idc - recent capital raising, page-17

Hi, 23Skidoo, if you want to play semantics that's up to you, surely you are aware of the gist of my argument? Or maybe you haven't figured out what poetic licence is? The current resource is given as 2.1m oz of gold at 1.5g/t with silver credits. This resource will include ALL the high grade material intersected in the drilling program undertaken to date which could be included in the proposed underground mine. The underground resource quoted has a lower grade (1.5g/t gold) but a higher gold content(2.1mozs of gold)than the original data used in the feasibility studies(i,e. 1.7m ozs @ 1.9g/t of gold.) The feasibility study on the open cut made it uneconomical at a GP of less than U.S.$1650 per oz. IDC would take between 4 and 5 years to amortise the debt, therefore a GP below $1650per oz rendered the open cut uneconomical.The situation worsened as the GP took a downturn.Therefore IDC canned the idea. IDC then decided to go for an underground mine,as the local geology exhibits remarkably similarities to the neighbouring Porgera deposit which contains several impressive deep, high grade auriferous zones of major importance. As yet IDC have proved the following: (1) An underground resource of 2.1m oz of gold at a grade averaging only 1.5 g/t plus silver credits. At a GP of U.S.$1300(say) this would clearly not be economical in this environment, IDC have shown that. (2) If the 2.1m oz of gold contains high grade fractions of, say 10g/oz, the high grade fraction is unlikely to contribute as much as 300000oz to the resource. The original drill data from Madison backs this up. Therefore a resource of 2.1 m oz of gold at 1.5 g/t is really quite meaningless in the underground context. (3) IDC will have to find most of the 1m oz @10g/t gold from elsewhere, maybe the geological interpretation will prove successful but as yet this is a very speculative. 1moz of gold @10g/t is a real challenge! This is Mt. Kare, not Mt Porgera. Whatever the experts surmise IDC haven't found the gold as yet,maybe it's there but maybe it isn't. BOLTA!