Patagonia Gold Exploration Update
May 18 2022 - 7:31AM
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 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.”
A Media Snippet accompanying this announcement is
available by clicking on the image or link below:
Table 1. Composited Gold Values –
Patagonia Drilling 2021 and 2022
DrillHoleNumber |
Structure |
Azimuth(degrees) |
Inclination(degrees) |
TotalDepth(m) |
Composited Au |
From(m) |
To(m) |
Width(m) |
AverageAu (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.
A Media Snippet accompanying this announcement is
available by clicking on the image or link below:
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
StuartT: +1 403 617 7609E: dean@boardmarker.net
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.
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