Patagonia Gold Plc (PGD:AIM)
Gold and silver production has commenced at Cap-Oeste mine in the Santa Cruz province, Argentina. The first doré pour was completed 27 October 2016.
The production forecast for the project’s 24 month life of mine is estimated to be 82,000 oz AuEq. Ramp-up to full production capacity is complete. To date 100,000 tonnes of ore has been loaded onto the heap leach pad. Initial metal recoveries are in-line with expectations with cyanide consumption being 50% less than anticipated.
There is potential to increase the life of mine from satellite deposits such as Monte Leon. Increasing the initial pit size is also an option being considered as part of the optimisation of the project. Work is ongoing for the underground portion of the mine at Cap-Oeste and COSE; future updates in this regard will be made when appropriate.
Carlos Miguens, Chairman commented: “We are pleased that the construction of the mine and plant at Cap-Oeste was completed within budget and on schedule, resulting in a smooth transition of operations from Lomada to Cap-Oeste. Our focus as we progress will be growth of the resource base and development of our projects.”