Operational Results

Ore Resources and Exploration


Padaeng Ore Resources

Padaeng Mine
On December 31, 2001 the total ore resource of Padaeng mine at Mae Sot was 5,136,000 dmt @ 12.0% zinc base on the new ore model. This is made up of ore stockpiles, measured, indicated and inferred resources as shown in Table 2. The resource inventory now contains approximately 576,000 mt of zinc metal

The ore resources was calculated using a cut off grade of 3% zinc and was classified according to the Australasian code for the reporting of Mineral Resources and Ore Reserves 1999.

Table 2: Ore Resources at Padaeng Mine December 31st 2001.
Area Category Metric Tons % Zn Grade
Existing Mining Leases Low Grade Ore Stockpile 342,000 7.04

High Grade Ore Stockpile 52,000 18.33

Measured Resource 1,966,000 12.4

Indicated Resource 2,070,000 11.5

Inferred Resource 688,000 13.6

Sub-total 5,118,000 11.9
MLA 1/2541 Measured Resource 18,000 35.2

Sub-total 18,000 35.2
Total
5,136,000 12.0

Padaeng mine now has sufficient ore resources to sustain an expanded mining operation of over 380,000 dmt of ore per year for ten years.

Hualon Mine
Hualon, license number 16031/11867, is a mining lease separated from Padaeng mine. On December 31, 2001 the total ore resource of the Hualon mine at Mae Sot was 295,000 dmt @ 6.0% zinc. The Hualon resource is currently all zinc-sulphide.


Table 3 : Ore Resources at Hualon Mine December 31st 2001.
Area Category Metric Tons % Zn Grade
Existing Mining Lease Measured Resource 213,000 6.0

Indicated Resource 82,000 6.0
Total
295,000 6.0


Exploration

Mae Sot Area

  • Existing Mining Leases

    During 2001, exploration within the existing pit was successful in finding additional zinc ore resources and extending zones of zinc ore. A total of 177,000 dmt of secondary zinc ore had been replaced and an additional 231,000 dmt of secondary zinc ore were added this year after remodeling and recalculation. The existing mining leases still have high potential for additional zinc silicate ore.

    he above mentioned zinc ore have been included in Table 2

  • Mining Lease Application (MLA) Area

    The Mining Lease Application No.1/2541 borders the current mining lease to the northwest. The Office of Environmental Policy and Planing (OEPP) approved the EIA report on August 6th, 2001. The Minister of Agriculture and Co-operative approved the forestry land-use on November 23rd, 2001. The mining lease application is at the Department of Mineral Resources (DMR) for approvals from Mineral Act Committee and the Minister of Industry, respectively.

    The granting of the MLA will be enable Padaeng to access a larger amount of the ore resources that has been identified beneath the existing pit. There is very good potential with further exploration, that additional ore resources will be discovered within the MLA area.

  • Special Prospecting Licenses (SPL) Area

    Two areas of primary zinc were found within the northern portion of the SPL and another secondary zinc occurrence was found within the southeastern portion of the SPL.

    Three new Special Prospecting License Applications to the southeast of the existing SPL covering an area of 4,320 hectares (43.2 square kilometers) have been submitted to the Ministry of Industry.

    Two new Exclusive Prospecting License Applications covering an area of 267 hectares (2.67 square kilometers) are also with the Ministry of Industry.
Regional Exploration

  • Puthep Copper Project Puthep, a subsidiary of the company, has joined Pan Australian Resources of Australia in a Joint Venture Project to develop the copper deposits. The Puthep Copper Project is currently at the feasibility stage.

  • Kaiso Project – Lao People’s Democratic Republic Padaeng (Laos) has been granted a mining license covering an area of 2 square kilometers and the exploration license covering the area of 12 square kilometres. An exploration program is in progress.

Mae Sot Mining and Exploration Tenements

The company currently holds five Mining Leases and three Special Prospecting Licenses at Mae Sot and has lodged an application for an additional Mining Lease, three new Special Prospecting License Applications and two new Exclusive Prospecting License Applications. The details of the leases are provided in Table 4.

Table 3 : Ore Resources at Hualon Mine December 31st 2001.
License Number Type* Area (Ha) Date Granted Expiry Date
16031/11867 ML 11.96 30/05/1977 29/05/2002
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
37/2541 SPL 1,183.04 30/09/1998 29/09/2002
38/2541 SPL 1,022.40 30/09/1998 29/09/2002
39/2541 SPL 1,299.20 30/09/1998 29/09/2002
1/2541 MLA 39.38 Pending
1/2543 SPLA 1,600.00 Pending
2/2543 SPLA 1,120.00 Pending
3/2543 SPLA 1,600.00 Pending
9/2543 EPLA 169.12 Pending
10/2543 EPLA 116.73 Pending

* Note
ML = Mining Lease
SPL = Special Prospecting License (An extension for another two years has been lodged)
MLA = Mining Lease Application
SPLA = Special Prospecting License Application
EPLA = Exclusive Prospecting License Application





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