Patagonia GOLD 2021 Exploration Update Bonanza Grade from Channel Sampling at Las Mellizas Property
PATAGONIA GOLD 2021 EXPLORATION UPDATE
BONANZA GRADE FROM CHANNEL SAMPLING AT LAS MELLIZAS PROPERTY
December 16, 2021 Vancouver, BC. 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.
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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.”
Figure 1. Location of Patagonia Gold’s Properties in Argentina
Land position in yellow, mineral properties in red
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;
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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).
Figure 2. Cap Oeste within the El Tranquilo Block
Mineral trends and key mineral occurrences in red
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.
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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.
Figure 3. Location the Abril property (yellow) and the Martha property (green)
Historic drill hole locations shown
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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 Stuart
T: 403 617 7609
Christopher van Tienhoven, Chief Executive Officer
Patagonia Gold Corp
T: +54 11 5278 6950
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
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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.