Ann: Production Update Las Lagunas Gold/Silver Pr, page-19

re: Ann: Production Update Las Lagunas Gold/S... Cut and paste
15/8/12

PanTerra Gold (ASX: PGI) is set to reap increased cash flows from a ramp-up in production at the company's Las Lagunas project in the Dominican Republic.

Already 40 kilos of gold silver doré has been forwarded to Swiss refiners in the first week of this month, with an additional 120 kilos this week, supported by a much larger 200kg batch forecast to be shipped before the end of August.

PanTerra anticipates that weekly production will be stabilised at around 380kg of doré in a couple of months.

Early bars of doré were running at around 30% gold and 70% silver but with improving silver recovery, more recent bars are assaying 11% gold and 89% silver with minimal impurities - as was expected from earlier pilot plant test work.

Importantly - the head grades of plant feed continue to reflect the expected JORC Resource grades of 3.8g/t gold and 38.6g/t silver, and operating costs appear to be within budget.

The Las Lagunas project is expected to produce about 69,000 ounces of gold and 630,000 ounces of silver annually, with the pilot plant testwork demonstrating expected recovery of 435,360 ounces of gold and nearly 4 million ounces of silver over a six and a half year mine life.

The current operating cost is estimated to be US$337 per gold ounce equivalent.

Technical and mechanical equipment issues encountered during the hot commissioning of the Albion/CIL process plant are progressively being overcome - but have resulted in delays to the ramp-up phase.


Profit sharing with Dominican Government

The project is being carried out under a profit sharing arrangement with the Dominican Government utilising Xstrata Technology’s Albion oxidation process in conjunction with a standard CIL circuit.

The Government will receive 25% of operating profits after the company has recovered its investment in the project. No income tax is payable on project profits.

http://www.proactiveinvestors.com.au/companies/news/32390/panterra-gold-ramps-up-gold-silver-dor-production-at-las-lagunas-32390.html