22April2010

QuarterlyReportforthethreemonthsending31March2010

PhuKhamCopperGoldOperations,Laos

Marchquarterproductionwas64,931dmtofconcentratecontaining16,005tofcopperat
anaverageC11cashcostofUS$0.80/lbofcopperafterpreciousmetalcreditsfrom
16,098ozofgoldand118,119ozofsilver

Recordmonthlycopperproductionof5,904tachievedinJanuary

GrowthProjects
BanHouayxaiGoldSilverProject,Laos

PanAustsBoardofDirectorsapprovedthedevelopmentoftheBanHouayxaiGoldSilver
ProjectsubjecttoGovernmentofLaosapprovals;thesuccessfulFeasibilityStudywas
basedonanoperationproducingover100,000ozofgoldand700,000ozofsilverper
annumoveraminimumeightyearminelife

IncadeOroCopperGoldProject,Chile

PanAusthasmadeabindingoffertoCodelcotoacquireamajorityinterestintheIncade
OroCopperGoldProjectinChile.TheBoardofdirectorsofCodelcohaspasseda
resolutionrecommendingtheacceptanceofPanAustsoffer,subjecttoapprovalby
PresidentialDecree.

Exploration

DrillingcontinuedathighprioritytargetsinLaos:PhonsavanCopperProjectand
BanPhonxaicoppergoldprospect

Corporate

At31March2010,PanAusthadcashofUS$91.5million,projectdebtofUS$53.7million
andamobileequipmentleasefacilityofUS$36.9million

PanAustreceivedthe2010awardforBestCommunityDevelopmentInitiativeattheAsia
MiningCongressinSingapore

BrookHuntconventionforreportingdirectcashcostscomprising:minesite,concentratetransportationandfreight,treatment
andrefiningchargesandmarketingcosts.Basedonpayablecopperinconcentrateproduced.

PanAustLimitedABN17011065160
Level2,99MelbourneStreetPOBox3468SouthBrisbaneQld4101
Phone+61(0)731172000Facsimile+61(0)738464899
info@panaust.com.auwww.panaust.com.au

PhuKhamOperations,Laos
Introduction
StrongproductionandcostperformancescontinuedintheMarchquarter2010.Forthesecond
successivequarter,thePhuKhamOperationproducedover16,000tofcopperatanaverageC1
cashcostofUS$0.80/lbcopper(afterpreciousmetalcredits)despiteascheduledfiveday
shutdowninMarchandlowergoldproduction(comparedtotheDecemberquarter).Notably,
theMarchquarterincludedrecordmonthlycopperproductionof5,904tinJanuary.
Table1:Productionandcostsummary
PhuKhamOperations
Productionsummary

Units

Copperinconcentrate

3months
to
31Mar2010
16,005

Goldinconcentrate

oz

13,704

Silverinconcentrate

oz

118,119

oz

2,394

US$/lbCu

0.80

Goldindor(HeapLeach)
2

C1cashcostafterpreciousmetalcredits

FurtherdetailsoftheproductionandcostperformancesarecontainedinTable2andTable3ofthisreport

ProductionPerformance
Designmillthroughputofthreemilliontonnesoforewasachievedduringthequarter.During
March,therewasaplannedfivedaymaintenanceshutdowntoundertakeacompleterelineof
theballmillandapartialrelineoftheSAGmill.Thenextmajormaintenanceshutdownis
scheduledfortheSeptemberquarter.
Theaveragecoppergradeforthequarterwas0.79%andtheaveragecopperrecoverywas68%,
reflectingthemixoforetypesprocessed.Theelevatedcopperheadgradesprocessedoverthe
pastsixmonthswerelargelyafunctionofasignificantcomponentofmillfeedbeingsourced
fromahighgradestageoftheopenpit,whichwasdepletedinearlyApril.Theaveragecopper
gradescheduledfor2010is0.7%.
Miningpostedaquarterlyrecordofnearly6.7milliontonnesofmaterialmoved.Further
miningcapacityisscheduledtobeaddedmidyearwiththecommissioningofafifthshovel.
PhuKhamremainsontracktoachievetargetconcentrateproductionforthe2010yearinthe
rangeof240,000dmtand260,000dmtcontainingbetween60,000tand63,000tcopper,and
morethan40,000ozgoldand300,000ozsilveratanaverageC1cashcostofbetween
US$0.95/lbandUS$1.05/lbcopperafterpreciousmetalcredits3.
AttheHeapLeachGoldOperation,irrigationoftheleachpadsendedinMarch2010andgold
recoveryfromsolutionceasedon1April2010.BetweenNovember2005andApril2010,the
Operationproducednearlythreetonnesofgoldandplayedanimportantroleintheinitial
developmentofPanAustsoperatingpresenceinLaos.Afterclosureactivitiesarecompleted,
theworkforcewillberedeployedtodutiesatPhuKhamandtheBanHouayxaiGoldSilver
Project.

