Patagonia Gold Regulatory News (PGD)

28 Jan 2008 07:00

Patagonia Gold PLC28 January 2008 PATAGONIA GOLD PLC Trading Symbol PGD.L DRILLING UPDATE CAP-OESTE GOLD PROJECT Highlights: •Drilling on the Cap-Oeste mineralized structure, located on the El Tranquilo property, continues to intersect high grade gold with bonanza silver, including 1.2 metres at 94.28g/t gold and 3,410g/t silver from drill-hole CO-016-D. •Drilling along the mineralized structure has now extended Cap-Oeste over 1,200 metres in length and up to 100 metres in depth. The zone remains open at depth and along strike in both directions Drilling results from the first 36 holes on Cap-Oeste not previously reported include: +-------------+---------+----------+--------+--------+ |Drill Hole |From |Interval |Gold |Silver | |No. |Metres |metres | | | | | | |g/t |g/t | +-------------+---------+----------+--------+--------+ |CO-015-D | 75.85| 14.35| 2.38| 18.71| +-------------+---------+----------+--------+--------+ |including | 75.85| 5.25| 5.55| 28.63| +-------------+---------+----------+--------+--------+ |CO-016-D | 91.95| 13.45| 11.93| 388.76| +-------------+---------+----------+--------+--------+ |including | 91.95| 5.05| 30.47| 1011.56| +-------------+---------+----------+--------+--------+ |including | 93.15| 1.20| 94.28| 3410.00| +-------------+---------+----------+--------+--------+ |CO-028-R | 11.00| 20.00| 1.40| 18.46| +-------------+---------+----------+--------+--------+ |including | 24.00| 6.00| 3.29| 16.41| +-------------+---------+----------+--------+--------+ |CO-031-R | 11.00| 11,00| 2.30| 2.23| +-------------+---------+----------+--------+--------+ |including | 17.00| 5.00| 4.54| 1.66| +-------------+---------+----------+--------+--------+ |CO-034-D | 87.00| 5.00| 3.28| *| +-------------+---------+----------+--------+--------+ |CO-036-D | 47.10| 12.30| 14.03| *| +-------------+---------+----------+--------+--------+ |including | 52.60| 5.30| 31.05| *| +-------------+---------+----------+--------+--------+ *results pending 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 Gold project and the Breccia ValentinaProspect Cap-Oeste Gold Project. To date 50 drill holes have been completed for a total of 4,083 metres. 20 ofthe 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). (Full details of these drill-holes are providedin Appendix A and will be posted on Patagonia's website, www.patagoniagold.com). 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 13 sections to date. 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. Drilling is continuing along strike to theSouth East and North West in order to further extend the structure, togetherwith 'step back' drilling to test for depth extension. Recently completed hi-resolution Landsat-style imagery has shown the mineralizedstructure currently being drilled at Cap Oeste to be extremely robust formingpart of a structural zone, which not only continues outside the drill area butalso extends south towards the parallel Breccia Valentina structure. There areseveral structures with signatures similar to the main Cap-Oeste structure inthe immediate vicinity that have not yet been subject to detailed explorationbut have previously reported anomalous gold values. The El Tranquilo property block also contains other highly prospective areas,which require further exploration in order to define the potential for drilltargets. 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 March 2008. Exploration: 10 kilometres to the north of Lomada de Leiva is Patagonia Gold's Cerro Vascoproperty which has previously reported rock chip samples of 2.85m @ 44.2g/tgold. Exploration to the immediate south of Cerro Vasco has identifiedcopper-lead sulphides together with gold and silver mineralization. Thestructures containing this mineralization trend south towards the La Palomablock. Patagonia Gold has applied for Cateo La Emilia covering 8,589 hectares,which effectively joins the Cerro Vasco property to the La Paloma Project block.Reconnaissance on La Emilia has identified very prospective geology with highlyanomalous rock chip sample results and significant mineralization. Results todate from separate samples of vuggy silica, hydrothermal breccias and quartzveinlets include 8.11g/t Au, 136g/t Ag, 0.96% Cu as well as highly anomalouslead and barite. 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 Arabella Hobbs / Leesa PetersPatagonia Gold Plc Conduit PRTel: +44(0)20 7409 7444 Tel : +44(0)20 7429 6610 / +44(0)20 7429 6600 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 APPENDIX A SUMMARY of drill hole coordinates at Cap Oeste+-----------+----------+----------+----------+----------+--------+--------+-------+|Hole |Section |Eastings |Northings |Elevation | Depth |Azimuth |Dip |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-001-R |N10100 |2390625.2 |4688009.9 | 439.0 | 80.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-002-R |N10050 |2390666.6 |4687979.7 | 442.6 | 74.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-003-R |N10000 |2390688.0 |4687931.7 | 448.8 | 80.