pan to order long-lead items for chile mine

Hi all

I have just found this it all looks good for the future growth of PNA. I have been in and out of PNA over the years but at the moment I am out, just waiting to see how it all goes for PNA !!

ASX-listed PanAust said on Friday that it was moving rapidly to complete the feasibility study of its recently acquired Inca de Oro copper/gold project, in Chile.

Speaking at the company?s annual general meeting, chairperson Garry Hounsell said that the objective was to start ordering long-lead items by early 2012.

Assuming a positive outcome from the feasibility study, and a two-year construction period, the Inca de Oro project could start commissioning in 2014.

?It is anticipated that the Inca de Oro will be capable of supporting annual production of 50 000 t of copper and 40 000 oz of gold, over a plus ten-year mine life,? said Hounsell.

PanAust acquired a majority interest in the project from Chile?s State-controlled Corporaci?n Nacional del Cobre de Chile in March.

The miner?s interest in the project is held through a 90% interest in development vehicle PanAust Minera, while independent Australian company, the Minera Group, holds the remaining 10% of the vehicle. PanAust Minera owns 66% of the project.

The Inca de Oro project hosts an estimated indicated and inferred sulphide copper/gold mineral resource of 259-million tons, grading 0,46% copper and 0,13 g/t gold.

Meanwhile, Hounsell said that the Ban Houayxai gold/silver project, in Laos, was on track for commissioning in December, with the first gold production expected in the March quarter.

At Ban Houayxai, PanAust was planning to produce an average of 100 000 oz/y of gold and 700 000 oz/y of silver, over a mine life of nine years. Silver production for the first year of operation would likely be lower as the company mined through the gold-enriched oxide zone.

At the Phu Kham operations, also in Laos, Hounsell noted that the upgrade project was expected to be implemented by mid-2012. The upgrade would increase ore processing rates and metallurgical recoveries, at a time when ore head grades were expected to decline.

Yearly copper in concentrate production is expected to rise from the current levels of between 60 000 t and 65 000 t, to between 65 000 t and 70 000 t.


Good luck to all that hold PNA