PanTerra Gold (ASX: PGI) is focused on the Las Lagunas gold/silver project in the Dominican Republic, which is expected to produce about 69,000 ounces of gold and 630,000 ounces of silver annually.
PanTerra Gold: Gold and silver production on track for May at Pueblo ViejoA
23rd Apr 2012, 7:25 pm
(ASX: PGI) has completed construction of the process plant and dry commissioning for the company’s tailings retreatment project in the Dominican Republic.
The company is nearing production at the Las Lagunas Project, which involves the reprocessing of high grade gold and silver refractory tailings from the Pueblo Viejo mine, derived from open pit operations between 1992 and 1999.
Tailings feed at grades of 3.8 grams per tonne (g/t) gold and 38.6g/t silver will commence next month at about 30% of the stabilised production rate of 70,000 tonnes per month. The first gold pour is expected in May.
Design capacity of the plant should be reached four to six months, with monthly production of about 5,800 ounces of gold and 52,500 ounces of silver, for total production of 69,000 ounces of gold and 630,000 ounces of silver per annum.
In March, PanTerra enhanced the economic forecast for Las Lagunas, confirming a profit sharing arrangement with the Government of the Dominican Republic.
Based on an average gold price of US$1400 per ounce for unhedged production, and a silver price of US$28 per ounce, over the 6.5 year project, the net present value is now forecast to be about US$272 million, at a 10% discount rate.
Operating costs are budgeted at about US$337 per ounce of gold equivalent.
Free cash flow to PanTerra from the project is expected to be around US$312 million.
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