Patagonia Gold Regulatory News (PGD)

26 Sep 2006 07:02

Patagonia Gold PLC26 September 2006 PATAGONIA GOLD PLC Trading Symbol PGD.L DRILLING AND EXPLORATION UPDATE. DRILLING During the first six months of 2006, Patagonia Gold (PGD) completed exploratorydrilling campaigns on three of it's advanced exploration prospects, Crespo andGastre in the province of Chubut and El Morro in the province of Rio Negro. Results of the drilling at Crespo, West Veins, are sufficiently encouraging(16.18 g/t gold, 334.0 g/t silver and 5.22% zinc over individual 1 metreintersections) to carry out further drilling as and when the Chubut Government'srecently imposed 'mining suspension' for this area is lifted. Results include:+------------------------------------------------------------------------------+| CRESPO WEST AND NORTH VEINS |+-----------+-------+-------------+--------+--------+--------+--------+--------+|Drill Hole | From |Intersection | Gold | Silver | Copper | Lead | Zinc || | | | | | | | || |Metres | Metres | g/t | g/t | % | % | % |+-----------+-------+-------------+--------+--------+--------+--------+--------+|WV-02 | 48.0| 2.0| 8.44| 16.8| -| -| -|+-----------+-------+-------------+--------+--------+--------+--------+--------+|WV-07 | 31.0| 1.0| 1.01| 37.1| -| -| 1.58|+-----------+-------+-------------+--------+--------+--------+--------+--------+|WV-08 | 85.0| 1.0| 0.83| 47.3| 0.25| 0.80| 2.77|+-----------+-------+-------------+--------+--------+--------+--------+--------+|WV-12 | 102.0| 2.0| 0.42| 231.0| 0.43| 1.77| 4.32|+-----------+-------+-------------+--------+--------+--------+--------+--------+|WV-13 | 113.0| 1.0| 0.39| 119.1| 0.29| 2.28| 3.61|+-----------+-------+-------------+--------+--------+--------+--------+--------+|NV-04 | 43.0| 1.0| 1.75| 0.7| -| -| -|+-----------+-------+-------------+--------+--------+--------+--------+--------+| GASTRE |+-----------+-------+-------------+--------+--------+--------+--------+--------+|GAS-05 | 31.0| 1.0| 1.54| 3.9| -| -| -|+-----------+-------+-------------+--------+--------+--------+--------+--------+|GAS-10 | 63.0| 1.0| 1.66| 0.9| -| -| -|+-----------+-------+-------------+--------+--------+--------+--------+--------+|GAS-13 | 6.0| 1.0| 0.85| 1.2| -| -| -|+-----------+-------+-------------+--------+--------+--------+--------+--------+| CERRO EL MORRO |+-----------+-------+-------------+--------+--------+--------+--------+--------+|EM-01 | 16.0| 1.0| 2.72| 36.2| -| -| -|+-----------+-------+-------------+--------+--------+--------+--------+--------+|EM-04 | 59.0| 1.0| 1.02| 2.9| -| -| -|+-----------+-------+-------------+--------+--------+--------+--------+--------+|EM-06 | 7.0| 1.0| 1.14| 6.4| -| -| -|+-----------+-------+-------------+--------+--------+--------+--------+--------+|EM-09 | 6.0| 1.0| 1.01| 6.7| -| -| -|+-----------+-------+-------------+--------+--------+--------+--------+--------+|EM-15 | 54.0| 1.0| 1.99| 174.0| -| -| -|+-----------+-------+-------------+--------+--------+--------+--------+--------+|EM-21 | 59.0| 1.0| 2.17| 106.8| -| -| -|+-----------+-------+-------------+--------+--------+--------+--------+--------+|EM-22 | 32.0| 1.0| 1.21| 21.0| -| -| -|+-----------+-------+-------------+--------+--------+--------+--------+--------+ CRESPO - The Crespo Project area is located in western Chubut Province, Argentina,and comprises 14 claims for a total of 59,655 hectares. Exploration of this large prospective area has reached an advanced stage withall accessible areas being thoroughly explored mapped and sampled. Drill-targetsgenerated by this work have included, the Cabana, Jasper and Crespo vein zones,drilled in 2004, and the West and North vein zones, together with thePaleosurface zone, drilled in this recent campaign. West veins - Seventeen reverse circulation (RC) holes were drilled for a total of1,565 metres into a suite of sub parallel, gold, silver and basemetals-mineralized quartz-carbonate veins, exposed along strike for about 800metres. Individual quartz veins range up to 1 metre wide on surface. Assayresults are sufficiently encouraging (16.18 g/t gold, 334.0 g/t silver and 5.22%zinc over individual 1 metre intersections) to carry out further drilling as andwhen the Chubut Government's recently imposed 'mining suspension' for this areais lifted. Paleosurface - Zone Six RC holes were drilled for a total of 1,135 metres holes,175 to 199 metres deep, designed to test this conceptual drill target andintersect veins or structure below the sub-horizontal silica cap. Assay resultsreturned one value of 0.110g/t gold and numerous anomalous to high arsenic andantimony. North veins - Eleven RC holes were drilled, for a total of 999 metres, into twoseparate suites of gold, silver and base metals-mineralized quartz-carbonateveins exposed along strike for about 1,200 metres. Assay results reported lowerthan those at surface outcrops indicating surface enrichment and were restrictedto narrow intersections of 1 metre width. GASTRE - The Gastre project is located in northern Chubut Province and comprises12 claims for a total of 89,330 hectares A comprehensive stream sediment and BLEG exploration programme was completedwithin the Gastre claims and led to identification of precious and base metalsvalues in veins and sheeted vein zones in the southern most claim blocks locatedimmediately northwest of the Navidad silver Project. Fifteen RC holes were drilled, for a total of 1,481 metres, to test potentialbulk tonnage copper mineralization below the surface at Copper Hill as well asthe lateral and subsurface extensions of gold-silver- base metals mineralizedveins. Copper values were elevated in places but were generally lower thanoutcrop sampling indicating surface enrichment. Potentially economic gold andsilver values were restricted to narrow intersections. Exploration is currently being undertaken at a silver and base metals rich zonein the south west of the Gastre block near to the Navidad silver project. CERRO EL MORRO - Cerro El Morro is located in southeast Rio Negro Province,Argentina and comprises two claims for a total of 9,999 hectares. A comprehensive geological mapping and sampling programme, together with ageophysical survey, was completed within the claims, identifying a suite ofnorthwest-striking, narrow (mostly