Exco Resources continues positive copper, gold hits at Cloncurry in Mt Isa

Exco Resources (ASX: EXS) has intersected 14 metres at 1.02% copper and 0.28 grams per tonne (g/t) gold from 70 metres with recent drilling at the Salebury prospect in the highly prospective Mt Isa region of Queensland.

Drilling, comprising 22 holes for 2,150 metres, at the prospect – which occurs on the southern limb of the Pumpkin Gully syncline – targeted extensions to previously drilled mineralisation.

New geophysical and surface geochemical surveys have also recently been completed, identifying previously unknown regional structures and anomalies. These new anomalies will be tested in the coming months.

A revised geological model incorporating the new geophysical data is now being developed, which is intended to define new targets for follow up drilling in 2012.

Encouraging results were also returned from recent reverse circulation drilling at the Tanbah and Tanbah North prospects, including 98 metres at 0.36% copper and 0.25g/t gold from surface at Tanbah and 10 metres at 1.51% copper and 1.32g/t gold from 98 metres at Tanbah North.

Five reverse circulation holes drilled at Tanbah confirm the persistence of mineralisation in recent drilling.

A further defining factor of Tanbah’s potential to host an economic copper, cobalt and gold deposit is the occurrence of broad copper intersections and strongly elevated cobalt concentrations in the metasediments, including 33 metres at 0.12% cobalt in a hole drilled in 2010.

Higher grade mineralisation of greater than 1% copper does occur within these broader lower grade intervals.

The Salebury, Tanbah and Tanbah North prospects all form part of the Cloncurry Project which covers 1,920 square kilometres and has a total resource of 7.65 million tonnes at 1.69% copper and 0.52g/t gold.


Well Funded

As of the end of the September quarter, Exco Resources had A$234 million cash in the bank as a result of the recent sale of its Cloncurry Copper Project to Xstrata (LON: XTA) for $175 million and ongoing cash flow from its 75% owned White Dam Gold Project in South Australia. 

The company recently paid $135 million, or $0.38 per share, back to shareholders.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/23352/exco-resources-continues-positive-copper-gold-hits-at-cloncurry-in-mt-isa--23352.html