TIDMPGD
RNS Number : 7197A
Patagonia Gold PLC
31 May 2019
31 May 2019
Patagonia Gold Plc
("Patagonia Gold" or the "Company")
Calcatreu and Cap Oeste Mineral Resource Update
Patagonia Gold, the AIM-listed mining company with gold and
silver projects in the Patagonia region of Argentina and in Chile
and Uruguay, is pleased to provide updated mineral resource
estimates for the Calcatreu and Cap Oeste projects in
Argentina.
Earlier today, Hunt Mining Corp. ("Hunt") announced the terms of
a recommended share for share exchange offer for the issued and to
be issued share capital of Patagonia (the "Offer"), to be effected
by means of a scheme of arrangement. The Offer constitutes a
reverse takeover for Hunt (the "RTO") pursuant to the rules of the
TSX-V.
As part of the RTO process, the Company, pursuant to the rules
of the TSX-V, commissioned the updating of the independent NI
43-101 compliant technical reports for both Calcatreu and
Cap-Oeste. The updates were performed by Cube Consulting Pty Ltd
("CUBE"), an independent firm experienced with the requirements of
NI 43-101 and with deposits around the world with similar
mineralisation as Calcatreu and Cap-Oeste.
At Calcatreu, the indicated mineral resources decreased by
21,000 contained gold ounces and the inferred mineral resources
increased by 5,000 contained gold ounces. Similarly, indicated
silver resources decreased by 465,000 contained ounces while
inferred mineral resources decreased by 39,000 contained ounces.
The changes from the previous estimate were due to a revised
interpretation of the existing data.
At Cap-Oeste, the measured and indicated mineral resources
decreased by 176,000 contained gold ounces and 2,821,000 contained
silver ounces primarily as a result of mine production depletion of
the mineral resources, along with minor adjustments to the
interpretation of the gold-silver mineralisation and 2018 resource
model, as a result of six new holes drilled in 2018..
The revised mineral resource estimates for Calcatreu and
Cap-Oeste are shown in the following tables.
Calcatreu
Zone INDICATED MINERAL RESOURCES
Tonnes (000's) Average Grade (g/t) Contained Ounces (000's)
--------------- ------------------------ -----------------------------
Au Ag AuEq Au Ag AuEq
--------------- ------ ------- ------- ------- ---------- --------
Vein 49 6,447 2.5 21.0 2.7 512 4,568 568
--------------- ------ ------- ------- ------- ---------- --------
Nelson 1,383 1.5 16.9 1.7 67 753 76
--------------- ------ ------- ------- ------- ---------- --------
Belen - - - - - - -
--------------- ------ ------- ------- ------- ---------- --------
Castro Sur 2,010 1.4 14.8 1.6 90 954 102
--------------- ------ ------- ------- ------- ---------- --------
TOTAL Indicated 9,841 2.1 19.8 2.4 669 6,275 746
--------------- ------ ------- ------- ------- ---------- --------
Zone INFERRED MINERAL RESOURCES
------------------------------------------------------------------------
Tonnes (000's) Average Grade (g/t) Contained Ounces (000's)
--------------- ------------------------ -----------------------------
Au Ag AuEq Au Ag AuEq
--------------- ------ ------- ------- ------- ---------- --------
Vein 49 2,863 1.5 13.4 1.6 136 1,231 151
--------------- ------ ------- ------- ------- ---------- --------
Nelson 1,448 1.4 14.7 1.6 66 682 74
--------------- ------ ------- ------- ------- ---------- --------
Belen 681 1.6 23.3 1.9 35 511 42
--------------- ------ ------- ------- ------- ---------- --------
Castro Sur 3,086 1.1 9.8 1.2 111 974 123
--------------- ------ ------- ------- ------- ---------- --------
TOTAL-Inferred 8,078 1.3 13.1 1.5 348 3,399 390
--------------- ------ ------- ------- ------- ---------- --------
Notes:
1. Effective date of 31 December 2018;
2. "g/t" is grams per tonne;
3. Differences due to rounding may occur;
4. Gold equivalent ("AuEq") values were calculated at a metal price ratio of 81.25:1 Ag/Au
5. Mineral resources are estimated using a long-term metal
prices of US$1,300 per ounce (gold); and US$16 per ounce (silver)
and with consideration for potential underground mining;
6. Mineral resources were estimated at a block cut-off grade of 0.5 g/t AuEq
7. A minimum mining width of two metres was used in modelling;
8. Bulk densities used were 2.44 t/m(3) for oxide material and 2.54 t/m(3) for fresh material;
9. Mineral resources that are not mineral reserves do not have demonstrated economic viability;
10. The quantity and grade of reported inferred mineral
resources in this estimate are uncertain in nature and there has
been insufficient exploration to define these inferred mineral
resources as measured or indicated mineral resources.
