Proactiveinvestors Australia

Exco Resources calls Washington H. Soul Pattinson & Company cash offer 'inadequate'

Tue, 28 Aug 2012 10:10:00 +1000

Exco Resources (ASX: EXS) has called the Washington H. Soul Pattinson & Company (ASX: SOL) all cash offer of $0.19 per share 'inadequate'.

The offer price values Exco at around $69.8 million (fully diluted, including performance rights), but was just a 18% premium to the VWAP of $0.161 per Exco share.

However, the premium is below the usual at least 30% premium often afforded to companies on the end of a takeover offer.

Exco also said that the Soul Pattinson offer does not fairly reflect the value of the company's assets, while adding that the offer is opportunistic as it appears to capitalise on recent difficulties that have forced Ivanhoe Australia (ASX: IVA) to sell non core assets.

Exco currently holds around $53 million in cash which represents over $0.14 cents per Exco shares (fully diluted), and therefore values Exco’s remaining assets at just $16.9 million.

Already accepted

Importantly - Ivanhoe has advised WHSP that it intends to accept the offer in respect of these shares in the absence of an alternative proposal for Exco that is superior for Ivanhoe Australia.

Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.

Exco Resources' managing director leads from the front with on market purchases

Thu, 17 May 2012 16:40:00 +1000

Exco Resources (ASX: EXS) managing director Geoffrey Laing has increased his stake in the company though an on-market purchase of 300,000 shares for a consideration of $48,000 - providing an average entry price of $0.16.

Laing now holds a direct stake in Exco of 381,000 shares, with another 200,000 shares in the family trust.

Exco is currently in a very interest position, and just last month committed a A$10 million 2012 budget for copper and gold exploration in Queensland.

The Cloncurry Lineament, on which a considerable portion of Exco’s tenements lie, covers an area of prospective ground that runs from BHP Billiton’s (ASX: BHP) Cannington silver-lead-zinc mine to Xstrata’s (LSE: XTA) Ernest Henry copper-gold mine.
The principal target for Exco in the Eastern Succession of the Mt Isa Inlier is Ernest Henry-style iron-oxide-copper-gold mineralisation.

The company has identified a number of targets with potential to host large stand-alone resources, known as tier one targets.

The Turpentine/Eight Mile Creek, Salebury/Tanbah and Canteen/Weatherly Creek areas have geological, geophysical and geochemical characteristics that suggest they are within an IOCG system.

Soil surveys at the Canteen/Weatherly Creek prospect have revealed strong copper-gold-iron-potassium-phosphorus-uranium at surface, with grades of about 0.27% copper and 0.43 grams per tonne (g/t) gold.

Exco Resources commits A$10m to copper and gold exploration in Queensland

Fri, 20 Apr 2012 09:40:00 +1000

Exco Resources (ASX: EXS) has begun an aggressive drilling campaign on its northwest Queensland tenements after outlining a $10 million exploration budget for 2012.

The Cloncurry Lineament, on which a considerable portion of Exco’s tenements lie, covers an area of prospective ground that runs from BHP Billiton’s (ASX: BHP) Cannington silver-lead-zinc mine to Xstrata’s (LSE: XTA) Ernest Henry copper-gold mine.

Drill rigs have been mobilised and begun drilling at the Salebury and Kangaroo Rat deposits.

The principal target for Exco in the Eastern Succession of the Mt Isa Inlier is Ernest Henry-style iron-oxide-copper-gold mineralisation.

The company has identified a number of targets with potential to host large stand-alone resources, known as tier one targets.

The Turpentine/Eight Mile Creek, Salebury/Tanbah and Canteen/Weatherly Creek areas have geological, geophysical and geochemical characteristics that suggest they are within an IOCG system.

Soil surveys at the Canteen/Weatherly Creek prospect have revealed strong copper-gold-iron-potassium-phosphorus-uranium at surface, with grades of about 0.27% copper and 0.43 grams per tonne (g/t) gold.

Current drilling, to a maximum depth of only 250 metres and covering less than 10% of the prospect, has intersected broad widths of mineralisation with peak values up to 4.43% copper, 2.46g/t gold and 830 parts per million uranium.

Initial rock chip sampling at the southern portion of the prospect area revealed copper greater than 1% and uranium up to 2,440 parts per million.

At the Salebury and Tanbah prospects the recent acquisition of sub-audio magnetic, gravity and soil geochemistry data has highlighted a number of additional targets to those already being tested by drilling.

The Turpentine/Eight Mile Creek area, located in the Hazel Creek Project, has widespread copper and gold mineralisation associated with magnetite.

Drilling to date has outlined several prospects that may provide additional resources. Previous work in these areas suggests there is the potential to host a large mineralised system.

