re: Ann: Letters of Intent for Feasibility Mi...
Really positive Ann. Things wont change much until the POG price changes or at least the sentiment. But every positive step brings us closer.
Article from Proactive.
Indochine Mining (ASX: IDC) has issued two conditional Letters of Intent Australian Contract Mining Pty Ltd (ACM) and GR Engineering Services Limited (ASX:GNG) as it steps up rapid development of its Mt Kare Gold-Silver Project in Papua New Guinea.
The company had recently increased Resources at the project by 20% to 2.5 million ounce of gold equivalent with two high grade zones averaging between 5 grams and 20 grams per tonne gold, with intersections over 100g/t gold.
Its current focus is to extend these high grade zones, which currently host about 400,000 ounces of gold as they allow for a rapid, low cost underground mining option at significantly reduced capital costs than announced in its 2012 pre-feasibility study.
The conditional LoI to ACM grants the specialist underground mining contractor 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 will have first priority to enter into an engineering, procurement, construction and commissioning 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.
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.
Indochine has also received high grade gold assays from extension drilling at the WRZ North zone of the Mt Kare project.
Highlights from this drilling include: - 14 metres at 20.4g/t gold from surface; and 48 metres at 3.6 g/t gold from 68 metres down hole including 12 metres at 6.1g/t gold in drill hole 206SD13; and - 37 metres at 3.3 g/t gold from 93 metres including 7 metres at 7.3g/t gold and 46 metres at 3.4g/t gold from 172 metres including 6 metres at 7.6g/t gold at drill hole 205SD13.
Drill hole 205SD13 has extended the known high grade gold mineralisation down dip by up to 65 m in this part of the WRZ North zone and confirmed the continuity of the zone. Drill hole 206SD13 has extended the high grade gold mineralisation up dip.
Both holes targeted down dip extensions to high grade zones that are within 150 metres of the surface of the hillside and are suitable for a rapid, low cost underground mining option.
The company had in June 2013 raised $3.9 million through a private placement for focused drilling of high grade “bonanza” gold zones at Mt Kare.
IDC Price at posting:
4.2¢ Sentiment: LT Buy Disclosure: Held
