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Patagonia Gold Announces Receipt of Permit for Main Heap Leach at Lomada de Leiva Gold Project in Santa Cruz Province, Argentina
TORONTO, Nov. 22, 2012 /CNW/ - Patagonia Gold Plc (TSX: PAT, AIM: PGD) ("Patagonia Gold" ...
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[{"type":"text","content":"\n\n\n\n\n\nTORONTO, Nov. 22, 2012 /CNW/ - Patagonia Gold Plc (TSX: PAT, AIM: PGD) (\"Patagonia Gold\" or \"the Company\") today announced the granting by the\n State Secretariat of Mining of Santa Cruz of the full and final permit,\n by Disposition number 318, for the development and production of the\n Lomada de Leiva gold project in Santa Cruz province, Argentina (the\n \"Permit\").\n\n\nThe Permit document will be posted on the Company's website, www.patagoniagold.com as soon as practicable.\n\n\nCommenting on this announcement, Carlos Miguens, Deputy Chairman of\n Patagonia Gold, said: \"We are very pleased to have achieved this important milestone for our\n Company. We would like to thank the Governor, authorities and the\n community of the province of Santa Cruz for their confidence in our\n capacity to proceed with the responsible development of the Lomada de\n Leiva gold project, while taking good care of the environment and\n existing social structures.  We are now ready to commence the\n construction of the main heap leach with the aim of achieving full\n production by early Q2 2013.\"\n\n\nLomada Heap Leach Gold Project\n\n\nThe Lomada de Leiva Project, together with the adjacent Breccia Sofia\n Prospect, is located on the La Paloma property block and is\n approximately 40 km to the south of the town of Perito Moreno in the\n Santa Cruz province of Argentina.\n\n\nTarget annual production of the project, as per the preliminary economic\n assessment (\"PEA\") completed by Chlumsky, Armbrust and Meyer, LLC (CAM)\n of Lakewood, Colorado, dated November 20, 2008, is scheduled at 21,000\n ounces of gold. The Company expects full production rates from the main\n heap leach to be achieved by Q2 2013 with a forecast production of\n 14,000 ounces gold for the second half of 2013.\n\n\nThe Lomada heap leach is a \"low cost high return\" project with a total\n CAPEX of approximately US$16 million and an OPEX, estimated from the\n trial to be sub US$500 per ounce, in the lower quartile of world gold\n producers.\n\n\nThe total additional capital requirements to bring Lomada to full\n production is estimated at approximately US$7.0 million, together with\n debt for the mining equipment totalling US$4.2 million with scheduled\n payments over 36 months. The principal capital items budgeted for in Q4\n 2012 and Q1 2013 include ...