Name: Mt Kare mine.

Location: The Mt Kare project is located in Enga province, in the highlands of Papua New Guinea.

Controlling Company: Indochine Mining.

Brief History: Indochine owns Mt Kare, a major Joint Ore Reserves-compliant gold resource currently containing 1.8-million ounces of gold and 20-million ounces of silver. A prefeasibility study was completed on the project in September 2012, with the positive outcome resulting in the start of a bankable feasibility study on the project.

Brief Description: Forecast production at the Mt Kare project is estimated at one-million ounces of gold and eight-million ounces of silver over eight years, utilising only half the tonnage of the current resource.

Mining Method: The preferred processing route is a crushing circuit targeted at 1.7-million tons a year. Phase 1 of the project will use carbon-in-leach (CIL) tanks for treatment of the nearer surface CIL amenable resource in years one to four. This will be followed by a Phase 2 plant upgrade, introducing sulphide flotation and treatment of the flotation concentrate for year four to eight sourced from the Western Roscoelite pit and the Black zone non-CIL amenable resources.

Products: Gold and silver

Major Infrastructure and Equipment:
Proposed infrastructure and utilities for the project include:
• an 11-km-long access road and a new accommodation camp;
• site works, comprising about 710 000 m3 for the process plant, mining buildings, accommodation camp and mine administration areas;
• mine haul roads from the mine pits to the process plant crusher and run-of-mine, as well as a waste dump site;
• a mine water dam for mine pit water containment and various catch drains for diversion away from infrastructure;
• a 5.8-km-long site raw water supply pipeline and a 4-km-long potable water supply pipeline;
• mine pit dewatering pipelines and process water pipelines;
• mine buildings, including a mine truck workshop, wash bays, a 300 m2 warehouse, fuel and storage mining office, mine administration offices and facilities;
• a 9 MW diesel power station and bulk diesel tanks;
• site electrical distribution and communications installations; and
• fire water, potable water, as well as sewage treatment plants and reticulation.

Geology/Mineralisation: The Mt Kare deposit is hosted by Mesozoic and late Tertiary marine continental shelf sedimentary rocks, which consist of limestones, siltstones and sandstones, deformed by thrusting and folding, following continental collision. Mineralisation at Mt Kare, dated at six-million years, is developed around dykelike mafic intrusives emplaced within sediments. These intrusives have an alkaline geochemical signature, suggesting they originate from deep mantle magmas, of essentially the same composition as Porgera, classified as a low sulphidation epithermal deposit intrude into the same host rocks.

Resources: Total indicated and inferred resources as at December 2011 were 28.3-million tons at 1.9 g/t gold and 22.5 g/t silver.

Prospects: The prefeasibility study on the Mt Kare project has identified positive factors sufficient to warrant a BFS.

Significant opportunities exists to improve project economics and extend mine life through a range of resource expansion, mine scheduling, grade optimisation, processing flowsheet optimisation and other initiatives.

Contact Person: CEO Stephen Promnitz.

Contact Details:
Indochine Mining, tel +61 2 8246 7007, fax +61 2 8246 7005,
email info@indochinemining.com, and website: http://www.indochinemining.com

.