LONDON (Alliance News) - Patagonia Gold PLC Monday said its mineral resource for its projects in Argentina has increased after a resource update was compiled as part of the pre-feasibility study for its two main projects.
The Argentinian-based miner said its JORC resource model for the Cap-Oeste project has increased the total indicated gold equivalent to 1.3 million ounces from 1.2 million ounces whilst the indicated gold at the COSE project has risen to 83,000 ounces from 63,835 ounces.
Combined with the company's Manchuria and Lomada deposits, Patagonia's inferred resources has increased to just under 2.1 million ounces of gold equivalent, from just under 1.9 million ounces.
In addition, Patagonia said the central core section of the orebody at Cap-Oeste hosts gold and silver and is suitable for cyanide leaching which could add a further 75,000 ounces of gold and 3.5 million ounces of silver, resulting in the cyanide leachable gold resource at the project totalling 406,000 ounces of gold equivalent.
Still, Patagonia shares dropped 4.8% to 2.50 pence per share on Monday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
