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  • PanTerra Gold's Production Of Gold Silver At Las Lagunas To Reach Design Targets 0 comments
    Feb 18, 2013 8:36 PM

    PanTerra Gold (ASX: PGI) has reported that operations at the company's Las Lagunas gold/silver project in the Dominican Republic continue to improve.

    Importantly - over the next two weeks the Albion oxidation circuit is expected to reach design levels, and the following two weeks should see CIL recoveries substantially improved.

    In the first half of February the company said that it is seeing plant feed, gold and silver grades, grinding circuit performance and flotation circuit recoveries now being close to meeting design targets.

    PanTerra had over $7.5 million in cash at the end of December 2012.

    Head grade exceeds target

    Over the past fortnight the head grade of plant feed has exceeded targets, with gold averaging 4.0g/t (target 3.8 g/t) and silver averaging 44.1g/t (target 38.6 g/t).

    Production expectations

    Las Lagunas is expected to produce about 69,000 ounces of gold and 630,000 ounces of silver annually, with the pilot plant testwork demonstrating expected recovery of 435,360 ounces of gold and nearly 4 million ounces of silver over a six and a half year mine life.

    This would allow PanTerra to generate income of around US$11 million per month, which equates to about US$132 million per annum based on a gold price of US$1,650 an ounce and silver of US$30 an ounce.

    Las Lagunas is being carried out under a profit sharing arrangement with the Dominican Government utilisingXstrata Technology's Albion oxidation process in conjunction with a standard CIL circuit.

    The Government will receive 25% of operating profits after the company has recovered its investment in the project. No income tax is payable on project profits.

    Sufficient capacity for 12 months of throughput

    During the final three months of 2012, PanTerra's excavator fleet moved 33,628m3 of sulphide tailings for the quarter and the dredge mined 129,043m3 for the period.

    Mining to stockpiles of all tailings material in the first Limb of the dam is near completion, with mining of the second Limb to commence in early 2013.

    On completion of the mining of Limb 1, the area will be able to accept placement of around 900,000 tonnes of reprocessed tailings, which is sufficient capacity for around 12 months of operations at planned throughput.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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