short term trading week starting - 10th feb, page-122

Entry for STT list -FA & TA
4.7c
PGI, PanTerra Gold Limited (PGI) is a gold and silver producer focusing on the development of gold and silver properties in Latin America. PGI utilizes Xstrata Technology's Albion oxidation process for treatment of refractory sulphide ores. PGI activities are concentrated in the Dominican Republic.

Panterra Gold aims to establish itself as a gold and silver producer with a primary focus on Latin America. The company hopes to leverage off Xstrata’s technology (albion oxidation process) for the treatment of refractory sulphide ores. The process is designed to promote overall operational efficiencies. The company has already built up a portfolio of exploration concessions covering 300sqkm of copper/gold prospects in the Dominican Republic and Ecuador.

from recent quarterly report:

"Recoveries of gold in concentrate produced in the floatation circuit averaged 76.4% for the Quarter (October 74.4%, November 75%, December 79.3%) demonstrating continuing improvements due to ongoing flotation test work and optimisation. Silver recovery for the Quarter averaged 77.5%, with monthly recoveries of 74.9% in October, 75.6% in November and 81.2% in December."

"During the Quarter, 7,166 Oz Au and 64,073 oz. Ag were shipped to the refiner, an increase of approximately 20% for gold and 21% for silver over the previous Quarter."

"Gold production for CY2014 is anticipated to be approximately 45,000 oz. of gold and 372,000 oz. of silver, resulting in revenue of approximately US$64 million after
Government royalties. Operating costs should be maintained at approximately US$31 million for the year."

"The Company is currently undertaking a technical and economic review of their project expansion based on blending imported concentrate with concentrate produced at Las Lagunas, provisionally on a 2:1 basis. The average grade of this blended concentrate would be in the region of 30 g/t to 37 g/t Au, resulting in production of approximately 150,000 to 180,000 oz Au per annum at anticipated recoveries."

Even these blended grades at 150,000 oz Au per annum at $1,000 per oz is $150M per annum production.

We have increasing gold & silver production going forward.
We have increasing revenue as a result going forward.

Conclusion, PGI I beleive is dirt cheap at current prices.

DYOR as always & good luck.

Cheers

tela

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Analysis from proactive investors with link below:

PanTerra Gold (ASX:PGI) is focused on bringing the Las Lagunas gold/silver project in the Dominican Republic to nameplate production of (58,000 oz gold, 480,000 oz silver) by end of CY2014.

A technical review by Xstrata Technology focused was on improving recoveries completed in December 2013 and a key recommendation should result in increased gold and silver recoveries.

Key recommendations are that the project install an additional Albion oxidation tank, and insulate the five existing tanks to improve oxidation performance.

Issued Cap: 770M
Top 20: 42%
Market Cap: A$32M
Cash & Investments: A$5.9M
Project Debt: US$41M

Las Lagunas Project - Background

PGI is reprocessing high grade sulphide tailings from historic production at the Pueblo Viejo mine (recently redeveloped by Barrick) with the world’s first utilisation of the Albion oxidation process that was developed by Xstrata Technology for precious metals.

The Albion process oxidises sulphide ore, rendering gold and silver amenable to extraction by standard CIL processing.

Las Lagunas Project - Key Statistics:

- Original JORC Resource: 5.13Mt at 3.78 g/t gold, 38.6 g/t silver (620 koz Au, 6.4 Moz Ag)
- Remaining resource (31 December 2013): approximately 4Mt
- Current operating mine life to March 2019
- ~100,000 oz Au hedged at ~US$1,320/oz (Ag unhedged)
- Las Lagunas project pays no income tax, 25% profit share paid to Government from CY2016
- Government Au royalty: 3.2% of net revenue (no Ag royalty)

Las Lagunas Project - Xstrata Review

A technical review completed by Xstrata Technology was focused on improving recoveries completed in December 2013.

Key recommendations are that the project install an additional Albion oxidation tank, and insulate the five existing tanks to improve oxidation performance.

This should result in a significant increase in gold and silver recoveries.

The additional tank will be installed by mid-2014 at a cost of ~US$1.5 million.

Las Lagunas Project - Production Forecast:

For calendar year 2015, Las Lagunas is forecast to produce 58,000 ounces of gold and 480,000 ounces of silver.

This would bring in revenue of around US$86 million and an operating profit of US$55 million based on a cash cost of US$475 an ounce equivalent (AuEq). The all in cost was not released.

The significant production increase in CY2014 and CY2015 would result from the additional Albion oxidation tank on line from Q3 2014.

Las Lagunas Project - Upside

- Increase project life through additional feed sources
- Tailings dam has surplus capacity to extend project life by 15 years
- Prospects for feed sources being investigated in Dominican Republic, Canada, USA, Peru & Columbia
- Annual metal production would be determined by concentrate feed grade

Las Lagunas - Key Milestone Catalysts For Next 12 Months:

- Q1 Conclude negotiations with lenders to reschedule project loan repayments
- Q1 Complete & commission feed thickener
- Q2 Complete Albion circuit upgrade
- Q3 Commission upgraded Albion circuit and increase production

Exploration:

PGI has a fully funded exploration program from three exploration concessions totalling 24,580ha held in the Dominican Republic targeting refractory Au/Ag and polymetallic Cu/Au/Ag deposits. The concessions are underexplored with limited application of modern exploration techniques to date.

Analysis:

Achievement of key milestones is expected to increase gold production to 45,000 ounces in CY2014 and over 58,000 ounces in CY2015.

Silver production should increase to over 372,000 ounces in CY2014 and over 480,000 ounces in CY2015.

Now that PGI has done the hard yards and ensured the Las Lagunas plant is in operation, there are significant opportunities for PGI to:

- Identify and secure additional feed for Las Lagunas plant from the Dominican Republic as well as identify and secure additional feed from within the region which could be concentrated and shipped to Las Lagunas for processing.
- Identify and acquire stand alone projects where experience with refractory ore and Albion process give PanTerra Gold a competitive advantage.

Achieving milestones in the next 12 months would render PGI's current market value of $32 million as small change.

http://www.proactiveinvestors.com.au/companies/news/51852/panterra-gold-driving-higher-recoveries-production-at-las-lagunas-51852.htm