20th Mar 2014 08:57
LONDON (Alliance News) - Patagonia Gold PLC Thursday said nameplate production at its Lomada mine has reached 1,750 ounces of gold a month and it has now ordered all the machinery it will need to get the site up to 3,000 ounces a month.
It added that design work is now well advanced for the leach pad and plant at its Cap-Oeste heap leach project and results from a column test on oxide material from the site has shown excellent recovery results.
In a production update, the company said it has been producing an average of 1,807 ounces a month at Lomada for the last four months after it expanded the plant and leach production facility at the plant. It has now ordered two new hauling units and one excavator for its fleet at a cost of USD2.1 million, and said it won't need to make any more capital expenditure to hits its 3,000 ounces a month production target.
The results from the column test at Cap-Oeste recovered 76.9% of gold within the first 16 days and 33% of silver on an agglomerated product.
Both projects are situated in the southern Patagonia region of Argentina.
Patagonia Gold shares were up 4.4% at 10.175 pence early Thursday, one of the biggest gains on AIM.
By Steve McGrath; [email protected]; @SteveMcGrath1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Patagonia Gold