Fox-Davies has issued a note in relation to Exco Resources Ltd’s (ASX: EXS) recently announced resource upgrade at the Cloncurry copper project in Queensland, Australia. Exco reported a maiden measured resource of 9.2Mt (million tonnes) grading 0.87% copper and 0.25 grams per tonne gold. The London-based stockbroker said that moving the resource up to the measured category gives Cloncurry a substantial confidence boost.
The broker noted that the Cloncurry copper project now hosts resources of 55.7Mt grading 0.85% copper and 0.22g/t gold, of which 37.9Mt is in the measured or indicated categories and total contained copper now stands at 472kt.
Fox-Davies also emphasised that Cloncurry’s copper grade is creeping up, and that only two months ago the resources totalled 51Mt grading 0.83% copper and containing 425kt of copper.
The latest resource upgrades have also increased the belief within the company that ongoing work will lead to the definition of a 25-30Mt mineable reserve as the basis for an operation, centred at the E1 Camp, treating 2.5 to 3Mtpa over a 10-year project life.
Drilling recommenced last week, with the initial aim of getting 1Mt into the mineable category.
The broker noted that Exco’s work on the Definitive Feasibility Study (DFS) is progressing well and it is expected to be complete by the end of 2010.
In terms of Exco’s other operations, Fox-Davies commented on the company’s 75%-held White Dam gold mine, where the broker expects the first gold pour to take place next week. The stockbroker said it understands that metallurgical recoveries at White Dam are looking very promising.
http://www.proactiveinvestors.com.au/companies/news/6346/fox-davies-reflects-on-excos-resource-upgrade-at-cloncurry-copper-project-6346.html
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