stupid market, page-10

Highlanders,

I wouldn't be selling any time soon - resource upgrade statement due 'early' this month...

Pan Australian Resources expects to report richer copper and gold deposits at its Phu Kham mine project in Laos within the next few weeks, managing director Gary Stafford said.

The mining firm also aims to nearly double its ore resource by 100 million tonnes in Laos and increase the production target for copper to 100,000 tonnes, Stafford told Reuters.

"We will announce a new ore reserve within Phu Kham ... that will change our production profile," Stafford said.

"All the drilling during the last 18 months has been higher grade ore ... which will have a positive impact on the amount of gold and copper we produce each year," he said in an interview.

The higher-than-expected grades in the ore body would lift the target for copper produced at the project above 65,000 tonnes by January 2010.

"There is more upside than downside," Stafford said.

The grades of the current 144 million tonnes ore reserve will be finalised within the next few weeks and then the amount of metal produced can be fully established.

At the moment the grades in the ore are 0.5-0.6 per cent copper and the grade of gold is around 0.2-0.5 grams per tonne.

By the end of the month, the copper-gold mine will start producing 50,000 tonnes of copper, 50,000 ounces of gold and 400,000 ounces of silver per year.

"During April we start ramping up production ... we are looking for our first shipment of concentrate in May," he said.

The current target is to expand production in January 2010 to 65,000 tonnes of copper, 60,000 ounces of gold and more than 500,000 ounces of silver per year, but indications of higher grades will make the firm revise these figures upwards.

In June, a drilling program will start on another 100 million tonnes of mineral rich ore in Phu Kham.

"Ideally I would like Phu Kham to get up to a 100,000 tonnes of copper - that is our aim in terms of exploration targets."

Stafford was expecting the drilling results from the Ban Houayxai gold and silver project in Laos in June.

"I hope we can start developing Ban Houayxai in the second quarter of 2009 so in 2010 we have the project coming on."

The firm aims to produce 100,000 ounces of gold equivalent starting in the second half of 2010.

"But I am hoping for 150,000 ounces - but that depends on the drilling," he said.

From the Age March 11 2008