EXCO 100%
Copper, Gold, Uranium, Zinc, Lead, Magnetite
The Cloncurry Project is centred near the town of Cloncurry and covers over 1,920km2 (see Figure below). The Project encompasses the Tringadee, Pumpkin Gully and Soldier’s Cap project areas, including six deposits hosting JORC compliant resources, with a royalty arrangement over 1.7Mt the Great Australia Resource (see Table below). Resources delineated for the project to date total 7.65Mt @ 1.69% Cu & 0.52g/t Au containing 111,400t copper and 130,000oz gold.
The royalty arrangement on sulphide ores from the Great Australia resource is expected to deliver about $30M (based on current prices) in free cash over the next three to four years providing a stream of sustaining income for the Company. At the Mt Colin copper-gold deposit the resource has recently been re-estimated resulting in a 29% increase in the overall resource to 1.92Mt @ 2.59% Cu. A scoping study on the previous resource indicated robust economic potential. Further work is currently in progress for underground mining design.
The Cloncurry Project hosts many prospects where drilling to date has intersected significant mineralisation. Throughout 2011 Exco has been proactively engaged in a programme of exploration activities across a number of high priority targets within these prospects (see Figure below for location map of the Cloncurry Project highlighting key prospects).
Key targets include:
Salebury:
RC drilling by Exco has revealed significant mineralisation with a best intersection of 30m at 1.93% Cu & 1.25g/t Au. Recent results include:
· 48m @ 2.18% Cu & 1.97g/t Au
· 20m @ 2.07% Cu & 1.53g/t Au
Tanbah:
The occurrence of broad copper intersections and strongly elevated cobalt concentrations in the metasediments, including an interval of 33m @ 0.12% Co, supports Exco’s belief that the Tanbah prospect has the potential to host an economic Cu-Co-Au deposit. Other signification intersections include:
· 43m @ 0.65% Cu & 0.27g/t Au
· 202m @ 0.33% Cu, 0.34g/t Au & 0.07% Co
· 43m @ 1.03% Cu & 0.67g/t Au
Fisher Creek:
The Fisher Creek prospect is located approximately 25km east of Cloncurry. The majority of drilling to date has focused on the area of subdued magnetics east of the Mount Margaret Fault where significant mineralisation has been intersected including:
· 28m @ 3.18% Cu & 2.77g/t Au
· 24m @ 3.20% Cu & 1.0g/t Au
Pumpkin Gully:
The Pumpkin Gully prospect is located 15km east of Cloncurry. Two phases of RC drilling has been completed by Exco, with significant mineralisation intersected. Best intersections reported to date are:
· 24m @ 0.83% Cu & 0.26g/t Au
· 10m @ 0.67% Cu & 0.32g/t Au
During 2011 Reverse Circulation (RC) drilling was resumed at a number of prospects in the Pumpkin Gully project area of the Cloncurry Project including Salebury, Uncle Toms, Fisher Creek West and Tanbah North. (see Figure below for location map of the Pumpkin Gully area). Drilling is planned for numerous other prospects in the Weatherly Creek area including Canteen, Kangaroo Rat, Wallace South and many other historical prospects that have not yet been adequately tested.
|
EXCO RESOURCES – CLONCURRY PROJECT RESOURCE SUMMARY
|
|
Deposit
|
Class
|
Tonnes
|
Grade
|
Metal
|
|
Cu%
|
Au g/t
|
Cu T
|
Au Oz
|
|
Great Australia (1)
|
Indicated
|
1,400,000
|
1.53
|
0.13
|
21,000
|
6,000
|
|
Inferred
|
800,000
|
1.57
|
0.14
|
12,000
|
3,000
|
|
TOTAL
|
2,200,000
|
1.54
|
0.13
|
33,000
|
9,000
|
|
Mt Colin (1)
|
Indicated*
|
1,042,000
|
3.04
|
0.42
|
32,000
|
14,000
|
|
Inferred*
|
880,000
|
2.09
|
0.41
|
18,000
|
12,000
|
|
TOTAL*
|
1,922,000
|
2.59
|
0.42
|
50,000
|
26,000
|
|
Taipan
|
Inferred
|
1,460,000
|
0.80
|
0.1
|
12,000
|
5,000
|
|
Kangaroo Rat (1)
|
Inferred
|
875,000
|
1.65
|
1.0
|
14,400
|
28,000
|
|
Wallace South
|
Inferred**
|
1,000,000
|
-
|
1.6
|
-
|
53,000
|
|
Victory-Flagship
|
Inferred
|
196,000
|
1.20
|
1.4
|
2,000
|
9,000
|
|
Total Cloncurry Project
|
|
7,653,000
|
1.69
|
0.52
|
111,400
|
130,000
|
Notes Discrepancies in totals are as result of rounding.
Unless otherwise stated the above resources are reported at a 0.5% Cu cut-off.
(1)Granted Mining Lease.
* Mt Colin resource cut-off = 1.25% Cu.
** Wallace South resource cut-off = 0.5g/t