2
3

Basedoninvoicedpricingforgoldandsilver
AssumesgoldandsilverpricesofUS$1,000/ozandUS$16/ozrespectivelyandUS$0.78/litredieselfuelcost

Page2

PaymetalinconcentratesalesduringtheMarchquartertotalled13,919tofcopperand
15,564ozofgold.Theaveragecopperandgoldpricesrealised(afterhedging)wereUS$3.23/lb
andUS$957/ozrespectively.
Resourceextension
NorthpitareaResourcedrillingwithinthenorthpitareaofPhuKhamcontinuedduringthe
quarter.The3,600mprogramwilltestthenorthernandnortheasternlimitofthePhuKham
coppergolddepositwheremineralisationremainsopenbothlaterallyandatdepth.Initialdrill
resultsatthenortheastofthedeposithaveextendedtheinterpretedlimitofmineralisation.
Arevisedmineralresourceestimatewhichincorporatesresultsfromthesouthernpitarea
resourceextensiondrillingcompletedin2009isnowbeingfinalisedandwillformthebasisfora
revisedorereserveestimate.

Growth
PanAusthasacorporatestrategyfocusedongrowthbydiscovery,acquisitionanddevelopment.
Keycomponentsofthisstrategyare:acommitmenttoprogressingcapitalefficientorganic
growthopportunities;theacquisitionofproducingorpredevelopmentcopperassetsthatcould
supportannualproductionof50,000tofcopperorcopperequivalent;and,pursuitofanactive
explorationandresourcedevelopmentprograminLaos.
BanHouayxaiGoldSilverProject,Laos
InMarch,PanAustannouncedthattheBoardofDirectorshadapprovedthedevelopmentofthe
BanHouayxaiGoldSilverProject.Thedecisionfollowedthesuccessfulconclusionoftheproject
feasibilitystudywhichwasbasedonanopenpitminingoperationfeedingoretoaconventional
4MtpaCarbonInLeach(CIL)processplanttoproduceover100,000ozofgoldand700,000ozof
silverperannum.

Keyprojectparametersfromthefeasibilitystudy:
Averageannualproduction
Recoveryrates

MineLife
Waste:Orestripratio
Processplant
PredevelopmentCapital
DevelopmentCapital
CashOperatingCost4

Over100,000ozgoldand700,000ozsilver
Gold:recoveryrangeis80%to94%withanaverageof87%
overthelifeofthemine
Silver:averagerecovery70%withonlyminorvariationacross
mineralisationtypes
Minimumeightyears.Mineralisationisopenatdepthandto
thewest
Lessthan1.5:1,noprestriprequired
Carboninleach,4Mtpathroughputcapacity
US$16M,approvedNovember2009
US$134M,includes10%contingency
BetweenUS$400/ozandUS$450/ozgold

Beforeroyalty,assumessilverbyproductcreditatUS$13/oz

Page3

TheBanHouayxaigoldsilverdepositislocatedapproximately25kmwestofthePhuKham
CopperGoldOperationandtheminingequipmentwillbesimilartotheexistingfleetatPhu
Khamensuringstandardisationofmaintenancecomponentsandproceduresbetweenthetwo
sites.
Majorearthworks,inpreparationforcampconstructionandinitialcivilworks,areunderwayat
BanHouayxaifollowingGovernmentofLaosapprovalfortheseworkstobecompletedbefore
onsetofthe2010wetseason.Attheendofthequarter,constructionofthenewnorthern
accessroadandsiteworksfortheprocessplantandcampsitewereallmorethan60%
complete.CommencementofmajorconstructionworkandoperationsissubjecttoGovernment
ofLaosacceptanceoftheEnvironmentalandSocialImpactAssessment(ESIA).ThedraftESIAis
scheduledtobelodgedinApril.
TheBanHouayxaidepositremainsopenatdepthandtothewest.Furtherresource
developmentdrillingisaimedatdelineatingadditionalnearsurfaceoxidemineralisation,and
upgradingtheresourcecategorisationofdeeperprimarymineralisationwiththetargetof
extendingtheminelifebeyondtenyears.Significantintersectionsfromthecurrentdrill
programareincludedinTable4andincluded:

DrillholeHDD143intersected52mat2.0g/tgoldand3.9g/tsilverfromsurface,and
4mat6.1g/tgoldand9.5g/tsilverfrom189m

