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PanTerra Gold Closes In On Target Recoveries At Las Lagunas

PanTerra Gold (ASX: PGI) will trade higher on the news of improved recoveries from the Las Lagunas gold/silver project in the Dominican Republic.

PanTerra has hedged around 30% of total gold production at US$1320 per ounce.

Today the company has said that the performance of the Albion/CIL process plant has improved significantly following recent plant upgrades to the Albion circuit, and the introduction of highly activated carbon to the CIL circuit.

Recoveries of gold from both the flotation circuits and the CIL circuit are within 7% of target and trending upward. Recoveries of silver from the flotation circuit are within 4% of target and exceeding target from the CIL circuit.

The Las Lagunas project involves reprocessing 5.137 million tonnes of high grade refractory tailings at 3.8g/t gold and 38.6g/t silver from the Pueblo Viejo mine.

Pilot plant testwork has demonstrated expected recovery of 435,000 gold ounces at 2.6g/t and 3,955,000 silver ounces at 24.0g/t, over 6.5 year mine life utilising standard CIL plant together with Xstrata Technology's Albion oxidation process.

Hedging program in place

PanTerra has an extensive hedging program in place, with forward gold sales of 30% total gold production (126,000oz) effected at US$1320 per ounce as required by project lenders, with 107,000 ounces yet to be delivered.

The company has upside to a potential rise in the gold price as the balance of the production unhedged.

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