DRILL assays and metallurgical work from a scoping study at Pan...

DRILL assays and metallurgical work from a scoping study at Pan Australian's Ban Houayxai gold-silver project, nearby its existing Phu Bia gold mine in Laos, has further demonstrated the potential for a stand-alone operation.

Two holes from a six-hole program aimed at testing the depth potential below the existing oxide deposit "demonstrate that high-grade mineralisation extends into the primary zone", according to the company.

Highlights from those holes were 22m grading 2.1 grams per tonne gold and 23.7gpt silver from 56m, including 12m grading 4gpt gold and 28.9gpt silver from 66m; and 6m grading 27gpt gold and 22.2gpt silver from 122m.

The remaining four holes are complete and assay results should be available early next year, along with a revised resource statement for the project.

Ban Houayxai has a total resource of 3.6 million tonnes for 126,000 gold ounces grading 1.1gpt.

Corporate development general manager Joe Walsh told MiningNews.net the results from the remaining four holes would largely be used to plan further drill programs aimed at delineating the larger mineral system during 2007.

He said programs were either beginning or about to begin at targets within 10km of Ban Houayxai, which he said could be satellite deposits, or possibly "a satellite deposit of something larger".

In addition, "respectable" metallurgical recoveries for gold of more than 90% in oxide and more than 85% in primary mineralisation look likely to be attainable from a carbon-in-leach process.

Walsh said having a gold mining and processing team just 35km away at Phu Bia was "obviously a significant advantage".