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Exco Resources: Mount Colin drill results: Excellent!

Contributed by Fox-Davies Capital

Exco has released five positive drilling results from the intersections of massive sulphides at Mount Colin which were announced on the 21st August.

On the 21 August we remarked, "It is odd for Exco to report massive sulphides without any assays such as they have done at Mount Colin today". Now we know why. These are extremely good assay results and the takeover bid was about to be announced. The full results are in Table 1, on page 2, and are certainly consistent with previous results from Mount Colin. This has the potential to make a significant increase to the resource at Mount Colin which currently stands at 1.922Mt grading 2.59% copper and 0.42g/t gold, especially as the estimated true widths are good.

Mount Colin remains open at depth and two further holes are in progress and a further two planned. With the five new results, Exco are optimistic that the existing Inferred Resource can be converted into Indicated Resources. The current Inferred Resource is 880,00t grading 2.09% copper and 0.41g/t gold (this is included in the above figure).

By today's standards, this is a high grade copper deposit and should it be mined, it would easily carry the transport costs to the Ernest Henry processing plant where it could provide a sweetener to the current ore being processed.