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Exco Resources increases Resources at a White Dam deposit by 50%

With the indicated resource from the Vertigo deposit, near White Dam increasing to 46,200 ounces, Exco's strategy at White Dam is paying off. With production at White Dam of 40,000 ozs at sub $600/oz cash costs, it is a very high cash margin business for Exco.
Exco Resources increases Resources at a White Dam deposit by 50%

Exco Resources (ASX: EXS) has upgraded the total resource at the Vertigo Deposit, 1.5 kilometres from White Dam, to 2.45 million tonnes (Mt) at 1.04 g/t gold for 82,100 ounces (Oz) contained gold.

This was achieved by infill and extensional drilling and lowering the cut-off from 0.7g/t to 0.4g/t gold.

Exco's Michael Anderson was aiming to extend the mine life at White Dam, of which converting "near mine" Inferred resource to Indicated category is part of the strategy.

The Indicated portion of the resource now stands at 1.22Mt at 1.18g/t Au for 46,200 Oz contained gold.

Overall, with White Dam gold production levels for the 2010/11 financial year yielding 40,365 ounces of gold, Exco's share was 30,274 ounces, this is proving to be a very lucrative, high margin business with cash costs below $600 an ounce and a gold selling price average of A$1,373 an ounce.

Annualised this equates to rate of 80,000 ounces.

The White Dam Gold Project is located about 80kms west of Broken Hill in South Australia. The Vertigo Deposit is located 1.5km from the existing mining site at White Dam.

A Mining Lease application for the Vertigo deposit has been submitted to Primary Industry and Resources South Australia (PIRSA) for approvals.

Ongoing metallurgical testwork will be completed early in the second quarter 2011 and will be followed by the reserve definition and detailed pit designs.

Final mine scheduling and planning is targeted for the second quarter of 2011.

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