Patagonia Gold lowers 2016 expectations, remains upbeat at Cap-Oeste

23rd Dec 2016 10:01

(ShareCast News) - South America-focused mining company Patagonia Gold updated the market on its open pit mine and heap leach processing facility at Cap-Oeste on Friday, with an updated forecast total production from the project increased to 186,800 oz AuEq from 82,000 oz AuEq.The AIM-traded firm said the mine life was extended to three years of open pit to July 2019, from two years.Cap-Oeste guidance for 2016 was reduced to 3,000 oz AuEq, however, after slower than anticipated initial leaching and percolation issues.Its 2017 guidance was set at 69,800 oz AuEq.The installation of an agglomeration circuit to improve recovery rates was now underway, with engineering advancing well and major items ordered."A review of COSE suggests [the] ability to extend the life of the Cap-Oeste heap leach pad by an additional 19 months using ore from the COSE underground mine," the board said in a statement."Further work [is] being undertaken in this regard."Patagonia Gold added that the RC drilling programme was now completed at Monte Leon, to investigate the potential to add further oxide ore to the heap leach pad at Cap-Oeste.