New gravity data has outlined a very large gravity anomaly partly coincident with the magnetic zone to the south of Eight Mile Creek.

Exco plans to conduct detailed exploration of the large scale multi-component anomalies that cover these areas.

The company is also evaluating tier two targets that may be suitable for supply to third party processing facilities within the Cloncurry/Mt Isa region.

Exco has committed to a three year program over the whole of its northwest Queensland package to generate a pipeline of new targets.

The program will include systematic and widespread application of geophysics and soil geochemistry.

Northwest Queensland operations

Exco is focused on expanding exploration at the Northwest Queensland package in 2012, to maintain the company’s self-sustaining position and replace cash flow from the White Dam gold project.

At the Cloncurry project, Exco recently released an upgrade Resource of 1.26 million tonnes at 1.29% copper and 0.63 grams per tonne (g/t) gold for 16,220 tonnes of copper and 25,700 ounces of gold for the Kangaroo Rat deposit.

Importantly, the mineralisation is open along strike to the west and at depth, offering the potential to increase the Resource further.

Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.

Exco Resources enters joint venture agreement with Rubicon Resources in Northwest Queensland

Tue, 10 Apr 2012 16:40:00 +1000

Exco Resources (ASX: EXS) has the option to enter into a joint venture agreement over a tenement that lies between Exco’s Hazel Creek and Cloncurry Projects.

The agreement is with Rubicon Resources (ASX: RBR) for the Canobie tenement, which is prospective for various styles of base metal mineralisation, including iron oxide copper gold (IOCG) and silver lead zinc mineralisation.

Exco will spend $100,000 on exploration at the Canobie Project within 12 months, and may then elect to exercise the option to earn 70% equity in the project by spending an additional $0.9 million over three years.

The company has already completed a helicopter-borne magnetic survey over the southern part of the tenement, and has identified drill targets which will be tested in the near term, subject to approvals.

The tenement has been held under moratorium by the Queensland Government, and was recently awarded to Rubicon through a competitive tender process.

Canobie covers 245 square kilometres, complementing Exco’s existing holdings in the area of more than 2,600 square kilometres of land.

Northwest Queensland operations

Exco is focused on expanding exploration at the Northwest Queensland package in 2012, to maintain the company’s self-sustaining position and replace cash flow from the White Dam gold project.

At the Cloncurry project, Exco recently released an upgrade Resource of 1.26 million tonnes at 1.29% copper and 0.63 grams per tonne (g/t) gold for 16,220 tonnes of copper and 25,700 ounces of gold for the Kangaroo Rat deposit.

Importantly, the mineralisation is open along strike to the west and at depth, offering the potential to increase the Resource further.

Exco Resources upgrades Cloncurry Project copper, gold Resource

Wed, 28 Mar 2012 15:00:00 +1100

Exco Resources (ASX: EXS) has released an upgraded Resource of 1.26 million tonnes at 1.29% copper and 0.63 grams per tonne (g/t) gold for 16,220 tonnes of copper and 25,700 ounces of gold for the Kangaroo Rat Deposit in northwest Queensland.

The company has increased Cloncurry Mining’s previous Resource of 875,000 tonnes at 1.65% through additional infill and extensional drilling since it acquired the project.

Importantly, the mineralisation is open along strike to the west and at depth, offering the potential to increase the Resource further.

Also, limited core drilling is required to potentially allow conversion of the Resource into the higher confidence Indicated category.

To calculate the Resource estimate, a total of 56 reverse circulation and diamond drill holes were analysed.

The western-most hole drilled to date by Exco at Kangaroo Rat intersected 10 metres at 1.35% copper and 1.13g/t gold from 17 metres.

A historical reverse circulation hole drilled 50 metres to the southwest of the intersection is believed to have drilled over the main mineralised envelope.

As a result, Exco has planned a drilling program to test for western extensions to the Kangaroo Rat Resource.

A 3 kilometre long untested magnetic anomaly at Elder Creek, located beneath shallow cover, has been identified by a recently completed detailed airborne magnetics survey over the Kangaroo Rat Deposit and surrounding area.

A review of historic exploration reports suggests that the source does not appear to have been tested by a single historic drill hole.

Shallow rotary air blast drilling proximal to the margins of the anomaly indicate that the anomaly is fertile with highly anomalous copper to greater than 1000 parts per million.

A detailed gravity survey has also been completed over the Elder Creek magnetic anomaly, and initial processing of this data has highlighted several coincident gravity anomalies.

Mining Lease Application

Exco intends to lodge a mining lease application for Kangaroo Rat during 2012 encompassing the entire Kangaroo Rat deposit.

The company has engaged an environmental consulting group to soon begin field surveys in preparation for environmental approvals to be lodged during the year.

