PALMA DE MALLORCA, Spain, May 17
/PRNewswire-FirstCall/ -- The Boards of Directors of Indocan
Resources, Inc. (OTC: IDCN) and Mid-Atlantic Capital Ltd. announce
that they have committed to a $12
million minimum initial capital infusion to eight mine sites
in South Africa.
Bele Holdings has been granted mining rights (new mineral
rights) for an area covering some 144 square kilometres in
Barberton – Mpumalanga province. The mineral rights comprise 414
base metal claims situated on the farms Hooggenoeg 150 IT,
Doornhoek 157 IT, Kortbegrip 168 IT, Laggenoeg 158 IT, Rozentuin
159 IT including the Von Brandis, Heather
Bell, Pentland and Thistle section, Soodorst 2, IU Overberg
1, IU and Nooitgezien 3, IU in the mining district of
Barberton.
These claims cover the area of the Old Thistle, Heather Bell, Golden Snake, Von Brandis, Queen
of Sheba and Pentland mines. The property lies at a mean height of
765 metres above sea level, close to the Komati River.
Bele Mines has substantial
infrastructure including a number of shafts and 300 m of
underground development and is the most advanced of the projects in
the area. The main shaft was sunk to a depth of 50 meters and reef
development has taken place on a mineralized shear zone.
Mid-Atlantic Capital advises public companies on funding
activities and helps companies become public and get early stage
funding. Indocan Resources is working closely with all parties
related to this gold mining prospect and will have a carried
interest and a slice of the NSR when completed.
Mapping and sampling carried out by previous investigators has
established a total resource of 8 million tons of ore at 7.38 g/t
down to a depth of 45 meters below the extensive reef development
on the 50 meter level, i.e. 95 meters below the shaft collar
elevation (this represents circa 1% of the total mining area).
This is equivalent to some 1.4 MILLION ounces of gold from the
developed area.
Production of 360,000 tons per annum at 7.38 g/t producing after
29 months revenue amounting to an average of US$60 million per annum. The life of mine is
estimated to be over 20 years.
At a discount rate of 15% per annum over a ten year period the
estimated Net Present Value amounts to US$233M for the existing developed mining area
(this represents circa 1% of the total mining area).
More information can be learned by visiting our website:
www.indocan.com.
We seek "Safe Harbor."
Company Info: +1-406-322-3844 Jeffrey R. Bruhjell,
president JRB@Indocan.com
CONTACT: Investor Relations, Ken
Ash +1-910-300-8189 kenash@indocan.com
SOURCE Indocan Resources, Inc.