DrillholeHDD147intersected5mat19.5g/tgoldand16.4g/tsilverfrom165m

DrillholeHDD156intersected51mat1.7g/tgoldand53.5g/tsilverfrom98m

DrillholeHDD158intersected31mat2.7g/tgoldand72.1g/tsilverfrom141m

PhuKhamOperations,Laos
During2010,PanAustwillcommenceareviewofthePhuKhamCopperGoldOperationto
determinetheoptimumapproachtoexpandingproduction.Thereviewwillbebasedon
operatingexperiencetodateandwillconsiderpreviousstudiestoexpandprocessingratesfrom
12Mtpato16Mtpaandoptionstorecoveradditionalcopperandgoldfromfurtherprocessingof
theexistingtailingsstream.Thereviewwillhavetheobjectiveofmaintainingannualcopper
productionasoreheadgradesdecline(identifiedascommencingin2012underthecurrent
mineplan).
IncadeOroCopperGoldProject,Chile
PanAusthasmadeabindingoffertoCorporacinNacionaldelCobredeChile(Codelco)for
PanAusttoacquireamajorityinterestintheChileanregisteredcompanyIncadeOroS.A.,which,
followingarestructureofCodelcosubsidiarieswillowntheIncadeOroCopperGoldProject.
TheProjectincludesanestimatedtotalcombinedIndicatedandInferredsulphideMineral
Resourceof259milliontonnesgrading0.46%copperand0.13g/tgold(Table5).Theacquisition
willfitwellwithPanAustscorporatestrategyforgrowthandrepresentsanexcellent
opportunitytoestablishabusinessinoneoftheworldsmostattractivecopperminingregions.
TheBoardofdirectorsofCodelcohaspassedaresolutionrecommendingtheacceptanceof
PanAustsoffer.UnderChileanlaw,theofferissubjecttoapprovalbyPresidentialDecreeandit
isanticipatedthatthePresidentoftheRepublicofChilewillconsidertheproposalduringthe
nextfewmonths.

Page4

TheIncadeOroprefeasibilitystudy,scheduledforcompletioninmid2010,hasconfirmedthe
potentialforaconventionalopenpitminingandflotationoperationtosupportannual
productionofapproximately50,000tofcopperand40,000ozofgoldinconcentrateata
competitivecashcostandoveraplustenyearminelife.Inaddition,theprefeasibilitystudyis
evaluatingthepotentialofoxidemineralisationthatoverlaysthesulphideresourcetosupporta
heapleachSXEWoperation,andwillalsoevaluatethepotentialtoproduceamolybdenum
concentrate.
Oncetheprefeasibilitystudyresultshavebeenreviewed,thefocusforIncadeOroS.A.willbe
thecompletionofafeasibilitystudyontheProjectoverthefollowing12to18months.
TheIncadeOrodepositisatypicaloxidetransitionalprimaryzonedAndeanstyleporphyry
coppergolddepositandislocatednearthetownofIncadeOro(goldoftheIncas,population
ofapproximately500),intheprovinceofChaaral,RegionIIIofAtacama,Chile(Figure1).
PanAustsinterestinIncadeOroS.A.willbeheldthrougha90%interestinPanAustMinera,the
remaining10%beingheldbyanindependentAustralianprivatecompany,TheMineraGroup.
PanAustMinerawillholda66%interestinIncadeOroS.A.(givingPanAusta59.4%beneficial
interest)andCodelcowillretaina34%interest.
PanAustMinerawillinitiallyinvestUS$45millionofequityintoIncadeOroS.A.toacquire66%
ofthecompanyofwhich:US$23millionwillbepaidtoacquirestudydataandthemajority
interest;US$10millionwillbeallocatedtofundafeasibilitystudyontheIncadeOroProject;
andUS$12millionwillberetainedascashtosupportgrowthinitiativesandinitialdevelopment
costsfortheProject.IncadeOroS.A.willevaluateothercopperminingassetsinChilefor
acquisition,includingcopperassetscurrentlyownedbyCodelco.

Figure1:LocationofIncadeOro

Page5

PuthepCopperProject,Thailand5
Thefeasibilitystudycontinuedduringthequarter.Preliminaryleachtestworkhasconfirmed
coppervatleachingasthepreferredprocessingoptionfornearsurfacechalcocite
mineralisation.PanAustistargetingaprojectwithanannualproductionrateof25,000tto
30,000tofcathodecopperoveraneightyearminelife.Itisanticipatedthatfurthercopper
leachtestworkwillbeundertakenin2010.

