mt kare drilling update w/photos/news, page-7

Hey Corporate

Normally Bonanza grades do move small cap gold miners, but the market is performing poorly because of the EU debacle.

Until they come up with a "bazooka" solution to their current financial turmoil, the small caps will stay flat.

Once we see the Quantitave Easing begin though, it will be a completely different story.

Firstly we have the Bank of England, that has already announced a 250Billion Pound QE to begin in late January 2012, this equates to $US388Billion.

Bank of Japan has also announced QE. All we need is for Bernanke to do the same and we will have the same risk on appetite in the markets that we had in September 2010 to April 2011 when Bernanke fired up QE2.

Price of commodities soared, including gold and shares rose significantly due to all the excess liquidity in the US financial system.

Then there is the mighty China! They will definitely loosen their monetary policy and increase spending to ensure they grow their economy by a min 8% in 2012.

Volatility will be back in 2012, the aim is to take advantage of it, not fear it.

Going back to your questions Corporate, IMHO, even if we don't get the short term share price lift from IDC's drilling announcements, we will see
the share price lift as they complete the following company making milestones:

1.Additional Upgrade in Gold Resource in May 2012 from the current 2.1million ounces of Gold JORC + 2. PFS to be completed in June 2012.

This is a major milestone for any company, and for IndoChine to achieve this only 18months after listing is an incredible achievement. Most small cap gold explorers take between 5-7 years to build a JORC resource, if they are lucky, of 2+million ounces, with 40% in the Indicated Category of JORC, let alone complete a PFS in 18 months, then the BFS 24months after listing.

If you scroll down the small cap miners on the ASX, not many of them have a 2+million ounce gold JORC resource, with additional upside, PFS 6 months away from being released and a BFS 6 months later. Once the BFS is completed, the JV Partner or Banks or Issuing of additional shares will be made against the information in this study, which means we will have an operating gold mine in late 2013-2014, producing 150,000 ounces of gold min each year.

By the time the PFS is released, all this stimulus which is about to be unleashed, we are talking collectively from all nattions between $500Billion and $1.2Trillion, the markets will for the first time in 12 months have inflow of cash, instead of what we are seeing now, an outflow, lifting all sectors of the ASX which aree linked to the Materials Sector, including the small caps.

For me, its about buying in now, so we can benefit from these returns late in 2012. Dont forget, we are buying into IDC at current prices which are discounted by 50-60% from what the big instos paid only 8 months ago (30c share offering). And the landowners were issued their shares back in April 2011 at the same 30c share price.

If I was working at IDC, I would be doing everything I can to build the reputation of the Mt Kare mine so that when the 30-40million shares, which are currently held in Escrow on behalf of the landowners, become available to be sold at market in May 2012, the share price they were issued at, is at the very least what the market price of each share is on the ASX during this time. I would be aiming for 50-60c share price by May 2012. But that depends on many factors that are affecting the world markets at the minute......

Cheers Nectar