Name: Phu Kham mine.

Location: The Phu Kham mine is located about 100 km north of the Laos capital Vientiane.

Controlling Company: Phu Bia Mining, in which Pan Australian (PanAust) owns a 100% interest.

Brief History: In March 2004, a preliminary study on the Phu Kham copper/gold project was completed. A year later, PanAust completed a feasibility study on the project and a feasibility extension programme was started based on expected substantially expanded mineral resource. In 2006, the PanAust board approved development of the $241-million copper/gold project. The first Phu Kham copper/gold ore was mined and stockpiled in 2007 and operation commissioning starts. Construction of the Phu Kham project is completed in 2008, ahead of schedule and within 5% of the $241-million capital budget.

In February 2012, PanAust announced the Phu Kham increased recovery project.

Meanwhile, the Phu Kham’s $95-million upgrade project was commissioned in September 2012, resulting in a 33% increase in ore processing capacity from 12-million tons to 16-million tons a year at the mine.

Brief Description: Phu Kham is a copper/gold mine, with a 12-year mine life, assuming ore processing at the upgraded 16-million-tons-a-year rate.

Mining Method: Conventional openpit – drill, blast, load and haul.

Products: Copper and gold.

Major Infrastructure and Equipment: The mine’s process plant comprises a grinding circuit – one semiautogenous mill and two ball mills – with copper and precious metal flotation.

Concentrate is trucked in covered containers.

Geology/Mineralisation: The Phu Kham deposit hosts two distinct styles of mineralisation – an oxide gold cap and, beneath this, transitional/primary copper/gold.

Reserves: Total proven and probable reserves as at December 31, 2012, were 176-million tons, grading 0.5% copper and 0.23 g/t gold and 1.9 g/t silver.

Resources: Total minerals resources as December 31, 2012, were 227-million tons, grading 0.48% copper, 0.22 g/t gold and 2 g/t silver.

Prospects: The Phu Kham increased recovery project is expected to bring increases in yearly copper and gold production of about 5 000 t and 7 500 oz respectively from the second half of 2013.

At the end of the December quarter the project was 62% complete, tracking ahead of schedule and within the $45-million budget.

Contact Person: Investor relations manager, Allan Ryan.

Contact Details:
Pan Australia
Tel +61 7 3117 2000
Fax +61 7 3846 4899
Email info@panaust.com.au
Website http://www.panaust.com.au