Sydney, Feb 24, 2006 AEST (ABN Newswire) - Pan Australian (ASX: PNA) is pleased to announce final assay results from the December 2005 in-fill and resource extension drill program at the Long Chieng Track (LCT) gold deposit in Laos - one of three oxide deposits (Figure 1) that contribute to the mineral resource and ore reserve for the Phu Bia Gold Mine.
Results from a combined reverse circulation and diamond core drill program demonstrate potential for an increase in the mineral resource and ore reserve for the LCT deposit, which would lead to an extension of the Phu Bia Gold Mine's current four-year life and/or an increase in the current design production rate of approximately 60,000oz per annum.
Significant intercepts from this latest program are detailed in Table 1, with highlights listed below:
- 4 metres at 7.3g/t gold from 4 metres
(within 10 metres at 3.7g/t gold from 4 metres)
- 4 metres at 5.5g/t gold from 20 metres
(within 10 metres at 3.0g/t gold from 14 metres)
- 4 metres at 2.9g/t gold from 8 metres
(within 10 metres at 1.8g/t gold from 8 metres)
- 4 metres at 2.1g/t gold from 10 metres
(within 8 metres at 1.8g/t gold from 10 metres)
Previous drilling also intercepted wide zones of resource-grade mineralisation with high-grade gold intervals (Figure 2). These latest results represent the final assays from a 33-hole program (for a total of 2,968 metres of drilling) that was completed at LCT in December 2005. The purpose of the program was to in-fill drill the identified mineral resource in order to upgrade the mineral resource and define additional ore reserves. It was also designed to test for possible lateral and depth extensions to known oxide mineralisation and to investigate new mineralisation targets.
The completed program provides justification for a further phase of infill and extensional drilling to be undertaken. This new drill program, which will also test targets adjacent to the LCT deposit, is scheduled to commence during the next quarter.
Table 1: Significant intercepts from Long Chieng Track drilling-----------------------------------------------------------------------------Hole No. Down-hole Width Gold Grade Peak gold intervals(Depth of interval* (metres) (g/t) (Greater thanhole) (metres) 2.0/t gold over 4m)-----------------------------------------------------------------------------LRC073 14-24 10 3.0 4m at 5.5g/t gold from 20m(90m)-----------------------------------------------------------------------------LRC074 4-14 10 3.7 4m at 7.3g/t gold from 4m(90m) 28-32 4 2.2----------------------------------------------------------------------------- LRC076 10-18 8 1.8 4m at 2.1g/t gold from 10m(90m)-----------------------------------------------------------------------------LDD081 20-34 14 0.9(134m)-----------------------------------------------------------------------------LRC082 8-18 10 1.8 4m at 2.9g/t gold from 8m(96m)-----------------------------------------------------------------------------* All holes inclined at 60 degrees
At the commencement of mining at the Phu Bia Gold Mine, in July 2005, there was a Proved and Probable Ore Reserve1 of 8.6 million tonnes at 1.1g/t for nearly 300,000oz of contained gold. The LCT deposit contributes a Probable Ore Reserve of 620,000 tonnes at 1.0g/t for just over 19,000oz of contained gold within the total mine Ore Reserve.
The Ore Reserve at LCT is contained within an Indicated/Inferred Mineral Resource of 1.4 million tonnes at 0.9g/t for 41,000oz of contained gold. None of the results from the recent drill program completed in December 2005 have been included in this Mineral Resource estimate.
Contact
Mr Gary Stafford
Managing Director
Mr Joe Walsh
General Manager
Corporate Development
Pan Australian Resources Limited
Tel: +61 7 3878 9299
Website: www.panaustralian.com.au
Email: info@panaustralian.com.au
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