Again I have been going through IDC's presentations and IMHO they are sitting on a Brilliant Tenement in PNG, let alone Cambodia!
IDC's Mt Kare looks set to contain an amazing gold resource, just as the price of gold has risen to $1700+ per ounce!
The world's largest gold miners have prized gold mines in PNG!
Lihir's Wafi Golpu 45million ounce deposit, Barrick Gold's 30million ounce Porgera deposit (which is only 15km away from IDC's Mt Kare) confirm's IndoChine's statement below that PNG and SE Asia sit on the heaviest part of the planet's crust.
Mt Kare was previously owned by Madison Minerals that spent $60m to drill 360 RC and diamond drill holes at Mt Kare to build up a resource of 1.9Million ounces of Gold, or 1.7Million ounces according to JORC at a very conservative 1gram/tonne cut off.
With some exceptional drilling results hitting 440+grams of gold for 21m deep, as well as other drilling results!
Sitting only 15km away from the massive 30 million ounce Porgera deposit, Mt Kare, geologically speaking is right next door to this massive deposit.
Last month a 10,000m initial drilling program commenced, which we should see results in Q3 2011.
What is very exciting, is this slide below.
It shows that the 1.7million ounce JORC Resource is measured at 1 gram per tonne cut off. This was set by a very conservative $300 per ounce gold price!
As we all know the price of gold is currently $1700/Oz and rising!
Even if we take a conservative $1500/Oz per ounce gold price. This current conservative gold price is 5 TIMES HIGHER THAN THE ON SET BY Madison Mining!
IMHO we are looking at a JORC Resource Upgrade to between 4 and 5 times the 1.7 million ounces in Q3 2011.
Or 6.8million to 8.5 million ounces of JORC Compliant Gold Resource!
If we use a conservative $150 per ounce to calculate an Enterprise Value for IDC's Mt Kare tenement we come up with the following valuation:
$150 x 6.8million ounces (using the more conservative JORC resource) = Market Cap
Market Cap = $1,020,000,000
Approx 500m shares outstanding
Enterprise Value or Est Share Price of $2.04!
And this excludes any additional gold that this current 10,000m drilling finds! :)
That will help fix this peer comparison chart below!
All we need to do is keep accumulating!
Cheers Nectar
IDC Price at posting:
22.2¢ Sentiment: LT Buy Disclosure: Held