Exploration
Regionalexplorationactivitiesduringthequartercomprisedreconnaissanceworkandsoil
samplingatvariousprospectswithintheCompanys2,636km2ContractAreainLaos.The
ContractAreaisunderexploredandishighlyprospectiveforcopperandgold,offeringexcellent
potentialforthediscoveryofsignificantnewresourcesasthebasisfororganicgrowth.
Drillingprogramscontinuedduringthequarterathighprioritytargets:thePhonsavanCopper
ProjectinthenorthernpartoftheContractArea,andtheBanPhonxaiprospectlocated
approximately25kmnorthwestofPhuKham.
ThePhonsavanCopperProjectcomprisesthreediscretedepositsKTL,Tharkhekand
BohrThonglocatedwithin10kmofeachotherandclosetoexistingroadandpower
infrastructure.Atwoyearresourcedevelopmentprogram,whichwillbecompletedinseveral
phases,isunderwaywithaninitialfocusontheKTLandTharkhekdeposits.AtTharkhek,a
4,850mdrillprogramcommencedduringthequarteraimedatextendingthelimitofknown
mineralisationandthetestingofsoilgeochemistryandgeophysicaltargetsinareaswithwhere
hasbeennopreviousdrilling.DrillingattheKTLdepositcontinuedthroughthequarteraspart
ofa6,750mdrillprogram.AttheendofMarch,bothdrillprogramswerenearingcompletion
andplanningforfollowupdrillprogramswasunderway.Significantintersectionsduringthe
quarterarepresentedinTable6andincluded:
KTL

DrillholeKDD040intersected42mat0.69%copper,0.19g/tgold,3.5g/tsilverand
0.006%molybdenumfromadepthof160m

DrillholeKDD044intersected50mat0.95%copper,0.38g/tgoldand2.8g/tsilverfroma
depthof146m

Tharkhek

DrillholeTKD020intersected20mat1.30%copper,0.03g/tgoldand11.3g/tsilverfroma
depthof284m

TheBanPhonxaiCopperGoldProspectisdefinedbythelargest(6kmx3km)soilanomaly
discoveredtodateintheContractArea.Theanomalyrepresentsanexcellenttargetfor
porphyrystylemineralisation.Scoutdrillingcontinuedduringthequarterwitha3,400m
programfocusedinthenorthernareaofthecopperinsoilanomalyandtoprovidebaseline
geologicalinterpretationdata.

PanAustwillearna51%interestinPuthepuponcompletingafeasibilitystudyonthePUT1depositandhasfurtheroptionsto
acquireatotal60%to70%interest

Page6

Sustainability
Safety
TherewerenoLostTimeInjuries(LTI)recordedduringthequarter.TheLTIfrequencyrate(LTIs
permillionmanhours)ona12monthrollingaveragebasisat31March2010was0.3.
Environment
Therewerenoreportableenvironmentalincidentsduringthequarter.
Training
AnimportantmilestonewasachievedduringthequarterwiththefirstgroupofPhuKhamtrade
traineessuccessfullypassingtheLaoMinistryofEducationpracticalandtheoryexaminations,a
recognisedqualificationinLaos,12monthsafterenteringtheworkforce.
Economicandsocialcontribution
PanAustiscommittedtothehigheststandardsofcorporatecitizenshipthroughcontributingto
thefuturesocioeconomicsuccessofLaos,andinparticular,ongoingdevelopmentinthe
communitieswithinwhichtheCompanyoperates.
AttheAnnualSustainabilityAwardsofthe2010AsiaMiningCongressinSingapore,PanAust
receivedtheawardforBestCommunityDevelopmentInitiative.Theawardwasinrecognitionof
PanAustsLivelihoodImprovementProgramwhichisdesignedtoassistthesustainable
developmentofthecommunitiesaroundthePhuKhamOperationinLaosthroughtrainingof
localvillagersandmicrofinancingvillagebasedagriculturalbusinessesthatnowsupply40%of
thefoodrequirementsofthePhuKhamcampandprovidecashincomeanddietdiversification
forlocalvillages.
ThedirecteconomicvaluegeneratedthroughPanAustsoperationsincludesemployeewages
andbenefits,paymentstolocalsuppliers,taxes,royaltiesandcommunityinvestmentsthrougha
CommunityDevelopmentFund.
LocalCommunityProjects,Laos
InthevicinityofPhuKham,PanAustcontinuestoadvanceanumberofcommunity
developmentprojectsmainlyintheneighbouringvillagesofNamMoandNamGnone.
Education,health,infrastructureandbusinessdevelopmentarethemainfocus,withprojects
progressedinfullconsultationwithlocalcommunityandgovernment.
Activitiesforthequarterincluded:

ConstructionofacommunitycentreattheNamGnonevillagewascompleted

PreparationswerefinalisedfortheconstructionofacommunitycentreattheNamMo
village

Sealingoftheaccessroadthroughallvillagesalongtheconcentratehaulageroute
commenced

