Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Patagonia Gold Granted Final Permits For Lomada Heap Leach

Patagonia Gold (LON:PGD) (TSE:PAT) has been granted its full and final permit for the Lomada de Leiva gold heap leach in Santa Cruz, Argentina.

Full production from the main heap leach is expected by the second quarter of 2013, with a forecast production of 14,000 ounces gold for the second half of the year. Target annual production from the Lomada project is scheduled at 21,000 ounces gold.

Carlos Miguens, Patagonia's deputy chairman said: ¨We are very pleased to have achieved this important milestone for our company.

"We are now ready to commence the construction of the main heap leach with the aim of achieving full production by early Q2 2013.¨

The Lomada heap leach is one of Patagonia's three main projects. Its flagship is the Cap-Oeste project. There is the nearby COSE ( Cap-Oeste Southeast) project and Lomada heap, which is expected to begin generating freecash flow by 2013.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.