Patagonia Gold Announces Gold Room Production Facility Commissioned
and Production Of Dorē Commenced
TORONTO,
Nov. 26, 2012 /CNW/ - Patagonia
Gold Plc (TSX: PAT, AIM: PGD) ("Patagonia Gold" or "the
Company") today announced the first doré production from its Lomada
de Leiva gold project through commissioning of the Gold Room
facility in the province of Santa
Cruz in Argentina.
Highlights:
- Successful commissioning of the gold elution, smelting,
electro-winning and carbon regeneration circuits of the Gold Room
production facility
- First doré ingot poured on November
22nd for a total of 23.022 kg
- Remaining carbon from the Lomada heap leach trial is
scheduled to be stripped by the end of December with revenue
received in January 2013
The Company's Gold Room facility, located at its La Bajada
property, has been successfully commissioned and gold production
has commenced. A total of 1,040 kg of loaded carbon from the
Lomada heap leach trial with a grade of 16,800 grams/tonne (g/t)
gold was successfully eluted, using the recently completed elution
plant, before electro-winning and smelting. A doré bar of
23.022 kg has been produced with final gold payable content to be
established upon assay and refining by Johnson Matthey, Canada.
Photos of the gold pour will be posted on the Company's website,
www.patagoniagold.com.
A total of 18 tonnes of loaded carbon is to be stripped through
the circuit over the next four weeks with a contained gold
inventory, estimated from assays in-house and external checks, to
be 4,200 ounces (135 kg). A full reconciliation will be
completed against poured and refined metal once all carbon has been
stripped and doré refined. Payment is expected 20 days after
shipping.
Irrigation of the existing heap leach trial pad has
recommenced. Mining and loading of an additional 60,000
tonnes of material onto the trial pad is scheduled to commence in
December 2012, with irrigation in
January 2013 to provide production
while construction of the main pad continues.
"With our first gold pour, Patagonia Gold has now advanced
from explorer to producer and is well positioned to capitalize on
the high prevailing gold price," said Bill Humphries, CEO of Patagonia Gold.
"We will continue to develop our exciting portfolio of projects
whilst expanding the current resource base through
exploration."
About Patagonia Gold
Patagonia Gold Plc is an advanced mining
exploration company that seeks to grow shareholder value through
the acquisition, exploration and development of gold and silver
projects in the southern Patagonia region of Argentina. The Company is primarily focused on
the development of three projects: the flagship Cap-Oeste project,
the nearby COSE project and the Lomada heap leach, which is
expected to begin generating free cash flow by 2013. 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.
Patagonia Gold is listed on the Toronto Stock Exchange (TSX)
under the symbol PAT and has been listed on the AIM market of the
London Stock Exchange under the symbol PGD since 2003.
Matthew Boyes,
(BSC. Geology, Fellow AusIMM) Chief Operating Officer for Patagonia
Gold PGSA and a qualified person as defined in Canadian National
Instrument 43-101, has reviewed and verified all scientific or
technical mining disclosure contained in this news release.
Forward-Looking Information
This news release may contain certain
information that constitutes forward-looking information within the
meaning of applicable securities laws. Forward-looking information
is frequently characterised by words such as "plan," "expect,"
"project," "intend," "believe," "anticipate" and other similar
words, or statements that certain events or conditions "may" or
"will" occur. Forward-looking information includes, but is not
limited to, statements about strategic plans, mineral resources
estimates, spending commitments, future operations, results of
exploration, commencement and completion of pre-feasibility
studies, future work programs, commencement production, capital
expenditures and objectives. Forward-looking information is based
on the opinions, expectations and estimates of management at the
date the statements are made, and are subject to a variety of risks
and uncertainties and other factors that could cause actual events
or results to differ materially from those projected in the
forward-looking information. These factors include the inherent
risks involved in the exploration and development of mineral
properties, the uncertainties involved in interpreting drilling
results and other geological data, fluctuating metal prices and
other factors described above and in the Company's most recent
annual information form under the heading "Risk Factors," which has
been filed electronically by means of the Canadian Securities
Administrators' website located at www.sedar.com. The Company
disclaims any obligation to update or revise any forward-looking
information if circumstances or management's estimates,
expectations or opinions should change. The reader is cautioned not
to place undue reliance on forward-looking information.
www.patagoniagold.com
SOURCE Patagonia Gold plc