Perth, Sep 11, 2008 AEST (ABN Newswire) - Exco Resources Limited (ASX:EXS)(PINK:EXRSF) Ongoing drilling at E1 North has led to a 55% increase in the total resource, which stands at 12.3Mt @ 1.00% Cu & 0.29g/t Au, containing 122,900 tonnes of Cu and 116,700 oz of Au
Highlights:
- Infill drilling has delivered an 87% increase in Indicated resources at E1 North, which now comprise 7.8Mt @ 1.06% Cu & 0.32 g/t Au
- Further resource potential exists on the eastern limb of E1 North, and in the E1 Central Zone
- Total resources for the Cloncurry Copper Project (CCP) have increased significantly in recent weeks to 43.2Mt, with 17.4Mt now in the Indicated category
- Resources for the CCP now contain 382,400 tonnes of copper and 332,500 ounces of gold
- A Definitive Feasibility Study on the CCP remains on track for completion during Q1/2009
The E1 Camp, which comprises three main deposits (E1 North, South and East) is located 40km northeast of Cloncurry, and approximately 8km east of Xstrata's Ernest Henry mine.
Previous drill programmes have focused on the sulphide resource potential to a depth of only 200 metres. Each of the three main deposits remains open at depth and the Company firmly believes that the current and future outlook for metal prices will support open pit mining to much deeper levels.
Current drilling is therefore testing the resource potential, both along strike, and at depths of up to 300 metres, after which further pit optimisations will be undertaken as part of the Company's Definitive Feasibility Study (DFS) on the Cloncurry Copper Project (CCP). The ongoing programme of infill drilling is also aimed at converting the current Inferred resources to the Indicated category.
E1 NORTH RESOURCE
As previously reported, recent drilling at E1 North has consistently delivered positive results. The drilling has typically confirmed the grade and continuity of the mineralisation whilst, as reported on 14th August 2008, the Company has also discovered a major new mineralised zone on the eastern limb of the deposit. Recent results have been incorporated into a further upgrade of the E1 North resource model, which now comprises;
12.3Mt @ 1.00% Cu and 0.29g/t Au (0.3% Cu cut-off)
E1 North's resources now contain 122,900 tonnes of copper and 116,700 ounces of gold (see Table 1).
The current E1 North resource estimate has been completed by the Company and its appointed consultants Runge Limited, using the ordinary kriging interpolation method in Surpac within six geologically and geochemically defined units. The drilling has been completed on a nominal 40x40m grid in the core of the deposit and 80x40m at depth and along strike. The resource has been extrapolated by half the drill spacing past the last drill hole for each of the host units.
Importantly infill programmes have led to the upgrading of a further component of the resource to the Indicated category. The Indicated portion of 7.8Mt @ 1.06% Cu and 0.32 g/t Au now comprises 63% of the total E1 North Resource, and is expected to form the basis of an in-pit mineable reserve once pit optimisations are re-run as part of the current DFS on the CCP. A number of potential areas have also been identified for further targeted drilling with a view to maximising conversion to the Indicated category.
This new information from E1 North follows the recent release on 3rd September, 2008 of an upgraded resource for the adjacent E1 South deposit. Together these upgrades have contributed to a significant increase in resources for the Cloncurry Copper Project, which now exceed 43Mt (of which 17.4Mt is in the indicated category). Resources for the project now contain 382,400 tonnes of copper and 332,500 ounces of gold (see Table 1).
E1 NORTH (EASTERN LIMB) & E1 CENTRAL ZONE
Drilling is ongoing in the recently discovered mineralised zone on the eastern limb of the E1 North deposit, and the Company is also awaiting numerous assays from a number of recently completed holes. As such only a small portion of the increased resource tonnage at E1 North can be attributed to this new zone, over a strike length of approximately 80 metres. Visual interpretations suggest that mineralisation on the eastern limb extends over a strike length of at least 300 metres. A further update of the resource model will be completed once planned drilling has been finalised, and assays have been received.
This new zone also remains open along strike to the south-east and the latest geological interpretation suggests continuity of the host sequence between E1 North and E1 South. This interpretation is consistent with the geophysical (magnetic) data highlighting the potential for significant additional mineralisation in the "Central Zone".
