Million Ounces of Gold and 20Million Ounces of Silver as at December 2011 drilling (EG Madison and Buffalo only at $300/Oz Gold and $5/Oz Silver Prices). Non of IndoChine's 7,000metres of drilling has been included yet.....this will happen in the next few months for a JORC Upgrade!

Andean Resources & IndoChine Mining Deposit Comparison 2

Very similar grades of silver and gold, although Mt Kare's intercept lengths are longer!

The average intercept length for the Cerro Negro deposit is 8-10metres the longest is at 27metres! Compare the drilling below in the URLs to our previous drilling! We have longer intercepts averaging 20-40metres of bonanza gold and silver and 40-80metres of high grade gold and silver.

Mt Kare Drilling

Check out their gold and silver grades assays at Andean's Cerro Negro deposit in Argentina....similar to IndoChine's Mt Kare, although Mt Kare's intercept lengths are longer.

Cerro Negro Drilling 1
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=abrezsvOvkEU

Cerro Negro Drilling 2
July 19, 2010, Salt Lake City, UT -- Andean Resources (ASX/TSX: AND) is pleased to announce
the highest-grade results to date from the ongoing exploration program at its wholly owned Cerro Negro Project in Santa Cruz Province, Argentina. Highlights from the Mariana Central vein intercepts include:

Mariana Central – Bonanza grades and significant widths

MDD-1025: 8.5m of 46.1 g/t Au and 157 g/t Ag from 105.3m

MDD-1028: 8.65m of 33.3 g/t Au and 460 g/t Ag from 149.5m and 10.1m of 143.0 g/t Au and 1219 g/t Ag from 188.4m

MDD-1049: 2.6m of 54.6 g/t Au and 42 g/t Ag from 161.2m and 10.6m of 44.5 g/t Au and 97 g/t Ag from 170.3m

MDD-1050: 9.0m of 127.1 g/t Au and 272 g/t Ag from 168.0m

MDD-1051: 7.0m of 52.0 g/t Au and 240 g/t Ag from 119.0m

MDD-1054: 3.5m of 17.7 g/t Au and 51 g/t Ag from 102.0m

MDD-1056: 2.0m of 36.0 g/t Au and 1172 g/t Ag from 178 and 14.5m of 55.3 g/t Au and 618 g/t Ag from 181.5

MDD-1057: 15.3m of 21.1 g/t Au and 72 g/t Ag from 165.4m

MDD-1058: 9.2m of 34.9 g/t Au and 414 g/t Ag from 122.1m

William Wulftange, Andean’s Vice President of Exploration stated, “The results received this year from the Mariana Central vein are truly spectacular and firmly establish Cerro Negro as the new benchmark of low sulfidation epithermal gold deposits.”

Goldcorp bids for Andean Resources

Date
September 4, 2010

AFP

Canadian mining firm Goldcorp says it has offered to buy Australia's Andean Resources for $C3.6 billion ($A3.74 billion), topping a hostile bid by fellow miner Eldorado Gold.

The second biggest Canadian gold producer said the investment was based on the growth potential of the Perth-based miner's principal asset - an advanced project in the Santa Cruz province of Argentina.

The Cerro Negro mine contains at least 2.54 million ounces of gold and 23.56 million ounces of silver, said a statement.

Goldcorp president Chuck Jeannes said the Cerro Negro project provided an opportunity "for significant continued growth of gold resources through expansion of the existing deposits and the discovery of additional zones along the strike of the veins.
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"As well, the potential exists for discoveries of new veins within this large, prospective land position," he said.

The mine is expected to begin production at the end of 2012, Jeannes told analysts in a teleconference.

Earlier, Canadian company Eldorado Gold made a $C3.4 billion ($A3.59 billion) all-share hostile bid for Andean, and analysts said more rival offers could still emerge.

The Goldcorp-Andean deal comes at a time of soaring gold prices, when most mining companies would rather buy existing mines, even at a premium, than explore for scarce new deposits.

Last month, Canada's third largest gold mining company Kinross, offered $C7.1 billion for compatriot Red Back, while Australia's Newcrest previously bought Lihir Gold for $C8.7 billion.

Under the terms of the Goldcorp-Andean agreement, each common share of Andean will be exchanged for either 0.14 Goldcorp shares or a cash payment of $C6.50 - a 56 per cent premium on Andean's average stock price over the past 20 days.

The transaction has been unanimously approved by the boards of directors of Goldcorp and Andean but is still subject to Andean shareholder approval.

Andean's largest shareholder, Sentient Executive, has already thrown its support behind the bid.

Andean's board of directors also "strongly believes" that shareholders of both companies will benefit from the merger, which is expected to close by early next year, said Andean chief executive Wayne Hubert.


We are set for an incredible time with IndoChine Mining over the next 12 months!