Regardless of whether the estimated costs are around $11 mil or...

Regardless of whether the estimated costs are around $11 mil or more, what you’ve forgotten is they are targeting (Design capacity is expected to be monthly production of approximately 5,800 oz Au and 52,500 oz Ag) = Over $26 million a quarter under current hedge fund pricing, let alone excess sold on market at market price and or any subsequent gold price rise.

As I’ve indicated before whilst likely to achieve somewhere near stated target of around $337.00 an ounce, even if they were 25 % out it would still be only $450 an oz, do the same with their costs,i.e. increase them 25%), still achieves the same result/calculation, and still one of the lowest cost/high profit gold mines in the world. Like so many others, and I note ALK today announced mining approval and their costs are estimated to be $1,000 and oz.

Reason : (Sections of reports for reference and calculations below) :

30/12/2011 :

Per Quarterly Report

The Las Lagunas tailings dam holds a JORC Indicated Resource of 5.12mt of refractory tailings from the Pueblo Viejo mine, grading 3.8g/t Au and 38.6g/t Ag (621,000oz Au and 6,400,000oz Ag). Based on pilot plant test work, PanTerra Gold expects to extract 69,000oz Au and 630,000oz Ag per year from the tailings for approximately 6.5 years with the process plant operating in a steady state and production optimised.
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

And this has never varied from their original estimates back in April 2012, which also included the following :

Based on anticipated annual production of 69,000 oz gold and 632,000 oz silver for approximately 6.5 years, and after interest, royalties, Government profit share, and third party loan repayments, the project is forecast to generate total Free Cash Flow for PanTerra Gold over the life of the project of approximately US$312 million, at an average gold price of US$1400 per oz for the unhedged production (295,000 oz), and an average silver price of US$28 per oz.

And then : 31/7/2012
The Las Lagunas tailings dam holds a JORC Inferred Resource of 5.12mt of refractory tailings from the Pueblo Viejo mine, grading 3.8 g/t Au and 38.6 g/t Ag (621,000 oz Au and 6,400,000 oz Ag). PanTerra Gold expects to extract 69,000 oz Au and 630,000 oz Ag per year from the tailings
for 6.5 years at a current operating cost estimated to be approximately US$337 per oz Au equivalent. 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.

THIS WAS BASED ON THE FOLLOWING ESTIMATED FIGURES :
(Please note the monthly design capacity and current calculations following ) :

23/4/2012 :
PanTerra Gold Limited (ASX: PGI)
construction of the process plant for its tailings retreatment project in the Dominican Republic has been completed along with dry commissioning.
It is anticipated feed of high grade tailings (3.8gtAu38.6gt Ag)to the plant from the Pueblo Viejo mine will commence next month at about 30% of the stabilised production rate of 70,000tpm.

DESIGN CAPACITY is expected to be reached within four to six months after which monthly production of approximately 5,800 oz Au and 52,500 oz Ag should be achieved, at currently budgeted operating costs of around US$337 per oz Au equivalent (Gold Equivalent)

CALCULATIONS (Please check the maths)
Design Capacity 5,800 oz Au 52,500 oz Ag Per Month
X 3 (3 Months) 17,400 oz Au 157,500 oz Ag Per Quarter

Current Gold Price : $1,660.50 oz
Current Silver Price $ 31.26 oz
Gold Equivalent Price For Silver ($1,660.50 divided by $31.2 = 53.12)

Hence Divided Number Silver Ounces By 53.12 : The result then = Oz of Gold Equivalent

Ounces of Silver Per Quarter 157,500 Divide By 53.12 = 2,965.04 oz Gold Equivalent

Therefore Ounces of Gold Per Quarter 17,400
Add Oz Of Gold Equivalent Per Quarter 2,965

Total Of Gold/Gold Equivalent/Quarter 20,365 oz
Currently At (hedge price only $ 1,320 oz

Total Value Per Quarter $26,881,853
(OVER 26 MIL PER QUARTER).