Patagonia Gold (LON:PGD) said this morning that construction of its heap leach pad at Lomada de Leiva in Argentina is progressing ahead of schedule.
The company also announced that it had begun a resource infill an extension programme on the property.
It will consist of a 38 hole diamond drill programme for a total of 4,700 metres and is aimed at expanding the inferred and peripheral mineralisation.
The project has a 43-101 compliant resource of 161,346 ounces of gold in the measured and indicated category and a further inferred 73,725 ounces.
“There is significant potential to increase the mine life at Lomada de Leiva with further drilling on the remaining inferred resource not included in the main heap leach project, together with additional extension and exploration drilling on Lomada de Leiva and the adjacent Breccia Sofia prospect,” Patagonia Gold said.
Separately, work on the heap leach pad continues. Construction of the concrete footings and base area for the processing facility is in progress. Commissioning is planned for early in the first quarter of next year.
Drill and blasting of the first 20,000 tonne ore package is scheduled for mid November with mining, hauling and loading of ore onto the pad to commence soon after for completion by year-end.
In total the pad will take 50,000 tonnes. Based on 70 per cent recovery, it is estimated to yield approximately 2,200 oz of gold for the first six metre loading.