PRESS RELEASE: Mining companies are increasingly looking for ways to realise new cost efficiencies and achieve the safest most productive sites. One way to realise cost efficiencies is to combine drilling contracts so the mine is only managing one drilling contractor and has the opportunity to negotiate better rates for different drilling projects.

Boart Longyear currently works with PanAust’s Lao-registered company, Phu Bia Mining, for grade control, horizontal drilling, surface coring, reverse circulation drilling, piezometer and water bore work at the company’s Phu Kham copper-gold operation. Phu Kham is located within PanAust's Phu Bia mining contract area in Laos, approximately 200km from the capital city, Vientiane. Phu Kham is PanAust's flagship operation and the significant cash flow generated by the Phu Kham operation has supported PanAust’s growth while contributing to a strong balance sheet.

The new contract includes all drilling at both Phu Kham and the nearby Ban Houayxai gold-silver operation. Ban Houayxai is located approximately 25km west of Phu Kham and comprises an open-pit mine feeding ore to a conventional 4Mt/y carbon in leach (CIL) and gravity recovery process plant.

Phu Bia Mining was seeking a partner that would enable it to safely achieve the highest efficiency. Boart Longyear has the safety track record, the technical expertise, proven results and the necessary crews and rigs to deliver for Phu Bia Mining and accepted productivity metrics as part of the agreement.

Boart Longyear operates a large fleet of rigs at both sites and provides a variety of drilling techniques, including diamond coring, reverse circulation and rigs for mine dewatering both large hole diameter water bores and horizontal drainage holes.

Kenneth Reid, Boart Longyear country manager, said: “This drilling agreement to do the drilling work at Phu Bia Mining’s operations in Laos is a great opportunity to achieve greater cost efficiencies inaccessible with traditional contracting that typically engages multiple contractors. Boart Longyear has the infrastructure, expertise, and people, to deliver the safe metres that Phu Bia Mining is looking for. We are excited to partner with Phu Bia Mining and build on our great working relationship.”