Ban Houayxai Gold-Silver Deposit (LAOS)

The Ban Houayxai Gold-Silver Deposit is located in the south west corner of the Phu Bia Contract Area some 25 kilometres west of the Phu Kham Operations.

PanAust has completed at pre-feasibility study on the Ban Houayxai Gold-Silver Deposit in September 2008. The study identified the potential to develop a low-cost operation producing 100,000oz to 130,000oz of gold and 700,000oz to 800,000oz per annum of silver over a minimum six-year mine life.

PanAust will now complete a full feasibility study on the project. It is expected that the Ban Houayxai Feasibility Study will be completed in the September quarter 2009. Assuming a positive outcome to this study, first production is anticipated in 2011.

Drilling at Ban Houayxai has identified oxide and primary mineralisation from surface to a depth of over 300 metres. The primary mineralisation is open along strike and is contained in two discrete zones which contain high grade mineralisation of significant width within a steeply dipping alteration envelope. The Southern Zone has a strike length of at least 250 metres and is open to the south. The Northern Zone currently commences 300 metres north of the presently defined Southern Zone and is open to the north.

Preliminary carbon-in-leach testwork results indicate that excellent metallurgical recoveries in a range of 88%-98% for gold and 76%-98% for silver can be achieved for both oxide and primary mineralisation.

Operations, Projects
 and Exploration