landowners back mt kare mining project

Landowners back Mt Kare mining project
Source:
The National, Friday 26th October, 2012
By MALUM NALU
PRINCIPAL landowners at the Mt Kare gold-silver resource on the border of Enga and Hela have thrown their support behind project developer Summit Development Ltd, which is wholly owned by ASX-listed company Indochine.
Andrias Aiyange, chairman of Mt Kare Trustee Co Ltd, umbrella company of Mt Kare Huli/Paiela landowners, and Sir Matiabe Yuwi, announced their support yesterday.
A pre-feasibility study was completed on the project last month, with positive outcome, leading to the beginning of the project’s feasibility study.
Mt Kare has the potential to catapult the company into production status within three years.
Importantly, the deposit is located 15km from the world-class Porgera gold mine and has a similar geological setting and mineralisation pattern, suggesting its potential to substantially increase the contained gold resource.
“We are in support of Summit Development following the pre-feasibility study, and want them to continue with the bankable feasibility study,” Aiyange told The National yesterday.
“Therefore, we appeal to the national government to renew the exploration licence 1093 to allow for open-cut hard-rock mining to begin in 2015,
“Over the past 20 years, since the Mt Kare gold rush of the 1980s, our people have suffered and there have been all kinds of law-and-order problems, therefore, we support Summit Development to go ahead with development.”
Sir Matiabe acknowledged the management of Summit Development, led by Fijian George Niumataiwalu for working closely with the people.
“For the company to work alongside the landowners marks the dawning of a new era in the PNG mining sector,” he said.
Indochine holds 100% of the 1.8-million ounce Mt Kare gold/silver resource through its wholly-owned PNG subsidiary Summit Development.
The deposit lies 15km from the giant Porgera gold mine which contains 28moz of gold (including a total of 17moz of gold mined to date).
Porgera has been producing gold for 21 years and currently produces about 500,000oz of gold per year, at an average grade of 3.2 g/t.

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