CHINA
Hengxian Gold Project
Co-operative joint venture with China National Gold Corporation over tenure adjacent to the Hengxian Gold Mine. Comparisons are made by several organisations with the Nevada basin and range structures which host Carlin type gold mineralisation.
The historic production from Hengxian pits has been 600,000ozs gold which is principally oxide ore (1.7 km long, zones to 20m thick) Major fault controls gold mineralisation. Gold is controlled by a major East West fault which extends into Indochina ground. Close to the boundary between the Indochina exploration licence and the former mining operation Indochina has identified a series of soil anomalies with gold arsenic and zinc. There is evidence that the ore shoots mined previously plunge into Indochina ground.
An exploration programme is underway to locate extensions to gold mineralisation with a target of one million ounces.
Fengshan - Jinya Gold Project
The Project is a joint venture with China National Gold Guangxi Corporation over the 5 EL’s that cover some 111 sq kms.
The Guangxi Provincial Geological Survey Team conducted regional geochemical exploration throughout the northwest of Guangxi Province over a decade ago. Geochemical anomalies with elevated levels of Au, Ag, As, Sb and Hg were identified at numerous localities close to the contact between Permian limestone and Triassic clastic sedimentary rocks. The exploration licenses cover some of the anomalies identified in the earlier regional survey.
There are a number of operating gold mines in close proximity to the joint venture tenements (Jinya and Jingfeng) and these demonstrate the Carlin style of mineralisation being explored for in this area.
The target in this area is a Jingfeng syle of deposit (currently 3.2 million ozs).
Mountain Zinc Project
There are several small scale mines and small treatment plants operating among a number of tenement holders. At Mountain Zinc stratabound disseminated zinc mineralisation is a flat lying hosted in dolomite and out crops over an area 12kms long and 2.5kms wide.
Our technical team believe there is potential for a resource of 1 million tonnes of contained zinc at economic grade within this area. A scoping study has been completed on this project by mining consulting group Coffey Mining. This study shows the project to be economic based on the resource of more than 250,000 of contained metal.
The area B resource contains three zinc layers. In zone II the mineralisation is more than six metres thick and has an average grade in excess of 11% zinc. The extensions to this zone are open along strike and down dip and are undrilled.
There is enormous scope to add very significant value to this project by employing systematic exploration and modern mining processing technology. The currently defined resource areas represent around 20% of the area tested. We believe there is potential for 1 million tonnes of metal. The project is at an advanced stage of negotiation with the partner.
Red Mountain Project
The Red Mountain Project consists of tenure immediately adjacent to a major polymetallic mining complex in the Yunnan Province. The mining in the adjacent tenure is on a large Iron Ore, Copper Gold deposit consisting of 450 Million tonnes of Iron Ore and 260 Million tonnes of Copper - Gold. Indochina has an option over 56sq km of ground immediately adjacent to this deposit where there is outcropping mineralisation.An exploration program consisting of radiometrics, magnetics, geochemistry, diamond and RC drilling is currently underway to search for extensions or repetitions of this deposit on our ground.
Preliminary modelling of the ground geophysics and structural data indicates that the adjacent iron ore body lies on the eastern flank of an anticline which plunges into the Project tenure. A number of geophysical targets for followup drilling have been identified. Upon exercise of its option Indochina will proceed with a major drilling programme to prove up mineable reserves and complete a feasibility study.
