Patagonia GOLD Enters into Drilling Agreement at Monte Leon
PATAGONIA GOLD ENTERS INTO DRILLING AGREEMENT AT MONTE LEON
November 16, 20 22 Vancouver, B .C. 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 com pleted 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, C hief Executive Officer state s, “We are excited with the
opportunity of drilling this prospective target adjacent to the know n 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.”
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Figure 1. Location of Cap-Oeste and Monte Leon, Santa Cruz, Argentina
The COSE deposit, located in Figure 1, was sold to, and is currently controlled by, Pan
American Silver Corp.
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Figure 2. Location of RAB drill holes at Monte Leon
(color coded with composited Au grade-thickness values)
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 co re drilling. Samples from
the Company’s RAB drilling were submitted to Alex Stewart International, a certified,
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commercial analytical services company, along with blanks, duplicates and standards per
Company protocols for quality assurance and quality cont rol (“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 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, 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 bei ng 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 fac tors should
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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.