Indochine Mining has achieved a major milestone at its Mt Kare gold-silver deposit in the central Papua New Guinea highlands, announcing an initial JORC compliant resource estimate of 1.76 million ounces of gold and 20.4 million ounces of silver.
The total indicated and inferred resource is 28.3 million tonnes @ 1.9 grams/tonne gold and 22.5 grams/tonne silver. This new estimate confirms the previous evaluation of the size and tenor of the gold-silver mineralization at Mt Kare, completed under the Canadian NI 43-101 in August 2007.
Results from 365 holes are included in the new estimate, including 25 holes not utilized in the 2007 report. The company says all the holes were drilled by previous owners and explorers during an 18 year period over a 30 metre x 30 metre grid pattern. The assay data, geological logging and interpretations from previous workers were used to generate a new resource model. This more robust approach to the modelling process resulted in higher grades and slightly less tonnage, however total combined resources in the new resource statement increase.
Indochine’s chief executive officer Stephen Promnitz says about one-third of the inferred material, containing 300-350,000 ounces gold in the 2007 estimate, has been identified as adequately drilled to now be considered in the indicated category. “It is expected additional data collection already under way, will improve understanding of the data quality, and an improvement in the classification may also be achieved.”
Indochine says the gold and silver mineralization at Mt Kare is hosted in sandstones and siltstones forming a broad north-east strike fault zone which extends through to Barrick’s 30 million ounce Porgera gold deposit about 15km to the north-east.
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.
A pre-feasibility study, which is currently under way at the deposit, is on schedule for completion by June 2012.