Execo secures 100% interest in gold project

The acquisition of Polymetals Pty Ltd's 40 per cent interest in the White Dam project by Exco Resources NL gives the Perth-based metal explorer a 100 per cent interest in the gold rich tenements.

Exco will pay Polymetals $2 million for the acquisition with $1 million paid now and $1 million by 30thNovember 2006.

Following completion of the acquisition agreement Exco will own 100 per cent of all the Drew Hill Project tenements that encompass the White Dam gold project as well as all surrounding exploration areas and the base metals joint venture with Noranda.

The White Dam gold project current resources include 259,000 ounces gold.

The project is in the final stages of feasibility studies and permitting, with the current development plan based on an initial dump leach operation.

The determination of water supply and the finalisation of native title agreements are the only outstanding items prior
to development of the project.

Polymentals is a private group that held a minority interest in the White Dam gold project.