Exco Resources Limited (ASX:EXS) Drilling To Resume At Cloncurry Copper And Hazel Creek Projects

Perth, Oct 14, 2009 AEST (ABN Newswire) - Exco Resources Limited (ASX:EXS)(PINK:EXRSF) Reverse Circulation (RC) drilling is scheduled to commence on a number of Exco's key regional exploration prospects within the Cloncurry Copper and Hazel Creek Projects. The drilling programmes have been planned both to follow-up on previous positive results at a number of prospects, and to focus on untested or partially tested geophysical anomalies. Further details are outlined below.

CLONCURRY COPPER PROJECT (CCP)

E1 Camp - Regional magnetic anomalies

The E1 Camp is already host to a sizeable resource base comprising 44.8Mt @ 0.75% Cu & 0.21g/t Au and containing 338,000t of copper and 309,000 oz of gold. Recent drilling has been successful in both expanding this resource base, and in converting a significant percentage (~55%) of Inferred resources to the Indicated category as the basis for an ultimate mineable reserve for the CCP.

Remaining within the E1 Camp are numerous geophysical anomalies that are considered highly prospective, but which are, as yet, largely untested. Several key magnetic anomalies to the south and east of the known E1 Deposits are considered to be regionally significant and have therefore been selected for further drill testing.

To date, despite having been subjected to only limited drill testing, the results of previous programmes on these anomalies have delivered encouraging levels of both copper and gold, indicating the magnetite alteration has associated copper phases.

Monakoff North

Established resources at the Monakoff and Monakoff East Deposits together comprise 4Mt @ 1.32% Cu & 0.42g/t Au, containing 53,000t of copper and 54,000 oz of gold. A key aspect of these deposits is their relatively higher grade, such that finding additional sources of similar material is a high priority for the Company.

The region around Monakoff is host to a number of buried magnetic anomalies of similar size and intensity to that associated with the known deposits. Moreover, adding to the prospectivity is the fact that the geological and structural setting of these anomalies appears similar to both Monakoff and the E1 deposits to the North.

A number of these anomalies have therefore been selected for initial testing.

Pumpkin Gully Syncline

The Pumpkin Gully Syncline (PGS) hosts numerous prospects in a range of geological settings. The syncline is composed of folded sequences of metavolcanics and metasediments with an extensive ironstone unit broadly following the contact between the metasediments and metavolcanic rock units.

This ironstone hosts the Monakoff and Monakoff East Deposits on the northern limb of the syncline, the Pumpkin Gully Prospect at the interpreted closure of the syncline, and the Fisher Creek West Prospect on the southern limb.

The ironstone has a total strike length of more than 10km on the northern limb of the syncline. Airborne magnetic survey data suggests the continuity of southern limb may have been somewhat disrupted; however, work to date has highlighted significant prospectivity.

Initial programmes will focus on the Fisher Creek West area where last year's drilling of a coincident magnetic and Induced Polarisation (IP) geophysical anomaly intersected 20m @ 0.84% Cu and 0.23 g/t Au. Visible oxide copper has also been noted in recent mapping approximately 1500 metres west of this drill hole, associated with a previous soil geochemical anomaly that has not yet been drill tested.

Significant mineralisation has also been intersected adjacent to the southern limb of the PGS within black shale units in contact with metavolcanics, and often associated with calc silicate breccias. This target type will be drilled at the Salebury and Fisher Creek Prospects where the best intersections to date are 30m @ 1.93% Cu and 1.25 g/t Au, and 28m @ 3.7% Cu and 3.1 g/t Au respectively.

Tanbah Prospect

Zones of copper mineralisation associated with brecciated siliceous and calc silicate rocks have been mapped at the Tanbah Prospect over a strike length of more than 400 metres. Previous exploration in this area by other companies focused primarily on gold, however, a soil geochemistry survey over part of the area highlights widespread copper anomalism. An initial programme of drilling will test the apparent width and continuity of this mineralisation below surface.

HAZEL CREEK PROJECT

The Hazel Creek Project area includes the Turpentine Deposit (1.8mt @ 1.03% Cu & 0.2 g/t Au), and a number of other prospects where ore grade mineralisation has previously been intersected.

The more advanced prospects include:

- Eight Mile Creek - best intersection to date of 30m @ 0.90% Cu

- Eight Mile Creek North - best intersection to date of 44m @ 0.90% Cu & 0.1 g/t Au

- Eight Mile Creek East - best intersection to date of 16m @ 0.86% Cu & 0.18 g/t Au

- Brumby - best intersection to date of 20m @ 0.78% Cu

- Turpentine South - best intersection to date of 12m @ 0.79 % Cu & 0.42 g/t Au, and

- Quail Creek - high grade boulders of oxide copper at surface and anomalous copper in drilling to date

Whilst previous drilling in this area has indeed intersected many zones of anomalous to potentially ore grade copper- gold mineralisation, the programmes have been relatively widespread and further systematic work is required to fully assess the prospectivity and resource potential of the numerous targets.

As part of a more systematic approach, a Sub Audio Magnetics (SAM) survey has just commenced in this area. The survey will assist in better defining the magnetic trends and zones of conductivity, which in turn will enable further target prioritisation.

Initial programmes will focus on Eight Mile Creek East where shallow RC drilling several years ago tested two magnetic anomalies approximately 500m apart. Both returned positive results of 16m @ 0.86% Cu & 0.2 g/t Au and 14m @ 0.7% Cu and 0.21 g/t Au.

The prospective basement rocks have been interpreted to occur below approximately 50 metres of cover in this area and follow-up drilling is therefore warranted. It is also planned to carry out further work at Turpentine South where the most recent drilling late last year intersected near surface oxide mineralisation (12m @ 0.79 % Cu & 0.42 g/t Au).

The magnetic anomaly associated with this mineralisation comprises multiple bodies and is approximately 1km in strike extent. Once again it is planned to test the deeper, primary zone during the forthcoming programme.

Further information and results and will be provided in due course.

For the complete Exco Resources ASX Announcement, please click the link below:

http://www.abnnewswire.net/media/en/docs/61573-ASX-EXS-463687.pdf

Contact

Michael Anderson Managing Director Phone +61-8-9211-2000