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excellent drill results -full annaouncement

  1. 192 Posts.
    Drill results extend resource at the
    Phu Kham gold cap deposit, Laos
    Results include 32 metres at 2.0 g/t gold from surface
    Pan Australian is pleased to announce more positive assay results have been received from
    the second phase of resource drilling at the Phu Kham gold cap deposit in Laos.
    As reported with the first phase drill results all of the ‘ore-grade’ intervals from the reverse
    circulation (RC) drilling commence at or near surface (refer Figure 1). Best results
    include:
    § GRC85 intersected 32 metres at 2.0 g/t gold from surface to the bottom of the hole,
    including 10 metres at 3.8 g/t from a depth of 8 metres;
    § GRC89 intersected 11 metres at 1.7 g/t gold from surface to the bottom of the hole,
    including 4 metres at 2.9 g/t from a depth of 6 metres;
    § GRC109 intersected 24 metres at 1.0 g/t gold from surface to the bottom of the hole,
    including 6 metres at 2.0 g/t at the bottom of the hole.
    The second phase of drilling comprised 49 holes drilled on a 50 metre spaced grid to extend
    the mineral resource blocks that will be estimated from the first phase of drilling (results
    reported in June and July 2003). There was a high success ratio with approximately half of
    the second phase assays received returning ‘ore-grade’ (intercepts above a lower cut-off of
    0.5 g/t gold) mineralisation over significant widths. Results for 16 holes from the second
    phase are still pending and a full table of results will be compiled after those results are
    received.
    All of the holes were drilled to a depth whereby they would only intersect the oxide gold cap
    and not penetrate the underlying copper-gold sulphide deposit at Phu Kham where
    conventional cyanide leaching gold processing methods will be ineffective. As a
    consequence, the holes were drilled to variable depths to coincide with the interpreted
    thickness of the gold cap at each drill hole location and first phase assay results confirmed
    that the underlying copper-gold deposit was not penetrated by any of the first phase holes.
    Therefore, it is significant that over 40% of all first and second phase holes that intercepted
    ore-grade gold mineralisation also ended in ore-grade gold mineralisation. This indicates
    that there is significant potential to identify an increase in the anticipated thickness of
    the oxide gold deposit.The third phase (refer Figure 1) of RC drilling at the Phu Kham gold cap is nearly complete
    with holes drilled on a 100 metre spaced grid to test the resource potential of the Phu Kham
    gold cap along the deposit strike length. This will effectively complete the drilling program
    for the pre-feasibility study scheduled for completion at the end of September and which has
    a target combined ore reserve of 350,000 ounces from the Phu Kham gold cap and
    Ban Houayxai deposits (Figure 2).
    Pan Australian plan to continue drilling at the Phu Kham gold cap deposit beyond the pre-feasibility
    study in order to advance a feasibility study scheduled for completion in
    March 2004.
    Pan Australian will also soon commence drill investigation of the underlying Phu Kham
    copper-gold deposit through the initial drilling of six RC holes to twin diamond core holes
    previously drilled by the Normandy-Anglo joint venture.
    For further information please contact:
    Mr Gary Stafford
    Managing Director
    Pan Australian Resources NL
    Tel: (07) 3878 9299
    Website: www.panaustralian.com.au
    Email: [email protected]

 
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