Patagonia Gold Regulatory News (PGD)

18 Mar 2008 07:00

Patagonia Gold PLC18 March 2008 PATAGONIA GOLD PLC Trading Symbol PGD.L DRILLING UPDATE CAP-OESTE AND MANCHURIA GOLD-SILVER PROJECTS Highlights: •Drilling on the Cap-Oeste mineralized structure, located on the El Tranquilo property, continues to intersect bonanza grade gold and silver, including 2.80 metres at 115.94 grams per ton (g/t) gold and 1,875g/t silver in drill-hole CO-054-D. •Drilling has now extended the mineralized structure at Cap-Oeste, 1,200 metres along strike and up to 160 metres down dip. The zone remains open at depth and along strike in both directions. •Drilling on the La Manchuria "Main Zone" gold-silver project, located 50 kilometres east of Cap-Oeste has intersected high grade gold with bonanza silver, including 1.51 metres at 6.38g/t gold and 4,521g/t silver in drill-hole LM-002-D and 0.5 metres at 20.10g/t gold and 2,980g/t silver in drill-hole LM-008-D. Drilling results from Cap-Oeste not previously reported include: +-------------+---------+----------+--------+--------+ |Drill Hole |From |Interval |Gold |Silver | |No. |Metres |metres | | | | | | |g/t |g/t | +-------------+---------+----------+--------+--------+ |CO-044-DR | 55.00| 5.00| 5.44| 33| +-------------+---------+----------+--------+--------+ |CO-045-D | 35.00| 11.40| 2.27| 2| +-------------+---------+----------+--------+--------+ |CO-051-D | 79.00| 12.00| 3.20| 27| +-------------+---------+----------+--------+--------+ |including | 81.00| 5.10| 4.79| 24| +-------------+---------+----------+--------+--------+ |CO-054-D | 132.00| 7.00| 47.16| 769| +-------------+---------+----------+--------+--------+ |including | 133.10| 2.80| 115.94| 1,875| +-------------+---------+----------+--------+--------+ |CO-055-D | 160.00| 11.80| 2.79| *| +-------------+---------+----------+--------+--------+ |including | 168.30| 2.70| 9.28| *| +-------------+---------+----------+--------+--------+ *results pending The exceptional high grade intersection in drill-hole CO-054-D is down dip tothe previously reported high grade intersection in drill-hole CO-016-D, whichreported a high grade central zone of 5.05m @ 30.47g/t gold and 1,011g/t silver. El Tranquilo Property The El Tranquilo property block, covering over 40 square kilometres, 100% ownedby Patagonia Gold SA (PGSA), is located approximately 120km to the south east ofLa Paloma in the Santa Cruz province of Argentina and contains the Cap-OesteGold project and the Breccia Valentina Prospect as well as other highlyprospective areas, which require further exploration in order to define thepotential for drill targets. Cap-Oeste Gold Project To date 70 drill holes have been completed for a total of 6,940 metres. Theinitial 20 shallower holes were drilled using reverse circulation (RC) with theremainder being drilled using either HQ (D) diamond core or a combination of RCwith a diamond core tail, (RD). Drill-holes have been spaced at approximately 50 metre centres along 1,200metres of the Cap-Oeste structure with 50 metre 'step-back' holes having beencompleted on 17 sections to date with 9 of these sections containing a secondstep back. The drilling is presently completing this second row of step back andwill then undertake deeper holes on subsequent step backs. Drilling has confirmed the presence of a wide gold mineralized structure with acore containing high grade gold and silver. The structure remains open at depthand along strike in both directions. A second rig is due to arrive at Cap-Oeste in late March and will undertakestrike extension exploration holes whist the current rig continues to test thedepth extension of the known high grade zone. La Manchuria property The La Manchuria property, 100% owned by PGSA, consists of 5 expedientes (miningconcessions) covering 5,575 hectares located approximately 50 kilometres to theeast of the Cap-Oeste project in the Santa Cruz province of Argentina andcontains the Manchuria 'Main zone' gold-silver project. Manchuria "Main Zone" project A 3,500 metre drilling programme is currently being carried out on the "MainZone" to confirm and extend the mineralized zone defined by previous drillingand exploration works. To date 16 drill-holes have been completed for a total of 3,191 metres. Drilling results received to date include: +---------+----------+----------+---------+---------+ | Drill | From | Interval | Gold | Silver | |Hole No. | Metres | metres | | | | | | | g/t | g/t | +---------+----------+----------+---------+---------+ |LM-001-D | 52.50| 0.80| 32.42| 62| +---------+----------+----------+---------+---------+ | and | 62.70| 0.95| 4.84| 44| +---------+----------+----------+---------+---------+ | and | 86.25| 0.75| 13.60| 290| +---------+----------+----------+---------+---------+ | and | 125.50| 0.40| 4.19| 666| +---------+----------+----------+---------+---------+ |LM-002-D | 43.30| 0.55| 8.08| 10| +---------+----------+----------+---------+---------+ | and | 52.55| 1.51| 6.38| 4,521| +---------+----------+----------+---------+---------+ |LM-003-D | 47.80| 1.15| 10.10| 16| +---------+----------+----------+---------+---------+ |LM-005-D | 22.00| 0.65| 3.17| 1,445| +---------+----------+----------+---------+---------+ |LM-007-D | 63.50| 0.60| 7.94| 801| +---------+----------+----------+---------+---------+ | and | 87.80| 0.50| 2.76| 1,060| +---------+----------+----------+---------+---------+ |LM-008-D | 62.30| 1.50| 10.90| 21| +---------+----------+----------+---------+---------+ | and | 82.00| 0.50| 20.10| 2,980| +---------+----------+----------+---------+---------+ | and | 90.00| 0.50| 20.20| 509| +---------+----------+----------+---------+---------+ | and | 105.90| 0.70| 11.55| 963| +---------+----------+----------+---------+---------+ | and | 165.25| 0.60| 11.65| 5| +---------+----------+----------+---------+---------+ Mineralization is associated with a low to intermediate sulphidation epithermalquartz-adularia vein system. Veins are characteristically narrow, on averageless than 1 metre, but contain bonanza grades of both gold and silver. Veinmineralization is strongly structurally controlled with a preferential NW striketo the vein swarms and densely sheeted zones. The host rock is a sequence ofrhyolitic tuffs which are underlain by andesite. In addition the property also contains other geological prospective targets. Arock chip sample (28902), taken 200 metres southeast from Trench 3 and outsideof the 'Main zone' reported 16.4 g/t gold and 1,970 g/t silver. Lomada de Leiva Project Work is in progress on the National Instrument (NI) 43-101 compliant ScopingStudy on the Lomada de Leiva Project, located on the La Paloma Property, and isexpected to be completed in the near future. Marc Sale, (BSC. Geology, Fellow AusIMM, member AIG) a Director and consultantto Patagonia Gold Plc and a qualified person as defined in National Instrument43-101, has reviewed and verified all scientific or technical mining disclosurecontained in this press release. ENDS For more information, please contact: Bill Humphries/Richard Prickett David Bick / Mark LongsonPatagonia Gold Plc Square1 Consulting LimitedTel: +44(0)20 7409 7444 Tel : +44(0)20 7929 5599 Simon Raggett / Angela Peace Alastair Stratton / Tim GrahamStrand Partners Ltd Matrix Corporate Capital LLPTel: +44(0)20 7409 3494 Tel : +44(0)20 7925 3234 / +44(0)20 7925 7852 This information is provided by RNS The company news service from the London Stock Exchange