Field surveys will also be completed for the Wallace South deposit, located 1.5 kilometres south of Kangaroo Rat, which a mining lease application is currently being considered for.

Cloncurry Project

The Cloncurry Project, which covers more than 1,920 square kilometres, now hosts a total Resource of 8.05 million tonnes at 1.62% copper and 0.49g/t gold.

Cash-backed

At the end of the December quarter, Exco Resources had A$58.6 million cash in the bank, equivalent to about $0.164 per share.

The company netted $9.5 million in revenue at an average price of A$1,612 per ounce from its White Dam Gold Project for the quarter.

The company recently paid $135 million, or $0.38 per share, back to shareholders, following the sale of its Cloncurry Project to Xstrata for $175 million.

Exco Resources intersects copper, gold at Salebury IOCG target in Northwest Queensland

Fri, 23 Mar 2012 14:50:00 +1100

Exco Resources (ASX: EXS) is set to expand exploration at the company’s Northwest Queensland package following results from drilling at the Salebury prospect.

Exco’s principal target in the eastern succession of the Mt Isa Inlier is iron oxide-copper-gold (IOCG) mineralisation.

This mineralisation bears similarities to Xstrata’s Ernest Henry underground mine, also in North Queensland, and is typified by the coincidence of strongly anomalous magnetic and gravity highs.

In 2011, the company identified three new priority one IOCG targets at Salebury South, Elder Creek and Canteen.

Diamond drilling carried out in January at Salebury intersected copper gold mineralisation, with an intercept of 16 metres at 1.86% copper and 1.22 grams per tonne (g/t) gold from 133 metres, including 3 metres at 4.89% copper and 1.32g/t gold.

A follow up program comprising 2000 metres of reverse circulation and diamond drilling will commence soon, aimed at quantifying the Salebury prospect’s tonnage potential.

It will also identify the best positions for deeper drilling to determine the overall size of the IOCG target area.

The Salebury prospect occurs on the southern limb of the Pumpkin Gully Syncline, which is characterised by numerous prospects with surface copper mineralisation.

Well funded

In 2012, Exco is cashed up and focussed on the identification and growth of resources in Northwest Queensland.

The company finished the December quarter with $58.6 million cash in the bank, and recently paid $135 million, or $0.38 per share, back to shareholders, following the sale of its Cloncurry project to Xstrata for $175 million.

Exco Resources cashed up, expanding copper, gold exploration in Northwest Queensland

Mon, 13 Feb 2012 09:30:00 +1100

Exco Resources (ASX: EXS) is focussed on the identification and growth of resources in the company’s Northwest Queensland package, expanding exploration activity in the area.

At the company’s wholly-owned Hazel Creek Project, copper and gold has been intersected in several prospects in a 2011 drilling program.

The best results came from the Turpentine target, with reverse circulation and diamond drilling returning highlight intersections of:

- 8 metres at 1.73% copper and 0.38 grams per tonne (g/t) gold from 90 metres;
- 17 metres at 1.3% copper and 0.14g/t gold from 249 metres; and
- 10 metres at 1.27% copper and 0.16g/t gold from 138 metres.

The Turpentine Deposit has been defined as containing 1.84 million tonnes at 1.03% copper and 0.2g/t gold.

Hazel Creek covers more than 1000 square kilometres of prospective land that remains relatively unexplored.

Highlights from reverse circulation drilling on three other prospects at Hazel Creek; Eight Mile Creek, Eight Mile Creek East and Turpentine South; include:

- 10 metres at 0.9% copper and 0.13g/t gold from 54 metres;
- 55.8 metres at 0.64% copper and 0.15g/t gold from 128 metres; and
- 30 metres at 0.4% copper and 0.1g/t gold from 136 metres, including 6 metres at 1.05% copper and 0.31g/t gold.

Other exploration at Hazel Creek in 2011 included a large sub audio magnetic survey flown to the south of the Eight Mile Creek prospects and a detailed ground gravity survey completed in the Turpentine/Eight Mile Creek region.

Well Funded

At the end of the December quarter, Exco Resources had $58.6 million cash in the bank, equivalent to about $0.164 per share.

The company recently paid $135 million, or $0.38 per share, back to shareholders, following the sale of its Cloncurry project to Xstrata for $175 million.

Other operations

Exco is nearing the start of mining at the Vertigo Gold Project in Drew Hill, South Australia.

Development of the project has been strengthened by a $1.3 million commitment on exploration by joint venture partner Polymetals Mining (ASX: PLY) in exchange for an increase in interest to 50%.

Importantly, this will allow Exco to continue aggressive exploration in Queensland without impacting the White Dam region in South Australia.

