DCDDorbyl Heavy Engineering in South Africa has received an order from FFE Minerals for a 10.4 x 6.1 metre (SAG) mill shell and a 7.3 x 12.2 metre ball mill shell for Pan Australian Resources Phu Kham copper-gold project in Laos.

The Phu Kham deposit is located about 100km north of the Lao capital Vientiane. The deposit comprises an oxide gold cap, beneath which lies transitional/primary coppergold.

The oxide gold cap is the main deposit for the Phu Bia heapleach goldmine, the first phase of the development of the Phu Kham deposit, which entered into production last year.

Pan Australian Resources owns 100% of Phu Bia Mining, a Lao registered company party to a mineral and production agreement with the government of Laos.

Preliminary works began in January this year, including earthworks for the camp and process facility sites, together with the construction of a 7km link road from the Phu Kham site to a new access road to the main highway to Vientiane.

Frontend engineering and design works, awarded to Ausenco, are currently in progress.

Pan Australian reports that orders for long lead items were placed in June last year, which will allow for commissioning late this year and inaugural concentrate production in the first quarter of 2008.

Initially a 9 million tonnes/year processing option was considered, but the results of a feasibility study has seen this ramped up to 12 million tonnes/year of ore over a 12 year mine life. The mineral resource is 192 million tonnes at 0.62% copper and 0.24% gold.  Development capital has been budgeted at $232 million. www.panaustralian.com.au

Pan Australian Resources general manager corporate development Joe Walsh will give a presentation on the company's latest activities in Laos at The ASIA Miner Investing in Mining conference on May 7-8 in Sydney.

News sourced from International Mining Project News - www.im-mining.com