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ASX ANNOUNCEMENT26 September, 2003New oxide gold zones...

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    ASX ANNOUNCEMENT26 September, 2003New oxide gold zones discovered at thePhu Kham deposit, LaosPan Australian is pleased to announce that exploration drilling for the Phu Bia Gold Project
    in Laos has discovered new zones of gold mineralisation that have the potential to extend the
    size of the Phu Kham gold cap.Of particular economic significance was a new zone of oxide gold in GRC179 with a high-
    grade component discovered from surface. This hole was one of six reverse circulation (RC)
    holes designed to test the underlying copper-gold deposit at Phu Kham. Three of these holes
    also intersected significant oxide gold mineralisation from surface.GRC179 intercepted 16 metres at 2.8 g/t gold from surface including 8 metres at 4.3 g/t
    gold from surface. This hole was located 200 metres east of any previously identified
    gold resource area (Figure 1).Further drilling will be carried out to identify the extent of possible gold resources around
    GRC179 and the other two RC holes from the copper-gold program that intersected oxide
    gold mineralisation. A complete set of results for the deeper copper-gold intercepts from this
    program is pending. Tabulated below are the significant oxide gold intercepts from holes
    drilled in the gold exploration and copper-gold programs:Drill No.Downhole
    interval (m)Width
    (Au g/t)Peak gold intercepts
    (Width, grade and downhole interval)GRC85*0-32 (end of hole)322.010m @ 3.8 g/t from 8m to 18mGRC89*0-11 (end of hole)111.74m @ 2.9 g/t from 6m to 10mGRC1040-24240.6GRC109*0-24 (end of hole)241.06m @ 2.0 g/t at the bottom of the holeGRC1110-16161.0GRC1220-16160.6GRC1260-26260.6GRC1370-10100.6GRC1480-663.04m @ 4.1 g/t from surface to 4mGRC1790-16162.88m @ 4.3 g/t from surface to 8mGRC1840-16160.7GRC1940-4
    1.32m @ 2.7 g/t from 20m to 22mGRC1950-10100.8GRC19612-16
    1.68m @ 1.9 g/t from 22m to 30mGRC2140-10100.9* Results previously reported.ACN 011 065 160 ABN 17 011 065 160Level 3, Lantos Place, 80 Stamford RoadIndooroopilly Qld 4068 AustraliaPO Box 1009 Indooroopilly Q 4068Telephone (07) 3878 9299Facsimile (07) 3878 6955-2-Pan Australian will shortly commence in-fill drilling over identified mineral resource areas
    in preparation for a feasibility study on the Phu Bia Gold Project and the Company will
    continue to test for new areas of mineralisation that may add to the resource base.The RC drilling program at the Phu Kham gold cap has confirmed that the oxide gold
    mineralisation is not deposited as a continuous blanket but appears to be hosted in gossanous
    sequences some of which can be identified through outcrop. Identifying all of the gossanous
    sequences will require more detailed geological mapping and exploration drilling. However,
    there is potential to add significant ounces to the gold resource base.BackgroundPan Australian has now completed fieldwork on its pre-feasibility study on the Phu Bia Gold
    Project in Laos. The Project comprises three deposits: Ban Houayxai, Long Chieng Track
    and the Phu Kham gold cap (Figure 2). The conclusions from the pre-feasibility study will
    be announced in late October after resource estimates, metallurgical reports and optimisation
    studies have been completed. However, the Company will continue its drilling programs in
    preparation for the anticipated commencement of a full feasibility study.The target for the Phu Kham Gold Project is to define a gold project that can support a
    50,000 to 70,000 ounces per annum mine based on a minimum 350,000 ounce ore reserve.As noted above, Pan Australian has also commenced a preliminary study on the Phu Kham
    copper-gold deposit. The six hole RC drilling program was designed to twin six diamond
    core holes (drilled by the previous Normandy-Anglo joint venture) where significant core
    losses had occurred. In addition, two diamond core holes are currently being drilled to
    collect fresh mineralised rock for metallurgical studies.The initial range of the study on the Phu Kham copper-gold deposit is to define a copper-
    gold project that can support a 9 million tonne per annum mine producing circa 50,000
    tonnes of copper and 60,000 ounces of gold per annum in concentrate over a 10-year mine
    life.For further information please contact:Mr Gary Stafford
    Managing Director
    Pan Australian Resources NLTel: (07) 3878 9299Website:
    Email: [email protected]
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