Exco Resources intersects 1.69% copper at Cloncurry, generates new targets

Mon, 06 Feb 2012 09:53:00 +1100

Exco's increasing exploration at its North Queensland tenements is bearing fruit, with new iron oxide copper gold targets defined at the Mt Isa Inlier that bear similarities to Xstrata's Ernest Henry mine.

Exco Resources cash backed and on the move, shares jump 10.53%

Wed, 01 Feb 2012 14:40:00 +1100

Exco Resources (ASX: EXS) shares rallied 10.53% to A$0.21 today on the exchange of nearly 4.5 million shares as of 2.19pm (AEDT).

The company is certainly well funded with $58.6 million, or around $0.164 per share, cash in hand at the end of the December quarter.

Strong cashflows from the White Dam Gold Project in South Australia continue to boost Exco’s bank balance. During the December quarter the company received $9.5 million in revenues for the three months at an average price of A$1,612 per ounce.

Again gold production exceeded expectations with 8,421 ounces produced as recovery levels from the leach process continue to exceed initial predictions.

Meanwhile, Exco is nearing the start of mining at the Vertigo gold project in the Drew Hill area of South Australia.

The company has strengthened the development of the project with a $1.3 million commitment on exploration by joint venture partner Polymetals Mining (ASX: PLY) in exchange for an increase in interest to 50%.

Importantly, this will allow Exco to continue aggressive exploration in Queensland but not at the detriment to the White Dam region in South Australia.

Exco Resources nears mining at Vertigo, JV partner Polymetals Mining to take greater stake

Tue, 10 Jan 2012 09:31:00 +1100

Exco Resources is set to begin mining at the Vertigo gold project in South Australia this month. The company has strengthened the development of the project with a A$1.3 million commitment on exploration by Polymetals Mining in exchange for an increase in interest to 50%.

Exco Resources appoints Geoff Laing as managing director

Tue, 10 Jan 2012 08:48:00 +1100

Perth based Exco Resources (ASX:EXS) has appointed Geoff Laing to the position of managing director.

He was acting CEO since the resignation of the previous managing director Michael Anderson, in August 2011.

This appointment sets a new path for the company following the successful sale of the Cloncurry Copper Project to Xstrata plc in June 2011.

Exco retains an exploration package in North West Queensland as well as ongoing cash flows from production at White Dam Gold project which is in partnership with Polymetals (ASX:PLY).

The project was bought at low gold prices and has made a profit after tax to date of $68 million and a Return on Equity of a very tidy 850%.

Exco distributed $135 million in December to shareholders following the Cloncurry Copper project sale to Xstrata by way of a capital return of $0.10 per share and a special dividend of $0.28 per share.

Laing is a chemical engineer with more than 20 years of experience in the mining industry and an MBA from the University of Western Australia.

His involvement in the mining industry includes project development both within Australia and overseas including major projects for Norilsk Nickel, Anglo Platinum, BHP Billiton and Phelps Dodge. He has had management and technical roles in both the engineering business and operations.

Over the last four years Laing has held the position of General Manager Project and Corporate Development for Exco.

Exco Resources reports 7m at 0.65% total rare earth oxides intersection at Toolebuc JV project

Wed, 14 Dec 2011 11:50:00 +1100

Exco Resources (ASX: EXS) has reported that joint venture partner Paradigm Metals (ASX: PDM) has intersected high-grade rare earth elements (REE) from drilling at the Toolebuc project.

The Toolebuc project is a JV between Paradigm and Exco (PDM 50%: EXS 50%) and is located 50 kilometres southeast of Cloncurry, northwest Queensland.

A 51 metre air core hole intersected 7 metres at 0.65% total rare earth oxides (REO) from 35-42 metres, including 3 metres at 1.06% REO from 35 metres, beneath 35 metres of soft sedimentary cover.

The hole is located about 160 metres from a previous hole drilled in late 2010, which intersected 4 metres at 0.31% REO from 37 metres depth, and mineralisation remains open along strike.

The drilling has so far been preliminary, with only vertical air core holes drilled. Eleven holes were drilled in the 500 metres air core program in November 2011, with holes drilled to a maximum depth of 51 metres.

The dominant REE’s intersected in the recent hole are neodymium (Nd), lanthanum (La) and yttrium (Y). The ratio of neodymium (Nd) to total REE’s is high, at about 0.3/1.

Neodymium is an important REE used in the high tech industry, for example in the making of strong permanent magnets and for uses in electric/hybrid vehicles.

Neodymium plus the high-value heavy REEs make up more than 50% of the total contribution of REE’s in the recent intercept. Importantly, levels of the radioactive elements uranium (U) and thorium (Th) are very low, around 20 parts per million for each element.

Paradigm is now planning to carry out a ground gravity survey over a 1 square kilometre area in the coming weeks which will aid in the targeting of more extensive REE mineralisation.

