PanAust claims Laos discovery

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THE DRILL SERGEANT: PanAust has claimed the discovery of the newly named Nam San copper‐gold deposit, situated adjacent to the company’s Phu Kham openpit mine in northern Laos.

The company said recent drilling has confirmed the lateral continuity of mineralisation to be over at least 200 metres and that the zone remains open to the east, northwest and at depth.

 

Plan showing the position of the new zone of mineralisation in relation
to the planned Phu Kham openpit. Source: Company announcement

 

Drilling results include:

–    70 metres at 1.09 per cent copper and 0.88 grams per tonne gold from 456 metres. This was a twin hole to one previously drilled, which intersected 104m at 0.72 per cent copper and 0.30g/t gold from 478 metres.

–    28 metres at 0.86 per cent copper and 0.18 g/t gold from 158 metres, (PanAust said this it considers this to be a likely extension to the Phu Kham deposit), and 22m at 0.71 per cent copper and 0.08g/t gold from 446m.

–    The discovery hole intersected 78m at 1.51 per cent copper and 0.31g/t gold from 336m.

“Although it’s early days, these results confirm the discovery of a relatively high‐grade deposit of significant thickness,” PanAust managing director Gary Stafford said in the company’s announcement to the Australian Securities Exchange.

“If future drilling and studies confirm the economic attractiveness of the Nam San deposit, likely access will be by decline and/or shaft located outside of the current Phu Kham open‐pit design limits.”

“Conceptually, we could foresee a source of high‐grade ore from an underground mine development either partly displacing lower grade ore from the Phu Kham open‐pit or providing feed to an expanded or new processing facility at or near Phu Kham.

“To that extent, we are also looking forward to the results of our drilling campaign at the nearby LCT deposit.”

PanAust said it was preparing to accelerate drilling at the Nam San deposit over the next 6 to 12 months with the objective of defining an inferred mineral resource in the second half of 2012.

It has also commenced conceptual studies to investigate possible underground access, mining methods and mining rates.