Patagonia Gold Corp. (“Patagonia” or the “Company”) (TSXV: PGDC) is
pleased to provide an update on its 2021 exploration activities in
Argentina. Development activities continue at the Cap
Oeste underground and Calcatreu gold/silver properties together
with exploration around the Cap Oeste residual heap leach operation
and at the other exploration projects. Patagonia holds over 1.29
million hectares (12,900 square kilometers) of mineral properties
in the country. By the end of 2021, the Company anticipates having
spent a total of US$3.7 million on exploration.
Highlights
- Reconnaissance sampling at the
Company’s Las Mellizas property, west of, and adjacent to, the La
Josefina group of properties, returned values ranging from less
than 0.01 grams per tonne (“g/t”) Au to 187.2 grams per tonne
(“g/t”) Au and from less than 0.25 g/t Ag to 78.6 g/t Ag.
- Completed two core holes on the
Camino target at Tornado-Huracán, situated between the San Jose and
Cerro Negro mines. The first hole ended prematurely at 85 meters
but ended in 2.1 meters of oxidized, silicified breccia starting at
64 meters downhole. The second hole intersected two structures at
186 meters and 228 meters respectively. Assays are
pending and drilling continues.
- El Tranquilo Block:
- At Monte Leon, southeast of the
Company’s Cap Oeste mine, a large program of over 375 shallow,
percussion rotary holes was completed;
- Analytical results received to-date
defined a +400 meter by +400 meter area of near surface, epithermal
gold mineralization; and
- Geologic mapping and reconnaissance
sampling continues at the Don Pancho, Felix and Calafate zones due
east of the Cap Oeste mine.
- Trench sampling at the Calcatreu
project returned high-grade Au and Ag on the Piche vein. Piche is a
+650 meter-long low sulfidation vein, located subparallel and close
to the main Nelson vein, which hosts part of the mineral resources
at the Calcatreu project. Trench assays ranged from less than 0.01
g/t Au and less than 0.25 g/t Ag to 16.7 g/t Au and 356 g/t Ag over
variable sample lengths ranging from 0.5 m to 2.3 m and include:
- TR-007-PIC - 0.5 meter grading 15.7
Au g/t and 177.7 Ag g/t;
- TR-008-PIC - 2.2 meter grading 7.67
Au g/t and 119.1 Ag g/t, including 1.2 meter grading 9.54 Au g/t
and 169/1 Ag g/t; and
- TR-009-PIC - 2.7 meter grading 8.26
Au g/t and 188.1 Ag g/t, including 1.2 meter grading 16.7 Au g/t
and 356 Ag g/t.
Additional trenching is underway.
- Completed restructuring of the La
Josefina and La Valenciana area properties with Fomicruz, the Santa
Cruz provincial mining company, together with an option agreement
over the Abril property bordering the Company’s Martha mine on the
south. Mapping, sampling and ground magnetic surveys at the Abril
property are underway.
Note:All Company analytical results cited herein
were performed by Alex Stewart International, a certified,
independent analytical services company, at their facilities in
Mendoza, Argentina and subject to the Company’s QAQC protocols.
Christopher van Tienhoven, CEO of Patagonia,
commented, “We are pleased with the geology and various anomalous
and, in some cases, high-grade results we are finding on these
properties and expect to continue work and drilling during the warm
season. We believe our large stable of prospective properties have
compelling potential discovery and development potential. In
addition, our pre-feasibility work at our Calcatreu development
property continues.”
A Media Snippet accompanying this announcement is
available by clicking on the image or link below:
Las Mellizas
Las Mellizas, located in Santa Cruz, AR, was
acquired by the Company from Goldcorp (now Newmont) in 2019.
