"More High Grades - More Gold" - Mt Kare
Sydney, May 6, 2013 AEST (ABN Newswire) - Indochine Mining Limited (
ASX:IDC) would like to draw your attention to the new research available from Keith Goode, of Eagle Research, an analyst with over 25 years experience.
Most importantly Keith wrote research on the adjoining Porgera mine in its first five years of production. This provides a unique context to demonstrate the growth potential of the Mt Kare Project, which is a "look alike" to the world class Porgera mine.
Indochine has also released a new presentation and the Quarterly Report which are both now available on our website.
Keith Goode has completed his first report on Indochine Mining (IDC) rating it as a spec buy at its close on 30 April, 2013 of 5.2 cents with a target of >12 cents (and an NPV@ US$1450/oz of 22 cents).
There appear to be many similarities between Mt Kare and Porgera.
Porgera reputedly had three underground stopes in its Zone VII Bonanza zone averaging 680 g/t. The initital head grade in SQ 1990 through the plant at Porgera was ~72 g/t (~2.2 oz/t) from underground, with ~750 koz produced in the first 12 months at a cash cost of ~$90/oz.
Before the 1983 zone VII discovery at Porgera, its ore resources (following grid drilling of the area) were 3.7 mt @ 6.4 g/t for 0.8 Moz, and in 1990 were 12.6 Moz Au consisting of an open-cut resource of 54.2 mt @ 4.3 g/t for 7.5 Moz and an underground rsource of 5.9 mt @ 27 g/t for 5.1 Moz.
Indochine are understandably currently focusing on their bonanza grade ore zones to enhance their ore resources and have reported encouraging intersections such as 4 m @ 420 g/t, 5 m @ 105 g/t, 7 m @ 35 g/t etc. If our average modelled grades increase by only 5%, the NVP (or valuation) of Indochine increases by 6 cents.
Indochine expects to upgrade its ~2.1 Moz Mt Kare ore resource of 28.3 mt @ 1.9 g/t Au (that was mostly based on data up to 2007), in mind 2013.
ERA Indochine model is very sensitive to grade, with 5% higher grades increasing the 22 cents NPV by 6 cents, and to the gold price, being almost 1 cent (actually 0.8 cents) per $10 /oz change in the gold price.
To see Keith's research, please click on the following link:
http://media.abnnewswire.net/media/en/docs/75157-Eagle+Research.pdf
Contact
Indochine Mining Limited
T: +61-2-8246-7007
F: +61-2-8246-7005
WWW: www.indochinemining.com
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