Patagonia Gold Receives Provisional Permit for the Development of the Cap Oeste Gold/Silver Underground Project
Patagonia Gold Receives Provisional Permit for the
Development of the Cap Oeste Gold/Silver Underground Project
November 23, 2020 Vancouver, B.C. Patagonia Gold Co rp. (“Patagonia” or the
“Company”) (TSXV: PGDC) is pleased to announce that it has received a provisional permit
to proceed with the development of the Cap-Oeste gold/silver underground project (the
“Project” or “Capo”). Development of the Project w ill focus on a high-grade portion of
the current mineral resources, which lie under and peripheral to the depleted surface
mine. The intention is to mine the Cap Oeste underg round resource and truck the ore
approximately 150 kms to the Martha plant where it will be processed to produce a
concentrate.
The current mineral resource estimate for Cap Oeste is set out below.
Cap o Mineral Resources ( 100% basis ): Base Case, 0.5 g/t Au Equivalent Cutoff
Classification Tonnes (K) Average Grades (g/t) Contained Ounces (K)
Gold Silver Gold Silver
Measured 3.4 2.92 46.7 0.3 5.3
Indicated 10, 554. 0 2.07 63. 2 704 .0 21 ,448 .0
Meas. + Ind. 10,558.4 2.07 63.2 704.3 21,453.0
Inferred 4,859.0 1.37 34.7 215.0 5,467.0
Notes:
The mineral resource estimate was prepared by Cube Consulting Pty Ltd with an effective date of December 31,
2018, in the technical report entitled “NI 43-101 Technical Report, Mineral Resource Estimate on the Cap Oeste
Gold-Silver Project, Santa Cruz Province, Argentina ” (the “Technical Report”). For additional informat ion,
including with respect to the key assumptions, parameters and methods used in respect of the mineral resource
estimate, refer to the Technical Report, which is available on SEDAR.
Cutoff used a 69.4:1 Au price to Ag price ratio
“K” – thousands, “g/t” = grams per tonne
Fomicruz has 5% ownership
Rounding may affect sums and weighted averages
Mineral resources that are not mineral reserves have not demonstrated economic viability
Mr. Christopher van Tienhoven, Chief Executive Officer, remarks, “The 2018 Capo mineral
resource contains a higher-grade component of 478,0 00 tonnes of indicated mineral
resources, grading 12.6 g/t Au and 472 g/t Ag and containing 194,000gold and 7.3 million
silver ounces. This high-grade mineralization is h osted in a “Cose-style” breccia setting,
which we expect will form the basis for the potential underground project.” (Source: page
21 of the Technical Report). “At a 3 g/t Au equiva lent cutoff grade, the high-grade
mineralization contains over 190 thousand gold and 7.2 million silver ounces, attesting to
its robustness even at much higher cutoff grades.”
Qualified Person’s Statement
Donald J. Birak, an independent geologist and Registered Member of SME and Fellow of
AusIMM and the qualified person as defined by National Instrument 43-101, has reviewed
and approved the scientific and technical content of this press release.
2
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 365 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
FORWARD-LOOKING STATEMENTS
This news release contains certain forward-looking statements, including, but not limited to,
statements with respect to development of the Proje ct and expectations regarding processing of
material from the Project, and the Company’s future plans and intentions. 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 achievem ents to differ materially from the results
discussed or implied in the forward-looking stateme nts. 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 . 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 r esponsibility for the adequacy or accuracy of
this release.