Phu Kham Copper-Gold Operation

The Phu Kham Copper-Gold Operation is PanAust's flagship Operation.

The Operation is located within PanAust's Phu Bia Mining Contract Area in Laos approximately 140 kilometres north of Laos' capital city, Vientiane. The significant cash flow generated by the Phu Kham Operation has supported PanAust’s growth while contributing to a strong balance sheet.

The Operation comprises an open-pit mine feeding ore to a conventionally milling and flotation operation which produces a copper and precious metals concentrate for export to custom smelters mainly in Asia. The concentrate contains approximately 23 per cent copper, 6 grams per tonne (g/t) gold and up to 47g/t silver.

Seventy five per cent of Phu Kham's concentrate is trucked in covered containers to the port of Hon La in Vietnam (approximately 650 kilometres from the Operation). The remaining 25 per cent is trucked to Sriracha Harbour in southern Thailand (approximately 1,000 kilometres from Phu Kham) for export to smelters mainly in Asia.

March quarter 2021 production

During the March quarter 2021, the Phu Kham Operation produced 10,901 tonnes (t) of copper in concentrate at a C1* cost of US$1.07/lb after precious metal credits from 10,042 ounces (oz) of gold and 49,778oz silver. An all-in sustaining cost (AISC**) of US$2.09/lb of copper was realised.

More than 7.7 million tonnes (Mt) of ex-pit material was mined during the quarter which included 3.8Mt of copper-gold ore.

Copper, gold and silver head grades averaged 0.49 per cent, 0.23 grams/tonne (g/t) and 1.50g/t respectively. An overall copper recovery rate of more than 83 per cent was achieved.

Quarterly concentrate sales totalled 10,428t of copper; 9,378oz of gold and 48,088oz of silver.

*Brook Hunt convention for the reporting of direct costs comprising: mine site, product transportation and freight, treatment and refining charges and marketing costs; based on payable metal content after by-product credits

**AISC reported are the C1 cost plus royalties, allocated corporate support charges, shared services costs, sustaining capital; lease principal and interest charges; and deferred mining and inventory adjustments capitalised