Page7

Corporate
At31March2010,theCompanyhadcashofUS$91.5million,projectdebtofUS$53.7million
andamobileequipmentleasefacilityofUS$36.9million.
Copperpriceexposure
PanAustscurrenthedgingpolicyseekstomaximisetheCompanysexposuretotheprevailing
copperpricebutprotecttheCompanyagainstneartermsharpfallsinthecopperpriceand
revenuelossoverthequotationperiodonprovisionallypricedshipments.
TheCompanymanagesthecopperprovisionalpriceriskonsalescontracts(overthequotational
period)withbankhedgingfacilitiesandneartermproduction(upto12months)withamixture
offixedpriceagreementsestablishedlastyearwithcoppertradingcompaniesandputoptions.
Atthedateofthisreport,PanAusthas8,000tofcopperunderfixedpriceagreements,ofwhich,
6,000tatanaveragepriceofUS$6,156/t(US$2.79/lb)isdueforsettlementinthecurrent
quarter,withtheremaining2,000tatUS$7,438(US$3.37)duetobeexecutedinJuly.
PanAustalsohasputoptions(asprotectionagainstpotentialdownsidecopperpriceriskon
futureproduction)over2,500tofcopperexecutableeachmonthtoMarch2011atanaverage
strikeofUS$5,543/t(US$2.51/lb).
Goldpricehedging
PanAusthasalimitedamountofgoldhedginginplace.Goldpricehedgingwasarequirement
underthetermsofthePhuKhamprojectdebtfacility.Thefollowinggoldhedgingpositions
remainedat31March2010:

Goldforwardsalestotalling48,319ozbetween2010and2013atescalatingprices
betweenUS$771/ozandUS$858/oz

Goldputoptionspurchasedonadeferredpremiumbasiscovering65,675ozofgoldata
strikepriceofUS$700/ozandexecutablebetween2010and2013.

Committedgoldhedgesrepresentlessthan25%oftheanticipatedPhuKhamgoldproduction
overthatperiod.
IssuedCapital
TheissuedcapitaloftheCompanyat31March2010comprised:
2,933,053,479

36,580,000

19,414,305

Ordinaryfullypaidshares
Unlistedoptions
Unlistedsharerights

Proposed2010reportingcalendar:

22Jul2010

27Aug2010 Junehalf2010financialresults

27Oct2010 Septemberquarter2010report

Junequarter2010report

Datesareprovisionalandremainsubjecttoconfirmation.

Page8

Appendix5Breporting
InApril2010,ASXconfirmedthatthePanAustindustryclassificationforreportingpurposeshad
beenamendedtoMining/OilProductionCompanywitheffectfrom1April2010.The
classificationbetterreflectsPanAustsstatusasasignificantcopperandgoldproducer.
Accordingly,PanAustwillnolongerberequiredtoprovideanAppendix5B(Miningexploration
entityquarterlyreport)asrequiredunderASXlistingrule5.3.TheaccompanyingAppendix5B
forthequarterended31March2010willbethefinaloneprovidedtothemarket.
PanAustwillcontinuetoreportitsactivitiesquarterlyandfinancialresultsonahalfyearandfull
yearbasis.
Forfurtherinformationcontact:

Directors
GarryHounsell
GaryStafford
GeoffBillard
AndrewDaley
GeoffHandley
NerolieWithnall
ZezhongLi

NonexecutiveChairman
ManagingDirector
NonexecutiveDirector
NonexecutiveDirector
NonexecutiveDirector
NonexecutiveDirector
NonexecutiveDirector

Registeredandprincipaloffice
POBox3468,SouthBrisbaneQld4101
Telephone:
(07)31172000
(07)38464899
Facsimile:

SecuritiesExchangeListing
AustralianSecuritiesExchangeCode:PNA
PanAustisaconstituentoftheS&P/ASX200
Index.

AllanRyan
InvestorRelationsManager
NatalieWhale
CommunicationsManager
PanAustLimited
POBox3468
SouthBrisbaneQld4101
Telephone:
(07)31172000
Facsimile:
(07)38464899
Email:
info@panaust.com.au
Website:
www.panaust.com.au

Shareholderenquiriesto:
ComputershareRegistryServices
POBox523,BrisbaneQld4001
Telephone:
1300552270
Facsimile:
(07)32299860
Website:
www.computershare.com.au

