impressive indication of the continuity of ‘ore-gr Channel...

impressive indication of the continuity of ‘ore-gr Channel sampling indicates continuity of gold mineralization at Long Chieng Track
Pan Australian Resources NL said on Monday channel sampling taken from the Long Chieng Track in Laos, had intersected 160 metres at 1.6 g/t gold.

This excellent result supported recent
drilling by indicating a continuity of shallow and thick gold mineralization at the deposit.

Managing director Gary Stafford said channel samples were taken along the entire 160 metre length of an access road that had been cut from the side of the mountain and which had exposed
outcropping mineralization at Long Chieng Track in northern Laos (refer to photographs).

“In areas with a high rainfall, often what happens is the gold is mobilized and rises to the top of the water table, so you end up with a veneer of gold in the top layers and nothing underneath,” he said.

“However, these channel samples, along with the excellent drill results show that the deposit at LCT is both near surface and continues at depth, so we regard the results as being outstanding.

“This is an impressive indication of the continuity of ‘ore-grade’ gold mineralization and it gives us a lot of confidence that we have discovered a block of ore at LCT.”

Mr Stafford said the final three drill results in the recent program had all intersected significant mineralization, including one hole which showed 20 metres at 2.9 g/t gold from surface, with 10 metres at 4.3 g/t from surface.

The program of 10 reverse circulation drill holes was designed to test a 200 metre wide zone of quartz stockwork over a strike length of 500 metres.

“We will continue with infill and step-out drilling to define how large the new deposit is, but at the this stage we are very confident that Long Chieng Track will take the total resources for our Phu
Bia gold project to over 500,000 ounces of contained gold,” he said.

Mr Stafford said Long Chieng Track was situated five kilometres away from the company’s main Phu Kham gold cap deposit, making the ore attractive as feed for any mine development in the
area.

“The mineralization at LCT is shallow, very wide and continuous, which should be excellent for opencut mining because there will be minimal waste,” he said.
The Long Cheing Track deposit, Ban Houayxai deposit and the Phu Kham gold cap make up the Phu Bia Gold Project in Laos, which is the subject of a detailed feasibility study scheduled for completion by June 2004.

Further results will be available from Long Chieng Track by the end of February.

For information: Media enquiries:

Gary Stafford Diana Taylor
Managing Director Starlink Media Pty Ltd
Pan Australian Resources NL