23rd Dec 2016 08:59
LONDON (Alliance News) - Patagonia Gold PLC on Friday trimmed its guidance for 2016 production from the Cap-Oeste gold project in Argentina but increased its total guidance for the project over its lifetime.
The company cut its production guidance for Cap-Oeste to 3,000 ounces of gold equivalent due to lower-than-anticipated initial leaching and percolation issues at the project. It then expects this to ramp up to 69,800 ounces equivalent in 2017.
While cutting the view for 2016, the group did increase its total production forecast for Cap-Oeste to 186,800 ounces of gold equivalent from 82,000 previously, and extended the life of mine to three from two years to July 2019.
Elsewhere, the company said a review has suggested the ability to extend the life of the Cap-Oeste heap leach pad by an additional 19 months, using ore from the adjacent COSE underground mine. Further work is now being undertaken on this, Patagonia said.
The firm added reverse circulation drilling has been completed on the Monte Leon site, designed to further investigate the potential of adding more oxide ore to the Cap-Oeste heap leach pad.
Shares in Patagonia were down 2.9% to 1.99 pence on Friday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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