idc quarterly report - very exciting reading

Hey Fellas


Now that the Annual Report and Quarterly Reports are out of the way, IndoChine can begin to release information about the conversion from the current NI43-101 2million ounce gold deposit to Australian compliant JORC measurement at current gold prices.

Right now, non of this 2 Million ounce NI43-101 Canadian Measured gold resource is represented in IndoChine’s Share Price.

And the fact that it was calculated with an average gold price of $300 per ounce bwteen 1997 and 2007 means there is a significant increase in the JORC Resource as they recalculate it at a conservative $950-1000 per ounce. Which is the average gold price Mr Promnitz (IDC CEO) stated they are working on during his presentation in July 2011.

IMHO, as IDC increases the JORC Compliant Gold Resource to between 4-6million ounces, this allows the annual production to increase to between 350,000 to 500,000 ounce per annum, and still have a 10 Year Mine life.

As the annual production increases so does the NPV of future cashflows which is what the Big Super and Hedge Funds use to calculate their investment.

Remember that other gold explorers with a resource of between 3-4million ounces and have completed their PFS have a market capitalisation value between $400m and $650m!

With IDC having 500million shares outstanding, this would mean a share price of between $0.90 - $1.30 per share!

IDC’s current share price is only 17.5c! :)

Probably the most important paragraph is below!

Not only will we get a JORC compliant Multi Million ounce Gold Resource in the next 4-6 weeks, but IDC has been drilling at Mount Kare to work out the best way to mine the Gold out of the mountain, which means a lot of the work for the PFS is happening now! AND infill and extension drilling is occurring to further increase the gold resource from its soon to be announced level. With initial results expected in December 5 weeks from now to January!

The best indication, apart from previous video presentations on BRR that the JORC conversion/increase will occur in the next 3-4 weeks is the following.

For IndoChine to announce drilling results at Mount Kare to further increase the gold resource confidence and total gold resource, IDC must have the Canadian NI43-101 gold resource converted into Australian JORC. Otherwise they would be counting apples and oranges.....:)

This alone will bring significant share price growth, then we will see additional lifts to the share price with each drilling release, which is expected from December onwards.

Now that they have sorted out the delays in getting equipment to Mt Kare, more news flow is expected. And we all know share price movements occur with news for these small cap miners!

Cheers Nectar