To assist in the identification of the REE bearing minerals, indicative samples have also been sent for petrographic analysis.

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

Mon, 12 Dec 2011 17:29:00 +1100

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.

Exco Resources completes $135.3 million payment to shareholders

Fri, 09 Dec 2011 16:26:00 +1100

Exco Resources (ASX: EXS) has completed the payment of its capital return and special dividend to owners of ordinary shares.

The payment was made to shareholders on the register at the close of business on December 2, 2011.

It comprised a capital return of $0.10 per share, along with a fully franked special dividend of $0.28 per share.

The combined distributions represent a return to shareholders of $135.3 million (fully diluted), in accordance with the company’s stated intentions following the sale of the Cloncurry Copper Project to Xstrata (LON: XTA).

Exco sought shareholder approval for the move at the company’s November annual general meeting.

A draft class ruling from the Australian Taxation Office, received in October, indicated that the distribution would not be taxed as a dividend.

Exco Resources plans capital reduction and A$35.6m return to shareholders

Mon, 24 Oct 2011 10:30:00 +1100

Exco Resources (ASX: EXS) is tabling a resolution for the November AGM to seek shareholder approval for a capital reduction and return of $0.10 per share - which equates to around $35.6 million.

Last week Exco received a Draft Class Ruling from the Australian Taxation Office indicating that the proposed distribution will not be taxed as a dividend.

Should the capital reduction be approved by the shareholders at the AGM, the board will declare a special dividend of $0.28, payable simultaneously with the capital return, which importantly will be fully franked.

The Record Date for both payments will be 2 December 2011.

The combined distributions will represent a return to shareholders of $135.3 million (fully diluted) in accordance with the company’s stated intentions following the sale of the Cloncurry Copper Project to Xstrata plc (LON: XTA).

Exco Resources director Alasdair Cooke tops up shareholding

Mon, 17 Oct 2011 16:53:00 +1100

Exco Resources' (ASX: EXS) executive director Alasdair Cooke acquired 92,890 shares at A$0.60 per share on 27th September in an on market trade.

The purchase was made for a consideration of $55,734 and Cooke now holds a direct interest of 11,327,875 shares in the company.

Exco reported on October 13th that Ivanhoe Australia (ASX/TSX: IVA) finalised its acquisition of an 80% interest in 13 Exco tenements in the highly mineralised Cloncurry region of north-west Queensland.

Exco Resources reports Ivanhoe Australia completes JV tenements acquisition

Thu, 13 Oct 2011 14:53:00 +1100

Exco Resources (ASX: EXS) has reported that Ivanhoe Australia (ASX/TSX: IVA) has finalised its acquisition of an 80% interest in 13 Exco tenements in the highly mineralised Cloncurry region of north-west Queensland.

In May 2007, Ivanhoe Australia entered into a joint venture arrangement with Exco in which Ivanhoe would earn an 80% interest in these prospective tenements as well as investing directly in Exco. Ivanhoe currently holds an interest of 22.6% in Exco.

Under the terms of the JV Ivanhoe Australia was required to spend $5.5 million on exploration work on the JV tenements by 31 October 2011. This amount has been spent and the 80% has been acquired.

Peter Reeve, chief executive officer of Ivanhoe Australia, said “the Exco Joint Venture has provided an additional exposure to this excellent mineral field.

"With substantial base exploration completed as part of the Joint Venture we are excited by the prospectivity of these tenements and will be progressing exploration on them in parallel with the other drilling programs on our own tenements.”

Exploration work on the JV Tenements has so far included a series of drilling campaigns and, more recently, has focussed on analysing existing and new geophysical data using improved processing and interpretation techniques.

The geophysical analysis will assist Ivanhoe in the design of drilling programs to be conducted over the next 12 months.

Twelve Exploration Permits for Minerals (EPMs) with a total area of 540 square kilometres and one Mining Lease with an area of 0.04 square kilometres are included in the JV tenements.

Meanwhile Exco is continuing to progress the Mt Colin copper-gold deposit, increasing the resource by 29% to 1.92 million tonnes at 2.59% copper on September 13. The upgrade included an increase in overall grade at Mt Colin, with the high grade zone still open at depth.

An earlier Scoping Study on the previous resource indicated robust economic potential for Mt Colin and work is now in progress on the underground mining design.

Exco Resources appoints Tom Whiting as a non-executive director

Wed, 21 Sep 2011 13:58:00 +1000

Exco Resources (ASX: EXS) has appointed Dr Tom Whiting as a non-executive director with immediate effect.

Dr Whiting has a track record of over 30 years in the minerals exploration industry both as a geophysicist and an exploration manager, including a period as vice president of minerals exploration for BHP Billiton (ASX: BHP) from 2000 to 2004.