Further drilling is also underway to test the resource potential of the Central Zone with visual interpretations from a number of holes again suggesting the presence of sulphide mineralisation.
Results will be released as soon as they are available.
CLONCURRY COPPER PROJECT: DEFINTIVE FEASIBILITY STUDY UPDATE
The Company is pleased to report that the Definitive Feasibility Study (DFS) remains on schedule for completion during the first quarter of 2009.
The previously completed Pre-Feasibility Study (PFS) contemplated the establishment of a ≥2Mtpa concentrator facility at Exco's flagship E1 Camp. Recent increases in resource and contained metal inventories from the E1 Camp however, fully support the Company's focus on a slightly larger operation treating 2.5 to 3Mtpa over a 10-year project life. At this expanded throughput the project will produce ~25,000 tonnes of copper (in concentrate) per annum; 25% more than envisaged by the PFS.
Further metallurgical testwork is underway with a view to optimising the recoveries for copper and gold, and to further investigate the additional by-product potential from magnetite, cobalt and uranium.
TABLE 1: EXCO RESOURCES - NW QUEENSLAND Cu-Au RESOURCE SUMMARY
------------------------------------------------------------------ Grade MetalDeposit Class Tonnes Cu% Au(g/t) Cu T Au(Oz)------------------------------------------------------------------E1 North (1)* Indicated* 7,800,000 1.06 0.32 82,900 79,900 Inferred* 4,500,000 0.88 0.25 40,000 36,800 TOTAL* 12,300,000 1.00 0.29 122,900 116,700E1 South * Indicated * 7,300,000 0.73 0.20 53,400 47,100 Inferred * 10,900,000 0.63 0.16 68,400 56,800 TOTAL * 18,200,000 0.67 0.18 121,900 103,900E1 East Inferred 8,000,000 0.83 0.26 66,000 65,500------------------------------------------------------------------Sub-total - E1 Deposits 38,500,000 0.81 0.23 310,800 286,100------------------------------------------------------------------Monakoff (1) Indicated 926,000 1.59 0.47 14,700 14,000 Inferred 976,000 1.57 0.49 15,300 15,400 TOTAL 1,902,000 1.58 0.48 30,000 29,400Monakoff East Inferred 700,000 1.25 0.36 8,700 8,000Great Australia(1) Indicated 1,378,000 1.53 0.13 21,000 5,700 Inferred 756,000 1.57 0.14 11,900 3,300 TOTAL 2,134,000 1.54 0.13 32,900 9,000Sub-total - CCP 43,236,000 0.88 0.24 382,400 332,500------------------------------------------------------------------Other Deposits------------------------------------------------------------------Turpentine Indicated 1,626,600 1.04 0.21 17,000 10,800 Inferred 214,600 0.9 0.16 2,000 1,000 TOTAL 1,841,000 1.03 0.2 19,000 11,800Taipan Inferred 1,460,000 0.80 0.1 11,600 5,000Kangaroo Rat (1) Inferred 875,000 1.65 1.0 14,400 28,000Wallace South Inferred*** 1,000,000 - 1.6 - 53,000Victory-Flagship Inferred 196,000 1.2 1.4 2,300 8,800Mt Colin (1) Measured** 113,800 3.80 - 4,330 - Indicated** 311,000 3.49 - 10,900 - Inferred** 242,000 3.16 - 7,650 - TOTAL 667,195 3.43 - 22,880 -Sub-total - Other 6,039,000 1.16 0.55 70,180 106,600------------------------------------------------------------------ TOTAL 49.3 Mt 0.92 0.28 452,580 439,100------------------------------------------------------------------Note: Discrepancies in totals are as result of rounding------------------------------------------------------------------
(1) Granted Mining Lease
Unless otherwise stated the above resources are reported at a 0.5% Cu cut-off.
* E1 North and E1 South resources completed at 0.3%Cu cut-off.
** Mt Colin resource cut-off = 2.3% Cu.
*** Wallace South resource cut-off = 0.5g/t
Contact
Michael Anderson
Managing Director
TEL: +61-8-9211-2000
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