UPDATE 1-Ventana to commission processing at La Bodega in Q2 '11

* Sees first 6 yrs avg annual production of 347,000 Au eq/oz

* Sees avg cash cost of $322/oz for first 6 yrs

* Sees startup capital cost of $297 mln

Nov 8 (Reuters) - Canada's Ventana Gold Corp VEN.TO said it would commission full pilot processing at its La Bodega property in Colombia in the second quarter of 2011 with a startup capital cost of $297 million.

The Vancouver-based gold miner said average annual production for the first six years at La Bodega is expected to be 347,000 gold equivalent ounces, consisting of 301,000 ounces of gold, 1.4 million ounces of silver and 6.9 million pounds of copper.

The company, which gave its initial independent mineral resource estimate and scoping study for the Latin American property, expects to record an average cash cost of $322 an ounce of gold for the first six years.

Ventana added that the mine is expected to last 14 years at a planned production rate of up to 7,500 tons a day.

Canadian gold miners Greystar Resources GSL.TO and Galway Resources GWY.V are also developing deposits in the same area.

Ventana’s shares have lost 7 percent in value since settling a dispute over the ownership La Bodega. [ID:nN07181596]

They closed at C$9.37 on Friday on the Toronto Stock Exchange, valuing the company at C$955.8 million. (Reporting by Isheeta Sanghi in Bangalore; Editing by Don Sebastian)