During his career with BHP Billiton he was associated with a number of discoveries, in particular the Cannington lead/zinc/silver mine in Queensland, the world’s largest producer of silver and lead.

Whiting backed the development of new generation airborne electromagnetic technologies and the FALCON® airborne gravity gradiometer system.

He is currently a consultant and is a non-executive director of Predictive Discovery (ASX: PDI), non-executive director of Stellar Resources (ASX: SRZ) and the non-executive chairman for the Deep Exploration Technologies Cooperative Research Centre.

Exco continues to progress its portfolio of copper gold projects in Northwest Queensland. On September 13 the company announced a 29% increase in the resource at the Mt Colin copper-gold deposit to 1.92 million tonnes at 2.59% copper. Previously, the resource inventory was 1.49 million tonnes at 2.47% copper.

Mt Colin is strategically located 50 kilometres from Cloncurry and in the highly prospective Mt Isa region of Queensland.

Exco Resources boosts resource at Mt Colin to 1.92Mt at 2.59% copper

Tue, 13 Sep 2011 11:09:00 +1000

A 29% resource upgrade also includes an increase in overall grade at Mt Colin, with the high grade zone still open at depth. An earlier Scoping Study on the previous resource indicated robust economic potential for Mt Colin. Work is now in progress on the underground mining design.

Exco Resources receives $600,000 cash boost after employee options exercised

Mon, 05 Sep 2011 13:52:00 +1000

Exco Resources (ASX: EXS) has received a cash boost to fund the company’s copper projects in north-west Queensland, after the exercise of employee options.

In total 1.5 million $0.40 options were exercised, with Exco to receive $600,000.

The new Exco

In the June quarter of 2011 Exco completed the sale of the Cloncurry Copper Project in north-west Queensland to Xstrata (LON: XTA) for $175 million

Following approval from shareholders on 9th June 2011, the remaining conditions precedent were satisfied and the final formalities for the sale and funds transfer were completed on 30th June 2011.

This allowed Exco at the end of financial year 2011 to be in the enviable position of holding a $224.5 million cash balance - which equates (pre tax obligations) to around $0.64 per share, fully diluted.

Post the sale of the project, Exco’s focus will be to add further value to the company's assets, with the board having already approved an initial exploration program of up to $10 million for the company's remaining tenements in the Cloncurry, Hazel Creek, and Soldiers Cap project areas.

Exploration activity has already kicked off at a number of priority targets.

Exco Resources managing director Michael Anderson steps down

Fri, 05 Aug 2011 14:52:00 +1000

Exco Resources (ASX: EXS) has announced that Michael Anderson has resigned as managing director of the company effective 5 August 2011.

Anderson has held the position since 2006 and led Exco through the recent sale of the Cloncurry Copper Project to Xstrata (LON: XTA) and the development of the White Dam gold project in South Australia.

Geoffrey Laing will now be acting CEO, taking over all responsibilities of the managing director until a final appointment is made. He is currently general manager of corporate and business development.

Exco is focussed on advancing and expanding existing resources and exploration assets around Cloncurry and at Hazel Creek. Exploration activity is underway on a number of priority targets and is scheduled to continue with two drill rigs in action in Queensland.

The White Dam gold mine continues to provide good cashflows and mining is underway at Great Australia where Exco holds royalty interests, with payments expected to gross around $30 million based on a copper price of US$4.20 a pound.

The company is bullish that it can replicate previous drilling success and expects a steady flow of good news in the coming months.

The company's enviable cash position of over $230 million enables it to return $135 million to shareholders in October.

Exco Resources finalises sale of Cloncurry Copper Project to Xstrata

Thu, 30 Jun 2011 12:50:00 +1000

Exco Resources (ASX: EXS) has completed the sale of the Cloncurry Copper Project to Xstrata for $175 million, allowing the company to realise early value from the project.

The company decided to sell the project rather than continue down the path to full development which can take many years. However, Exco still maintains a significant ground holding in the Cloncurry area, which hosts the highly prospective Hazel Creek copper gold project.

Exco’s current cash balance now stands at $220 million (pre-tax) which equates to about $0.62 per share, fully diluted. The company now aims to return $135 million ($0.39 per share, fully diluted) to Exco shareholders by 31st October 2011.

The $135 million will be returned in two steps comprising an initial return of capital to an amount as permitted under taxation legislation, and subject to Exco shareholder approval, with the balance then returned as a fully franked dividend.

Exco is not only well funded for exploration, but has also outlined the possibility of an acquisition or farm-in in the near future, with these projects not necessarily having a copper focus.

The cash retained by the company will fund the growth of its remaining asset base which will involve an initial exploration program of up to $10 million for its remaining tenements in the Cloncurry, Hazel Creek, and Soldiers Cap project areas in north west Queensland.

