Patagonia Gold Production and Exploration Update
July 27 2021 - 8:31AM
Patagonia Gold Corp. (“Patagonia” or the “Company”) (TSXV: PGDC) is
pleased to provide a production and exploration update on key
projects located in Argentina.
Highlights
- Production of 2,519 gold equivalent
ounces (“ozs AuEq”) for Q2 2021 and 4,690 ozs AuEq for H1 20211.,
obtained from leaching activities at the Company’s Lomada de Leiva
and Cap Oeste operations in the province of Santa Cruz,
Argentina.
- The 6,000-meter, rotary air blast
(“RAB”) drill program at the Company’s Monte Leon gold/silver
project was completed on July 19, 2021. The objective of this drill
program is to define new oxide material to place on the existing
leach pad at Cap Oeste, Santa Cruz. Assay results are pending.
- The pre-feasibility study at
Calcatreu is underway and is expected to be completed in Q3 2021.
Calcatreu is the Company’s flagship asset with 669,000 Au and
6,280,000 Ag contained ounces of measured mineral resources and
indicated mineral resources and 348,000 Au and 3,400,000 Ag ounces
of inferred mineral resources2. The Calcatreu project is 100% owned
by Patagonia and was acquired in 2018 from Pan American Silver
Corp. for total consideration of US$15 million. There are no
further purchase provisions other than net smelter returns
royalties due to Franco Nevada Corporation (2.5%) and Maverix
Metals Inc. (1.25%). For additional information refer to the
technical report entitled “NI 43-101 Technical Report, Mineral
Resource Estimate, Calcatreu Gold-Silver Project, Rio Negro
Province, Argentina,” dated effective December 31, 2018 (the
“Calcatreu Report”), which is available under the Company’s profile
on SEDAR.
- Drilling at the Tornado-Huracan
property, also located in Santa Cruz, will change to diamond
drilling, and is expected to recommence in September 2021. The
Company started with reverse circulation (“RC”) drilling in June
2021, which was suspended due to adverse winter weather conditions
compounded by COVID-19 restrictions and poor rock conditions
encountered.
- Assessment of the development
viability of the Cap Oeste underground project, with treatment of
the material at the Martha plant, will commence after an evaluation
of results from the drill program at the Monte Leon gold/silver
project. This drill program identified new sulfide mineralization
that may augment the existing, high-grade component of Cap Oeste’s
measured mineral resources and indicated mineral resources of
478,000 tonnes grading 19.4 Au grams per tonne2. For additional
information refer to the technical report entitled “NI 43-101
Technical Report, Mineral Resource Estimate on the Cap Oeste
Gold-Silver Project, Santa Cruz Province, Argentina,” dated
effective December 31, 2018 (together with the Calcatreu Report,
the “Technical Reports”), which is available under the Company’s
profile on SEDAR.
- Q2 2021 - 1,725 ozs Au and 54,010
ozs Ag and H1 2021 – 3,315 ozs Au and 93,609 ozs Ag. The ratio for
Q2 2021 was 67.92:1 and 68.00:1 for H1 2021.
- Per the Technical Reports prepared
by Cube Consulting Pty Ltd.
Christopher van Tienhoven, Chief Executive
Officer of the Company, states: “Despite the challenges posed by
COVID-19, we are pleased with our team’s safe production and
exploration efforts thus far in 2021. We look forward to providing
regular updates on these two fronts as well as the Calcatreu
prefeasibility study.”
Qualified Person’s
Statement
Donald J. Birak, an independent geologist and
Registered Member of SME and Fellow of AusIMM and a qualified
person as defined by National Instrument 43-101, has reviewed and
approved the scientific and technical content of this news
release.
About Patagonia Gold
Patagonia Gold Corp. is a South America focused,
publicly traded mining 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 420
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 CorpT: +54 11 5278 6950E:
cvantienhoven@patagoniagold.com
FORWARD-LOOKING STATEMENTS
This news release contains certain
forward-looking statements, including, but not limited to,
statements with respect to: obtaining assay results from the
Company’s Monte Leon gold/silver project, timing for completing the
pre-feasibility study at Calcatreu, diamond drilling recommencing
at the Company’s Tornado-Huracan property in September 2021, plans
to assess the viability of the development of the Cap Oeste
underground project and treatment of the material at the Martha
plant, the expected increase in production and increase in
potential mineral resources for future development, advancement and
development of gold and silver projects in the Patagonia region of
Argentina and the anticipated growth in shareholder value. 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. These forward-looking statements are made as of the
date of this news release, and 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 news release.
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