PanTerra Gold (ASX: PGI), formally known as EnviroGold, is a near term gold producer at its Las Lagunas project in the Dominican Republic with construction scheduled for completion in December 2011. The project has an expected life of seven years at an annual production rate of 65,000 ounces of gold and 600,000 ounces of silver.
PanTerra Gold is also active in Ecuador with the advanced Azuay Gold Mining project and the San Gerardo Gold Mining prospect. At the Azuay project, construction is targeted to commence in mid 2012.
PanTerra Gold’s new CEO to lead gold, silver operation at Las Lagunas
PanTerra Gold (ASX: PGI) has appointed Andrew Pooler as the company’s chief executive officer, responsible for leading the profitable operation of the company’s Las Lagunas gold and silver project in the Dominican Republic.
With a background in mining engineering and more than 25 years of experience at senior executive level with international mining companies, Pooler will also undertake the expansion of PanTerra’s management and development of new projects in South America.
Previous roles include responsibility for gold mines in Nevada, California and Chile for Amax Gold, vice president operations for Greenstone Resources with gold mines in Honduras, Nigaragua and Panama, and vice president operations for Pan American Silver Corporation.
His most recent role was chief operating officer for Abacus Mining and Exploration Corporation, with responsibility for conducting a feasibility study and planning for the proposed Ajax copper gold project in British Columbia.
While Pooler is based in Vancouver, Canada, he has extensive experience working in Latin America and speaks fluent Spanish. His appointment will be effective from July 1.
In a further board move, Brian Johnson has announced his intention to transition out of the role of executive chairman over the next 12 to 18 months. He said he will remain as non-executive chairman during the next phase of the company’s growth.
Las Lagunas production imminent
PanTerra is nearing cash flow at Las Lagunas, following the start of commissioning of the process plant in January, with the first gold pour expected in May.
The Las Lagunas project 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.
Las Lagunas is expected to produce about 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.
Free cash flow to PanTerra from the project is expected to be around US$312 million.
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