OXR oxiana limited

article in todays smh

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    Oxiana does well at Sepon, copper is next
    By Barry FitzGerald
    July 23 2003

    Melbourne-based Oxiana consolidated its position as a profitable gold producer with its 80 per cent-owned Sepon mine in Laos in the June quarter.

    The group also began laying the groundwork for the proposed $US168 million ($257 million) development of the nearby Khanong copper project, also 80 per cent owned, with Rio Tinto holding 20 per cent.

    Oxiana said Sepon performed well above capacity in the June quarter, its second since being commissioned. Gold production was 42,601 ounces at a cash cost of $US128 an ounce.

    The total production cost (after depreciation and reclamation) was $US214 an ounce.

    The final pieces of equipment for the gold project were completed in the June quarter, with the all-up completion cost coming in at $US43.5 million.

    The market is now backing the prospect that Oxiana will expand the operation once drilling in and around the project adds upwards of 300,000 ounces of golf to the reserve base.

    Oxiana said that financing for the copper project would be arranged by a lending group which was expected to include several European development finance institutions, export credit agencies and a syndicate of international banks.

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