PanAust's Ban Houayxai Gold, Silver Project Approved

SYDNEY, Mar 28, 2010 (Dow Jones Commodities News via Comtex) -- Australian miner PanAust Ltd. (PNA.AU) said Monday it will go ahead with the development of the US$134 million Ban Houayxai gold and silver project in Laos.

The open-pit mining operation and process plant are set to produce 100,000 troy ounces of gold and 700,000 ounces of silver per year.

The Brisbane-based miner already owns the Phu Kham copper-gold mine in Laos.

Commissioning for Ban Houayxai is expected for the fourth quarter next year, and steady state gold output in the first quarter of 2012.

Cash operating costs are expected at US$400-US$450/oz gold, with a minimum mine life of eight years, with mineralization open at depth and to the west of the deposit.

"We anticipate that at prevailing copper and gold prices the Ban Houayxai development can be funded through PanAust's cash flow. In addition, the company is in the process of negotiating US$100 million of debt facilities for Phu Bia Mining, which will enhance funding flexibility across the PanAust Group," said PanAust Managing Director Gary Stafford.