Exploration activity is underway on a number of priority targets and is scheduled to continue with two drill rigs in action in Queensland. The company is bullish that it can replicate previous drilling success and expects a steady flow of good news in the coming months.

In addition, Exco is set to start receiving cash flow from the Great Australia royalty, with payments expected to gross around $30 million based on a copper price of US$4.20 a pound.

Exco is currently arranging the procurement of a class ruling on the tax treatment of the return from the Australian Taxation Office.

Exco Resources shareholders approve Cloncurry Copper Project sale to Xstrata

Fri, 10 Jun 2011 12:45:00 +1000

Exco Resources (ASX: EXS) shareholders have approved the sale of the Cloncurry Copper Project sale to Xstrata (LON: XTA) for $175 million - after a general meeting.

Importantly, Xstrata has received confirmation from the Foreign Investment Review Board that there are no objections to the proposed sale in terms of the Australian Government’s foreign investment policy.

The outcome for Exco is that the company will now return around $135 million to shareholders, which will leave the company will a very healthy cash balance between $50 million to $60 million.

Exco is not only well funded for exploration, but has also outlined the possibility of an acquisition or farm-in in the near future, with these projects not necessarily having a copper focus.

The decision to sell the Cloncurry Copper Project was a strategic one for Exco, allowing the company to realise early value from the project, rather than the approach of many peers which continue down the path to full development - which can extend the value realisation timeline out for many years.

Exco though still maintains a significant ground holding in the Cloncurry area, which hosts the highly prospective Hazel Creek copper gold project.

The company has already allocated a multi-million exploration budget to Hazel Creek, which will comprise reverse circulation then diamond drilling to follow-up on advanced targets.

A final positive for Exco is that the company will soon start receiving cash flow from the Great Australia royalty, with payments expected to gross around $30 million based on a copper price of US$4.20 a pound.

Exco Resources completes capital management review of Cloncurry Copper Project

Fri, 03 Jun 2011 13:14:00 +1000

Exco Resources (ASX: EXS) has updated the market after a capital management review of Cloncurry Copper Project, after consultation with the company's major shareholders.

The review is subject to the successful completion of the sale, but Exco intends to return $135 million of the after-tax cash retained in the company to shareholders by 31 October 2011.

The Exco board believes that cash retained post distributions will continue to provide for the purposeful growth of the company's remaining asset base.

Ivanhoe Australia (ASX: IVA) has confirmed in writing to Exco support for the reviews outcomes, and the steps the board is taking with respect to the distribution.

Earlier in the year Exco announced that the company had entered into an agreement to sell the Cloncurry Copper Project to Xstrata (LON: XTA) for $175 million.

Exco Resources update on Cloncurry Copper Project sale to Xstrata

Tue, 31 May 2011 13:25:00 +1000

Exco Resources (ASX: EXS) has stated to the market that the company is not in discussions with Ivanhoe Australia (ASX: IVA) with a view to Ivanhoe making a bid for the company, and is unaware of any basis for such speculation.

Exco also added in a statement to the ASX today, 'Furthermore the company notes that Ivanhoe have informed the market that “...it is not considering a takeover offer for Exco”.

Exco then reiterated that the company focus remains on the sale of the Cloncurry Copper Project sale to Xstrata.

Last month Exco announced that the company had entered into an agreement to sell the Cloncurry Copper Project to Xstrata (LON: XTA) for $175 million.

The Exco board has already put their support behind the transaction, and recommends shareholders accept the proposal.

Exco Resources Ltd receives buy recommendation from Patersons Securities

Mon, 23 May 2011 14:13:00 +1000

The following is an extract from Patersons Securities initiated coverage on Exco Resources (ASX: EXS). Patersons has placed a Speculative BUY on the stock.

Issued Capital: A$355.6m
Price: A$0.625
Market Cap.: A$222.3m
Cash: A$36m

Cashed up and ready for action

Investment Highlights

We are initiating coverage on Exco Resources, an exploration and mining company currently focussed on copper and gold projects in Australia.

With a significant cash injection expected from the sale of selected tenements to Xstrata, the company is planning a A$0.28ps special dividend and is well placed to develop its existing resource portfolio as well as to acquire further projects.

Our pre-distribution valuation is A$0.70ps and our post distribution valuation is A$0.42ps (22% premium on effective market price), which does not account for the exploration upside. Exploration success will be the key value driver going forward. We recommend as a speculative BUY.

Asset sale raises A$175m

In April 2011 EXS announced the signing of an Asset Purchase Agreement worth A$175m with Xstrata over selected tenements in its Cloncurry Copper Project (CCP) area.

The board has recommended the transaction to the shareholders and the company is confident that the sale transaction will proceed (>50% required from voting shareholders), despite uncertainty regarding the direction of Ivanhoe Australia’s vote (22.9% share).

