Newly-listed In­do­chine Min­ing re­vives Mount Kare gold mine

Af­ter a trou­bled his­tory, the gold and sil­ver mine at Mount Kare in Enga Prov­ince is now back on track.

Business Advantage Papua New Guinea - - Mining -

Fol­low­ing his com­pany’s list­ing on the Port Moresby Stock Ex­change (POMSOX) in Septem­ber 2013, In­do­chine Min­ing Chief Ex­ec­u­tive Of­fi­cer Stephen Prom­nitz ex­pressed the hope that gold pro­duc­tion of be­tween 170,000 and 200,000 ounces per an­num could com­mence as early as 2015.

He said In­do­chine’s list­ing was the cul­mi­na­tion of much work since it ac­quired 100% of Mount Kare in 2011.

He said the com­pany had worked hard to se­cure the sup­port of lo­cal com­mu­ni­ties and had as­sem­bled an ex­pe­ri­enced team to man­age com­mu­nity ex­pec­ta­tions. In Jan­uary 2014, the com­pany com­pleted a Landowner In­ves­ti­ga­tion Study (LIS) of the mine area.

‘The com­ple­tion of the LIS marks a ma­jor mile­stone for the lo­cal peo­ple, rel­e­vant gov­ern­ment of­fi­cials and our share­hold­ers, and is ar­guably one of In­do­chine’s most sig­nif­i­cant achieve­ments to date,’ said Prom­nitz in a state­ment.

The com­pany plans to make a fi­nal in­vest­ment de­ci­sion, es­ti­mated to re­quire cap­i­tal ex­pen­di­ture of around AUD$100 mil­lion, in the mid­dle of 2014.

The sub­ject of a chaotic gold rush in 1988–89, the Mount Kare project was aban­doned by then-cra (now Rio Tinto) be­fore chang­ing hands a num­ber of times.

The POMSOX list­ing was a per­sonal mile­stone for Prom­nitz, who worked for CRA as a ge­ol­o­gist on the orig­i­nal Mount Kare project.

Panaust— a new player in Pa­pua New Guinea’s min­ing sec­tor— ac­quired an 80% stake in the gi­ant Frieda River gold and cop­per min­ing project in East Sepik Prov­ince at the end of 2013.

Gold sam­ples taken from Mount Kare

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