An increase in Cloncurry Copper Project resources has boosted Exco Resources’ total north west Queensland resource base to more than 500,000 tonnes of copper.

The Cloncurry project now contains an estimated 51 million tonnes @ 0.84% copper and 0.23 grams/tonne gold.

The project comprises three key regions of mineralization - the E1 Camp, the Monakoff group of deposits and the Great Australia Deposit. The main focus of recent drilling has been the E1 Camp, which now contains 80% of the contained copper.

E1 Camp has previously been modelled and reported as four separate deposits - North, South, East and Central. Drilling success in the recently discovered Central Zone has led to a significant increase in total resources, while detailed geological logging and modelling shows that the deposits are geologically very similar and are linked through the geological and structural controls on the mineralization.

As a result the four deposits have been combined into one resource. The total E1 Camp resource, indicated and inferred, has increased by 17% and now comprises 44.9 million tonnes @ 0.76% copper and 0.22 grams/tonne gold for 343,000 tonnes of copper and 312,000 ounces of gold.

Importantly 19.6 million tonnes @ 0.85% copper and 0.25 grams/tonne gold, or 49% of contained copper, has been classified as indicated with the remainder as inferred. Ongoing resource modelling, in particular at E1 South and E1 East, is expected to lead to further increases in the indicated category.

Drilling in 2008 and subsequent resource modelling has resulted in a 53% increase in the resource base at the Monakoff Group of deposits. They now contain 4.0 million tonnes @ 1.32% copper and 0.42 grams/tonne gold, of which 50% is classified as indicated.

The mineralization is contained within a tabular body, dipping steeply to the south and extending along strike for more than 1100 metres. The resources are still open at depth and along strike.

Preliminary open pit optimizations have been completed on all Cloncurry resources highlighting the potential for economic extraction of a significant portion of the resources.

Although not yet a reserve, the studies suggest an in pit resource in the order of 23 million tonnes from E1 camp, about 3 million tonnes from the Monakoff Group, and around1.5 million tonnes from the Great Australia deposit.

The Definitive Feasibility Study (DFS) is progressing with a focus on securing the necessary environmental approvals, which remain on the critical path for the project.

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