(EXCO 75%, POLYMETALS 25%)
Gold
The White Dam Gold Project is located in South Australia approximately 80km west of Broken Hill. The project has been developed as an unincorporated joint venture between Exco (75%) and the recently listed Polymetals (25% - ASX:PLY). The project contains a depleted resource inventory of 6Mt @ 0.98g/t Au for 188,700oz contained (see Table 1).
Since pouring first gold in April 2010, production rates and margins from White Dam have been tremendous, and well above expectations. In November 2010 the Company announced that it had completed the required gold repayments nine months ahead of schedule. A combination of better than expected production outcomes and higher than envisaged gold prices had allowed the loan to be repaid after only seven months of production.
Having repaid the Barclays gold loan 9 months ahead of schedule, the project is now debt free and with average life of project operating costs of <A$500/oz, the project will provide substantial cash flow over the coming months. Attention has turned to near-mine exploration and resource development activities with a view to extending the life of the mine at White Dam.