TIDMPGD
RNS Number : 6157L
Patagonia Gold PLC
28 December 2018
28 December 2018
Patagonia Gold Plc
("Patagonia Gold" or the "Company")
Acquisition of Exploration Properties in Santa Cruz Province,
Argentina
Patagonia Gold Plc, the mining company with gold and silver
projects in the Patagonia region of Argentina, Chile and Uruguay,
is pleased to announce that it has agreed to acquired four
additional exploration property blocks located in the Province of
Santa Cruz, Argentina, from Goldcorp Inc. (TSX:G) ("Goldcorp").
Highlights:
-- Acquisition of four property blocks (namely, Las Mellizas,
San Agustin, La Esperanza and Mancha Blanca) from Goldcorp, in
exchange for a 1 per cent. net smelter royalty of any future
production
-- The properties are highly prospective with limited historical exploration activity
-- Previous drilling completed at the Las Mellizas property
provided results with intersections of 7m @ 64.6 g/t Au and 5 m @
22.2 g/t Au
Patagonia Gold has entered into an agreement to purchase the
four property blocks, located in the Province of Santa Cruz,
Argentina, from Oroplata SA, a 100 per cent. subsidiary of
Goldcorp, one of the largest gold producers in the region.
Pursuant to the terms of the agreement, Oroplata SA will
transfer ownership of the four property blocks compromising 20
mineral tenements to Minera Minamalu SA ("Minera Minamalu"), a 100
per cent. subsidiary of Patagonia Gold. In exchange, Minera
Minamalu has committed to provide Oroplata SA with a 1 per cent.
net smelter royalty of future production, if and when the
properties are put into production. In the event Minera Minamalu
decides, at its own discretion, to relinquish the properties, it
must give forty-five days' notice to Oroplata SA, such that it may
take the properties back. The acquisition will be formalised upon
execution of a public deed and registered with the Secretary of
Mines in Province of Santa Cruz.
Christopher van Tienhoven, CEO, commented:
"With this acquisition, Patagonia Gold will consolidate the
properties adjacent or near to its El Tranquilo block, thereby
expanding the Company's potential mineral resources in the highly
prospective El Deseado Massif region. Future detailed exploration
activities will be carried out in the acquired areas in order to
seek to increase our inventory of resources."
About the Properties
The areas of Las Mellizas, San Agustin and La Esperanza are
located in the eastern part of the El Deseado Massif, whereas the
Mancha Blanca property lies in the vicinity of Puerto Deseado, at
the eastern edge of the massif. The four separate properties have
similar geological characteristics to other highly prospective low
sulphidation epithermal projects which the Company currently owns
in the region, targeting Au-Ag mineralisation. There are no profits
or losses associated with the properties.
-- The Las Mellizas property is located in a regional cluster
approximately 100 km to the southeast from Cerro Negro and
comprises 124 km(2) of highly prospective Jurassic bimodal
volcaniclastic sequence hosting NNW to NNE trending gold-silver
bearing low sulphidation epithermal veins, stockworks and breccias
with potential for bonanza type grades. Geochemical anomalies from
rock chips are up to 32.0 g/t Au and 933 g/t Ag. More than half of
the property remains virtually unexplored and several structures
are still untested by drilling. Two reverse circulation (RC) holes
from a limited, partial historical third-party drilling program
resulted in 7 m @ 64.6 g/t Au (MZRC009) and 5 m @ 22.2 g/t Au
(MZRC010), representing high grade ore shoots hosted in oxidized
faulted veins and silicified breccias within a north-south
trending, strike slip fault (T12 Structure).
-- The San Agustin property is located approximately 85 km south
of Cerro Negro, covers an area of 40 km(2) and is characterised by
gold-bearing low sulphidation epithermal systems hosted in a
bimodal Jurassic volcanic sequence. Several NW trending quartz
veins and structurally controlled silicified breccias and
stockworks contain gold and silver anomalies, some of them up to 4
g/t Au and up to 256 g/t Ag. Limited historical diamond drilling
(1,205 m) by a previous optionee of the San Agustin property, which
showed moderate results, only covered a minor portion of the
outcropping veins. The Company believes that, through further
geological mapping supported by proper geophysical surveys, the
area remains highly prospective for additional discoveries.
-- The La Esperanza property covers 120 km(2) in the same mining
district as San Agustin and is located approximately 65 km
northeast of Patagonia Gold's 100 per cent. owned El Tranquilo
block. The area is characterised by veins and structures developed
in an apparent left lateral structural environment, as splays that
roots in a NNE trending transfer fault, having features of low- as
well as high-sulphidation epithermal systems. The main targets
known to date are located along NNW trending structures, such as
the Breccia Karina-Cerro Tornillo, the high-grade breccia and veins
of Cerro Guanaco, the silicified fault breccia and veins of Veta
Sur, as well as those of the Munoz veins. Partial drilling by
previous owners of some of these structures (namely Guanaco and
Veta Sur) seemingly failed on the high sulphidation, bulk tonnage
conceptual target, but insufficient exploration work, in addition
to the amount of highly anomalous precious metal values throughout
the area, provide a strong exploration potential to this
property.
-- The Mancha Blanca property is an early exploration stage
property located 350 km to the east-southeast from Cerro Negro. It
comprises a NNW to NE trending, quartz-adularia type epithermal
vein system, up to 1,300 m in length hosted by a felsic pyroclastic
sequence of the Chon Aike Formation. Discrete gold anomalies from
limited rock chip samples are up to 1.36 g/t.
For more information, please contact:
Christopher van Tienhoven, Chief Executive Officer
Patagonia Gold Plc
Tel: +54 11 5278 6950
James Spinney / James Dance / Frederick Twist
Strand Hanson Limited (Nominated Adviser and Broker)
Tel: +44 (0)20 7409 3494
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 ("MAR").
About Patagonia Gold
Patagonia Gold Plc is a mining company that seeks to grow
shareholder value through exploration, development and production
of gold and silver projects in the Patagonia region of Argentina.
The Company is primarily focused on its flagship Cap-Oeste project
in Santa Cruz and the recently acquired Calcatreu project in Rio
Negro. In addition, it is carrying out exploration in Manchuria and
Sarita in Argentina and San Jose in Uruguay. Patagonia Gold,
indirectly through its subsidiaries or under option agreements, has
mineral rights to over 220 properties in several provinces of
Argentina, Chile and Uruguay and is one of the largest landholders
in the province of Santa Cruz, Argentina.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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December 28, 2018 02:00 ET (07:00 GMT)
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