Patagonia Gold Regulatory News (PGD)

4 Jun 2007 07:00

Patagonia Gold PLC04 June 2007 PATAGONIA GOLD PLC Trading Symbol PGD.L 4 June 2007 PROGRESS REPORT ON DRILLING AT LA PALOMA AND EXPLORATION AT EL TRANQUILO Highlights •Resource drilling on the Lomada de Leiva Project, located on the La Paloma property, continues to report very encouraging results including an intersection of 28 metres at 5.71g/t gold from drill-hole LLR-04. •Sawn channel sampling on the Cap Oeste Prospect, located on the El Tranquilo property, reports significant breccia mineralization, including an interval of 37.5 metres at 1.90g/t gold from Trench TR 14. La Paloma Property The La Paloma property block, covering over 44 square kilometres, is locatedapproximately 40km to the south of the town of Perito Moreno in the Santa Cruzprovince of Argentina and contains the Lomada de Leiva Project and the adjacentBreccia Sofia Prospect. Lomada de Leiva Project-A drilling campaign, consisting of 62 drill holes for8,862 metres, commenced in February of this year, has been completed on the 100%owned Lomada de Leiva Project. The drilling was designed to validate historicaldrill data and to infill and extend the existing resource for definition toCanadian National Instrument 43-101 standards. Drilling results not previously reported include: +---------+----------+----------+---------+ | Drill | From | Interval | Gold | |Hole No. | Metres | metres | g/t | +---------+----------+----------+---------+ | LPD-11 | 38.0| 8.0| 2.46| +---------+----------+----------+---------+ | LPD-16 | 95.0| 19.0| 3.60| +---------+----------+----------+---------+ |including| 97.0| 5.0| 9.00| +---------+----------+----------+---------+ | LPD-18 | 102.0| 5.0| 3.08| +---------+----------+----------+---------+ | LPD-23 | 48.0| 7.0| 2.48| +---------+----------+----------+---------+ | and | 61.0| 8.0| 1.71| +---------+----------+----------+---------+ | and | 73.0| 6.0| 2.23| +---------+----------+----------+---------+ | LLR-04 | 49.0| 28.0| 5.71| +---------+----------+----------+---------+ |including| 51.0| 8.0| 8.27| +---------+----------+----------+---------+ | LLR-05 | 58.0| 12.0| 2.14| +---------+----------+----------+---------+ | LLR-07 | 47.0| 22.0| 1.67| +---------+----------+----------+---------+ |including| 47.0| 6.0| 3.47| +---------+----------+----------+---------+ Results are pending for a further 24 drill-holes completed in this campaign. Drilling has now extended the main mineralised zone from 300m, as previouslyreported, to over 420m. Drill-hole LLD-11 with an intersection of 8.0m @ 2.46 g/t Au is approximately 420 metres north of drill-hole LLD-07, which reported20.0m @ 2.66g/t Au. Breccia Sofia-Drilling on the adjacent Breccia Sofia prospect is ongoing. Todate 12 RC holes have been completed for 1,816 metres. Results are available forthe first 7 holes and significant intersections are listed below . +---------+----------+----------+---------+ | Drill | From | Interval | Gold | |Hole No. | Metres | metres | g/t | +---------+----------+----------+---------+ | BSR-02 | 92.0| 1.0| 27.10| +---------+----------+----------+---------+ | and | 114.0| 9.0| 1.74| +---------+----------+----------+---------+ | BSR-03 | 150.0| 5.0| 1.87| +---------+----------+----------+---------+ | BSR-06 | 90.0| 4.0| 2.88| +---------+----------+----------+---------+ | and | 118.0| 5.0| 3.25| +---------+----------+----------+---------+ The values indicate that a broad zone of gold grades >1g/t gold exists on strike500m from the Lomada de Leiva resource area. Geology and Mineralization-Ongoing assessment of drill core has enabled aprogressive understanding of the geology and mineralization at the Lomada deLeiva Project, which is hosted in Jurassic volcanic and volcanoclasticsediments. Drilling has identified a second, near vertical, structure within thebreccia hosting structural corridor. The higher-grade intersections within thewider lower grade zones appear associated with the intersection of these twozones. Drilling on the eastern margin of the main zone has revealed additionalmineralised structures, which could represent a repetition of the gold bearingzone or a sub-parallel structure. Additional drilling is planned to test thepotential of this mineralization. El Tranquilo Property. The El Tranquilo property block, covering over 40 square kilometres, is locatedapproximately 120km to the south east of La Paloma in the Santa Cruz province ofArgentina and contains the Cap Oeste Prospect and Breccia Valentino Prospect.Property 29 'La Bajada' is contiguous with El Tranquilo and contains a number ofgold anomalous and geologically encouraging areas. Cap Oeste Prospect-Detailed mapping and trenching has exposed a breccia hostedin felsic volcanics over a strike of 900 metres. The breccia is open to thenorth where it is covered by Quaternary sedimentation and to the south where itis obscured by a resistant silica cap. The prospect has never been drilled. The Cap Oeste breccia represents an interpreted high-level style ofmineralization defined at surface by multiphase pulses of low temperature quartzas vein stock-work and breccia matrix and proximity of the zone to spatiallyextensive zones of silica replacement. Trench samples indicate anomalous pathfinder element geochemistry (As, Sb andHg) and anomalous gold values are interpreted to represent the upper portion ofa low sulphidation epithermal gold system. Based on other examples of low sulphidation gold mineralization, particularlythroughout the Deseado Massif of the Argentine Patagonia, these features arecommonly strongly indicative of high gold grades occurring at depth. Trenches were excavated and sawn channel samples were collected over 1metreintervals (these are equivalent to horizontal diamond drill-holes and as suchcan be included in resource evaluation). Results from channels validate previousrock samples and historic channel samples. Significant sawn channel results aretabulated below: +---------+----------+----------+---------+ | Trench |Distance | Interval | Gold | | No. |from Datum|in metres | g/t | +---------+----------+----------+---------+ | TR 06 | 300m NW| 20.9| 0.22| +---------+----------+----------+---------+ | TR 05 | 150m NW| 69.1| 0.22| +---------+----------+----------+---------+ | TR 14 | 50m NW| 37.5| 1.90| +---------+----------+----------+---------+ |including| | 8.0| 5.80| +---------+----------+----------+---------+ | TR 04 | 0m| 34.0| 0.89| +---------+----------+----------+---------+ | TR 13 | 50m SE| 33.0| 0.22| +---------+----------+----------+---------+ | TR.12 | 100m SE| 10.0| 0.23| +---------+----------+----------+---------+ (A short (2m)exploration trench excavated 500m NW reported 0.27g/t gold.) The combination of ore grade to highly anomalous gold values from surface overuncharacteristically wide zones throughout the Cap Oeste Prospect provides for apotentially bulk mineable gold resource style target that will be drill testedin the next drill campaign scheduled to commence in October 2007. La Manchuria. Validation work, involving the re-sampling of drill core and sawn channelssamples, is almost complete. Additional trenches have been excavated andsampled. Assays are pending. This prospect area historically containssignificant gold values and the work to date has defined drill targets that willbe test drilled in the next drill campaign scheduled to commence in October2007. Marc Sale, (BSC. Geology, member 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 Anthony Cardew/Tim RobertsonPatagonia Gold Plc Tel: +44 (0) 20 7930 0777Tel: + 44 (0)2 7409 7444 Fax: +44 (0) 20 7925 0647www.patagoniagold.com Email: tim.robertson@cardewgroup.comTrading Symbol PGD.L This information is provided by RNS The company news service from the London Stock Exchange