Petaquilla Highlights Financial and Operating Performance
Wednesday, April 28 2010 @ 01:42 PM UTC
Contributed by: Don Winner
Similarly, in line with the above performance, administrative and other expenses for the nine months ended February 2010 were reduced by US$3.6 million or 26% to US$10.3 million compared to US$13.9 million for the nine months ended February 2009.
The Company is also pleased to announce that it has poured approximately 6,500 ounces of gold during the initial four pours of the current month of April and, as a result, is targeting cash costs in the mid-US$500 per ounce range for the month.
In addition to the recurrent gold production process operation and for the second phase of the Company's heap leach project, Petaquilla initiated the construction of an on-site test facility to determine the recoverability of the different ore types and particle sizes for the planned heap leach operation expected to commence during the first calendar quarter of 2011. The Company anticipates the heap leach operation will generate an additional 50,000 ounces of gold annually.
Simultaneously, the Company advanced its exploration work at its 100% Oro del Norte concession, moving from initial superficial rock chipping and sampling activities, as disclosed in the Company's news release of December 14, 2009, to a trenching and drilling program with a professional crew working onsite since early March. The Company will provide regular updates on the respective results.
About Petaquilla Minerals Ltd. - Petaquilla Minerals Ltd. is a gold producer operating its gold processing plant at its 100% owned Molejon Gold Project in Panama. Anticipated throughput for the project during the first year of commercial production is estimated to be 2200 tonnes per day. Commercial production commenced January 8, 2010. The Molejon mine site is located in the south central area of the Company's 100% owned 842-square kilometre concession lands, a region known historically for gold content.
Editor's Comment: And this is the part where I get to say "I told you so." With this report, Petaquilla is letting the world know that they are now in full production, regularly producing thousands of ounces of gold per quarter and they are making a steady profit from the sales of the gold they produce. As they get more experienced on site the production cost per ounce of gold continues to drop. And obviously, if each ounce of gold costs less to produce then profits are higher on the other side when it's sold. Right now, as of this writing, gold is at $1,168 per ounce. So, if Petaquilla expects to be able to further reduce the production cost per ounce down to $500 dollars then they're making more than $600 per ounce in revenues. I've been following this project closely for many years, and it's immensely satisfying to see this project finally on line, producing, and making money. The government of Panama gets paid for every ounce of gold produced. Those production costs of $500 to $600 per ounce - that's money being spent right here in Panama as well. There are hundreds of people working for Petaquilla who would otherwise be unemployed. As a result of this press release, Petaquilla's stock (PTQMF) has jumped 8.41% just this morning, but it's still only 52 cents per share. It's been a long time coming, but it's coming. Just like I said it would...