PanAust acquires remainder of Carmen copper‐gold deposit in Chile.

THE BOURSE WHISPERER: PanAust Limited has acquired the balance of the tenements, which it did not already own, over the Carmen copper‐gold deposit in Chile.

The total acquisition cost for Carmen was US$14 million in two tranches following PanAust having acquired the first tranche of tenements in 2010 for US$6 million.

The now 100 per cent PanAust-owned Carmen deposit is located 14 kilometres southwest of the Inca de Oro copper‐gold project (PanAust 59.8 per cent).

 

Project location map. Source: Company announcement

 

The combined Measured, Indicated and Inferred Mineral Resource estimate for Carmen is 45.8 million tonnes at 0.34 per cent copper, 0.34 grams per tonne gold and 1 gram per tonne silver (approximately 0.55 per cent copper equivalent).

The deposit contains, in situ, over 150,000t copper, 500,000oz gold and nearly
1.5 million ounces of silver.

PanAust announced the results of a feasibility study conducted at the Inca de Oro project in its June 2012 quarterly report.

According to the company the study identified a mining and processing schedule for Inca de Oro that comprised 180Mt of mill feed at an average head grade of 0.43 per cent copper and 0.12g/t gold (approximately 0.5per cent copper equivalent1).

“The study concluded that the cost profile after the first five years of production needed to be reduced for the Inca de Oro project to be economically robust,” PanAust explained in its ASX announcement.

“Carmen is a near‐surface iron oxide copper‐gold (IOCG) mineralised system, which may support a low strip ratio satellite open pit to augment Inca de Oro mill feed.

“PanAust’s strategy is to demonstrate that the incorporation into the mining schedule of higher value (through a higher contained metal value and potentially lower strip ratio and process costs) mineralisation from the Carmen copper‐gold deposit will materially improve the operating cost profile identified in the feasibility study for the Inca de Oro project and thereby improve the robustness of the project.”

PanAust intends conducting infill and resource extension drilling at Carmen over the next 12 months aimed at improving the company’s confidence in the current resource estimate and identifying extensions to the deposit.

Drilling is also underway at the Inca de Oro project, on the Artemisa copper‐gold prospect, situated five kilometres north of the Inca de Oro deposit, where previous drilling by Codelco intersected broad zones of copper‐gold mineralisation.

PanAust said the objective of drilling at Artemisa over the next 6 to 12 months will be to provide an initial resource estimate.