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-004-R |N10150 |2390597.3 |4688050.9 | 431.9 | 56.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-005-R |N10200 |2390555.0 |4688081.8 | 428.5 | 55.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-006-R |N10250 |2390518.3 |4688116.5 | 427.1 | 60.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-007-R |N9950 |2390732.7 |4687907.5 | 454.9 | 70.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-008-R |N9000 |2390763.7 |4687867.9 | 457.9 | 70.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-009-R |N10100 |2390601.0 |4687986.3 | 442.7 | 120.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-010-R |N10050 |2390634.5 |4687951.7 | 447.5 | 111.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-011-DR |N10000 |2390654.8 |4687901.8 | 454.5 | 123.25 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-012-DR |N10150 |2390562.1 |4688020.5 | 437.3 | 114.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-013-D |N10200 |2390523.7 |4688055.0 | 434.7 | 123.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-014-D |N10250 |2390482.7 |4688085.9 | 432.1 | 111.25 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-015-D |N9900 |2390733.1 |4687843.5 | 460.1 | 117.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-016-D |N9950 |2390696.4 |4687877.2 | 458.8 | 125.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-017-R |N9950 |2390848.4 |4688005.7 | 426.2 | 44.00 | 50 | -50 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-018-R |N9850 |2390935.1 |4687952.9 | 427.3 | 40.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-019-R |N9950 |2390786.5 |4687953.7 | 436.9 | 80.00 | 50 | -50 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-020-R |N9950 |2390823.0 |4687985.2 | 429.4 | 50.00 | 50 | -50 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-021-D |N10400 |2390429.7 |4688235.4 | 417.7 | 46.20 | 50 | -50 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-022-D |N10350 |2390461.5 |4688177.2 | 421.7 | 62.95 | 50 | -50 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-023-D |N10500 |2390348.4 |4688328.5 | 415.2 | 68.85 | 50 | -50 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-024-D |N10600 |2390286.9 |4688401.1 | 414.8 | 78.05 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-025-D |N10700 |2390246.4 |4688445.6 | 413.9 | 87.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-026-D |N10750 |2390199.3 |4688512.7 | 414.1 | 69.25 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-027-D |N10800 |2390153.3 |4688562.7 | 416.3 | 78.05 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-028-R |N9900 |2390791.4 |4687889.8 | 449.9 | 56.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-029-R |N10000 |2390719.0 |4687956.4 | 443.6 | 56.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-030-R |N9950 |2390755.5 |4687928.2 | 447.7 | 60.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-031-R |N9850 |2390800.1 |4687832.9 | 455.9 | 68.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-032-R |N9800 |2390831.2 |4687796.2 | 458.4 | 62.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-033-R |N9750 |2390862.8 |4687757.4 | 460.9 | 62.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-034-D |N10100 |2390601.5 |4687986.8 | 447.5 | 149.95 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-035-D |N10050 |2390635.0 |4687952.3 | 446.7 | 146.90 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-036-D |N10100 |2390625.8 |4688010.5 | 434.7 | 108.10 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-037-D |N10300 |2390484.0 |4688151.0 | 446.0 | 126.15 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-038-DR |N10400 |2390386.0 |4688196.0 | 452.0 | 118.60 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-039-DR |N10350 |2390424.0 |4688142.0 | 457.0 | 151.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-040-DR |N10300 |2390454.0 |4688112.0 | 447.0 | 116.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-041-R |N9700 |2390900.0 |4687719.0 | 426.0 | 56.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-042-R |N9650 |2390930.0 |4687679.0 | 426.0 | 54.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-043-DR |N9850 |2390771.0 |4687805.0 | 430.0 | 110.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-044-DR |N9800 |2390807.0 |4687772.0 | 429.0 | 89.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-045-D |N10550 |2390314.0 |4688361.0 | 450.0 | 74.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-046-D |N10450 |2390392.0 |4688267.0 | 451.0 | 65.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-047-D |N10700 |2390217.0 |4688480.0 | 438.0 | 80.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-048-D |N10900 |2390121.0 |4688602.0 | 428.0 | 81.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-049-D |N10950 |2390092.0 |4688642.0 | 428.0 | 72.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+|CO-050-D |N10500 |2390316.0 |4688303.0 | 417.0 | 111.00 | 50 | -55 |+-----------+----------+----------+----------+----------+--------+--------+-------+ This information is provided by RNS The company news service from the London Stock Exchange