Petaquilla Minerals Ltd. (PTQMF)

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Petaquilla Minerals is not responsible for the information contained herein.

Regulatory Filings:

SEDAR (Canada)  |    EDGAR (USA)

Transfer Agent (TA): Computershare - (800) 564-6253 

Quarterly Structure

Petaquilla Minerals Ltd is a growing, diversified gold producer committed to maximizing shareholder value through a strategy of efficient production, targeted exploration and selected acquisitions. The Company operates a surface gold processing plant at its Molejon Gold Project, located in the south central area of its 100% owned 842 square kilometre concession lands in Panama - a region known historically for gold content. The Company received its operating permit from the Government of Panama on November 18th, 2009, authorizing the Company to proceed to commercial production of its 100% owned Molejon deposit. The Company achieved commercial production on January 8th, 2010, after having run its operations at an average of 70% of its normal capacity for a consecutive period of 30 days. We are currently completing a plant capacity expansion at the Molejon Mine, which we expect will enable us to increase our gold equivalent ounces produced at the Molejon Mine to approximately 95,000 to 105,000 ounces for the fiscal year ending May 31, 2013 and to approximately 130,000 to 140,000 ounces for the fiscal year ending May 31, 2014.

Petaquilla is developing a large project in Spain (to be updated)

Petaquilla Minerals Ltd. ("PTQ") intends to distribute to its shareholders one share of Panama Development and Infrastructure Ltd. ("PDI") for each four shares of PTQ held on the record date for the distribution.   Distribution of PDI will be effected by way of a Plan of Arrangement or some other tax-efficient mechanism. Transaction is subject to all requisite shareholder and regulatory approvals.   Petaquilla Minerals expects to announce the record date for PDI spin-out by the end of the year.

Projects Location:


 

Panama Project


The project area is located in the District of Donoso, Province of Colon, approximately 100 kilometers west of the Panama Canal on the Caribbean Coast. Petaquilla Minerals' land holdings are situated in the perfect position to ship concentrate at low cost to Europe, Asia, and North America. 

The combined project area comprises 795 sq km on tide line. The plant site and open pit is serviced by a new road built to a 70-tonne specification.

Project tenure is secured by 'Ley Petaquilla', a project specific mining law that gives the two companies secure ownership, in three renewable phases, for a total of sixty years. 

                                 Petaquilla Projects                                                                                       First Quantum Project

Molejon Aerial view

 

Resource Profile:


 

Based on the pre-feasibility level design work completed and reviewed, the authors believe there are approximately 15.3 Mt of gold and silver reserves that can be produced averaging 1.30 g/t gold and 2.05 g/t silver and recovering approximately 586,000 ounces of gold and 711,792 ounces of silver. In addition, the pit contains 36.8 Mt of aggregate reserves which should yield approximately 29.4 Mt of saleable aggregate products after crushing and screening.  Behre Dolbear believes that the mine will be able to produce the projected 643,000 ounces of gold and 1,008,693 ounces of silver. 

History, Benchmarks, and Timelines:

• _ Receive production authorization [Authorization received 18 NOV 2009]
• _ Achieve commercial production (defined as an average of 70% of design capacity, maintained continuously for a period of 30 days) [Commercial production achieved 11 JAN 2010]
• _ Refinance LT debt [Completed in two phases - US$45M financed through Deutsche Bank, US$30M financned through private placement]
• _ Heap Leach Testing and Production (Phase 1 production slated to commence FY Q2 2011 [last three calendar months of 2010])
  • _ Large-column, run-of-mine test complete - 06 OCT 2010
  • _Phase 2 - complete, 01 NOV 2010    
  • _ Phase 3 - Final engineering and design (completed FEB 2011)
  • _ Construction of associated infrastructure (JUN 2011)
• _ Achieve annualized production rate of 100K ozs/year (defined as 1 month production of 8,334 ozs)
• _ Achieve total production of 100K+ ozs over a continuous 12-month period (in progress)
• _ Achieve cash costs of less than $650/oz (achieved Q4 2011 [APR - MAY 2011])
• _ Global resource estimate update
  • _ 43-101 released by Behre Dolbear (APR 2011)
• _ 43-101 on Other Panamanian Concessions [Botija Abajo East & West, Palmilla, Oro del Norte]
  • _ Botija 43-101 Issued
  • _ Palmilla 43-101 Issued
• _ PDI Spin-Off (work in progress)
  • _ Plan of Arrangement issued (expected by JUL 2012)
• _ Uplist to AMEX (possible, not assured)

Forward Gold Purchase Agreement

On September 22, 2010, the Company entered into a Forward Gold Purchase Agreement ("the Agreement") with Deutsche Bank, AG ("Deutsche Bank"), in an amount of $45,000,000. Under the terms of the Agreement, the Company has sold to Duetsche Bank, a Contract Quantity of Gold being 66,650 ounces.

In addition, should the gold price be in excess of $875 per ounce, the Company will receive from Deutsche Bank, an additional gold payment amount equal to the product of the monthly quantity of gold delivered in that month and the amount by which the gold price exceeds $875 per ounce, limited to $415 per ounce.
 

Mining Investor's Toolbox:

Mining Valuation for Beginners

In Situ Valuation Calculator

In situ valuation (quick and dirty, doesn't take into account a number of important factors):

• Buy below 10% of in situ mineral value: (Mineral value * 0.10) / shares outstanding
• Sell above 40% of in situ mineral value: (Mineral value * 0.40) / shares outstanding

Basic Valuation:  EPS * 10 = Target Price  ... EPS = (revenue - costs) / shares outstanding

Advanced Valuation: DVM's valuation ratio = [stock price x (basic shares outstanding + in the money derivatives assuming exercise + newly issued shares from financing) - working capital - cash from in the money derivatives assuming exercise - cash from newly issued financings + major capital cost items if applicable] / gross profit

Target price = cash flow multiple / DVM's valuation ratio x stock price
 

Molejon Mine Mill Layout















            

 

                                                                                                             PDI office at the Molejon mine entrance                                            Heap Leach Pads on the left.  Molejon mine pit in the background

            


Heap Leach Pads  The large one is being loaded                                                                     Loading of the main Heap Leach pad



                      


The heap leach Process
  




                            
      

                                                                    Loading of the main Heap Leach pad                                                                                                             Molejon Mine Tailings


 

                                                       PDI crushers for aggregate                                                                                                                                     The 4 ball mills

FQ By-pass road contruction
The road will go to the FQ mine and to the new Caribbean port 30km away





FQ by-pass road construction behind Molejon mine

 

Petaquila Spain Project


     

                                                                      Petaquilla mines and  neigbours                                                                                                              Spain Pyrite belt




 

                                                                  Lomero Poyatos head shaft                                 San Telmo open pit mine (to be drained)



 

Lomero Poyatos property  (on the left is San Telmo)

Lomero Poyatos underground view  



     

Phase 2 of the drilling campain. 
16,000 meters using 5 drilling rigs 24/7

 

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