Tuesday, 29th November 2005 (2941 views)

The first shipment of gold from Pan Australian Resources' Phu Bia mine was completed last week.

According to the company's managing director, Gary Stafford, the heap leach mine has upped its design ore mining and processing rate to 1.5 million tonnes per annum.

He also claimed that Phu Bia has now created a stockpile inventory of 260,000 tonnes of ore grading 1.6 g/t and containing more than 12,000 ounces of recoverable gold.

Mr Stafford said: "The mine has the capacity to produce over the name plate design of 60,000 ounces of gold per annum and early signs are that we are going to be able to ramp-up gold production to the design rate over the next several months.

"I believe that we should be able to produce 60,000 ounces of gold in 2006 calendar year at cash costs of around $200 per ounce, which will give us an extremely healthy margin over the prevailing gold price of plus $490 per ounce."

He also spoke of Pan Australia's unquenchable desire to expand its gold business and increase its ore reserves.

Mr Stafford added that he was much heartened by the early results from the Phu He prospect, which has a gold grade of ten metres at 14.6 g/t and a silver grade of198 g/t from a depth of just 52 metres.

 

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