LONDON (Alliance News) - Patagonia Gold PLC on Friday said production levels have been normalised at the Lomada mine but production from the site will be suspended, and said a heap-leach project will be developed at its Cap-Oeste project, both in Argentina.
Patagonia said mining operations at Lomada will be suspended to the end of May after it experienced limited success in finding a viable mineable resource to extend the life of the mine beyond its current estimates.
The mining equipment and team based at Lomada will move to the Cap-Oeste project, but production is expected to continue at Lomada until the fourth quarter of 2017 as irrigation of the leach pads will take another 18 months.
The group will then develop a heap leach project at the Cap-Oeste mine, with initial development work to start soon and initial production due in the third quarter.
Shares in Patagonia were up 18% on Friday morning to 2.65 pence, one of the best performers in the London market.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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