Patagonia Gold PLC Cap Oeste Production Update (2346U)
July 11 2018 - 1:00AM
UK Regulatory
TIDMPGD
RNS Number : 2346U
Patagonia Gold PLC
11 July 2018
11 July 2018
Patagonia Gold Plc
("Patagonia Gold" or the "Company")
Cap Oeste Production Update
Patagonia Gold Plc, the mining company with gold and silver
projects in the southern Patagonia region of Argentina, Chile and
Uruguay, is pleased to provide an update on production at Cap Oeste
for Q2 2018.
Production at Cap Oeste for Q2 2018 totalled 12,407 oz AuEq at
an average cash cost of US$551/oz and US$597/oz including
depreciation and amortisation. The production during the quarter
was hampered due to labour disruptions, including a national strike
in Argentina, and severe weather conditions, with below freezing
temperatures being recorded during May and June. Accumulated
production for the six months to 30 June 2018 was 23,069 oz AuEq,
at an average cost of US$614/oz and US$668/oz including
depreciation and amortisation.
The significant devaluation of the Argentine Peso during May and
June had a positive impact on cash costs which resulted in cash
costs for June 2018 of US$513/oz and US$555/oz including
depreciation and amortisation.
Installation of the new crushing circuit is nearing completion
and commissioning is due to start on schedule on 15 July 2018.
Following the start-up of the new crushing circuit, reprocessing of
the approximately 800,000 tonnes of the material stacked on the
leach pad will commence. The mining operations at the Cap Oeste
open pit are due to cease by 15 July and the the mine will be put
on care and maintenance. Accordingly, from the end of July 2018
going forward, production will be derived exclusively from the
reprocessed material. The revised production guidance for the year
is expected to be approximately 45,000 oz AuEq.
The Company continues to review options to extract value from
the COSE-style hypogene mineralization, which lies below the
completed open pit and which holds approximately 300,000 oz AuEq at
20 g/t AuEq. This high grade resource is a significant component of
the Company's portfolio of assets and the Company is focussed on
extracting value from this resource in the short to medium
term.
About Patagonia Gold
Patagonia Gold Plc is a mining company that seeks to grow
shareholder value through exploration, development and production
of gold and silver projects in the southern Patagonia region of
Argentina. The Company is primarily focused on its flagship Cap
Oeste project in Santa Cruz and the recently acquired Calcatreu
project in Rio Negro. In addition, it is carrying out exploration
in Manchuria and Sarita in Argentina and San Jose in Uruguay.
Patagonia Gold, indirectly through its subsidiaries or under option
agreements, has mineral rights to over 220 properties in several
provinces of Argentina, Chile and Uruguay and is one of the largest
landholders in the province of Santa Cruz, Argentina.
For more information, please contact:
Christopher van Tienhoven, Chief Executive Officer
Patagonia Gold Plc
Tel: +54 11 5278 6950
Angela Hallett / James Spinney / James Dance
Strand Hanson Limited (Nominated Adviser and Broker)
Tel: +44 (0)20 7409 3494
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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