Patagonia Gold Enters Into Drilling Agreement at Monte Leon
November 16 2022 - 9:57AM
Patagonia Gold Corp. (“Patagonia” or the “Company”) (TSXV: PGDC) is
pleased to announce that it has entered into a farm-in agreement
(the “Agreement”) with a private, arm’s length company operating in
the mining sector (the “Partner”) for a drilling program of up to
20,000 meters on the Monte Leon target (“Monte Leon”) in the
Company’s El Tranquilo block of concessions to earn up to a 50%
interest in Monte Leon.
Monte Leon is situated within the El Tranquilo
concession block approximately 12 kilometers from Cap-Oeste (see
Figure 1 below). In 2021, the Company completed an initial 6,000+
meters of rotary air blast (“RAB”) drilling at Monte Leon designed
to outline the surface footprint of anomalous gold and silver
mineralization (see www.patagoniagold.com/news). This work
continued in 2022, such that over 15,500 meters of RAB drilling has
been completed (see Figure 2 below). Mineralization at Monte Leon
is interpreted to be within the same NW-trending structural
corridor that controls mineralization at the Company’s Cap-Oeste
Project. Monte Leon has had some historic, pre-Company exploration
consisting of 21 core and 76 reverse circulation drill holes. The
Partner will fund a core drilling program, to be conducted by the
Company, divided into two phases, to define the lateral and depth
extent of epithermal-style mineralization at Monte Leon. Phase 1
will consist of 8,500 meters for the Partner to earn a 20% stake in
Monte Leon and will have the option to advance to Phase 2 to drill
a further 11,500 meters for a total of 20,000 meters to earn an
additional 30% interest in Monte Leon, for a maximum participation
of 50%.
Christopher van Tienhoven, Chief Executive
Officer states, “We are excited with the opportunity of drilling
this prospective target adjacent to the known Cap-Oeste Project.
The drilling at Monte Leon is also a milestone moment for the
Company as, based on our work and historic drilling, we believe the
property has potential for new, high-grade, precious metal
mineralization.”
A Media Snippet accompanying this announcement
is available by clicking on the image or link below:
The COSE deposit, located in Figure 1, was sold
to, and is currently controlled by, Pan American Silver Corp.
RAB drilling is a common exploration method used
to identify near-surface mineralization. Due to the nature of RAB
drilling, which employs open hole rotary percussion drilling
methods prone to down-hole contamination, RAB samples are rarely
used in mineral resource estimation. Nonetheless, RAB results are
useful to establish targets for deeper drilling; typically using
core drills. At Monte Leon, RAB drilling has outlined several
clusters of anomalous gold mineralization that will guide
subsequent core drilling. Samples from the Company’s RAB drilling
were submitted to Alex Stewart International, a certified,
commercial analytical services company, along with blanks,
duplicates and standards per Company protocols for quality
assurance and quality control (“QAQC”) purposes. All QAQC samples
returned analytical values within acceptable limits.
Qualified Person’s
Statement
Donald J. Birak, an independent geologist and
Registered Member of SME and Fellow of AusIMM, is the qualified
person as defined by National Instrument 43-101 and 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 430
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: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, the ability of the
Company to outline the surface footprint of anomalous gold and
silver mineralization at Monte Leon; defining the lateral and depth
extent of epithermal-style mineralization at Monte Leon; the
planned drilling for Phase 1 and the option to advance to Phase 2
for further drilling; the participation rights of the Partner in
the Project; the Project being a prospective target; the Company’s
belief that the Project has potential for new, high-grade, precious
metal mineralization; and 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.
Patagonia Gold (TSXV:PGDC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Patagonia Gold (TSXV:PGDC)
Historical Stock Chart
From Jul 2023 to Jul 2024