We estimate a net A$140m receipt post tax, with around A$100m expected to be redistributed to shareholders (A$0.28ps) and the balance as well as existing cash of A$36m going towards exploration on remaining licences and possible acquisitions.

Short-term income stream from the White Dam Gold Mine where the company has a 75% stake in a Au heap leach operation expected to produce around 60koz Au over the next year, will also supplement the strong EXS cash position.

Furthermore, EXS will also likely receive around A$30m in royalty payments (NPV ~A$15m) over the next 4 years from an agreement with CopperChem Limited to mine the copper sulphide orebody at the EXS-owned Great Australia mining lease in Queensland.

Exploration upside remains

Resource extension drilling at the White Dam mine is likely to add further gold to the existing heap leach operation as well as the underlying sulphide resource, but this is not likely to add significant additional value.

The remaining NW Queensland tenements, particularly the remaining CCP tenements, are highly prospective and could conceivably be drilled out to a resource at the same scale of that just sold to Xstrata.

Exploration success at the existing EXS tenements, as well as acquisition of further prospective licences/JV relationships is seen to be the key value driver going forward.

Given the strong financial position of EXS, they will be in a position to rapidly advance exploration projects to discovery and through resource definition without the need for further capital input.

Valuation does not reflect exploration upside

A preliminary sum of parts valuation on EXS gives an NAV of A$0.70ps, a A$0.08 or 12% premium on the current share price. Given the expected A$100m to be redistributed to shareholders (A$0.28ps), the post distribution valuation is reduced to A$0.42ps, a 22% premium on the effective market price of A$0.34ps.

We note however that the value of exploration upside to the remaining CCP tenements is not included in the valuation.

Catalyst:

Successful shareholder vote in favour of CCP sale.

Exco Resources receives BUY recommendation at $1.20 by Fox Davies

Wed, 11 May 2011 08:36:00 +1000

Exco Resources (ASX: EXS) has received the bullish $1.20 BUY recommendation from Fox Davies, due to the excellent March quarter gold production.

The target is almost double the last traded price of $0.61 for Exco.

Extract below from the Fox Davies report

The attributable production from the White Dam mine in South Australia was 18,928 gold ounces and 22,573 were sold.

Cash costs for the quarter were A$388 an ounce.

Comment

This was another excellent quarter for the mine, which exceeded our optimistic expectations.

Sales were substantially higher than production due to the grades being treated at the end of the December quarter.

The attributable production for the quarter was produced from the processing of 757,370 tonne of ore at 1.06g/t.

Only 294,919 tonne of waste was mined, giving a very low strip ratio.

With the pit due to be mined out by around September 2011, we anticipate that the production figures will not materially change in the current June quarter.

Recommendation

We retain a BUY recommendation with an increased price target of A$1.20 a share, formerly A$0.88.

The increase is due to the better than expected MQ gold production and the fact that it is expected to continue at current levels and costs in the JQ.

Exco Resources: Fox Davies maintains BUY recommendation after Xstrata sale

Wed, 27 Apr 2011 12:29:00 +1000

Fox Davies $0.88 price target for Exco is a 33% premium to the last traded price. Last week Exco announced that it has entered into an agreement with Xstrata to sell the Cloncurry Copper Project for A$175 million.

Exco Resources sells Cloncurry Copper Project for $175 million to Xstrata

Wed, 20 Apr 2011 13:35:00 +1000

The Exco board believes the $175 million proposal from Xstrata is in the best interests of all shareholders, and recommends that shareholders approve the proposal. Following the sale, Exco will have around $220 million in cash.

Exco Resources in pre-open pending 'significant transaction' announcement later today

Wed, 20 Apr 2011 11:28:00 +1000

Exco Resources (ASX: EXS) has been granted a trading halt by the ASX pending a 'significant transaction' announcement by the company, with the shares placed in pre-open.

Exco has not provided any more detail but said in a statement the company plans to be in a position later today to elaborate.

Recently, Exco had been pursuing a number of options in relation to the development of the Cloncurry Copper Project.

Earlier in the month after some press speculation, Exco clarified that it was not in discussions with any international entity regarding a takeover bid for the company.

At the end of 2010 Exco established a maiden JORC Reserve at Cloncurry Copper, with the open pit ore reserve estimate; 28.1 million tonnes at 0.83% copper and 0.24g/t gold.

Growing confidence in Exco's ability to establish a sizeable 3 million tonne per annum operation at Cloncurry would not be lost on Xstrata (LON: XTA), with its Ernest Henry operation located just 8 kilometres to the east of the project.

In April 2010, Xstrata said, it "Was looking at opportunities with juniors in the region to help bolster mill feed as the project transitioned to underground mining”.