Indochine Mining has raised Aus$3.9 million via a private placement with existing institutional and sophisticated investors. The funds will be used for focused drilling of high grade ‘bonanza’ gold zones at the Mt Kare Gold-Silver Project in PNG, as well as working capital.
“Indochine’s major funds and smaller investors wanted this raising to be as small as possible, and so it was closed at a slight premium, ahead of a resource upgrade this month,” says Indochine’s CEO Stephen Promnitz.
Indochine is a gold-copper exploration and development company. In Cambodia, it has the largest mining property holding in a country that has had very limited modern exploration, and is within a region known for world-class gold and copper deposits. In PNG it holds an option over a major gold resource at Mt Kare and in Laos, potential exploration areas are being evaluated.
Eagle Research has recently issued its first research report on Indochine, rating it as a ‘Spec Buy’. Keith Goode, of Eagle, wrote research on the adjoining Porgera mine in its first five years of production, which provides a unique context to demonstrate the growth potential of the Mt Kare project.
He says 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 grams/tonne. The initial head grade in SQ 1990 through the plant at Porgera was about 72 grams/tonne from underground, with about 750,000 ounces produced in the first 12 months at a cash cost of about $90/ounce.
Before the 1983 zone VII discovery at Porgera, its ore resources (following grid drilling of the area) were 3.7 million tonnes @ 6.4 grams/tonne for 800,000 ounces, and in 1990 were 12.6 million ounces consisting of an open-cut resource of 54.2 million tonnes @ 4.3 grams/tonne for 7.5 million ounces and an underground resource of 5.9 million tonnes @ 27 grams/tonne for 5.1 million ounces.
He says Indochine is understandably focusing on its bonanza grade ore zones to enhance ore resources and has reported encouraging intersections such as 4 metres @ 420 grams/tonne, 5 metres @ 105 grams/tonne, 7 metres @ 35 grams/tonne, etc. Indochine expects to upgrade its 2.1 million ounce Mt Kare ore resource of 28.3 million tonnes @ 1.9 grams/tonne gold in mid-2013.