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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 shares soar 46% prompting ASX 'please explain'
Shares in EnviroGold (ASX: EVG) hit an intra-day high of $0.205 today, 46% higher than yesterday's closing price of $0.14, prompting a 'speeding ticket' to be issued by the ASX in the form of a price query.
The company said it is not aware of any material information that has not been announced which may explain the sudden investor interest.
EnviroGold did however state in the company's response to the ASX:
"It is probable the market is becoming aware of the company’s emergence as a gold producer with the commencement of production from its Las Lagunas project in the Dominican Republic scheduled for January 2012."
Las Lagunas project has an expected life of approximately seven years at an annual production rate of 65,000 ounces of gold and 600,000 ounces of silver. Envirogold has arranged equity and debt financing of US$81,000,000 for the project.
It is constructing an Albion/CIL Plant for this purpose and has reported that it will reprocess 5.137 million tonnes of refractory tailings from the Pueblo Viejo mine grading 3.8 g/t gold and 38.6 g/t silver (JORC Resource of 621,000 ounces of gold and 6,400,000 ounces of silver) with an estimated production cost of US$313 per ounce of gold.
Recently, EnviroGold flagged an intention for a dual listing on the Toronto Stock Exchange in two to three months. The proposed listing is expected to coincide with a placement of around 7% of the Company’s shares (30 to 40 million) to Canadian investors to create initial liquidity in the local market.
Companies listed on the Toronto Stock Exchange with projects in Latin America tend to trade at higher valuations given the understanding of political issues, geological potential, and the widespread activity of Canadian mining companies in Latin America.
"EnviroGold has been under the radar in Australia but this looks likely to change as North American investors "twig" to its valuation increasing Las Lagunas project as it moves toward production."
Macquarie Bank is a substantial shareholder of EnviroGold with 5.95%.
