Exco completes scoping study

Exco Resources NL has completed a scoping study for two prospects but will need to add further mineral resource tonnage to justify a stand-alone development.

The Melbourne-based company has confirmed a mineral resource of 17 million tonnes grading at 0.83 per cent copper and 0.22 grams/tonne gold using a cut-off grade of 0.3 per cent copper for the combined E1-North and E1-South copper-gold prospects at its Mt Margaret project.

The resource includes a higher grade component of 8mt at 1.20 per cent copper and 0.34g/t gold using a cut-off grade of 0.7 per cent copper.

Exco’s managing director Steve Johnston said the resource, in contained metal terms, is in line with expectations from drilling carried out late last year. However the scoping study indicates that the deposits are currently sub-economic under the scenario of an owner-operated one million tonne per annum treatment facility.