Patagonia Gold Receives Provisional Permit for the Development of the Cap Oeste Gold/Silver Underground Project
November 23 2020 - 9:01AM
Patagonia Gold Corp. (“Patagonia” or the “Company”) (TSXV: PGDC) is
pleased to announce that it has received a provisional permit to
proceed with the development of the Cap-Oeste gold/silver
underground project (the “Project” or “Capo”). Development of the
Project will focus on a high-grade portion of the current mineral
resources, which lie under and peripheral to the depleted surface
mine. The intention is to mine the Cap Oeste underground resource
and truck the ore approximately 150 kms to the Martha plant where
it will be processed to produce a concentrate.
The current mineral resource estimate for Cap
Oeste is set out below.
Capo Mineral Resources (100% basis): Base Case, 0.5 g/t Au
Equivalent Cutoff |
Classification |
Tonnes (K) |
Average Grades (g/t) |
Contained Ounces (K) |
Gold |
Silver |
Gold |
Silver |
Measured |
3.4 |
2.92 |
46.7 |
0.3 |
5.3 |
Indicated |
10,554. 0 |
2.07 |
63.2 |
704.0 |
21,448.0 |
Meas. + Ind. |
10,558.4 |
2.07 |
63.2 |
704.3 |
21,453.0 |
|
Inferred |
4,859.0 |
1.37 |
34.7 |
215.0 |
5,467.0 |
Notes:
- The mineral resource estimate was
prepared by Cube Consulting Pty Ltd with an effective date of
December 31, 2018, in the technical report entitled “NI 43-101
Technical Report, Mineral Resource Estimate on the Cap Oeste
Gold-Silver Project, Santa Cruz Province, Argentina” (the
“Technical Report”). For additional information, including with
respect to the key assumptions, parameters and methods used in
respect of the mineral resource estimate, refer to the Technical
Report, which is available on SEDAR.
- Cutoff used a 69.4:1 Au price to Ag
price ratio
- “K” – thousands, “g/t” = grams per
tonne
- Fomicruz has 5% ownership
- Rounding may affect sums and
weighted averages
- Mineral resources that are not
mineral reserves have not demonstrated economic viability
Mr. Christopher van Tienhoven, Chief Executive
Officer, remarks, “The 2018 Capo mineral resource contains a
higher-grade component of 478,000 tonnes of indicated mineral
resources, grading 12.6 g/t Au and 472 g/t Ag and containing
194,000 gold and 7.3 million silver ounces. This high-grade
mineralization is hosted in a 'Cose-style' breccia setting, which
we expect will form the basis for the potential underground
project.” (Source: page 21 of the Technical Report). “At a 3
g/t Au equivalent cutoff grade, the high-grade mineralization
contains over 190 thousand gold and 7.2 million silver ounces,
attesting to its robustness even at much higher cutoff grades.”
Qualified Person’s
Statement
Donald J. Birak, an independent geologist and
Registered Member of SME and Fellow of AusIMM and the qualified
person as defined by National Instrument 43-101, has reviewed and
approved the scientific and technical content of this press
release.
About Patagonia Gold
Patagonia Gold Corp. is a mining and development
company listed on the TSX Venture Exchange. The Company seeks to
grow shareholder value through exploration and development of gold
and silver projects in the Patagonia region of Argentina. The
Company is primarily focused on the Calcatreu project in Rio Negro
and the development of the Cap Oeste underground project.
Patagonia, indirectly through its subsidiaries or under option
agreements, has mineral rights to over 365 properties in several
provinces of Argentina and Chile and is one of the largest
landholders in the Province of Santa Cruz, Argentina.
For more information, please
contact:
Dean StuartT: 403 617 7609E:
dean@boardmarker.net
Christopher van Tienhoven, Chief Executive
OfficerPatagonia Gold CorpE: cvantienhoven@patagoniagold.com
FORWARD-LOOKING STATEMENTS
This news release contains certain
forward-looking statements, including, but not limited to,
statements with respect to development of the Project and
expectations regarding processing of material from the Project, and
the Company’s future plans and intentions. Wherever possible, words
such as “may”, “will”, “should”, “could”, “expect”, “plan”,
“intend”, “anticipate”, “believe”, “estimate”, “predict” or
“potential” or the negative or other variations of these words, or
similar words or phrases, have been used to identify these
forward-looking statements. These statements reflect management’s
current beliefs and are based on information currently available to
management as at the date hereof.
Forward-looking statements involve significant
risk, uncertainties and assumptions. Many factors could cause
actual results, performance or achievements to differ materially
from the results discussed or implied in the forward-looking
statements. These factors should be considered carefully and
readers should not place undue reliance on the forward-looking
statements. Although the forward-looking statements contained in
this news release are based upon what management believes to be
reasonable assumptions, the Company cannot assure readers that
actual results will be consistent with these forward-looking
statements. The Company assumes no obligation to update or revise
them to reflect new events or circumstances, except as required by
law.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
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