Patagonia Gold Corp. (“Patagonia” or the “Company”) (TSXV: PGDC) is
pleased to provide this update on its exploration activities at the
Abril property in Santa Cruz Province, Argentina (Figure 1).
Channel sampling returned Ag grades up to 1,424
grams per tonne (“g/t”) and 0.14 Au g/t over 0.7 horizontal meters
in channel 86. Composited Ag values shown in Table 1 herein were
prepared using a 15 g/t Ag minimum value.
Highlights
- 2,000 hectare property bordering
the Company’s Martha property on the south.
- The option on the Abril property
was granted in December 2021 by Fomicruz, the Santa Cruz provincial
mining company, along with La Josefina and La Valenciana (see
December 7, 2021 press release at www.patagoniagold.com).
- Patagonia owns the Estancia (ranch)
Cerro Primero de Abril and its surface rights as part of the Martha
mine and plant complex.
- Over 7 kilometers of strike of
veins and vein breccias are recognized to-date. Mineralized
structures trend WNW, subparallel to those at Martha.
- Mineralization is believed to be
low sulfidation rich in base metals and hosted in Jurassic-aged,
Chon Aike Formation volcanic rocks and in the same host rocks as at
Martha.
- Limited, historic drilling of 15
holes by Minera Piuquenes, a private Argentine company and
exploration arm of Minera Aguilar. Anomalous Ag and Au values, up
to 368 g/t Ag and 0.14 g/t Au (including 3,911 g/t Ag over 0.14
meters), reported from 5 of the holes 1.
- Recent Company work consisted of
data compilation, ground geophysics and channel sampling.
- 184 new channels have been cut
(with diamond saw), 440 samples collected, and 296 samples with
approved quality assurance quality control (“QAQC”) received thus
far.
1. Historic drill results are from prior
operator reports. No samples or core are available for inspection
so neither the Company nor the qualified person has been able to
validate them.
Christopher van Tienhoven, CEO of Patagonia, commented that:
“The Abril property is an excellent fit for the Company due to its
proximity to our Martha mine and flotation plant and its style of
mineralization which appears to be similar to the mineralization
mined at Martha by the Company. We are encouraged by the initial
results of our channel sampling and look forward to continuing our
exploration work at Abril. A drill program of up to 2,000 meters is
in the planning stages to be defined once all our channel sampling
results have been received and validated”.
Figure 1. Location of the Abril
Property,
Concession
Blocks and
Surface
Lands
Controlled by
Patagonia
Channel sampling by Company geologists of
exposed epithermal structures ranged from one to 9.72 horizontal
meters in length. Samples were collected by diamond saw cuts over a
one meter length average though discretion was used based on
geologic inspection of the channels. Geochemical analyses were
performed by Alex Stewart International, a certified, commercial
laboratory at their Mendoza, Argentina facilities. Analytical
results are shown in Figure 2.
Figure
2. Location of
Patagonia’s Channel Sample Results on
the Abril
Property(with
color-coded Ag values in new channels
samples draped over total field magnetics
data)
Known mineralized structures at the Abril
property are subparallel to those at the past producing Martha
mine. Company sampling results reported herein (Table 1) were from
Veta del Medio and Veta Oriental structures situated about 2.5 km
SSW of Martha.
Martha had a history of production of small
tonnage of very high silver grade. Coeur Mining, a prior owner of
Martha, acquired Martha in 2002 and commenced operation that year
totaling 13.7 thousand tonnes grading nearly 3,800 g/t Ag (NI
43-101 technical report, 2008). Coeur last reported mineralized
material (the sum of measured and indicated mineral resources) at
Martha of 52 thousand tonnes grading 465.2 g/t Ag (year-end 2013
Form 10-K). The most recent statement of mineral reserves at Martha
was reported by Coeur of 48.1 thousand tonnes grading 438. 5 g/t Ag
(year-end 2011 Form 10-K)2.
2. Martha's production, mineral resources and
mineral reserves cited herein are considered historical in nature.
While neither the Company nor the qualified person have validated
the historic information and are not considering the estimates as
current, it is believed that the information has been collected
following industry best practices and is thus likely reliable and
relevant to an understanding of the Abril property.
Table 1.
Patagonia’s
Channel
Sample
Assay Results
from Work
in 2022
Structure/Vein |
Channel Number |
Length
(meters) |
Ag (g/t) |
Au (g/t) |
Veta del Medio |
CH-086-ABR |
3.5 |
366.1 |
0.1 |
incl. |
0.7 |
1,424 |
0.14 |
Veta del Medio |
CH-091-ABR |
0.7 |
268 |
0.02 |
Veta del Medio |
CH-077-ABR |
1.9 |
205.7 |
0.13 |
Veta del Medio |
CH-078-ABR |
0.75 |
204 |
0.13 |
Veta del Medio |
CH-052-ABR |
1.42 |
186.8 |
0.25 |
Veta del Medio |
CH-067-ABR |
0.62 |
184.2 |
0.19 |
Veta del Medio |
CH-075-ABR |
5.8 |
167.1 |
0.06 |
Veta del Medio |
CH-053-ABR |
4.41 |
141.1 |
0.02 |
Veta del Medio |
CH-076-ABR |
0.8 |
130.2 |
0.1 |
Veta Oriental |
CH-005-ABR |
1 |
118.8 |
0.08 |
Veta del Medio |
CH-074-ABR |
3.35 |
100.6 |
0.06 |
Veta del Medio |
CH-084-ABR |
0.6 |
94.9 |
0.12 |
Veta del Medio |
CH-070-ABR |
1.6 |
94.3 |
0.18 |
Veta Oriental |
CH-036-ABR |
1 |
90 |
0.03 |
Veta del Medio |
CH-056-ABR |
1 |
85.1 |
0.08 |
Veta del Medio |
CH-065-ABR |
3 |
62.8 |
0.08 |
Veta Oriental |
CH-049-ABR |
1.1 |
59.6 |
0.04 |
Veta Oriental |
CH-004-ABR |
1.15 |
56.1 |
0.01 |
Veta del Medio |
CH-051-ABR |
1 |
53.7 |
0.08 |
Veta del Medio |
CH-103-ABR |
1 |
50.5 |
0.04 |
Veta del Medio |
CH-081-ABR |
1 |
48,8 |
0.1 |
Veta del Medio |
CH-079-ABR |
2 |
47.3 |
0.06 |
Veta Oriental |
CH-012-ABR |
0.8 |
46 |
0.01 |
Notes:
- All geochemical values performed by
Alex Stewart International in Mendoza, Argentina by ICP-MA-39.
- Compositing performed on successive
channel samples grading greater than or equal to 15 g/t Ag. No more
than one successive assay grading less than 15 Ag g/t were used in
compositing.
- Mineralized intervals are
horizontal lengths.
- 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 field
samples. All results reported herein passed the Company’s QAQC
protocols.
- The potential quantity and grade of
mineralization, sampled in the trenches, has not been determined
yet by the Company and the qualified person as there has been
insufficient exploration to date to define a mineral resource, and
it is uncertain if further exploration will result in targets being
delineated as a mineral resource.
- Analyses reported herein were
validated by the qualified person by comparing reported analyses to
original laboratory certificates.
In addition to this channel sampling, the
Company conducted ground geophysical surveys designed to define
sites favorable to host new veins, and compilation of historic
surface exploration data to assist 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: 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, mineralization
believed to be in the same host rocks as at Martha, future drill
programs once all channel sampling results have been received and
validated, continued exploration work at the Abril property, the
future generation of new targets, 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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