Exco Resources Ltd (ASX: EXS) is an ASX listed mining and exploration company that has been operating since 1998. In the last 12 months the company has established itself as a successful mining business, having crystallised well in excess of A$200M of value from two key assets; the White Dam Gold Mine and the Cloncurry Copper Project (CCP). Exco, with its team of experienced geologists and mining professionals, is focused on exploration and resource/project development. With in excess of $55M in retained cash reserves, Exco is adequately funded to progress exploration activities and consider strategic acquisition opportunities.
The CCP was sold to Xstrata Copper for A$175M in June 2011, generating a significant return on equity and the Company subsequently returned A$135M (A$0.38/share) to its shareholders as a fully franked dividend and capital return. The Company's primary focus remains on exploration within its Northwest Queensland land package. Over half of the >3,000km2 tenement package covers the highly prospective Cloncurry Lineament, which hosts major resources in the region including Ernest Henry and Cannington. Exco will embark on an expansive exploration programme through 2012 that will cover the prospective packages located at Pumpkin Gully (central), Hazel Creek (north) and Weatherly Creek/Canteen (south).
In South Australia, Exco has developed the White Dam Gold Project in an unincorporated joint venture with the Polymetals Group Ltd (ASX: PLY). The project has a depleted resource base of 6.0Mt containing 188,700oz of gold and encompasses an open pit mine, dump/heap leach, gold extraction plant and associated infrastructure. The project has produced in excess of 120,000oz of gold to date and the recent decision to proceed with the Vertigo Project will ensure production continues well into 2012. Near mine and regional exploration is ongoing at White Dam.
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