Perth, Sep 22, 2006 AEST (ABN Newswire) - Pan Australian Resources (ASX: PNA)(PNK: PNAJF) Limited says it expects to bring its US$232 million Phu Kham gold and copper mine in Laos into production by mid 2008 in an environment where sustained copper shortages should support sustained higher metal prices.
Addressing the Paydirt Asia Pacific Downunder Conference in Perth today,
Pan Australian's General Manager, Corporate Development, Mr Joe Walsh, said the project had now largely been derisked by the Company's decision last year to commence the nearby small heap leach Phu Bia gold mine.
"This small mine has allowed us to establish a full operating team, systems and infrastructure to sidestep a lot of the difficulties new mine developers are facing in bringing projects of this size to fruition," Mr Walsh said.
"We see Phu Kham now as a brownfields development with mining from next October and the concentrator active from mid-2008."
"The project remains within budget and on track for start-up and first fleet items have begun arriving in Asia, despite worldwide mining equipment shortages. First earthworks are due to commence late this year."
Phu Kham, a copper gold porphyry deposit, has an initial mine life of 12 years, a throughput rate of 12 million tonnes per annum with anticipated annual production of 52,000 tonnes of copper, 47,000 ounces of gold and 400,000 ounces of silver. The resource includes 144 million tonnes of Proved and Probable reserves grading 0.56% copper and 0.25% silver.
The project has an estimated mine site cash cost after precious metal credits of US$0.40 cents a pound and a total cash operating cost of US$0.74 cents a pound.
Mr Walsh says selection of a final route to port for its copper-gold concentrate had yet to be confirmed, with several options under consideration. BHP Billiton is to manage all of Phu Kham's concentrate sales with the Sempra Metals group guaranteeing to take 50% of production.
Contact
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
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