The National, Thursday 26 January 2012
INDOCHINE Mining Ltd is aggressively advancing its pre-feasibility study (PFS) stage drilling at its 2.1 million ounce gold equivalent Mt Kare resource in Papua New Guinea.
Three drill rigs were currently operating as part of a programme to improve and increase the current resource, the company said in a statement yesterday.
Large diameter drill core was also being collected for metallurgical test work as part of the PFS, scheduled for completion in August.
Significant mineralisation had been identified in the recent drill holes, consistent with similar previously drilled high grade zones. Mineralisation included veins, breccias, sulphides and gold.
High-grade zones of gold mineralisation reported from past exploration are anticipated to be repeated.
Indochine chief executive Stephen Promnitz said: “We are entering an exciting period with considerable news flow anticipated over the next nine months from drill results and from the PFS study.”
Drilling, helicopter and camp support had improved markedly this month and local community groups have maintained their support for the project.
Mt Kare had a total indicated and inferred mineral resource of 2.1 million ounce gold equivalent (or 1.8 million ounces gold) in 28.3 million tonnes at 2.3 grammes per tonne gold equivalent.
The Mt Kare gold/silver deposit is located 15km from one of the world’s largest gold mines, Barrick’s giant Porgera mine.
Mt Kare shared similar geology, ore types and structures to Porgera, which has existing infrastructure (road and power).
Mt Kare had the potential for a large open cut mine, which will be detailed in the PFS.