Letters of Intent for Feasibility Mine Development Mt Kare
Sydney, July 18, 2013 AEST (ABN Newswire) - Indochine Mining Limited (
ASX:IDC) ("Indochine") is pleased to announce that it has issued conditional Letters of Intent to appoint Australian Contract Mining Pty Ltd (ACM) and GR Engineering Services Limited (ASX:GNG) for the project management, feasibility study, development, engineering, construction and underground mining services of a mining project at the company's Mt Kare Gold/Silver Project, PNG. The planning and Scope of Work is currently under development.
A major increase in the quality of the resource was recently announced at the Mt Kare Gold/Silver Project to 2.5 Moz gold equivalent (AuEq), with two substantial high grade zones averaging 5 - 20 g/t gold, with intersections over 100 g/t gold. The current focus is to extend these high grade zones as they allow for a rapid, low cost underground mining option at significantly reduced capital costs than announced in the company's 2012 pre-feasibility study.
Conditional Letters of Intent have been issued to:
- Australian Contract Mining Pty Ltd (ACM), a specialist underground mining contractor, for the project management and mining of the proposed Mt Kare Underground Gold mine in PNG. The Letter of Intent establishes that ACM would have first priority for a contract for project management, underground mining services and underground drilling. ACM has an experienced management and operating team who have operated a safe and successful underground mining contracting business at a number of mine sites throughout Australia and overseas.
- GR Engineering Services Limited (ASX:GNG) to manage the feasibility study and the design, engineering, procurement, construction and commissioning (EPC) of the Mt Kare treatment plant. GR Engineering's extensive knowledge and commitment to making the project work were instrumental in their selection. The Letter of Intent establishes that GR Engineering would have first priority to enter into an EPC contract on a "turn-key" basis with Indochine, and would provide the company with a guaranteed maximum price in the future for the design, construction and commissioning of the treatment plant and the associated infrastructure. The GR Engineering team comprises a highly experienced and professional team ideal for this project.
GR Engineering has been involved with the design and construction of treatment plants in Papua New Guinea and in a large number of plants in Australia in recent years.
A number of conditions precedent will be required prior to these contracts becoming final and operational, which includes optimisation and planning leading to a Scope of Work, staged financing, staged permitting involving the regulatory authorities and local communities, together with standard development procedures and board approvals.
Contact
Indochine Mining Limited
T: +61-2-8246-7007
F: +61-2-8246-7005
WWW: www.indochinemining.com
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