Operations
Molejon Gold Mine
| QUICK FACTS | |
| Location: | Panama |
| Type of Mine: | Open Pit |
| FY 2011 Gold Production: | 55,566 ounces at $557 Cash Cost per Ounce |
| FY 2012 Expected Production: | 95,000 ounces |
| Cash Costs: | $550-$600 per ounce |
| Mine Life: | 11+ years |
Petaquilla Minerals' flagship Molejon Gold Mine is located in the Colon Province of Panama approximately 130 kilometers west of Panama City. Gold production started in April 2009 and reached commercial production in January 2010. On/off heap test leach pads were successfully started in the beginning of September 2011 with full production anticipated by the end of the year.
Gold poured during first quarter of fiscal 2012 (calendar period June - August 2011) totaled 18,014 ounces. Gold sales during the quarter generated approximately US$26.3 million with cash costs per ounce of gold sold continuing to be in the range of US$550 – US$600. For the current second quarter of fiscal 2012, the Company anticipates mining approximately 72,000 gold ounces with gold production in the 22,000 – 25,000 range. In addition, at the end of the second quarter, the Company estimates that 47,000 – 50,000 gold ounces will be contained in its stockpile.
On March 8, 2011 we announced that Petaquilla Minerals Ltd. Has completed Phase 1 of its National Instrument 43-101 ("NI 43-101") compliant mineral resource and reserve update for its Molejon Gold Project. This is the Company's annual review of its resources and reserves that have been upgraded over the past year through its engineering and drilling activities.
The Company has formally upgraded its NI 43-101 compliant Measured and Indicated ("M&I") resource to a proven and probable reserve of 643,266 contained gold ounces (15.3Mt @ 1.30g/t Au, average metallurgical recovery of 91.1%) as of the October 1, 2010, production cut-off. Prior to October 1, 2010, the Company mined an additional 99,961 gold ounces (1.39Mt @ 2.22g/t Au) of proven and probable reserves bringing the total proven and probable reserves at the Molejon Gold Project to a total of 743,227 ounces. This represents an increase of 61% over the last calculated reserve as of the October 1, 2010, production cut-off.
In addition to the above, the Company is currently working on the following to increase shareholder value:
- Upgrading to reserve status an additional 103,255 gold ounces (10.2Mt @0.32g/t Au, M&I category at a 0.18g/t cut-off) located within the Molejon pit.
- Upgrading to reserve status an additional 253,440 gold ounces (30.3Mt @ 0.26g/t Au, M&I category at 0.1g/t Au cut-off) from an area adjacent to the main pit. The Company is scheduled to publish a new reserve number upon completion of the Heap Leach Project scheduled to commence operations in the third quarter of this calendar year.
- Upgrading to M&I status its inferred resources of 966,294 gold ounces (185Mt @ 0.16g/t Au, 0.1g/t Au cut-off) from an area adjacent to the main pit.
- Upgrading to M&I status a newly calculated inferred resource from the Oro Del Norte Project totaling 276,383 ounces (18.1Mt @ 0.47g/t Au, 0.1g/t cut-off). The updated resource is scheduled to be released during the third calendar quarter of 2011.
Mr. Mike Martin, Mining Engineer, a Qualified Person as defined by National Instrument 43-101 and Project Manager for Behre Dolbear Inc., has been overseeing the resource and reserve estimate update. He is ensuring that the appropriate quality assurance protocols are being followed and that the data has been qualified under strict quality controls. He has reviewed and verified the technical mining information contained in this technical report.
Download 43-101 Technical Report on Molejon Gold Mine