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Patagonia Gold Enters Into Drilling Agreement at Monte Leon
VANCOUVER, British Columbia, Nov. 16, 2022 (GLOBE NEWSWIRE) -- Patagonia Gold Corp. (“Patagonia” or the “Company”) (TSXV: PGDC) is pleased to announce that it h
About this update from Patagonia Gold Corp
[{"type":"text","content":" VANCOUVER, British Columbia, Nov. 16, 2022 (GLOBE NEWSWIRE) -- Patagonia Gold Corp. (“Patagonia” or the “Company”) (TSXV: PGDC) is pleased to announce that it has entered into a farm-in agreement (the “Agreement”) with a private, arm’s length company operating in the mining sector (the “Partner”) for a drilling program of up to 20,000 meters on the Monte Leon target (“Monte Leon”) in the Company’s El Tranquilo block of concessions to earn up to a 50% interest in Monte Leon. Monte Leon is situated within the El Tranquilo concession block approximately 12 kilometers from Cap-Oeste (see Figure 1 below). In 2021, the Company completed an initial 6,000+ meters of rotary air blast (“RAB”) drilling at Monte Leon designed to outline the surface footprint of anomalous gold and silver mineralization (see www.patagoniagold.com/news). This work continued in 2022, such that over 15,500 meters of RAB drilling has been completed (see Figure 2 below). Mineralization at Monte Leon is interpreted to be within the same NW-trending structural corridor that controls mineralization at the Company’s Cap-Oeste Project. Monte Leon has had some historic, pre-Company exploration consisting of 21 core and 76 reverse circulation drill holes. The Partner will fund a core drilling program, to be conducted by the Company, divided into two phases, to define the lateral and depth extent of epithermal-style mineralization at Monte Leon. Phase 1 will consist of 8,500 meters for the Partner to earn a 20% stake in Monte Leon and will have the option to advance to Phase 2 to drill a further 11,500 meters for a total of 20,000 meters to earn an additional 30% interest in Monte Leon, for a maximum participation of 50%. Christopher van Tienhoven, Chief Executive Officer states, “We are excited with the opportunity of drilling this prospective target adjacent to the known Cap-Oeste Project. The drilling at Monte Leon is also a milestone moment for the Company as, based on our work and historic drilling, we believe the property has potential for new, high-grade, precious metal mineralization.” The COSE deposit, located in Figure 1, was sold to, and is currently controlled by, Pan American Silver Corp. RAB drilling is a common exploration method used to identify near-surface mineralization. Due to the nature of RAB drilling, which employs open hole rotary percussion drill...