4th Apr 2014 09:08
LONDON (Alliance News) - Patagonia Gold PLC Friday said it has revised down its forecast production at the Lomada mine in 2014 due to technical problems.
The gold and silver exploration and production mining company, with operations in the Patagonia region of Argentina, said forecast production at the Lomada de Leiva mine has been revised down to 31,500 ounces of gold for 2014, from 33,000 ounces in a previous forecast.
The company said it has decided to reduce the forecast production due to the late anticipated delivery of necessary machinery on site.
In March, the company said production at its Lomada mine had reached 1,750 ounces of gold a month, and it had ordered all the machinery it would need to get the site up to 3,000 ounces a month.
However, Patagonia Gold said its total production from both its Lamada and Cap-Oeste oxide project is expected to increase to 72,000 ounce of gold equivalent in 2015, subject to environmental approvals and financing.
First production from Cap-Oeste is scheduled for the first quarter 2015, and full name plate quarterly production of 12,500 ounces is expected to be achieved at Cap-Oeste by the third quarter 2015. Full name plate production is total production under Patagonia's name.
In January, the company said it had decided to proceed with the Cap-Oeste project after successes at Lomada heap leach mine.
Patagonia Gold shares were down 2.9% to 8.50 pence Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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