CompetentPersonStatement
ThedatainthisreportthatrelatestoexplorationresultsfortheBanHouayxaiandPhonsavanProjectsinLaos,and
theMineralResourcesfortheIncadeOroCopperGoldProjectinChilearebasedoninformationreviewedbyMr
DanielBrostwhoisaMemberoftheAustralasianInstituteofMiningandMetallurgy.
MrBrostisafulltimeemployeeofPanAustLimited.MrBrosthassufficientexperiencerelevanttothestyleof
mineralisationandtypeofdepositunderconsiderationandtotheactivitywhichheisundertakingtoqualifyasa
CompetentPersonasdefinedinthe2004EditionoftheAustralasianCodeforReportingofExplorationResults,
MineralResourcesandOreReserves.MrBrostconsentstotheinclusioninthereportoftheexplorationresultsand
MineralResourcesintheformandcontextinwhichtheyappear.
ForwardLookingStatements
ThisannouncementincludescertainForwardLookingStatements.Allstatements,otherthanstatementsof
historicalfact,includedherein,includingwithoutlimitation,statementsregardingproductionandcost
performances,potentialmineralisation,mineralresources,explorationresultsandfutureexpansionplansand
developmentobjectivesofPanAustLimitedareforwardlookingstatementsthatinvolvevariousrisksand
uncertainties.Therecanbenoassurancethatsuchstatementswillprovetobeaccurateandactualresultsand
futureeventscoulddiffermateriallyfromthoseanticipatedinsuchstatements.

Page9

Attachment
Table2:Productionstatistics
PhuKhamOperations

Units

3months
to
31Mar2010

Totalmaterialmined

6,664,205

Coppergoldoremined

2,506,714

Oremilled

2,985,348

Copperheadgrade

0.79

Goldheadgrade

g/t

0.34

Silverheadgrade

g/t

4.00

Concentrateproduced

dmt

64,931

Copperinconcentrate

16,005

Goldinconcentrate

oz

13,704

Silverinconcentrate

oz

118,119

Goldindor(HeapLeach)

oz

2,394

Copperrecovery

68.0

Table3:Productioncosts(US$/lbcopper)
PhuKhamCopperGoldOperation

3months
to
31Mar2010

Miningcost

0.36

Processingcost

0.48

General&Administration

0.20

Totalonsiteoperatingcosts

1.04

Transporthandlingandmarketing

0.25

Concentratetreatmentandrefining

0.10

Totaloffsiteoperatingcosts

0.35

Deductpreciousmetalcredits

0.59

Totaldirectoperatingcosts(C1cashcost)

0.80

Royalty

0.18

Depreciationandamortisation

0.38

Totalcosts

1.36

Averagecopperpricerealisedforsalesduringtheperiod
(afterhedging)

3.23

Notes:
Costsarebasedonpayablecopperinconcentrateproduced
Mayincludeminorcomputationaldiscrepanciesduetorounding

Page10

Table4:BanHouayxaiGoldSilverProject;drillintersectionsfromresourceextensionandinfill
program
HoleNo.
Depthofhole
Orientation

From
(m)

Interval
(m)

Gold
Grade
(g/t)

HDD142
204.7m
60to180

0.0
20.0
80.0
149.0
161.0
193.0

3.0
51.0
8.0
4.0
5.0
3.0

0.4
0.6
0.3
0.3
0.7
0.3

0.3
3.2
11.4
4.3
3.1
1.0

HDD143
206.6m
60to180

0.0
68.0
116.0
125.0
189.0

52.0
17.0
4.0
3.0
4.0

2.0
0.8
0.4
0.4
6.1

3.9
9.4
6.3
3.5
9.5

HDD147
197.3m
60to180
HDD148
219.3m
60to180

165.0
175.0

5.0
22.3

19.5
0.6

16.4
6.7

0.0
14.0
50.0
72.0
85.0
112.0
144.0

8.0
31.0
5.0
8.0
3.0
16.0
4.0

0.6
0.4
0.3
0.7
0.4
0.4
0.4

1.3
2.8
9.1
8.1
5.1
2.2
1.7

38.0
89.0

7.0
12.0

0.6
1.2

0.3
26.6

15.0
33.0
42.0
56.0
98.0
167.0
254.0

13.0
3.0
8.0
16.0
51.0
9.0
10.0

0.3
0.4
0.5
0.9
1.7
0.5
0.3

1.1
1.1
2.1
8.8
53.5
5.4
21.0

11.0
56.0
93.0
141.0
238.0

21.0
16.0
5.0
31.0
7.0

0.4
0.4
0.8
2.7
0.8

0.8
2.4
13.9
72.1
2.0

HDD150
224.5m
60to180
HDD156
354.4m
60to180

HDD158
302.2m
60to180

Silver
Grade
(g/t)

Comments

Holeendedin
mineralisation

Intersectiongradesaredownholelengthweightedcalculationsusinga0.3g/tgoldcutoffandamaximumsubgradeinterval
of4m.

