March 28, 2010
PanAust Limited (PNA) said the development of the Ban Houayxai Gold-Silver Project in Laos has been approved by the board of directors. The company said the open pit mining operation and process plant is set to produce over 100,000 ounces of gold and 700,000 ounces of silver per annum.
PanAust said the mineral resource has been estimated at 42.7 million tonne (Mt) grading 1.1g/t gold and 8.0g/t silver for 1.6 million ounces of contained gold and 11 million ounces of silver.
The company said the total ore reserve has been estimated at 28Mt of ore grading 0.8g/t gold and 6.8g/t silver.
PanAust said commissioning is targeted for the December quarter 2011 with steady state gold production in the March quarter of 2012.
The company said cash costs are expected to range between US$400/oz and US$450/oz of gold respectively, with the development cost estimated at circa US$134 million.
PanAust managing director, Gary Stafford said the development of the project is part of a pipeline of projects targeted at doubling production over the next five years.
“We anticipate that at prevailing copper and gold prices the Ban Houayxai development can be funded through PanAust’s cash flow,” Mr Stafford said.
”In addition, the company is in the process of negotiating US$100 million of debt facilities for Phu Bia Mining, which will enhance funding flexibility across the PanAust Group.”
The company said the mine has a minimum mine life of eight years.
As at 1055 AEDT, PanAust shares were up 2c to 52.5c.
Filed under:
Materials and Resources, News and Views by egoli
March 28, 2010
PanAust Limited (PNA) said the development of the Ban Houayxai Gold-Silver Project in Laos has been approved by the board of directors. The company said the open pit mining operation and process plant is set to produce over 100,000 ounces of gold and 700,000 ounces of silver per annum.
PanAust said the mineral resource has been estimated at 42.7 million tonne (Mt) grading 1.1g/t gold and 8.0g/t silver for 1.6 million ounces of contained gold and 11 million ounces of silver.
The company said the total ore reserve has been estimated at 28Mt of ore grading 0.8g/t gold and 6.8g/t silver.
PanAust said commissioning is targeted for the December quarter 2011 with steady state gold production in the March quarter of 2012.
The company said cash costs are expected to range between US$400/oz and US$450/oz of gold respectively, with the development cost estimated at circa US$134 million.
PanAust managing director, Gary Stafford said the development of the project is part of a pipeline of projects targeted at doubling production over the next five years.
“We anticipate that at prevailing copper and gold prices the Ban Houayxai development can be funded through PanAust’s cash flow,” Mr Stafford said.
”In addition, the company is in the process of negotiating US$100 million of debt facilities for Phu Bia Mining, which will enhance funding flexibility across the PanAust Group.”
The company said the mine has a minimum mine life of eight years.
As at 1055 AEDT, PanAust shares were up 2c to 52.5c.
Filed under:
Materials and Resources, News and Views by egoli
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