Patagonia Gold extends Mining and Processing Capacity at Lomada Gold Project
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Patagonia Gold extends Mining and Processing Capacity at Lomada Gold Project
August 12, 2020 Vancouver, BC. Patagonia Gold Corp. (“Patagonia” or the “Company”)
(TSXV: PGDC) announces recommencement of mining and leaching operations at its
Lomada de Leiva mine (“Lomada”) in the western part of the Santa Cruz Province of
Argentina.
Highlights
The Lomada gold deposit is a classic, low-sulfidati on epithermal mineral system
hosted in an NNE-striking, steeply ESE-dipping stru cture (the “Main Breccia”)
typical of other epithermal precious metal deposits of the Deseado Massif in
Santa Cruz.
Lomada commenced commercial gold production in 2013 via heap leaching of
surface mined material. A total of 1,914,400 tonne s of mined material, grading
1.97 g/t Au, has been placed on the fully lined heap leach facility.
Approximately 121,100 ounces of gold have been mine d and 98,100 ounces
recovered by leaching from Lomada since inception. During this period, mining
occurred from a portion of the Main Breccia spanning more than 150 m vertically,
20 m wide and 600 m on strike.
During peak production, Lomada achieved approximate ly 3,900 recovered gold
ounces per month.
The Company continues to recover approximately 300 gold ounces a month from
pregnant leach solution at the Lomada processing facility.
Mineralization, targeted for new mining and process ing, occurs on the same
mineralized structure that hosted all Lomada’s past production. Figure:
http://patagoniagold.com/projects/lomada-de-leiva/
The Company has applied for the corresponding enviro nmental permit which is
expected to be approved by the Mining Authority dur ing Quarter 3 2020. Upon
receipt of the permit, mining is expected to commence.
Christopher van Tienhoven, CEO commented: “Our production team, headed by Chief
Operating Officer, Jorge Sanguin, continues to gene rate cash flow from residual heap
leach operations at Lomada, without a lost-time acc ident since 2016 and no
environmental incidents since 2015. The current gol d price presents a compelling
opportunity for the Company to continue work with n ewly mined material. We also
remain focused on putting the Cap-Oeste underground gold project into production with
material to be processed at our Martha flotation pl ant. Over the last few months, the
Company has been using all of its efforts to mitigate the effects of the novel coronavirus
on its personnel and other stakeholders as much as possible which resulted in a short
hiatus to on-site activity.”
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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 Natio nal Instrument 43-101 who has
reviewed and approved the scientific and technical content of this press release.
Cautionary Comment
The Company has not updated its initial JORC-complian t mineral resource and reserve
estimate for Lomada, as prepared by Chlumsky, Ambru st and Meyer (“CAM”) in 2007.
Though the recommencement of mining and gold recovery is expected to come from an
extension of the mineralized structured modeled by CAM, the Company is not treating
the historic estimates as current and notes that th ere are risks associated with
commencing mining without an updated estimate of mi neral resources and mineral
reserves disclosed in a current NI 43-101 technical report.
About Patagonia Gold
Patagonia Gold Corp. is a mining and development com pany listed on the TSX Venture
Exchange. The Company seeks to grow shareholder val ue through exploration and
development of gold and silver projects in the Pata gonia 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, i ndirectly through its subsidiaries or
under option agreements, has mineral rights to over 360 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 press release contains certain forward-looking statements, including, but not limited
to, statements with respect to, receipt of the envi ronmental permit and commencement
of mining at Lomada, putting Cap-Oeste underground into production and processing at
the Martha flotation plant, anticipated results of production and processing, advancement
and development of gold and silver projects in the Patagonia region of Argentina, and
anticipated growth in shareholder value. Wherever possible, words such as “may”, “will”,
“should”, “could”, “expect”, “plan”, “intend”, “ant icipate”, “believe”, “estimate”,
“predict” or “potential” or the negative or other variations of these words, or similar words
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or phrases, have been used to identify these forwar d-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-loo king statements. These factors should
be considered carefully and readers should not plac e undue reliance on the forward-
looking statements. Although the forward-looking st atements 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 statement s 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 release.