Page11

Table5:IncadeOrosulphideMineralResources(0.3%coppercutoff)
Category

Mt

Copper
(%)

Gold
(g/t)

Molybdenum
(%)

Supergene

Inferred

10.2

1.33

0.13

0.005

Primary

Indicated

180.5

0.45

0.15

0.012

Inferred

68.3

0.35

0.09

0.010

Subtotal

248.8

0.42

0.13

0.011

TOTAL

259.0

0.46

0.13

0.011

Combined

Table6:PhonsavanCopperProject;significantdrillintersections
HoleNo.
Depthofhole
Orientation

Copper
Grade
(%)

Gold
Grade
(g/t)

Silver
Grade
(g/t)

Molybdenum
Grade
(%)

From
(m)

Interval
(m)

75.6
104.0
124.0

16.4
12.0
6.0

0.54
0.34
0.30

0.33
0.06
0.10

8.3
1.7
1.7

44.0

12.0

0.36

0.14

2.9

144.0

14.0

0.40

0.13

2.6

80.0
96.0
146.0

8.0
6.0
50.0

0.30
0.43
0.95

0.27
0.39
0.38

1.9
3.4
2.8

52.0
160.0

40.0
42.0

0.38
0.69

0.19
0.19

2.9
3.5

0.009
0.006

46.0
86.0

16.0
10.0

0.44
0.41

0.2
0.4

2.1
2.8

0.010
0.012

284.0

20.0

1.30

0.03

11.3

KTLdeposit:
KDD003
235.9m
60to360
KDD004
236.0m
60to360
KDD030
203.2m
70to360
KDD040
261.7m
55to360
KDD042
397.2m
65to360
KDD044
215.7m
60to360
Tharkhekdeposit:
TKD020
436.4m
60to180

Intersectiongradesaredownholelengthweightedcalculationsusinga0.3%coppercutoffandamaximumsubgradeinterval
of4m.

Page12

Appendix 5B
Mining exploration entity quarterly report
Rule 5.3

Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98.

Name of entity

PANAUST LIMITED
ACN or ARBN

Quarter ended (current quarter)

011 065 160

MARCH 2010

Consolidated statement of cash flows

1.1

Receipts from product sales1 and related debtors

122,630

Year to date
(3 months)
US$000
122,630

1.2

Payments for

(a) exploration and evaluation

(b) development/tailings storage
(c) production2
(d) administration3
Dividends received
Interest and other items of a similar nature received
Interest and other costs of finance paid4
Income taxes paid
Other deposits

(4,387)
(17,738)
(57,391)
(11,709)

(4,387)
(17,738)
(57,391)
(11,709)

63
(7,617)
-

63
(7,617)
-

Net Operating Cash Flows

23,851

23,851

Cash flows related to investing activities

Payment for purchases of:
(a)prospects
(b)equity investments
(c) other fixed assets
Proceeds from sale of:
(a)prospects
(b)equity investments
(c)other fixed assets
Loans to other entities
Loans repaid by other entities
Other (provide details if material)

(186)
(4,104)
(5,000)

(186)
(4,104)
(5,000)-

Net investing cash flows

(9,290)

(9,290)

Cash flows related to operating activities

1.3
1.4
1.5
1.6
1.7

1.8

1.9

1.10
1.11
1.12

Current quarter
US$000

1 Paymetal basis
2 Includes treatment and refining charges
3 Includes royalties
4 Includes put option premium payments

Appendix 5B Page 1

Appendix 5B
Mining exploration entity quarterly report
1.13

Total operating and investing cash flows (carried

forward)

14,560

14,560

(11,235)
(11,235)

(11,235)
(11,235)

Net increase (decrease) in cash held

3,325

3,325

1.20
1.21

Cash at beginning of quarter/year to date

Exchange rate adjustments to item 1.20

1.22

Cash at end of quarter

88,203
91,528

88,203
91,528

1.14
1.15
1.16
1.17
1.18
1.19

Cash flows related to financing activities

Proceeds from issues of shares, options, etc.
Proceeds from sale of forfeited shares
Proceeds from borrowings
Repayment of borrowings
Dividends paid
Other
Net financing cash flows

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the
related entities
1.23

Aggregate amount of payments to the parties included in item 1.2

1.24

Aggregate amount of loans to the parties included in item 1.10

1.25

Explanation necessary for an understanding of the transactions

Current quarter
US$'000
772
-

Amounts represented in 1.12 relates to the initial deposit of US$5m in relation to the binding offer to
Corporacin Nacional del Cobre de Chile (Codelco) for PanAust to acquire a majority interest in the Chilean
registered company Inca de Oro S.A.

Non-cash financing and investing activities

2.1

Details of financing and investing transactions which have had a material effect on consolidated assets and
liabilities but did not involve cash flows
Amounts recorded under section 1.17 for the quarter ended represent the Project Facility repayments (US$9.3
million) and the quarterly finance lease repayment (US$1.930 million).

