LONDON (Alliance News) - Patagonia Gold PLC Thursday said it has further revised down its Lomada mine production target for 2014 due to the delayed delivery of additional mining equipment.
Patagonia's Lomada mine in Argentina produced 2,961 ounces of gold in August, its highest production since it began, as it continues to aim for 3,000 ounces of gold produced per month by the end of this month.
Despite increased production, Patagonia has further revised down the mine's annual production target. In January, its original target was 33,000 ounces a year. This was lowered to 31,500 ounces in April, which has now been revised once again to a current target of 27,000 ounces for 2014.
The delays have been due to extended delivery times of additional mining equipment delaying the planned expansion. "The second large excavator has been delivered and is now operational with mine production steadily increasing. Equipment availability is also increasing due to the company taking on all maintenance in house and removing costly third-party providers from site," said Patagonia.
Exploration on the Lomada block is planned to recommence in the fourth quarter of this year, aimed at replenishing depleted resources from production and extending the mine life, it said.
For the first eight months of 2014, the Lomada project sold a total of 16,088 ounces of gold for gross revenues of USD20.8 million, or USD1,293 per ounce, with an average all-in cash cost of USD812 per ounce.
In other operations, Patagonia are designing a drill programme on new prospects such as its La Canada and El Calafate projects, which also are due to start in the fourth-quarter. In addition, a further 2,500 metres of drilling is planned for its Monte Leon project.
Patagonia Gold's shares were up 8.9% to 7.49 pence per share Thursday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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