High-grade hits lift Indochine

STRONG drilling results, including a surface intersection of 14m at 20.4 grams per tonne gold, lifted Indochine Mining shares 16% in peak morning trade – while two contractors were pre-selected for its new underground mining plans in Papua New Guinea.
High-grade hits lift Indochine High-grade hits lift Indochine High-grade hits lift Indochine High-grade hits lift Indochine High-grade hits lift Indochine

The standout 14m drilling result at its Mt Kare project in PNG contained a 3m interval at 88.9gpt gold and 51gpt silver.

The same hole also yielded separate intersections of 3m at 9.3gpt gold and 230gpt silver from a 36m depth, plus 48m at 3.6gpt gold from a depth of 68m, which included a 12m stretch at 6.1gpt gold and 54gpt silver.

A separate hole in the same WRZ North zone area of the project clocked up a 37m intersection at 3.3gpt gold, which included 7m at 7.3gpt gold from a 104m depth.

There was also a 46m intersection from 172m downhole, which graded 3.4gpt gold and included a 6m interval at 7.6gpt gold.

Earlier this month, the explorer increased the project's total resources by 20% from 2011 to 2.11 million ounces of contained gold.

Indochine has also changed its project planning since the gold price tumble began in April.

The explorer has issued conditional letters of intent to award contracts to underground specialist Australia Contract Mining and GR Engineering Services as part of its plan for "rapid development" of a low-cost underground mine that is significantly cheaper than the open pit plans of the 2012 pre-feasibility study.

While the scope of work and financing still needs to be finalised, the explorer aims to bring in ACM for project management and mining of its proposed Mt Kare underground mine. GRES is slated to take care of the feasibility and design plus engineering, procurement, construction and commissioning work for the project's treatment plant.

Indochine will focus on extending two high grade zones which have averaged 5 to 20gpt gold as part of the new development approach.

The project is 15km southwest of Barrick Gold's Porgera mine in Enga province and last year Indochine was aiming to lodge a mining licence application by late 2013.

Indochine shares have retreated since this morning's action. They closed up 7%, or 0.3c, to 4.3c.

loader

Most read Regions

  • NEW: Digital version of PNG Report magazine - View here
  • Porgera: Barrick-PNG talks go on - Read more
  • Follow the companies investing in the PNG market - Read more

Most read Regions