PanTerra Gold (ASX: PGI) has said that the expected improvement to the efficiency of the oxidation process at the company's Las Lagunas project is being achieved, following the replacement of undersized agitators to the five Albion oxidation tanks.
With this, gold and silver recoveries are expected to increase significantly.
Since completion of the upgrade on the 4th July 2013, adjustments have been progressively made to increase power draw to each agitator and to decrease slurry densities in order to maximise oxidation of the refractory ore before entry to the CIL circuit.
Residual sulphide content in the slurry has dropped from 7.5% on 9 July 2013 to 4.3% on 15 July 2013 and will progressively decrease toward the target of 2.5% over the next week with further plant optimisation.
The project involves the reprocessing of high grade (3.76g/t gold and 38.62g/t silver) refractory tailings from the Pueblo Viejo mine through an Albion/CIL processing plant.
PanTerra is forecast to recover around 385,000 gold ounces and 3,212,000 silver ounces based on pilot plant testwork and a progressive ramp up of throughput and recoveries.
Gold price falls not impacting PanTerra
Recent falls in gold price will not affect profitability for the next two years as all production during this period will be sold into the existing hedge book at around US$1300 per ounce. Subsequent sales will be at the then prevailing spot price.
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