NewsWhore
06-26-2012, 02:10 PM
At a gold price of around US$1,400 per ounce and a silver price of about US$28 per ounce, the Pan Terra Gold mining company says that its Las Lagunas plant could generate around US$300 million in surplus cash for its investors over the next six and a half years.
The company says that the expectation that they will recover its investment in the project of around US$90 million to 30 June 2012 under the profit-sharing agreement with the Dominican Republic government is a bonus. The government will then receive 25% of operating profits, but PanTerra will not pay any income tax on its profits.
The company says that importantly, cash costs are estimated to be only around US$331 per gold ounce, with Las Lagunas expected to deliver a net present value (10%) of US$218 million and an internal rate of return of 55%. The Las Lagunas project is expected to generate free cash flow of nearly US$100 million within 18 months, in addition to repaying Macquarie Bank's US$37.5 million project loan.
PanTerra Gold reports it is just two weeks from the Las Lagunas Albion/carbon-in-leach (CIL) processing plant in the Dominican Republic to being able to accept feed at 100% capacity, much earlier than anticipated. As reported, the plant is currently operating at 80% of design capacity.
The company explains that after ultrafine grinding, high grade tailings of 3.8 grams per tonne (g/t) gold and 30.8g/t silver from the Pueblo Viejo mine are being concentrated through flotation cells and delivered to the Albion oxidation tanks, which are now operating at the stabilized design output of the two trains of the oxygen plant. Oxidized slurry from the Albion circuit is fed to the standard CIL agitated tanks and when activated carbon in the tanks has fully absorbed the gold and silver, stripping and smelting of dore bars will begin.
The Las Lagunas project involves the reprocessing of high-grade gold and silver refractory tailings from the Pueblo Viejo mine, derived from open pit operations between 1992 and 1999. The project is expected to produce about 69,000 ounces of gold and 630,000 ounces of silver per annum.
As reported, pilot plant testwork demonstrated expected recovery of 435,360 ounces of gold and nearly 4 million ounces of silver over a six and a half year mine life utilizing a standard CIL plant together with Xstrata Technology's Albion oxidation process.
www.proactiveinvestors.com/companies/news/30975/panterra-gold-ramping-up-to-full-las-lagunas-plant-capacity-ahead-of-schedule-30975.html (http://www.proactiveinvestors.com/companies/news/30975/panterra-gold-ramping-up-to-full-las-lagunas-plant-capacity-ahead-of-schedule-30975.html)
More... (http://www.dr1.com/index.html#7)
The company says that the expectation that they will recover its investment in the project of around US$90 million to 30 June 2012 under the profit-sharing agreement with the Dominican Republic government is a bonus. The government will then receive 25% of operating profits, but PanTerra will not pay any income tax on its profits.
The company says that importantly, cash costs are estimated to be only around US$331 per gold ounce, with Las Lagunas expected to deliver a net present value (10%) of US$218 million and an internal rate of return of 55%. The Las Lagunas project is expected to generate free cash flow of nearly US$100 million within 18 months, in addition to repaying Macquarie Bank's US$37.5 million project loan.
PanTerra Gold reports it is just two weeks from the Las Lagunas Albion/carbon-in-leach (CIL) processing plant in the Dominican Republic to being able to accept feed at 100% capacity, much earlier than anticipated. As reported, the plant is currently operating at 80% of design capacity.
The company explains that after ultrafine grinding, high grade tailings of 3.8 grams per tonne (g/t) gold and 30.8g/t silver from the Pueblo Viejo mine are being concentrated through flotation cells and delivered to the Albion oxidation tanks, which are now operating at the stabilized design output of the two trains of the oxygen plant. Oxidized slurry from the Albion circuit is fed to the standard CIL agitated tanks and when activated carbon in the tanks has fully absorbed the gold and silver, stripping and smelting of dore bars will begin.
The Las Lagunas project involves the reprocessing of high-grade gold and silver refractory tailings from the Pueblo Viejo mine, derived from open pit operations between 1992 and 1999. The project is expected to produce about 69,000 ounces of gold and 630,000 ounces of silver per annum.
As reported, pilot plant testwork demonstrated expected recovery of 435,360 ounces of gold and nearly 4 million ounces of silver over a six and a half year mine life utilizing a standard CIL plant together with Xstrata Technology's Albion oxidation process.
www.proactiveinvestors.com/companies/news/30975/panterra-gold-ramping-up-to-full-las-lagunas-plant-capacity-ahead-of-schedule-30975.html (http://www.proactiveinvestors.com/companies/news/30975/panterra-gold-ramping-up-to-full-las-lagunas-plant-capacity-ahead-of-schedule-30975.html)
More... (http://www.dr1.com/index.html#7)