Patagonia Gold advances on Lomada de Leiva progress

AIM-listed mining company Patagonia Gold has completed preparation works for the expansion of a trial heap leach pad and reported that loading of mineralised material, irrigation and production of gold is in progress at its Lomada de Leiva Mine.

The mine, which is located approximately 40km southeast of the town of Perito Moreno in the province of Santa Cruz, is within the company's La Paloma property block, covering more than 44 square kilometres.

The group reported that construction of the first stage of the main heap leach pad remained on schedule for completion in the later half of the second quarter 2013.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

In addition to developments at the Lomada de Leiva mine, the group also reported that drilling in the structural corridor between the Cop-Oeste and COSE deposits continued to intersect wide zones of gold-silver mineralisation with drill-hole CE-091 intersecting 66.6m at 2.04 grammes per tonne (g/t) gold and 36.18 g/t of silver.

The Cap-Oeste gold project and the COSE gold and silver deposits are located in the El Tranquilo property block covering approximately 80,000 hectares.

Bill Humphries, Chief Executive Officer of Patagonia Gold, said: "With the Lomada project funded to completion and set to provide free cash flow in the second half of 2013, Patagonia Gold can now focus on expanding its significant resource base of 1.88m ounces of gold equivalent, concentrating on the highly prospective, high grade Cap-Oeste/COSE and La Manchuria deposits".

Patagonia Gold's share price was up 7.69% to 14p at 11:42 on Tuesday.

MF