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EnviroGold set to ramp up exploration at Las Lagunas to extend mine life

Last updated: 13:09 16 Feb 2011 AEDT, First published: 12:09 16 Feb 2011 AEDT

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EnviroGold (ASX: EVG) is planning to expand exploration in the area around the Las Lagunas gold project in the Dominican Republic, in an area that includes Barrick Gold's (NYSE: ABX, TSE: ABX) massive 25 million ounce Pueblo Viejo mine.

EnviroGold is on track to commence gold and silver production later this year at Las Lagunas at the rate of 65,000 gold ounces and 600,000 silver ounces annually, for an initial seven year mine life.

An application has been made by EnviroGold for a 10,000 hectare exploration licence for copper-gold near Bahoruco, in south west Dominican Republic.

The Bahoruco prospect covers old copper mine workings which were closed around 50 years ago, prior to which high-grade ore was shipped directly to a Spanish smelter.

Interestingly, at Bahoruco outcropping copper mineralisation in highly oxidised polymetallic ore which has been sampled by EnviroGold over a 5 kilometre length, which the company considers could extend for up to 10 kilometres.

Negotiations are also underway for a 50% farm-in of concessions within the Las Lagunas area.

To fund exploration in the Dominican Republic and Ecuador in the short to medium term, a placement will be conducted in the next couple of months.

Brian Johnson, executive chairman of EnviroGold, said “The addition of expected earnings from the first stage of the Azuay project in Ecuador in mid-2013, to those anticipated from the Las Lagunas project, should offset any dilution."

The Azuay gold mining project is located in Ecuador, with a planned expansion of Pinglio and Papercorp small scale underground mines in 2012-2013 to produce 100,000 gold ounces annually.

EnviroGold has a 65% earn-in to Azuay.

EnviroGold has a third project, the San Gerardo gold mining project with an option to purchase 100%, which has a planned exploration program over 2200 hectares in 2011-12.

 

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