Goldcorp acquired the property by way of its acquisition of Andean
Resources and their Cerro Negro deposit. Before Andean, Iamgold
held and explored Las Mellizas. Work by the prior operators defined
precious metal mineralization in 11 targets.Highlights of the prior
operators work include:
- +7,000 meters in 64 core and
reverse circulation (“RC”) drill holes;
- Low sulfidation, epithermal
mineralization in Jurassic-aged host rocks typical of many other
mineral occurrences in the Deseado Massif of Santa Cruz;
- Drilling tested N-S trending veins
(notably the T12 vein); and
- Au and Ag mineralization from T12
drilling ranged from 1.08 g/t Au to 296.7 g/t Au and from 3 g/t Ag
to 159 g/t Ag in RC hole MZRC009 and from 1.33 g/t Au to 939.6 g/t
Au and from 0.1 g/t Ag to 670.8 g/t Ag in core hole MRC036.
Monte Leon
Monte Leon is one of several, epithermal
precious metal occurrences within the large, +65,500 hectare, El
Tranquilo concession block, which encompasses the Company’s Cap
Oeste mine and surrounds Pan American Silver’s COSE mine. In April
of this year, the Company was granted an option to acquire a 75%
interest in the Homenaje project area, bordering El Tranquilo on
the southwest, from Mirasol Resources. Together, El Tranquilo and
Homenaje are over +79,000 hectares in size of prospective land.
Subsequently, the Company commenced geologic reconnaissance work on
the combined land with an initial emphasis on the Monte Leon
mineral showing located on trend from the Cap Oeste project (Figure
2).
A Media Snippet accompanying this announcement is
available by clicking on the image or link below:
In Q3 2021, Patagonia commenced a program of
shallow (less than 25 meter depth), angled, percussion rotary
drilling to define the near-surface extent of mineralization
discovered with prior reconnaissance sampling. Anomalous analytical
results have been received from approximately 377 holes. Results
ranged from less than detection limit to up to 15.97 g/t Au over
three meters (length-weighted, composite averages). Compositing was
limited to continuous analyses greater than or equal to 0.2 g/t Au
over a minimum one meter downhole sample length.
The analytical results outline an initial area
of anomalous gold, greater than or equal to a length-weighted
average of one gram-meter (grade x thickness), over 400 meters
NW-SE by over 400 meters NE-SW in size. In many of the holes,
mineralization starts at surface, extending to variable hole
depths. Mineralization remains open for expansion on strike and at
depth. The composites show variable oxidation levels, which the
Company believes may develop, with new drilling, into a
surface-minable opportunity. Future drilling is planned to help
define near-surface mineral resources and probe for extensions at
depth.
Abril
As disclosed on December 6, 2021, the Company
recently reached an agreement with Fomicruz on the Abril property.
Abril is approximately 1,980 hectares in size and borders the
Company’s Martha property (Figure 3) in the province of Santa
Cruz.
A Media Snippet accompanying this announcement is
available by clicking on the image or link below:
Work by prior operators identified vein and
silicified structures subparallel to those at the Company’s Martha
property and on trend with the main mineralized structures at
Manantial Espejo (Pan American Silver Corp) to the southeast. The
Abril property has been sporadically explored by prior operators,
notably Minera Piuquenes, which drilled 15 short cores in 2006 on
two structures: 11 on the west part of the property close to
provincial road 12 and four on the north along a SW extension of
the past producing Veta Del Medio system at Martha. Analytical
results from this historic drilling returned assay values from
detection limits up to 0.14 g/t Au and 368.1 g/t Ag over 2.15 drill
meters in hole ABR-DDH-001, which included 1.2 g/t Au and 3,911 g/t
Ag over 0.15 drill meters. As part of its expected
exploration activities, the Company will, among other work,
validate these historic results.
Qualified Person’s
Statement
Donald J. Birak, an independent geologist,
Registered Member of SME, 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, among other things, having spent US$3.7
million on exploration by the end of 2021, pending results of
assays, the expectation that the Company will continue to work in
the warm season, the belief that the Company’s prospective
properties have compelling potential discovery and development
potential, the belief that the composites may develop, with new
drilling, into a surface-minable opportunity, results of future
drilling, validation of historical results, the belief that the
historic drilled mineralization at the Abril property is of similar
geologic character to the Martha intermediate sulfidation,
epithermal vein-hosted mineralization, 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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