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Healthy grades in PNG


Wednesday, 4 April 2012

INDOCHINE Mining has landed a 12.6m intersection grading 10.1 grams per tonne gold at its Mt Kare project in Papua New Guinea.



The Mt Kare project in PNG

Another shallow intersection was 36.4m at 6.2gpt gold within a depth of 57m.

The assay results of just two holes of a recent 23-hole drilling spree have provided very encouraging signs.

The best intersection of 12.6m at 10.1gpt gold started at a depth of 72.7m. Another good hit was 9.7m at 7.8gpt gold from a depth of just 58m.

Three rigs at the site will continue drilling into July as part of a pre-feasibility study scheduled for completion in August 2012.

Indochine chief executive Stephen Promnitz said the drilling was expected to increase the quantity and quality of the resource, which is only 15km southwest of Barrick Gold’s lucrative Porgera gold mine.

“These assays highlight the outstanding potential of the project to become one of PNG’s next major gold-silver operations,” he said.

Mt Kare is situated in PNG’s challenging highlands region and experienced a controversial gold rush in late 1980s.

The project is headed by PNG geologist George Niumataiwalu, whom Indochine cites as having already successfully completed similar projects in PNG, negotiating landowner agreements and securing mining lease approvals.