2.2

Details of outlays made by other entities to establish or increase their share in projects in which the reporting
entity has an interest

Appendix 5B Page 2

Appendix 5B
Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1

(a) Loan facilities

(b) Equipment Lease Facilities

Amount available
US$000
$53,695
$36,918

3.2

Credit standby arrangements

Amount used
US$000
$53,695
$36,918
-

Estimated cash outflows for next quarter

US$000
4,000

4.1

Exploration and evaluation

4.2

Development

27,000

Total

31,000

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in
the consolidated statement of cash flows) to the related items
in the accounts is as follows.
5.1

Cash on hand and at bank

5.2

Deposits at call

5.3

Bank overdraft

5.4

Other (provide details)

Current quarter
US$000

Previous quarter
US$000

61,491

48,203

30,037

40,000

91,528

88,203

Total: cash at end of quarter (item 1.22)

Changes in interests in mining tenements

Tenement
reference
6.1

Interests in mining
tenements relinquished,
reduced or lapsed

6.2

Interests in mining
tenements acquired or
increased

Nature of interest
(note (2))

Interest at
beginning of
quarter

Interest at
end of
quarter

NIL

Appendix 5B Page 3

Appendix 5B
Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

7.1

7.2

7.3
7.4

7.5

7.6

7.7

7.8
7.9

7.10
7.11
7.12

Total number

Number quoted

Issue price per

security (see note
3) (cents)

Amount paid up per

security (see note 3)
(cents)

2,933,053,479

2,933,053,479

NA

NA

533,240

533,240

Nil

Nil

55,994,305

Exercise price
See Attached

Expiry date
See Attached

1,814,895

See Attached

See Attached

533,240

As per 7.4

As per 7.4

1,447,337

Preference

+securities

(description)
Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns of
capital, buy-backs,
redemptions
+Ordinary
securities
Changes during
quarter
(a) Increases
through issues

(b) Decreases
through returns of
capital, buy-backs
+Convertible debt
securities
(description)
Changes during
quarter
(a) Increases
through issues
(b) Decreases
through securities
matured, converted
Options/Share
Rights (description
and conversion
factor)
Issued during
quarter
Exercised during
quarter
Expired during
quarter
Debentures
(totals only)
Unsecured notes
(totals only)

Appendix 5B Page 4

Appendix 5B
Mining exploration entity quarterly report

Compliance statement
1

This statement has been prepared under accounting policies which comply with
accounting standards as defined in the Corporations Law or other standards acceptable
to ASX (see note 4).

This statement does give a true and fair view of the matters disclosed.

Sign here:

............................................................ Date: 22 April 2010

(Company Secretary)

Print name:

.....Paul Scarr....................................................

Notes
1

The quarterly report provides a basis for informing the market how the entitys activities
have been financed for the past quarter and the effect on its cash position. An entity
wanting to disclose additional information is encouraged to do so, in a note or notes
attached to this report.

The Nature of interest (items 6.1 and 6.2) includes options in respect of interests in
mining tenements acquired, exercised or lapsed during the reporting period. If the
entity is involved in a joint venture agreement and there are conditions precedent which
will change its percentage interest in a mining tenement, it should disclose the change of
percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

Issued and quoted securities The issue price and amount paid up is not required in
items 7.1 and 7.3 for fully paid securities.

The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries
and AASB 1026: Statement of Cash Flows apply to this report.

Accounting Standards ASX will accept, for example, the use of International
Accounting Standards for foreign entities. If the standards used do not address a topic,
the Australian standard on that topic (if any) must be complied with.

== == == == ==

Appendix 5B Page 5

Appendix 5B
Mining exploration entity quarterly report

PANAUST LIMITED
QUARTERLY REPORT
FOR THE QUARTER ENDING 31 MARCH 2010
ISSUED OPTIONS
AT 31 MARCH 2010
NUMBER ISSUED

EXERCISE PRICE
CENTS

With Outstanding Performance Conditions

750,000
1,980,000
4,400,000
4,200,000
17,200,000

EXPIRY DATE

81.00
88.00
88.00
30.50
42.12

07/10/2012
31/12/2012
31/12/2012
31/12/2013
31/12/2013

With No Outstanding Performance Conditions

8,050,000
38.00

29/02/2012

36,580,000

ISSUED EMPLOYEE SHARE RIGHTS

AT 31 MARCH 2010
NUMBER ISSUED

EXERCISE PRICE
CENTS

EXPIRY DATE

With Performance Conditions

1,625,000
1,845,000
29,000
202,703
10,180,000
218,447

NIL
NIL
NIL
NIL
NIL
NIL

31/03/2017
31/12/2017
30/06/2018
30/09/2018
31/12/2018
01/09/2019

With No Performance Conditions

5,314,155

NIL

Various 2012 -2019

19,414,305

Appendix 5B Page 6