Panterra Gold (ASX:PGI) is growing in momentum, following increased investor awareness of the upside to its Las Lagunas refractory gold-silver deposit in the Dominican Republic.
Add to the positive sentiment towards Panterra are the fresh 6 month highs in gold and silver overnight; gold is now trading at more than US$1386 per ounce, and silver at over US$21.55.
Production is being increased at Las Lagunas towards targets and plans to import refractory concentrate has the potential to treble production, quadruple project life, and significantly reduce operating costs.
In turn, this could lead to the exploitation of stand-alone refractory deposits, with an initial focus on mining opportunities identified in North and South America.
The company has formally applied to the Dominican Government to permit the import of refractory concentrate, and to utilise the Government's tailings dam at Las Lagunas to store processed material.
Panterra shares have risen sharply recently, from $0.036 in early February to a high of $0.06 shortly thereafter, and are now consolidating around the $0.05 mark for a tidy 38% gain.
Although there is a sense there is more of that in store.
Panterra Gold is in a league of its own
Perseverance with the world-first application of the Albion oxidation process, backed by Xstrata Technology, in precious metal extraction from refractory ores shows more and more signs of the rewards ahead.
Large numbers of refractory gold and silver deposits known to exist world-wide are unable to be developed for a variety of reasons.
Many of these deposits, including several being investigated by Panterra, could produce concentrate with grades of around 45 g/t gold or more, and then be transported in shipping containers to permitted processing locations.
Blending 50g/t gold imported concentrate with 10g/t gold Las Lagunas concentrate is what could lead to a three-fold production increase, and substantially lower processing costs.
With gold and silver prices rising, and a decent chunk of its sales contracts locked in at much higher prices, Panterra Gold is a standout precious metals play.
Silver-specific investors will also become interested as a significant amount of its revenue is derived from silver, especially with the ability to extend mine life to 20 years and increase profit margins.
PanTerra can bring its experience and expertise in treating refractory deposits like those at Las Lagunas to other stand-alone refractory deposits, some of which are being examined now.
Identification and agreement over one or more of these deposits would be a "valuation step change" driver for Panterra to grow beyond its current market cap of around $35 million.
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