Further high-grade gold mineralization has been intersected at Indochine Mining’s Mt Kare Gold-Silver Project in the Central Highlands. The first four drill holes in a 3000 metre diamond drilling program at the Western Roscoelite Bonanza Zone (WRZ) have returned high-grade assays which the company says continue to demonstrate the significant potential of the zones.
Highlights include 14 metres @ 15.3 grams/tonne gold and 9 grams/tonne silver from 36 metres down hole, including 7 metres @ 23 grams/tonne gold and 14 grams/tonne silver. The highest grade intercepted was 1 metre at 58 grams/tonne gold and 19 grams/tonne silver.
Indochine’s technical consultant Tony Burgess says, “The results are very encouraging as they help target new drill holes at the possible location of the feeder zones to more bonanza targets. As exploration continues these results again confirm that Mt Kare is a similar mineralized system to the nearby 28-million-ounce Porgera gold mine. The high grade mineralized zone has a vertical extent of around 50 metres. These results indicate more potential along strike of the fault, which is currently being drill tested.”
Mt Kare is one of the largest near-term gold projects in Papua New Guinea. It is 15km from one of the world’s biggest gold mines, Barrick’s Porgera mine which has produced more than 500,000 ounces of gold each year since 1990. Indochine says Mt Kare shares similar geology, ore types and structures of mineralization to Porgera which has established major road and power infrastructure.
After acquiring the project in June 2011, the company is planning the development of a large open cut mine to annually produce up to 150,000 ounces of gold and silver.
Indochine announced an initial 2.1 million ounce gold equivalent JORC-compliant resource estimate in January 2012. The mineralization occurs as both sulphide-rich steeply dipping veins and localized quartz-pyrite-roscoelite veins within five zones - the Western Roscoelite containing 52% of the mineralization, Black, C9, Central and Upper.