BlackRock, Baker Steel Increase Stakes in Indochine Mining

   By Robb M. Stewart 
 

MELBOURNE--Asset manager BlackRock Inc. and specialist resource fund Baker Steel have increased their holdings in Indochine Mining Ltd. (IDC.AU) after the gold explorer raised funds for the development of a project in Papua New Guinea.

BlackRock's stake in Indochine has climbed to 8.6% from less than 5% following a share placement by the Sydney-based company, while Baker Steel's holding rose to 10.2% from 8.4%, Indochine said in a statement.

"This is a great vote of confidence in Mount Kare's potential," said Stephen Promnitz, Indochine's chief executive.

The company earlier this month said recent drill holes at the Mount Kare project had obtained very high grade gold and silver assays, supporting plans for a large open-cut mine that is aiming for production of 125,000 to 150,000 ounces of gold and silver a year.

A prefeasibility study for the project is expected to be completed in August, with new drill results released every three to four weeks, it said.

Mr. Promnitz said he believes the price of gold, while volatile, has stabilized between US$1,550 and US$1,650 an ounce and will head higher to about US$1,800/oz within 12 months.

Indochine last month raised A$8.25 million (US$8.1 million) through the private placement of shares at 15 Australian cents each, primarily with the company's largest institutional shareholders.

Write to Robb M. Stewart at [e-mail]