Patagonia Gold provides progress update for Lomada De Leiva and Cap-Oeste projects
Wednesday, Jan 30, 2013
TORONTO, Jan. 30, 2013 /CNW/ - Patagonia Gold Plc (TSX: PAT, AIM: PGD) ("the Company") today provided a progress update for its Lomada de Leiva and Cap-Oeste projects in Santa Cruz Province, Argentina.
LOMADA DE LEIVA The Lomada de Leiva project is located approximately 40 kilometres south-east of the town of Perito Moreno in the Province of Santa Cruz, and is within the Company's La Paloma property block, covering over 44 square kilometres.
Construction of the first stage of the fully permitted Lomada main heap leach project is well advanced and is on target for commencement of operations in Q2 2013. The total pad area has been stripped of topsoil, which is being stacked for later rehabilitation purposes. Earthworks for infrastructure, holding and containment dams are under way. The plastic membrane, irrigation pipework and pumps have all been ordered, scheduled for arrival and installation in Q1 2013. The pregnant solution will be pumped to the existing processing plant constructed for the trial in 2011.
Plant expansion is under way, with an additional six carbon columns currently under construction designed to increase the plant throughput to 160m3/hr of pregnant solution. In addition, the explosives magazine has also been completed and is awaiting final approval.
The gold room facility, located at the Bajada property, is now fully operational and commissioned.
Mining has recommenced utilising a contract fleet until the Company receives delivery of its own fleet of equipment now expected during March and April 2013.
Ramp up to full production is expected to be achieved by mid Q2 this year once the full fleet is operational and the overburden from the main pit area is removed.
The El Tranquilo property block, covering approximately 80,000 hectares,
contains Patagonia Gold's flagship project, the Cap-Oeste deposit, together with the COSE bonanza gold and silver deposit and numerous other prospects including Monte Leon.
Quantec Geoscience of Santiago, Chile, has recently completed an expanded IP study over the CapOeste/COSE structure and NW El Tranquilo block. Approximately 50% of the work area has been covered with closer spaced lines completed specifically over the Cap-Oeste/COSE area and surrounds. Preliminary results have revealed two completely new large IP anomalies striking in the same irection as the Cap-Oeste/COSE anomaly and offset by approximately 700m. The anomalies are significant in that their intensity and size are very similar to
the existing anomalies over Cap-Oeste/COSE and also Don Pancho, both areas with significant areas of known mineralization.
About Patagonia Gold
Patagonia Gold Plc is a mining company that seeks to grow shareholder value through exploration, development and production of gold and silver projects in the southern Patagonia region of Argentina. The Company is primarily focused on three projects: the flagship Cap-Oeste project, the nearby COSE project and the Lomada heap leach project, which is generating free cash flow. Patagonia Gold, indirectly through its subsidiaries or under option agreements, has mineral rights to over 220 properties in several provinces of Argentina and Chile, and is one of the largest landholders in the province of Santa Cruz.
SOURCE Patagonia Gold plc