Patagonia Gold confirms gold-silver mineralisation continuity at La Manchuria

Patagonia Gold (AIM: PGD) said that results from the recently completed drilling programme on the Main Zone of La Manchuria gold project in the Santa Cruz province of Argentina confirmed the continuity of high grade gold and silver mineralisation, producing grades of up to 145 g/t (grammes per tonne) of gold.

Results include 0.5 metre at 145 grams per tonne (g/t) gold and 28,207 g/t silver and 0.90 metre at 111.00 g/t gold and 896g/t silver in drill-hole LM-093A.  

The recently completed HQ core diamond drill programme, consisting of 55 drill-holes from LM-041-D to LM-095-D for 9,754 metres, was designed to infill the pre-existing 50 metre line spaced drilling on a grid along 400 metres of strike length to allow a resource estimate to be completed for the Main Zone.

The company said that the strike of the resource could be extended further as holes LM-083-D and LM-093A-D in the northern and southern extremes produced high grades of 18.05 g/t gold and 8,960 g/t silver and 145 g/t gold and 28,207 g/t silver respectively.

“Geological appraisal of drill-core, as well as the geochemical assays, supports the interpretation of a robust continuous zone of high grade gold and silver mineralisation.  The infill drilling has also validated the belief that the veins continue to near-surface confirming the importance of the high grade values in the surface outcrop,” the company said in the statement, adding that the infill drilling has also highlighted the presence of many so-called master veins of about 1 metre width containing bonanza gold and silver grades.
In three drilling campaigns, Patagonia has completed a total of 95 holes comprising 17,853 metres, which will form the basis of the resource study. An NI 43-101 compliant resource estimate for the Main Zone is currently being prepared by an independent party. Completion of the resource study is expected in Q3.
La Manchuria consists of five ‘expedientes’ mining concessions, which cover 5,575 hectares, located approximately 50km to the south-east of Patagonia’s flagship Cap-Oeste project. The update also discussed the company’s other projects in Santa Cruz, the Cap-Oeste South East prospect (COSE) and the Lomada de Leiva project.

Patagonia is awaiting approvals for its trial Heap leach operation in Lomada de Leiva. The  project’s environmental impact study was recently completed and presented to the Santa Cruz mining authorities. The company said it has already identified and selected suppliers to commence work once the permit is formally approved.

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