Exco Resources gold production at White Dam continues to exceed expectations



Exco Resources gold production at White Dam continues to exceed expectations
 Friday, March 11, 2011 by John Phillips
Exco Resources gold production at White Dam continues to exceed expectations

Exco Resources (ASX: EXS) is enjoying some very healthy margins in gold production at the 75% owned White Dam project in South Australia, as operating costs remain under $500 an ounce as spot gold sits above $1400 an ounce.

During January and February the project produced 19,378 gold ounces, with the net cash flows attributable to Exco around $12 million.

This production level puts the joint venture on target for above 100,000 gold ounces in 2011.

The differentiating factor between this project and many others, is that Exco has achieved a very profitable life of project average sale price of A$1,368 per ounce, which the company said is 30% above budget.

Exco's 75% share of production to date is 51,858 ounces.

Another major benefit for Exco is the potential to extend the life of the operation, with the joint venture partners commencing a further $500,000 near mine exploration program.

Resource modelling analysis of White Dam has led to the completion of an updated resource estimate containing:

- Depleted to end of 5.99 million tonnes at 1.00 grams per tonne (g/t) gold for 192,899 ounces September 2010, cut off 0.3g/t gold; or
- Un-depleted 7.82 million tonnes at 1.02g/t gold for 257,567 ounces, cut off 0.3g/t gold.

Ordinary Kriging completed the resource estimate.


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