Patagonia GOLD Announces Project and Exploration Update
PATAGONIA GOLD ANNOUNCES PROJECT AND EXPLORATION UPDATE
November 29, 2022 Vancouver, B.C. 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 s eek 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 Te chnical 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,
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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 2,03 2.6 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 o f 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 Ma y 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.
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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 pas s 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 Officer
Patagonia Gold Corp
T: +54 11 5278 6950
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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 p hrases, 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 reade rs 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.