Papua New Guinea
2.1 million ounce (JORC compliant). The Mt Kare gold/silver resource is 100% owned and held through the company's wholly owned subsidiary, Summit Development Limited.
The deposit lies 15 kilometres from the giant Porgera gold mine which contains 28 million ounces of gold (including a total of 17 million ounces of gold mined to date). Porgera has been producing gold for 21 years and currently produces approximately 500,000 ounces of gold per year, at an average grade of 3.2 g/t.
Summit Gold's shareholders approved the acquisition of Mt Kare at a general meeting on 1 June, 2011. Past exploration included 365 drill holes ($60 million of past exploration expenditure). A JORC resource of 28 million tonnes @ 1.9 g/t gold (1.8 million ounces) was announced in December 2011. The project pre-feasibility study was completed in September 2012. Drilling for metallurgical studies commenced in November 2011 and was completed in August 2012.
Indochine Mining Limited changed its name to Summit Gold Limited on 21st July 2021.
Geologically the deposit shares many similarities with the 28 million ounce Porgera gold mine - including the same host rocks, similar structure and ore zones and the same age of mineralisation. This is a very important indicator of the potential to greatly increase the contained gold at Mt Kare, something Indochine is working hard to unlock with ongoing exploration.
- Less than 20 gold mines or deposits have a grade of 10 grams/tonne or higher with 1 Moz
- Mt Kare production forecast c.200,000 oz/year gold in mid-late 2015
- Lowest quartile all-in costs forecast: US$500 - 700/oz
- Payback c.1 year, based on capex c.US$100M
- Major growth of high grade zones is expected as the project is similar to the adjoining world-class 500,000 oz/yr Porgera mine (15 km to NE) which has produced 17 Moz in 23 years.
- The technical advice from expert geologist and underground miners consider that the grade may increase substantially, to be similar to Porgera's initial grades of 27 g/t, and that the high grade zones should be repeated at depth.