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PanTerra Gold (ASX: PGI), formally known as EnviroGold, is a near term gold producer at its Las Lagunas project in the Dominican Republic with construction scheduled for completion in December 2011. The project has an expected life of seven years at an annual production rate of 65,000 ounces of gold and 600,000 ounces of silver.
PanTerra Gold is also active in Ecuador with the advanced Azuay Gold Mining project and the San Gerardo Gold Mining prospect. At the Azuay project, construction is targeted to commence in mid 2012.
EnviroGold defines development plans for gold projects in Equador
EnviroGold (ASX: EVG) plans to develop its Azuay and San Gerardo gold projects in Equador in three phases after recent discussions with the minority shareholders.
EnviroGold holds a 65% earn-in on the Azuay project and a 100% purchase option on the San Gerardo project.
The company will share infrastructure including upgraded access roads, tailings dams, connection to HV power grid, offices and laboratories.
The first phase will involve construction of a gravity plant at a cost of US$35 million.
The plant will extract free milling gold from 260,000 tonnes per annum (tpa) underground mining operations at the expanded Papercorp and Pinglio mines.
Construction is scheduled to commence in mid 2012, with an expected annual gold production of 50,000 ounces (oz) from mid 2013.
In phase two Albion and CIL circuits will be added in 2014-15 at a cost of about US$50 million.
These will recover gold from refractory ore, increasing the mining rate at the Papercorp and Pinglio mines to 300,000 tpa, and boosting annual gold production to 100,000 oz.
Phase three will involve the development of an oxide ore open pit mine on San Gerardo property and construction of a dedicated CIL circuit in 2015 to produce an additional 100,000 oz gold per year.
In order to allow environmental permitting to commence, negotiations are underway to option a suitable site for the planned process plant and associated tailings dams.
EnviroGold will update profit forecasts for its Las Lagunas gold project in the Dominican Republic following its recent purchase of the minority interest in the project.
The company said it will soon advise budgeted capital costs, operating costs and potential profitability from the three phases of its proposed Ecuador developments.
EnviroGold will also announce the anticipated size and source of equity required to achieve its growth objectives.
A drilling program over the next 18 months will help determine development plans.
