PanAust Ltd
(ASX:PNA) directors have approved a gold and silver mining operation in Laos following a successful feasibility study.
The company says the study was based on an open pit mining operation feeding ore to a process plant to produce over 100,000 ounces of gold and 700,000 ounces of silver per year.
The mineral resource has been estimated at 42.7 million tonnes, grading 1.1 grams per tonne of gold and 8 grams per tonne of silver for 1.6 million ounces of contained gold and 11 million ounces of silver.
The total ore reserve is estimated at 28 million tonnes of ore.
The company says it is confident that an ongoing drill program will continue to identify additional resources at the site.
The project, owned by PanAust’s 90% held subsidiary in Laos, is expected to cost about US$134 million to develop.
Commissioning is targeted for the December quarter of next year, with steady gold production in the March quarter of 2012.
Managing Director Gary Stafford says development of the gold and silver deposit at Laos is the next stage of growth for the company, which has a pipeline of projects targeted at doubling production over the next five years.
PanAust posted a profit of $21.17 million for calendar 2009.
