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    Solid results from Phu Kham for Pan Australian

    Rebecca Keenan

    Thursday, July 01, 2004
    PAN Australian has had a busy start to the new financial year releasing more solid results from its Phu Kham copper gold deposit in Laos, and appointing a new corporate development manager.

    The company drilled three diamond holes to identify the boundaries of the deposit, with best intersections including 4m grading 1.4% copper and 0.2% gold from 18m, 8m at 2.2% copper and 0.7gpt gold from 20m, and 12m at 1.4% copper and 2.1gpt gold from 112m.

    One drill hole hit barren red beds at 149m, while results for the lower part of the last two drill holes have not yet been received.

    There are two drill rigs on site undertaking infill drilling in order to complete an initial resource estimate by the end of September.

    The last estimated inferred resource for the project of 108 million tonnes at 0.8% copper and 0.3gpt gold completed by the Normandy Anglo joint venture, underestimated the resource because of poor drill core recovery, Pan Australian said.

    A preliminary study in March identified the potential for the Phu Kham deposit to support an operation producing over 60,000 tonnes of copper and 50,000 ounces of gold in concentrate per annum by 2007.

    Yesterday the company received the go ahead from the Thai government to begin a full feasibility study at the Puthep copper project in northern Thailand. Pan Australian said the project has the potential to produce more than 25,000 tonnes per annum of copper cathode at operating costs of US$0.51 per pound. If the project was successful it would be Thailand's first ever copper project.

    Pan Australian is also developing the Phu Bia gold project in Laos, which is its current priority and is looking at production of 50,000ozpa from early next year. The project is forecast to cost under $20 million but the method of financing is yet to be determined.

    Newly appointed general manager corporate development, Joe Walsh, was formerly an independent consultant to the mining industry and will be include new equity finance requirements as part of his remit.

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