Patagonia GOLD Exploration Update
PATAGONIA GOLD EXPLORATION UPDATE
May 18, 2022 Vancouver, BC - Patagonia Gold Corp. (“Patagonia” or the “Company”)
(TSXV: PGDC) completes the first phase of core drilling on its Tornado and Huracán
property in the Deseado Massif in the Santa Cruz Province of southern Argentina.
Gold mineralization discovered in five core drill holes, with up to 0.59 g/t Au (see Table 1
below) over 8.8 drill meters in core hole TOR-003D, were reported from silicified and
oxidized, hydrothermal breccia in the Camino structure. All drilling was conducted on the
eastern Huracán, concession block which abuts the Cerro Negro mine property to the
south.
Highlights
Large, 7,895 hectare, and prospective land package in two concession blocks,
Tornado and Huracán, situated between two producing mines: Cerro Negro
(Newmont) and Huevos Verdes (Hochschild and McEwen Mining joint venture).
Over 3.5 kilometers of strike of low sulfidation veins and vein breccias recognized
to-date in three main areas: Cerro Solo, Cerro Ópalo-Guanaco and Camino plus
two smaller areas, all in the Huracán block.
Mineralized structures trend WNW, subparallel to those at Cerro Negro and San
José.
Mineralization is hosted in Jurassic-aged, Chon Aike Formation volcanic rocks – a
favorable and prospective host to Au and Ag mineralization and several mines in
the Deseado Massif.
Commenced drilling in late Q4 2021, completing 12 holes totaling 3,770 meters
on the Huracán concession to date – one reverse circulation, 11 core.
Only nine historic core holes completed prior to the Company’s drilling (no
mineralization reported by the prior operator).
Anomalous Au in five core holes; hole TOR-003D with Au >=1.0 g/t (see Table 1
below).
In addition to encountering the first significant precious metals on the property,
the Company’s drilling suggests the presence of other structures in the footwall
of the main Camino structure not exposed on surface.
Much of the Huracán concession is covered by unconsolidated sediments and the
Tornado concession (west block) is covered by post-mineral, Tertiary-aged basalt.
Mineralized trends on the property recognized from scattered outcrops trend WNW and
dip steeply to the SSW and NNE. Work completed by the Company and prior operators
has recognized high-level, epithermal features on the properties (Cerro Ópalo) and
Patagonia believes its new drilling demonstrates potential for higher grade mineralization
in deeper sections of the paleo-hydrothermal system at Tornado-Huracán.
Christopher van Tienhoven, CEO of Patagonia, commented that “ These results
demonstrate the presence of gold and silver mineralization on our Tornado and Huracán
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concessions, the first mineralization ever reported from drilling on this property, which is
well-situated between two producing mines: Cerro Negro and San José. Additional work,
including data modeling, is underway, which we expect to lead to a second phase of core
drilling.”
Figure 1. Location of Tornado and Huracán Property in Argentina
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Table 1. Composited Gold Values – Patagonia Drilling 2021 and 2022
Drill
Hole
Number
Structure Azimuth
(degrees)
Inclination
(degrees)
Total
Depth
(m)
Composited Au
From
(m)
To
(m)
Width
(m)
Average
Au (g/t)
TOR-
002D
Camino
0 -70 89 63.4 64.4 1.0 0.15
77.0 84.3 7.3 0.15
TOR-
003D 25 -70 303
174.0 176.0 2.0 0.15
186.0 193.1 7.1 0.34
228.2 237.0 8.8 0.59
Incl. 232.7 233.2 0.5 1.03
Incl. 233.7 234.2 0.5 1.04
TOR-
009D 25 -70 449 214.0 216.0 2.0 0.18
TOR-
010D 25 -70 401
137.0 138.0 1.0 0.18
146.85 148.31 1.46 0.19
156.5 157.0 0.5 0.16
189.0 208.0 19.0 0.31
211.0 216.0 5.0 0.57
TOR-
012D 0 -60 260
141.35 141.85 0.5 0.26
162.0 162.5 0.5 0.18
171.4 171.85 0.45 0.18
188.75 195.8 7.05 0.18
199.5 209.1 9.5 0.29
Notes:
Au determined by Atomic Absorption (AAS), performed by Alex Stewart International, a
certified, independent analytical services company, in their Mendoza, AR facility.
Compositing performed on successive samples grading greater than or equal to 0.15 g/t
Au. Not more than two successive interval assays grading less than 0.15 g/t were used in
compositing.
Mineralized intervals are drill lengths; true widths not yet known.
Quality assurance quality control (“QAQC”) protocols established by the Company
consisted of blanks and commercial standards inserted into normal sample stream at a
rate of one control sample per 10 primary core samples. All results reported passed the
Company’s QAQC protocols.
The potential quantity and grade of mineralization described herein is conceptual in
nature as there has been insufficient exploration to define a mineral resource and it is
uncertain if further exploration will result in targets being delineated as a mineral
resource.
The qualified person reviewed the assay data used to prepare the composites reported
herein and has verified them against the commercial assay certificates including the QAQC
reports and standards used. The qualified person did not view the core sampling methods
but is familiar with the property by virtue of experience with the prior owner of the
property and the Company’s standard sampling protocols on other properties.
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Figure 2. Longitudinal section of composited gold (“Au") grades and the mineralized horizon
(Looking NNE)
In addition to this first phase drilling, the Company completed surface mapping and
outcrop sampling designed to aid in the generation of new targets.
Qualified Person’s Statement
Donald J. Birak, an independent consulting 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 430 properties in
several provinces of Argentina and Chile and is one of the largest landholders in the
province of Santa Cruz, Argentina. The Company produces gold and silver from its Lomada
and Cap-Oeste mines in the province of Santa Cruz, has two development-stage
properties - Cap-Oeste underground and Calcatreu - and conducts exploration on its large
portfolio of mineral properties in the country, which now totals over 1.29 million hectares.
For more information, please contact:
Dean Stuart
T: +1 403 617 7609
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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, the presence of other structures in the
footwall of the main Camino structure, the potential for higher grade mineralization in
deeper sections of the paleo-hydrothermal system at Tornado-Huracán, a second phase
of core drilling, 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.