VANCOUVER, British Columbia, Aug. 12, 2020 (GLOBE NEWSWIRE) — 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-sulfidation epithermal mineral system hosted in an NNE-striking, steeply ESE-dipping structure (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 tonnes 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 mined 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 approximately 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 processing, 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 environmental permit which is expected to be approved by the Mining Authority during 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 generate cash flow from residual heap leach operations at Lomada, without a lost-time accident since 2016 and no environmental incidents since 2015. The current gold price presents a compelling opportunity for the Company to continue work with newly 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 plant. 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.”
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 National 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-compliant mineral resource and reserve estimate for Lomada, as prepared by Chlumsky, Ambrust 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 there are risks associated with commencing mining without an updated estimate of mineral resources and mineral reserves disclosed in a current NI 43-101 technical report.
About Patagonia Gold
Patagonia Gold Corp. is a mining and development 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 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
E: [email protected]
Christopher van Tienhoven, Chief Executive Officer
Patagonia Gold Corp
T: +54 11 5278 6950
E: [email protected]
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements, including, but not limited to, statements with respect to, receipt of the environmental 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”, “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 release.
