OXR oxiana limited

mining news article

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    "Oxiana posts another production record

    Brad Ricks

    Wednesday, October 22, 2003
    MARKET darling Oxiana continues to please its shareholders with another record production quarter from its Sepon gold operation in Laos.

    In its first quarter of production during a wet season, Sepon produced 43,895oz at a cash cost of US$135/oz.

    Mining volumes were down slightly due to draw down of stockpiles accumulated to ensure continuous feed for the mill during the wet season.

    Throughput at the mill increased by 7% on the previous quarter to 302,998t, however gold recoveries came in at 85.5%, affected by periodic screen blockages in the circuit.

    Resources at Sepon increased to 4.1 million ounces during the quarter and reserves to 1.6Moz as Oxiana continued its drilling programs to highlight the resource expansion potential for the project.

    Preparations to bring the Khanong copper project into production by 2005 remain on track despite reporting cost increases of US$38 million for the project largely due to euro and US dollar movements.

    Societe General was appointed lead co-ordinating bank during the quarter to finalise the financing for the project, which is proposed at US$185 million.

    On the exploration front outside Laos, a resource delineation drilling program is planned for the Prominent Hill project in South Australia, where Oxiana is earning 65% from Minatour Resources.

    Oxiana has also elected to sole fund an exploration program as part of another joint venture project with Thai Goldfields.

    The program, including surface geochemistry, geophysics and drilling will be conducted on tenements held by Thai Goldfields in the vicinity of the Chatree gold mine.

    Oxiana has also completed negotiations with the Yunnan Geological and Mineral Resources Bureau for a joint venture covering an early stage gold project located within the Dian-Qian-Gui (golden triangle) area of China's southeastern Yunnan province.

    The gold project covers a 15km long coincident gold-multielement stream sediment geochemical anomaly centred on a highly prospective sedimentary dome complex.

    Documentation is being finalised and exploration of the tenement is expected to commence late in the fourth quarter.

    Several gold and base metals properties in Sichuan province were also evaluated during the quarter."
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