Exco Resources gold production at White Dam continues to exceed expectations

production at White Dam continues to exceed expectations

Exco

Resources (ASX: EXS) is enjoying some very healthy margins in gold
production at the 75% owned White Dam project in South Australia, as
operating costs remain under $500 an ounce as spot gold sits above $1400
an ounce.
During

January and February the project produced 19,378 gold ounces, with the
net cash flows attributable to Exco around $12 million.
This production level
puts the joint venture on target for above 100,000 gold ounces in 2011.
The differentiating
factor between this project and many others, is that Exco has achieved a
very profitable life of project average sale price of A$1,368 per
ounce, which the company said is 30% above budget.
Exco's 75% share of production to date is
51,858 ounces.
Another

major benefit for Exco is the potential to extend the life of the
operation, with the joint venture partners commencing a further $500,000
near mine exploration program.
Resource

modelling analysis of White Dam has led to the completion of an updated
resource estimate containing:
-
Depleted to end of 5.99 million tonnes at 1.00 grams per tonne (g/t)
gold for 192,899 ounces September 2010, cut off 0.3g/t gold; or
-
Un-depleted 7.82 million tonnes at 1.02g/t gold for 257,567 ounces, cut
off 0.3g/t gold.
Ordinary

Kriging completed the resource estimate