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Drilling extends Ban Houayxai gold‐silver mineralisation along
strike and confirms high‐grade mineralisation at depth
Drilling results from the Ban Houayxai Gold‐Silver Project (Table 1 and Figure 2) feasibility
study drill program have extended the known gold‐silver mineralisation along strike to the
south by 100 metres (Figure 1) and provided encouraging indications of the resource
potential at depth.
Drill hole HRC329 intersected 45 metres at average grades of 1.4g/t gold and 15.4g/t silver
from 12 metres. The hole was drilled to follow‐up drilling results announced in late June
that had previously extended known mineralisation. These intersections have the potential
to extend the oxide‐transitional Mineral Resource.
In the northeast of the deposit (Figure 1), drill hole HDD111 intersected high‐grade goldsilver
mineralisation, confirming the potential of primary mineralisation at depth:
• HDD111: 89m at 2.1g/t gold and 21.9g/t silver from 290m, including:
�� 17.6m at 7.7g/t gold and 79.2g/t silver from 316.4m.
The aim of the drill program, which was completed in August, was to increase the size of the
oxide‐transitional Mineral Resource and to increase the proportion of mineralisation in the
Measured and Indicated categories. The data from the drill program will be incorporated
into the feasibility study resource estimate which is scheduled to be completed during the
December quarter.
Background
PanAust is undertaking a feasibility study at Ban Houayxai focused on initial open‐pit mining
and carbon‐in‐leach (CIL) processing of the outcropping oxide and near‐surface transitional
gold‐silver mineralisation. The feasibility study work is scheduled to be completed by the
end of 2009 for reporting in the March quarter 2010.
The Ban Houayxai pre‐feasibility study completed in October 2008 identified the potential to
develop a low‐cost operation with an annual production of 100,000oz to 130,000oz of gold
and 700,000oz to 800,000oz of silver over a minimum six‐year mine life. Once the viability of
exploiting the oxide‐transitional mineralisation is established, the Company will commence
evaluation of the primary mineralisation with a view to extending mine life beyond ten
years.v