Exco Resources

Exco Resources Ltd (EXS) is an Australian focused ASX listed exploration and mining company that has been operating for over ten years. Exco focuses on resource and project development through its team of experienced geologists, engineers and commercial specialists.  The Company is currently focused on its White Dam Gold Project in South Australia, and its Cloncurry Project in north-west Queensland.

The White Dam Gold Production Joint Venture

(Exco 75%, Polymetals 25%)

The White Dam Gold Project is located in South Australia approximately 80km west of Broken Hill. The project has been developed as an unincorporated joint venture between Exco (75%) and the recently listed Polymetals (25% - ASX:PLY). The project contains a depleted resource inventory of 6Mt @ 0.98g/t Au for 188,700oz contained (see Table 1).

Since pouring first gold in April 2010, production rates and margins from White Dam have been tremendous, and well above expectations. In November 2010 the Company announced that it had completed the required gold repayments nine months ahead of schedule. A combination of better than expected production outcomes and higher than envisaged gold prices had allowed the loan to be repaid after only seven months of production.

Having repaid the Barclays gold loan 9 months ahead of schedule, the project is now debt free and with average life of project operating costs of

Notes: Discrepancies in totals are as result of rounding.
White Dam resource (which is depleted to June 2011) was re-estimated in October 2010 with a cut off grade of 0.3g/t.
Vertigo was re-estimated in January 2011 with a cut off grade of 0.4g/t.

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The New Cloncurry Project (Exco 100%)
Copper, Gold, Uranium, Zinc, Lead, Magnetite

The Cloncurry Project is centred near the town of Cloncurry and covers over 1,920km². The Project encompasses the Tringadee, Pumpkin Gully and Soldier’s Cap project areas, including six deposits hosting JORC compliant resources, with a royalty arrangement over 1.7Mt the Great Australia Resource (see Table below). Resources delineated for the project to date total 7.65Mt @ 1.69% Cu & 0.52g/t Au containing 111,400t copper and 130,000oz gold.

The royalty arrangement on sulphide ores from the Great Australia resource is expected to deliver about $30M (based on current prices) in free cash over the next three to four years providing a stream of sustaining income for the Company. At the Mt Colin copper-gold deposit the resource has recently been re-estimated resulting in a 29% increase in the overall resource to 1.92Mt @ 2.59% Cu. A scoping study on the previous resource indicated robust economic potential. Further work is currently in progress for underground mining design.

The Cloncurry Project hosts many prospects where drilling to date has intersected significant mineralisation. Throughout 2011 Exco has been proactively engaged in a programme of exploration activities across a number of high priority targets within these prospects (see Figure below for location map of the Cloncurry Project highlighting key prospects).

Key targets include:

Salebury:

RC drilling by Exco has revealed significant mineralisation with a best intersection of 30m at 1.93% Cu & 1.25g/t Au. Recent results include:

·         48m @ 2.18% Cu & 1.97g/t Au
·         20m @ 2.07% Cu & 1.53g/t Au

Tanbah:
The occurrence of broad copper intersections and strongly elevated cobalt concentrations in the metasediments, including an interval of 33m @ 0.12% Co, supports Exco’s belief that the Tanbah prospect has the potential to host an economic Cu-Co-Au deposit. Other signification intersections include:
·         43m @ 0.65% Cu & 0.27g/t Au
·         202m @ 0.33% Cu, 0.34g/t Au & 0.07% Co
·         43m @ 1.03% Cu & 0.67g/t Au

Fisher Creek:

The Fisher Creek prospect is located approximately 25km east of Cloncurry. The majority of drilling to date has focused on the area of subdued magnetics east of the Mount Margaret Fault where significant mineralisation has been intersected including:

·         28m @ 3.18% Cu & 2.77g/t Au
·         24m @ 3.20% Cu & 1.0g/t Au

Pumpkin Gully:

The Pumpkin Gully prospect is located 15km east of Cloncurry. Two phases of RC drilling has been completed by Exco, with significant mineralisation intersected. Best intersections reported to date are:

·         24m @ 0.83% Cu & 0.26g/t Au
·         10m @ 0.67% Cu & 0.32g/t Au

During 2011 Reverse Circulation (RC) drilling was resumed at a number of prospects in the Pumpkin Gully project area of the Cloncurry Project including Salebury, Uncle Toms, Fisher Creek West and Tanbah North. (see Figure below for location map of the Pumpkin Gully area). Drilling is planned for numerous other prospects in the Weatherly Creek area including Canteen, Kangaroo Rat, Wallace South and m

BARRY SULLIVAN - BSc(Min), ARSM, FAusIMM, MAICD Chairman - Non Executive

Mr Sullivan is an experienced Mining Engineer who has had a successful career in the mining industry, both in South Africa with Anglo American (1969 - 1974) and in Australia with MIM from 1974 to 1995. He had six years as Executive General Manager at Mount Isa, in which capacity Barry was responsible for total operations including regional exploration, four underground mines and one open cut mine, power stations, dams, comprehensive support services such as workshops, chemical laboratory, medical centre etc.  Barry Sullivan has been a director since 2005 and is also a member of the Company's remuneration committee.

