Patagonia Gold Regulatory News (PGD)

23 Apr 2008 07:00

Patagonia Gold PLC23 April 2008 PATAGONIA GOLD PLC Trading Symbol PGD.L DRILLING UPDATE LA MANCHURIA 'MAIN ZONE' GOLD-SILVER PROJECT Highlights: •Drilling on the 'Main Zone' gold-silver project, located on the La Manchuria property, continues to intersect high grade gold with bonanza silver, including 1.20 metres at 58.90g/t gold and 4,150g/t silver in drill-hole LM-015-D. La Manchuria property The La Manchuria property, 100% owned by PGD, consisting of 5 expedientes(mining concessions) covering 5,575 hectares, is located approximately 50kilometres to the east of the Cap-Oeste project in the Santa Cruz province ofArgentina and contains the 'Main Zone' gold-silver project. 'Main Zone' Gold-silver project In February-March 2008 PGD completed a diamond drilling campaign, consisting of20 holes for a total of 3,980 metres, on the 'Main Zone' gold-silver project,designed to infill and twin historic drill holes as well as expand the area ofmineralization and in order to plan a resource oriented drill program for thesecond half of this year. Drilling results received to date include: Drill Hole No. From Metres Interval metres Gold Silver g/t g/t LM-010-D 262.0 5.30 6.10 10.15 including 262.7 0.70 14.25 64.10 including 266.5 1.50 14.85 3.90 LM-011-D 71.3 0.80 13.80 38.70 and 94.4 0.55 12.35 2220.00 and 172.5 0.50 5.82 1980.00 LM-012-D 135.1 0.50 13.85 26.20 and 192.6 0.55 7.79 4920.00 LM-014-D 103.8 1.20 10.30 735.00 LM-015-D 60.70 1.00 20.10 23.30 and 95.25 1.20 58.90 4150.00 Drilling of the "Main Zone" has confirmed and extended the high-grade gold andsilver mineralization 300m to the south and the zone remains open but obscuredby post-mineral cover. Interpretation of geophysics over the Main Zone and to the south clearly showsthe structure extending south for over 2,000 metres. Rock chips and soilsampling of the cover has returned results highly anomalous in path finderelement. 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 underlain by andesite. 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. Mean while, a new drilling campaign has commenced on Lomada de Leiva and theadjacent Breccia Sofia prospect to explore anomalies identified by geophysicsearlier this year and to carry out drilling recommended from the Scoping study. Cap-Oeste Project Drilling on the Cap-Oeste mineralized structure, located on the El Tranquiloproperty, continues with 87 drill holes completed to date including a step backto the bonanza grades reported in drill hole CO-54-D. Results are pending andwill be released in due course. 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 Square 1 ConsultingTel: +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