potential increase mineral resource

Pan Australian Resources gold


Pan Australian has received final assay results from an in-fill and resource extension drill program at the Long Chieng Track (LCT) gold deposit in Laos - one of three oxide deposits that contribute to the mineral resource and ore reserve for the Phu Bia Gold Mine.

“Results from a combined reverse circulation and diamond core drill program demonstrate potential for an increase in the mineral resource and ore reserve for the LCT deposit, which would lead to an extension of the Phu Bia Gold Mine’s current four-year life and/or an increase in the current design production rate of approximately 60,000oz per annum,” Gary Stafford, Pan Australian’s managing director, said.

Significant intercepts from this latest program include 4m at 7.3 grams per tonne (g/t) gold from 4m (within 10m at 3.7g/t gold from 4m); 4m at 5.5g/t gold from 20m (within 10m at 3.0g/t gold from 14m); 4m at 2.9g/t gold from 8m (within 10m at 1.8g/t gold from 8m); and 4m at 2.1g/t gold from 10m (within 8m at 1.8g/t gold from 10m).

Previous drilling also intercepted wide zones of resource-grade mineralisation with high-grade gold intervals

“These latest results represent the final assays from a 33-hole program (for a total of 2,968m of drilling) that was completed at LCT in December 2005,” Mr Stafford said.

“The purpose of the program was to in-fill drill the identified mineral resource in order to upgrade the mineral resource and define additional ore reserves. It was also designed to test for possible lateral and depth extensions to known oxide mineralisation and to investigate new mineralisation targets.

“The completed program provides justification for a further phase of infill and extensional drilling to be undertaken. This new drill program, which will also test targets adjacent to the LCT deposit, is scheduled to commence during the next quarter,” he added.

At the commencement of mining at the Phu Bia Gold Mine, in July 2005, there was a Proved and Probable Ore Reserve1 of 8.6 million tonnes at 1.1g/t for nearly 300,000oz of contained gold. The LCT deposit contributes a Probable Ore Reserve of 620,000 tonnes at 1.0g/t for just over 19,000oz of contained gold within the total mine Ore Reserve.

The Ore Reserve at LCT is contained within an Indicated/Inferred Mineral Resource of 1.4 million tonnes at 0.9g/t for 41,000oz of contained gold.

- 27 Feb 2006