Friday, January 25, 2013

Taking a break for now.....and IDC

Sorry to inform that I'll be taking a break for now until further notice as I'm currently very busy with some work. I'll be posting tweets occasionally on stocks I find interesting. 

A gold explorer stock in ASX which I think will have explosive returns is IDC. This company has a mine situated in Mt Kare in Papua New Guinea which could have one of the biggest gold mines in the whole world. Thus far, its drilling results showed gold intercepts which have hundreds of gram per tonne of gold as compared to the usual single or double digits. This is perhaps one of the best grades I've seen thus far. The other company that can rival these grades is Papillon Resources (PIR) but it has gone up  a few hundred percent and its mine is situated in a volatile country, Mali.  

Mt Kare is situated next to Pergora mine managed by Barrick Gold which has produced about 17 mil oz of gold thus far since 1990 and has 6.4mil oz of proven and probable mineral reserves. Mt Kare is in many ways similar to Pergora in terms of geological structure, mineralization types and similar host rocks, indicating the huge potential Mt Kare has. If Mt Kare is found to have similar reserves as Pergora, I won't be surprised to see IDC's share price rising a few times (hopefully 10x) from current A$0.13. There's also the possibility of Barrick Gold taking over IDC due to its close proximity (15km) to Pergora mine which has all the facilities needed for gold production. Having said that, it's a high risk investment. Thus, just put an amount which you think you can afford to lose :P You can find a lot of information on which is a forum discussing Australian stocks. But do your own research to determine whether the sources are trustworthy or not.

Happy investing and all the best!