extension to the phu kham copper-gold deposit, lao Highest value...

extension to the phu kham copper-gold deposit, lao Highest value drill hole to date confirms northern extension to the
Phu Kham Copper-Gold Deposit, Laos
Phu Bia Gold Mine within budget and entering final construction phase
Pan Australian is pleased to report that latest results from resource drilling at the Phu Kham
copper-gold deposit (Figure 1) include the highest value1 intersection to date in hole GDD099,
which was collared on the northern strike extension to the deposit (Figure 2) and confirms the
potential upside to the current resource estimate.
GDD099 was drilled to a down-hole depth of 349 metres and from a depth of 8 metres intersected
two broad resource grade (>0.3% copper) intervals separated by 42 metres of sub-resource grade
mineralisation for a cumulative interval of:
• 280 metres at 1.3% copper and 0.2 g/t gold from a depth of 8 metres including a
peak interval of:
�� 34 metres at 4.6% copper and 0.7 g/t gold from a depth of 294 metres.
The peak interval for GDD099 is the highest grade intercept to date in primary mineralisation
over a significant width. The results from GDD099 support the previously reported (18 March
2005) results from the pre-collar to hole GRD098, which was drilled 100 metres west of GDD099
and had identified a 100 metre strike extension to the north of the deposit.
The complete set of assay results has now been received for GRD098. These results confirm that
the hole intersected resource grade mineralisation to a depth of 228 metres including 46 metres at
1.0% copper and 0.5 g/t gold from a depth of 10 metres.
Results for eight holes have been received since the last announcement, all of which indicate
support for and further upside to the current Indicated and Inferred Mineral Resource estimate of
108 million tonnes grading 0.8% copper and 0.3g/t gold (as reported, in accordance with the
JORC Code, to the ASX on 4th October 2004).
As a result of this most recent drilling the known strike length of the Phu Kham copper-gold
deposit was been increased to 1.3 kilometres and remains open to the north and south as
well as at depth.
1 Value based on copper and gold grade as well as mineralised interval above a 0.3% copper cut-off at a copper price
of US$1.00/lb and a gold price of US$400/oz. No account of the relative depth of mineralisation is factored into this
assessment.
2
The following table details the results (>0.3% copper) for each hole:
NORTHERN EXTENSION AREA
Hole No.
(Depth of
hole)
Down-hole
interval
(metres)
Width
(metres)
Copper
Grade
(%)
Gold
Grade
(g/t)
Peak copper-gold (Cu-Au) intervals
&
Comments
GRD098
(229m)
10-56
82-106
128-162
222-228
46
24
34
6
1.0
0.5
0.4
0.6
0.5
0.2
0.4
0.3
8m at 2.0% Cu and 0.5g/t Au from 28m
Intervals previously reported to 48m
GDD099
(349m)
8-150
192-330
142
138
0.7
1.9
0.1
0.3
18m at 1.8% Cu and 0.1g/t Au from 120m
12m at 2.0% Cu and 0.3g/t Au from 242m &
34m at 4.6% Cu and 0.7g/t Au from 294m
GRD100
(205m)
80-102 22 1.4 0.4 10m at 2.0% Cu and 0.8g/t Au from 92m
GDD105
(142m)
20-24
56-68
4
12
0.8
2.3
0.4
0.0
MINERAL RESOURCE AREA
GDD090
(263m)
58-76
170-226
18
56
1.0
0.6
0.4
0.3
4m at 2.8% Cu and 0.7g/t Au from 58m
Intervals previously reported to 166m
GDD093
(180m)
142-162
168-180
20
12
0.5
0.5
0.2
0.1
Mineralised at end-of-hole
GRD094
(232m)
2-60
78-104
134-198
58
26
64
0.6
0.5
0.5
0.3
0.2
0.3
6m at 1.2% Cu and 0.2g/t Au from 98m
Intervals previously reported to 48m
GDD095
(140m)
22-36
66-138
14
72
0.8
0.9
0.1
0.3
10m at 1.9% Cu and 0.4g/t Au from 98m
GDD096
(294m)
10-174
236-280
164
44
0.6
0.5
0.2
0.2
28m at 1.1% Cu and 0.6g/t Au from 10m
GDD101
(228m)
42-128
154-182
196-214
86
28
18
0.5
0.6
0.6
0.2
0.3
0.1
Note: All holes drill at 60 degrees from horizontal at an azimuth of 90 degree (inclined to the east)
Drill hole GDD093 terminated in mineralisation due to the drill string becoming jammed. As a
result the hole will be re-drilled to a target down-hole depth of 350 metres.
3
Phu Kham Copper-Gold Project background
The Phu Kham Copper-Gold Project will represent the second phase development of the
Company’s Lao mineral assets, assuming that the outcome of the feasibility study scheduled for
completion in August 2005 is positive. The feasibility study will be seeking to confirm the results
from a Preliminary Study announced on 5 March 2004 that indicated the potential for the Phu
Kham Copper-Gold Project to support a 9 million tonnes per annum flotation operation to
produce 57,000 tonnes of copper and 52,000 ounces of gold in a concentrate.
Phu Bia Gold Mine update
The Phu Kham copper-gold deposit is partly covered by the Phu Kham gold cap. The gold cap
hosts most of the currently defined ore reserve for the Phu Bia Gold Mine (refer to 2004 Annual
Report), which is currently under construction and represents the first phase development of the
Company’s Lao assets. Therefore, in part, the mining of the Phu Kham gold cap will represent a
pre-strip of the underlying copper-gold deposit.
Pan Australian is pleased to report that costs for construction of the Phu Bia Gold Mine continue
to be within the total budget of US$15.3 million. All major items of proprietary and fabricated
equipment have been delivered to site and erection of all parts of the process plant is well
advanced with construction of the heap leach pads complete and drainage pipes installed.
First gold pour is scheduled for May 2005. Ramp-up to full gold production remains on schedule
for the September quarter.
For further information contact:
Mr Gary Stafford Mr Joe Walsh
Managing Director General Manager – Corporate Development
Pan Australian Resources Limited
Tel: (07) 3878 9299 Website: www.panaustralian.com.au
Email: [email protected]
The information in this report that relates to Exploration Results and Mineral Resources for the Phu Kham
Copper-Gold deposit is based on information compiled by Dr. Ralph Child, who is a Fellow of The
Australasian Institute of Mining and Metallurgy. Dr. Child is a full-time employee of Pan Australian.
Dr. Child has sufficient experience relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in
the 2004 Edition of the “Australasian Code for Reporting Exploration Results, Mineral Resources and Ore
reserves” (the JORC Code). This report is issued with Dr. Child’s consent as to the form and context in
which the Exploration Results appear.
FIGURE 1