Patagonia Gold Corp (TSX:PGDC) (“Patagonia” or the “Company”) is
pleased to provide an update on project and exploration activities
on its large portfolio of properties in Argentina.
Highlights
- Continued with permitting
activities at Calcatreu, purchased surface rights over the project
and held stakeholder outreach meetings;
- Twin drilling commenced in the Cap
Oeste deep zone to validate the mineral resource model and provide
new samples for metallurgical tests – results from the first two
holes received thus far confirm the model;
- Completed 2,032.6 meters, in 84 RC
drill holes, over the Monte Leon zone located 12 km southeast of,
and on strike from the Company’s Cap Oeste operations – core
drilling expected to commence in Q4 2022;
- 12 new trenches completed at the
Abril property, which borders the Company’s Martha property, and RC
drilling commenced in November 2022 to test prioritized targets;
and
- Epithermal-style gold and silver
mineralization exposed in 38 new trenches at Elisa with 281 new
assays from channel sampling (224 samples pending), 330 line-km of
ground magnetics surveys completed.
Calcatreu – Rio Negro
Province
The Company has been active at Calcatreu, one of
its two, advanced-stage projects, on both exploration and
development fronts. On the permitting front, the Company held a
series of outreach meetings with local communities, authorities and
unions to present an update on the Company’s activities and plans
and to seek input from those groups and others which will form a
vital part of the permitting process for this important project. In
addition, the Company purchased surface rights covering a major
portion of the current mineral resources at Calcatreu.
Cap Oeste – Santa Cruz
Province
The Cap Oeste project in the 66,215 hectare
sized El Tranquilo concession block, is the Company’s second
advanced-stage project where the recovery of gold and silver
continues. Plans for the project envision development and
production from a higher-grade portion, “Cose-style” zone, of the
Cap Oeste measured and indicated mineral resource amounting to
478,000 tonnes grading 12.62 g/t Au and 472.4 g/t Ag for 194,000
contained Au ounces and 7.3 million contained Ag ounces. 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 December
31, 2018, which is on the Company’s website and under its profile
on SEDAR at www.sedar.com. The zone consists of Au and Ag
mineralization hosted in dark-colored, silicified breccia within
the main Bonanza structural feature – a northwest-striking,
southwest-dipping regional-scale structure. As part of its on-going
evaluation of the Cose-style zone, the Company recently commenced
core twin drilling to validate key parts of the mineral resource
and collect fresh samples for metallurgical testing. Assay results
from the first two core holes received this month validate the
mineral resource model limits (Table 1).
Table 1. Composited Au and Ag Assays for
Two Twin Holes
Core Hole Comparison |
Mineralized Intercept (m) |
Au g/t |
Ag g/t |
CO-170D |
Original Hole |
5.89 |
12.75 |
266 |
CO-413A-D |
Twin Hole |
4.09 |
2.08 |
15.7 |
CO-252D |
Original Hole |
7.00 |
4.01 |
4.5 |
CO-414B-D |
Twin Hole |
6.35 |
27.37 |
69.6 |
All assays are from down-hole core samples,
ranging from 0.59 to 1.5 m in length (0.9 m average). Core was cut
with a diamond saw and half was delivered to the laboratory. No
grade capping was employed. Holes were drilled from the hanging
wall to cut the Bonanza structure. True widths range from 90 to 98%
of the drilled widths. Both twin holes deviated up from their
planned intersections - CO-413A-D by about 17 m and CO-418B-D by
about 7 m – but both confirmed the mineral resource block
grades.
Monte Leon – Santa Cruz
Province
Monte Leon is situated about 12 km southeast and
on the same mineral trends that encompass the Cap Oeste
mineralization. RC drilling recommenced this quarter at Monte Leon
as a continuation of the program announced in July 2021 (please
refer to the Company’s press release dated July 27, 2021). The goal
of this program is to further define the limits of the near surface
mineralization identified with the 2021 RAB drilling and to
identify sites for deeper drilling with core. A total of 2,032.6
meters, in 84 shallow RC drilling, has been completed this year.
Assays are pending. Core drilling will start this quarter to test
for extension of the shallow, near surface mineralization.
Abril – Santa Cruz Province
Abril borders the Company’s Martha property on
the south, just 2.5 km south of the Martha mill and flotation
plant. Company geologists have been mapping and conducting ground
magnetic survey over Abril to help establish targets for a first
pass of reverse circulation drilling, which is planned to be
followed by core drilling. Mineralization identified with historic
and Company work (please refer to the Company’s press release dated
May 26, 2022) has identified mineralized trends similar to those at
the Martha project in 12 new trenches. Grades from trench samples
ranged from 2 g/t Ag up to 615 g/t Ag. All samples were collected
with a portable diamond saw over variable lengths based on geologic
characteristics but generally about 1 meter in horizontal length.
Given the geologic similarities to veins exposed and mined at the
Martha property, the Company believes there is a reasonable
expectation for processing any Abril mineralization at the Martha
mill and flotation plant.
Elisa – Santa Cruz Province
The property is located about 15 km north of the
Company’s La Valenciana property. Work by Company geologists
included cutting of 38 trenches perpendicular to the main,
north-south striking vein structure. The main vein is exposed on
surface over a length of more than 4 km and has never been drilled.
It consists of epithermal, banded quartz with scattered iron oxide
minerals which formed after primary sulfides. A total 505 rock chip
samples have been collected from the trenches using the same
methods as employed at Abril. Assays from the first 281 trench
samples have been received and returned values ranging from 0.005
Au g/t and 2 Ag g/t up to 1.16 g/t Au and 180.4 g/t Ag. The Company
is also collecting new ground magnetic data to help define a first
pass of reverse circulation drill holes.
Qualified Person’s
Statement
Donald J. Birak, Registered Member of the
Society for Mining, Metallurgy and Exploration (SME) and a Fellow
of the Australasian Institute of Mining and Metallurgy (AusIMM) and
a qualified person as defined by National Instrument 43-101 –
Standards of Disclosure for Mineral Resources, has reviewed and
approved the scientific and technical information in this press
release. Mr. Birak visited the Company’s properties, except for
Calcatreu, in October and November, 2022 and validated the results
reported and methods used to collect the samples. All samples were
analyzed by Alex Stewart International, a certified analytical
services provider, at their facilities in Perito Mineral and
Mendoza, Argentina. Methods used to determine precious metal values
consisted of ICP-MS Ag followed by fire assay for Ag > 200 g/t
and for all Au analyses.
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, results of its
drilling programs, plans for development and production at the Cap
Oeste project, the focus of future drilling, the discovery of new
exploration targets, the ability to add value to existing projects
and identify new exploration projects, 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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