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PanTerra Gold's On Target For US$13-$14 Million Of Gold And Silver Shipments

PanTerra Gold (ASX: PGI) production of gold and silver from the Las Lagunas project in the Dominican Republic is on track for the June 2013 quarter with production valued at US$6.5 million - which has either been shipped to refiners, or is in the process.

Production is therefore on track to generate US$13 to US$14 million for the period.

PanTerra's production for the September quarter is expected to increase following next month's upgrade of the agitators in the Albion oxidation tanks.

The increase recovery of gold and silver in the CIL circuit will come from the new larger agitators which should significantly improve the efficiency of oxidation of the sulphide slurry.

September quarter revenue to jump

PanTerra said that it is anticipated that revenue for September quarter 2013 will be in the order of US$18 to US$20 million, which will then be followed by further increases in December quarter with continuing process optimisation.

All up operating costs including financing costs, royalties and head office overheads attributable to the project are running in the US$7.5 to US$8.5 million range per Quarter.

Las Lagunas

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.

In regards to the current resource, of the JORC Indicated 5.137 million tonnes of tailings originally stored in the Las Lagunas dam, 4.93 million tonnes remained to be processed over a six year period commencing at the start of this year.

This will lead to a recovery of 385,000 gold ounces and 3,212,000 silver ounces based on pilot plant testwork and a progressive ramp up of throughput and recoveries.