Exco Resources (ASX: EXS) is extremely well funded after the recent sale of the Cloncurry Copper Project in north-west Queensland to Xstrata for $175 million.
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.
Exco Resources sees significant new copper gold potential at Salebury
Copper and gold miner Exco Resources (ASX: EXS) has recently commenced a program of exploration activities across a number of high priority targets within its portfolio of Cu-Au projects in North West Queensland, with results indicating significant new resource potential exists.
This exploration is in parallel with ongoing resource development and feasibility activities for the Cloncurry Copper Project.
The work completed to date has yielded a number of very positive results, in particular from Salebury and Tanbah, east of Cloncurry.
At Salebury hole ECDD002 intersected 48m @ 2.18% Cu & 1.97 g/t Au including 32m @ 2.87% Cu & 2.76 g/t Au, suggesting potential exists at this priority target.
Michael Anderson, managing director, said further follow-up work is planned in the coming weeks to better define the geometry and extent of the mineralization, with a view to defining an initial resource estimate.
RC drilling at Tanbah has defined zones of greater than 1% copper including 13m @ 1.40 % Cu & 1.01 g/t Au to the end of hole ECRC341. Follow-up diamond drilling has been completed with results expected shortly.
At Hazel Creek diamond drilling has commenced at the Turpentine Deposit targeting extensions to the known resource. All three holes drilled to date have intersected the target zone at the predicted depth.
Core samples are progressively being dispatched to the laboratory. Results confirm the potential to expand the known resource (1.84Mt @ 1.03% Cu & 0.2g/t Au). Work is ongoing with three drill rigs employed across a number of key targets.
Future work will also include the testing of priority prospects such as Chumvale South, Crow’s Nest, Eagle Hawk, Fisher Creek, Fisher Creek West and new targets which have been identified from recently completed Sub-Audio Magnetic (SAM) surveys at Eight Mile Creek and Mount Margaret (E1 Camp).
Further results are expected shortly, and will be released when available.
On August 17 Exco issued 16,428,295 shares at 30 cents each to Aus-Ore Investments Pty Ltd to raise A$4.9m before expenses.
The placement provides Exco with the necessary funds for its resource development activities at its portfolio of copper-gold projects.
In addition, there is potential to increase the resources at the company's White Dam gold project as the current gold price is substantially higher than the prices used in the feasibility study, according to broker Fox Davies.