Cap Oeste
Res Cat Material Type Tonnes (000's) Average Grade (g/t) Contained Ounces (000's)
Au Ag AuEq Au Ag AuEq
------- ------- ------ ------- ---------- --------
Measured Oxide 0.4 2.7 25.2 3.1 0.03 0.3 0.04
--------------- --------------- ------- ------- ------ ------- ---------- --------
COSE - - - - - - -
--------------- --------------- ------- ------- ------ ------- ---------- --------
Fresh 3.0 2.9 49.4 3.7 0.3 5 0.3
------------------------------ --------------- ------- ------- ------ ------- ---------- --------
Sub-Total 3.4 2.9 46.7 3.6 0.3 5 0.4
------------------------------ --------------- ------- ------- ------ ------- ---------- --------
Indicated Oxide 1,963 1.1 32.7 1.53 67 2,063 97
--------------- --------------- ------- ------- ------ ------- ---------- --------
COSE 478 12.6 472.4 19.4 194 7,257 298
------------------------------ --------------- ------- ------- ------ ------- ---------- --------
Fresh 8,114 1.7 46.5 2.4 443 12,128 618
------------------------------ --------------- ------- ------- ------ ------- ---------- --------
Sub-Total 10,554 2.1 63.2 3.0 704 21,448 1,013
------------------------------ --------------- ------- ------- ------ ------- ---------- --------
Measured
+ Indicated Oxide 1,963 1.1 32.7 1.5 67 2,064 97
--------------- --------------- ------- ------- ------ ------- ---------- --------
COSE 478 12.6 472.4 19.4 194 7,257 298
------------------------------ --------------- ------- ------- ------ ------- ---------- --------
Fresh 8,117 1.7 46.5 2.4 444 12,132 618
------------------------------ --------------- ------- ------- ------ ------- ---------- --------
Sub-Total 10,558 2.1 63.2 3.0 704 21,453 1,013
------------------------------ --------------- ------- ------- ------ ------- ---------- --------
Inferred Oxide 528 0.7 23.1 1.0 11 393 17
--------------- --------------- ------- ------- ------ ------- ---------- --------
COSE - - - - - - -
--------------- --------------- ------- ------- ------ ------- ---------- --------
Fresh 4,367 1.5 36.1 2.0 204 5,074 277
------------------------------ --------------- ------- ------- ------ ------- ---------- --------
Sub-Total 4,895 1.4 34.7 1.9 215 5,467 294
------------------------------ --------------- ------- ------- ------ ------- ---------- --------
Notes:
1. Effective date of 31 December 2018;
2. "g/t" is grams per tonne;
3. Differences due to rounding may occur;
4. Gold equivalent ("AuEq") values are calculated at a metal price ratio of 69.4:1 Ag/Au;
5. Mineral resources were estimated at a block cut-off grade of
0.5 g/t AuEq; and with consideration for potential underground
mining;
6. Mineral resources were estimated using long-term metal prices
of US$1,100 per ounce (gold); and US$16 per ounce (silver);
7. A minimum mining width of two metres was used in when modelling the resources;
8. Bulk densities used were 2.36 t/m(3) for oxide material, 2.47
g/t for fresh material and 2.52 t/m(3) for COSE-style
mineralization at Cap-Oeste;
9. Mineral resources that are not mineral reserves do not have demonstrated economic viability;
10. The quantity and grade of reported inferred mineral
resources in this estimate are uncertain in nature and there has
been insufficient exploration to define these inferred mineral
resources as measured or indicated mineral resources.
Qualified Person's Statement
The scientific and technical information herein was reviewed by
Dr. Walter Soechting, PGeo. Dr. Soechting is a geologist with over
twenty-five years of experience in exploration for precious metal
mineral deposits. Dr Soechting has experience in the type of
deposit under consideration and in the type of activity conducted,
and is a 'Qualified Person' as defined by NI 43-101. Dr. Soechting
consents to the inclusion in the announcement of the matters based
on the information in the form and context in which it appears and
confirms that this information is accurate and not false or
misleading.
For more information, please contact:
Christopher van Tienhoven, Chief Executive Officer
Patagonia Gold Plc
Tel: +54 11 5278 6950
James Spinney / James Dance / Jack Botros
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 Regulations (EU) No. 596/2014 ("MAR").
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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