Here is a full report on Oxiana’s Resources and Reserves.It makes for impressive reading and gives you a good idea of what the future holds in store for OXR.


Oxiana Limited Resources and Reserves Statement.

Oxiana Group Mineral Resources (contained metal) at June 30 2006, are estimated to contain 7.2 million ounces of gold, 96.1 million ounces of silver, 3.7 million tonnes of copper, 1.3 million tonnes of zinc and 0.1 million tonnes of lead (0.5g/t Au, 0.5% Cu, 0.5% Zn cut-off). Group gold and copper Resources remained largely unchanged from the December 31 2005 Statement, whereas Resource increases were reported for zinc (+40%), silver (+41%) and lead (+12%).

Oxiana Group Ore Reserves (contained metal) as at June 30, 2006 were 1.9 million ounces gold,
25.3 million ounces silver, 1,850 kt copper, 650 kt zinc and 70 kt lead representing increases of 1.25 million ounces gold (66%), 1.3 million ounces silver (41%), 917 kt copper (50%), 193 kt zinc (30%) and 14 kt lead (20%) over Group Ore Reserves (contained metal) as at Dec 31, 2005.

Drilling subsequent to this Statement at Sepon, Golden Grove and Prominent Hill is expected to add to the Group Resource base in 2007. In addition, Oxiana has made a bid for Agincourt Resources Limited

(ASX Release 29/01/02). A successful bid would increase Oxiana’s Group Resources by a further 6.7 million ounces of gold and 60 million ounces of silver.

The June 30 2006 cut-off date for drilling data was chosen to serve Oxiana’s planning cycle, such that information is available to develop 2007 budgets and life of mine plans. The Statement presented here provides the full details of the JORC Reserves and Resources which are included in Oxiana’s Bidders Statement for Agincourt Resources Limited to be released today and will be included in the Group Annual Report to be released by April 2 2007.

Resources estimated for the main Sepon gold deposits fell by 93,000 ounces in line with mining depletion in the first half of 2006. Around 180,000 ounces of oxide gold Resources were reclassified to primary in the Thengkham North and South deposits as a result of infill drilling and metallurgical test work. The 2.1 million ounces of primary gold Resources remain largely unchanged from the 2005 Statement.

Resources for the Khanong copper orebody at Sepon increased by 32,000 tonnes of contained copper above depletion for the first half of 2007; however, Resources were reduced at the Thengkham North deposit as a result of closer spaced infill drilling. Thengkham North displays far greater short range variability in both geometry and grade than Khanong and also has an overall lower tenor of copper mineralisation than reflected in earlier wider spaced drilling.

At Golden Grove, changes in Resource classification and successful drilling around the known deposits added 373,000 tonnes of contained zinc and 298,000 tonnes of contained copper to the Resource inventory. Estimated Resources now include all mineralization that has reasonable likelihood of being economic rather than only that falling within stopes defined by economic parameters using dated commodity price assumptions.

Approximately 54% of the additional zinc Resources and 45% of the additional copper Resources above, result from inclusion of the Scuddles deposit under this change in Resource classification.

Group silver Resources rose by 28 million ounces due mainly to additions at Golden Grove (12.2 million ounces) and the inclusion of Prominent Hill (11.7 million ounces). A small increase was estimated for silver contained within the Sepon copper deposits (+6.3 million ounces). Silver in the Sepon gold deposits fell by 2.2 million ounces.

Resources for Prominent Hill are unchanged from the Statement released on 12th July 2006.


Increases in Group Reserves were due mainly to conversion of known Resources to Reserves over the 6 months to June 30 2006 but were also due to incorporation of updated commodity prices, the inclusion of an initial Reserve for Prominent Hill and the addition of a Reserve for the Scuddles deposit at Golden Grove.

At Sepon, gold Ore Reserves reduced to 0.27 million ounces due largely to depletion during the preceding 6 months. A small decrease resulted from incorporation of re-modelled gold Resources using detailed infill and grade control data.

Sepon copper Reserves, based solely on the Khanong deposit, reduced to 766,000 tonnes of contained copper due to depletion by mining.

Contained metal in Ore Reserves at Golden Grove increased to 646,000 tonnes of zinc (+30%), 190,000 tonnes of copper (+32%), 329,000 ounces of gold (+28%), 16.8 million ounces of silver (+23%) and 70,000 tonnes of lead (+20%).

Prominent Hill is included in Group Reserves for the first time and contributes significantly to the overall increase in gold and copper Reserves, adding 1.3 million ounces of gold and 890,000 tonnes of copper.
2007 Resource and Reserve Program

Drilling subsequent to this June 30 2006 Statement at Sepon, Golden Grove and Prominent Hill is likely to increase Reserves and Resources in 2007.

At Sepon the focus will be the conversion of identified oxide gold Resources to Reserves along with the ongoing program to outline Resources at new discoveries and quickly convert them to Reserves.
Oxide mineralization with potential to increase Resources and Reserves has been identified at several prospects including Phavat North and Houay Yeng where evaluation drilling is continuing.

The 50,000 meter primary gold Resource drilling program completed late in 2006 is expected to increase Resource confidence and add to Resources. Drill testing will also continue to evaluate and expand Resources throughout 2007. Conversion of primary gold Resources to Reserves will occur with the finalization of the process flow-sheet.

The Sepon copper Resource development program will include further drilling to extend and close off the Khanong deposit, drilling and feasibility studies to fully assess the Thengkham North and South deposits and ongoing exploration and evaluation of additional copper targets identified at the Phabing, Dankoy, Thengkham East and Nampa prospects.

This program aims to significantly expand both Resources and Reserves in 2007 to underpin the copper plant expansion studies.

Significant zinc and copper discoveries at Golden Grove beneath the Xantho and Scuddles ore bodies, announced by Oxiana in October and December 2006, are the subject of ongoing Resource evaluation and have not been included in this Resource estimate. Drilling at both discoveries is considered likely to contribute to Resources in 2007.

Further conversion of Golden Grove Resources to Reserves is expected in addition to further additions to Resources as the testing of the discoveries continues. At Prominent Hill, recently discovered mineralisation extending 300-400 metres below the current Resource is the subject of ongoing evaluation drilling and an updated Resource estimate is targeted for later in 2007. Studies assessing underground mining options have commenced and will intensify with continued exploration results to be received during 2007.

Further intensive exploration and Resource development drilling will also continue to evaluate the Company’s highly prospective exploration portfolio across six countries.

Owen L Hegarty
Managing Director

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