Gold producer PanAust Ltd has begun processing ore at its newest mine ahead of first production in the coming fortnight.
Shares in the company were up 14 cents, or 4.61 per cent, at $3.18 at 1217 AEST.
PanAust on Monday said it had started processing gold ore at the $US195 million ($A187.36 million) Ban Houayxai operation, which will be its second mine behind Phu Kham, both in Laos.
The first bar of gold-silver dore (with about 90 per cent gold or silver content) is expected to be poured within the next two weeks, the company said in a statement.
PanAust is targeting annual production at Ban Houayxai of about 100,000 ounces (oz) of gold and 700,000oz of silver.
It expects to produce about 85,000oz of gold this year at a cost of between $US550 and US$600 per oz after credits for about 200,000oz of silver.
The forecast cost would compare favourably to the current spot gold price in Sydney of about $US1,670/oz.
“At prevailing gold and silver prices, Ban Houayxai is expected to achieve payback in less than two years and provide a significant boost to PanAust’s cashflow,” the miner said.
