Patagoina reopened Lomada de Leiva in November 2018 with a view to re-treat ore previously placed on the heap leach pad. The company was estimating recovery of about 10,000 ounces of gold over a 12-month period but production is below management expectations and insufficient to cover operating costs.
The Cap Oeste mine was closed in July 2018 and for the remainder of 2018 operations consisted solely of re-processing of the ore previously placed on the heap leach. As monthly production is about 1,000oz and not expected to increase, Patagonia will put the operation on care and maintenance. However, it is still evaluating the development of the high-grade underground resource which contains about 300,000oz.
Patagoina continues to focus on exploring its Calcatreu project in Rio Negro, Argentina that it acquired in January 2018 from Pan American Silver.
Shares in Patagoina fell 50% following the announcement and are trading at to £0.44, valuing the company at £11.5 million.
