Mineral Resources & Exploration



Padaeng Mineral Resources

Padaeng Mine
On December 31, 2003 the total mineral resource of Padaeng Mine at Mae Sot was 4,595,000 dmt @ 12.3% zinc, containing 565,000 mt of zinc metal. The mineral resource was calculated using a cut off grade of 3% zinc as shown in Table 1.

Table 1 : Mineral Resources at Padaeng Mine December 31st 2003
Category Metric Tons % Zn Grade
Low Grade Ore Stockpile 370,000 7.4
High Grade Ore Stockpile 24,000 20.5
Measured Resource 1,820,000 12.9
Indicated Resource 1,942,000 12.4
Inferred Resource 439,000 12.7
Total
4,595,000 12.3

The resource can be converted to a mining resource of about 4,102,000 dmt @ 12.3% zinc. Padaeng Mine now has sufficient mining resource to sustain an expanded mining operation of over 400,000 dmt of ore per year for the next 10 years.


Exploration

Mae Sot Area
  • Existing Mining Leases
    The company continued exploration activities at the existing mining leases at Mae Sot during 2003 by Reverse Circulation (RC) in 53 drill-holes. High grade secondary zinc ore, containing a zinc grade of 24.6%, was found at 30 drill-holes, which indicates that the Padaeng mine still has potential for additional secondary zinc ore. Further, the company conducted 5 Diamond Drilling in the new mining lease area (ML 30769/15525)

    Additional exploration in the existing mining leases area will be carried out in 2004.

  • Special Prospecting Licenses Area
    Exploration within the SPLís during the year 2003 has been progressive. Deep soil sampling was undertaken. An initial diamond-drilling programme testing targets has been encouraging in some areas. Additional infill diamond drilling especially deep zinc sulphide targets will be followed up in 2004.
Regional Exploration
  • Loei Copper Project
    Puthep Company Limited is PDIís affiliate company and have joined Pan Australian Resources of Australia to develop the copper deposits at PUT1 and PUT2 near Loei. At PUT 1 the current resource is 80 million dmt @ 0.5% copper at a cut-off grade of 0.1% copper. At PUT 2 the current resource is 32 million dmt @ 0.4% copper at 0.1% copper cut-off. The Loei Copper Project is at the requisition stage, seeking to ease the use of 1A water shed from the Cabinet for the feasibility and mining application.

  • Kaiso Project - Lao People's Democratic Republic
    Padaeng (Laos) has applied to expand the current exploration area to extend 400 square kilometers out from the existing site in order to conduct exploration for additional ore source.
Summary of Mae Sot Mining and Exploration Tenements

Table 2 : Ore Resources at Hualon Mine December 31st 2001
LicenseNumber Type* Area (Ha) Date Granted Expiry Date
20780/13286 ML 14.36 18/10/1982 17/10/2007
20781/13285 ML 11.46 18/10/1982 17/10/2007
20782/13287 ML 14.22 18/10/1982 17/10/2007
25697/14388 ML 0.89 30/04/1991 29/04/2008
30769/15525 ML 39.38 11/07/2002 10/07/2017
1/2545 EPL 98.24 25/03/2002 24/03/2003
2/2543 EPL 169.12 25/03/2002 24/03/2003
1/2545 SPL 1,600.00 25/03/2002 24/03/2004
2/2545 SPL 1,120.00 25/03/2002 24/03/2004
3/2545 SPL 1,600.00 25/03/2002 24/03/2004
1/2545 SPLA 1,509.12 pending
2/2545 SPLA 1,347.68 pending

*Note
ML= Mining Lease
EPL= Exclusive Prospecting License
SPL= Special Prospecting License
SPLA = Re-applied New Special Prospecting Licenses since 1/10/2002