oxianas laos push

Oxiana's Laos push Mandi Zonneveldt

December 09, 2006 12:00am
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MELBOURNE miner Oxiana has mapped out an aggressive exploration program for 2007 with plans to spend more than $22 million at its Sepon project in Laos alone.

The company will spend almost $15 million on resource drilling at Sepon next year, with oxide gold reserves the main target.
More than $7 million will be spent on grassroots exploration in the company's 1250 sq km tenement area in southern Laos.

Oxiana's Sepon exploration manager Dan Olberg told journalists in Laos this week that Sepon had the potential to house up to 10 million ounces of gold and as much as four million tonnes of copper.

"We pretty much have ore grade intercepts at every prospect that we have," he said.

Oxiana expects to have 24 drill rigs on the ground at Sepon by the end of the year.

Its main target next year will be oxide gold, needed to feed the hungry gold plant at Sepon, but the exploration team will also target high-grade deposits of primary gold.

Oxiana expects to complete a study next year into the expansion of its gold processing plant.

It could add more than 150,000 ounces of gold a year to its production by treating the deeper primary gold ore.

The company will also continue evaluating its Thengkham North and Thengkham South copper deposits.

Copper production at Sepon is expected to double this year to 60,000 tonnes and the company is considering expanding its copper plant.

Exploration at Sepon has so far been relatively shallow, with the deepest holes drilled to about 300 metres. The company's exploration team expects to go further down this year.

"We've only just literally scratched the surface," Mr Olberg said this week.

Oxiana could also expand its exploration program to include other metals, with the Sepon area prospective for molybdenum, zinc and lead.

"We have a lot of moly in the area. We will be looking at moly exploration in the near future," Mr Olberg said.

Oxiana also has exploration joint ventures in China, Thailand, Cambodia and Indonesia.

Oxiana shares closed 1c higher at $3.20.

Mandi Zonneveldt travelled to Laos as guest of Oxiana.