Panterra Gold Ltd : National Power Grid connected to Las Lagunas Gold Project and Plant Commissioning commenced

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ASX/Media Release

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18 January 2012

NATIONAL POWER GRID CONNECTED TO LAS LAGUNAS GOLD PROJECT AND PLANT COMMISSIONING COMMENCED

PanTerra Gold Limited (ASX: PGI) (PanTerra Gold or the "Company"), advises that its Las Lagunas process plant in the Dominican Republic has been connected to the national power grid and commissioning of the plant commenced.
A 'life of project' contract for power supply has been formalised with a major international power company with a recently commissioned liquefied natural gas ("LNG") fired 1000MW power station.
The supply price to the project is indexed to US LNG prices which have been falling in recent years due to increasing gas production from shales in North America.
The Company is considering a hedging program that could fix power costs going forward, as they constitute around 40% of operating costs for the production of gold and silver at Las Lagunas.
End

Enquires: Mr Brian Johnson

Chairman & CEO

Mr James Tyers

Director of Operations

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