Sydney, Jan 19, 2006 AEST (ABN Newswire) - Pan Australian (ASX: PNA) (PNK: PNAJF) is pleased to announce that Ausenco Limited has been awarded the contract for the Front End Engineering and Design ("Initial Phase") in order to commence the detailed engineering required to develop the Phu Kham Copper-Gold Project in Laos.
With the imminent completion of the Feasibility Extension Program (FEP), the Board will be in a position to review the Phu Kham development options at its March meeting. Given the very promising results to date from the FEP, the Board is likely to commit to the immediate development of the Phu Kham Copper-Gold Project. Following this approval and after the completion of the Initial Phase, the agreement with Ausenco will roll into an Engineering, Procurement and Construction Management (EPCM) Contract.
Ausenco, a Brisbane based engineering group, is uniquely qualified for these tasks after working on Pan Australian's feasibility study at Phu Kham. Ausenco also has a proven track record in developing mining projects in Thailand and Laos through its lead role in the development of Kingsgate's Chatree Gold Mine and Oxiana's Sepon Gold Mine and its joint venture role in the development of Oxiana's Khanong Copper Mine.
The Initial Phase work will commence immediately so that sufficient key detailed engineering can be completed to enable long lead items to be ordered, and to confirm a more reliable pricing and schedule for construction. The target for completion of construction and commencement of commissioning of the Phu Kham plant is the end of 2007. Completion of the Initial Phase work will also enable Pan Australian to consider lump sum alternatives to EPCM rates.
The Board has also approved the commencement of initial pioneering works for Phu Kham. These include earthworks for the camp and process facility sites together with the construction of a 7 kilometre link road from the Phu Kham site to a recently constructed new access road to the main highway to Vientiane, funded by the Asian Development Bank.
Commenting on the award of the contract, Gary Stafford, Managing Director of Pan Australian said, "Ausenco has the essential technical expertise and experience in mine project development in Southeast Asia to successfully develop the Phu Kham Copper-Gold Project. This is a major step forward in Pan Australian's plan to become a significant copper and gold producer in the region."
Contact
Mr. Gary Stafford
Managing Director
Mr. Joe Walsh
General Manager - Corporate Development
Tel: +61 7 3878 9299
Email: info@panaustralian.com.au
Website: www.panaustralian.com.au
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