Other current directorships:

Non-executive director of Catalpa Resources Ltd (since June 2008)

GEOFF LAING, BSc (Chem Eng), MBA, Acting CEO

Mr Laing, formally the General Manager Corporate and Business Development, was appointed as Acting CEO on Friday the 5th August 2011. Mr Laing will take all responsibilities as Managing Director until a final appointment has been made. 

Mr Laing is a Chemical Engineer with 19 years experience in operations, engineering and project development and has an MBA from The University of Western Australia. He has been involved in local and international projects primarily in base and precious metal commodity lines. His operational experience includes refining operations for Anglo Platinum, BHP and Bulong Nickel. He has been involved in a broad range of projects for major clients through his engineering career with both Bateman Engineering and GRD Minproc, including refining projects for BHP, Anglo American, Norilsk Nickel and Phelps Dodge. Prior to joining Exco Resources, Mr Laing was involved in the development of the Tenke Fungurume Project in the Democratic Republic of Congo as both Study and Process Manager

ALASDAIR COOKE, BSc (Hons Geology), MAIG Executive Director

Mr Cooke is one of the founding Directors of Exco Resources and has 21 years of experience in the resource exploration industry throughout Australia and internationally.

He is a qualified geologist and throughout his career, has been involved in mineral exploration and corporate development, including eight years spent with BHP Minerals Business Development Group and over ten years managing public resource companies.  

Mr Cooke is a founding partner of the Mitchell River Group, which over the past eight years has established a number of successful resource companies, including ASX listed Panoramic Resources, formerly Sally Malay Mining Ltd (operating the Savannah and Lanfranchie Nickel Projects in Australia), ASX listed Albidon Ltd (operating the Munali Nickel Project in Zambia), ASX listed Mirabela Nickel Ltd (developing the Santa Rita Nickel Project in Brazil) and ASX listed African Energy Resources Ltd (developing thje Chirundu Uranium Project in Zambia). 

Other current directorships:

Executive director of African Energy Resources Ltd since 2006

Executive director of Energy Ventures since 2007

PETER REEVE, BSc (Metallurgy) Non Executive Director

Mr Reeve has a Bachelor of Science (Metallurgy) from RMIT University and has been involved in the Australian Resources Industry for approximately 26 years.

His industry experience includes positions with Rio Tinto, Shell-Billiton and Normet Consulting, a metallurgical consulting firm, before joining Goldman Sachs/JBWere in Investment Management and Corporate Finance roles relating to the Australian Resource Industry.

In 2001, Peter joined Newcrest Mining Ltd., as part of the Executive Committee responsible for corporate development and market related aspects for the group, a position that he occupied until 2006.

Other current directorships:

Managing Director of Ivanhoe Australia since 2007

Non executive director of Emmerson Resources Ltd since 2009 

DR TOM WHITING, B.Sc (Hons) PhD, Grad Dip Fin, MASEG, MAICD, Non Executive Director

Dr Whiting has spent over 30 years in the minerals exploration industry both as a geophysicist and an exploration manager. From 2000 to 2004 he was Vice President of Minerals Exploration for BHP Billiton. During his career with BHP Billiton he was associated with a number of discoveries, in particular the Cannington Pb/Zn/Ag mine in Queensland, the world’s largest producer of silver and lead. He also was at the forefront of promoting the development and application of new exploration technologies related to the search for ore deposits under cover. To this end he backed the development of new generation airborne electromagnetic technologies and the FALCON® airborne gravity gradiometer system. Dr Whiting recognised the potential of the PredictoreTM approach and was one of the principal supporters of the pmd*CRC research programme.

Other current directorships:
Non-executive Director of Predictive Discovery Limited - since 2010
Non-executive Director of Stellar Resources Limited - since February 2011
Non-executive Chairman for the Deep Exploration Technologies Cooperative Research Centre.

Dr Whiting, was appointed as Non Executive Director on Tuesday 20th September 2011.

EAMON BYRNE, FCCA Chief Financial Officer / Company Secretary

Mr Byrne is a qualified accountant with over 21 years experience in the mining and resources industry.  Prior to joining Exco, Mr Byrne worked for Albidon Limited, Woodside Petroleum and WMC Resources Ltd on a range of Australian and international projects. His experience, prior to his involvement in the mining industry, includes retailing, manufacturing and distribution.

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