Patagonia Gold Regulatory News (PGD)

26 Nov 2007 07:00

Patagonia Gold PLC26 November 2007 PATAGONIA GOLD PLC (AIM:PGDL) DRILLING UPDATE: EL TRANQUILO PROPERTY AND PROGRESS REPORT: LA PALOMA PROPERTY, SANTA CRUZ, ARGENTINA Highlights •Drilling on the Cap-Oeste Prospect, located on the El Tranquilo Property, has reported very encouraging results in the first 11 of a 32 drill hole programme including 5 metres at 28.70g/t gold and 84.1g/t silver. •Exploration drilling on the adjacent Breccia Valentina Prospect, located on the El Tranquilo Property has also reported very encouraging results in the first 2 of a 12 drill hole programme including 5.2 metres at 3.35g/t gold. •Chlumsky, Armbrust and Meyer ("CAM"), consulting and engineering group headquartered in Lakewood, Colorado, U.S.A., have commenced work on a Canadian National Instrument (NI) 43-101 compliant Scoping Study on the Lomada de Leiva Project located on the La Paloma Property. El Tranquilo Property The El Tranquilo Property, covering over 40 square kilometres, is locatedapproximately 120km south east of La Paloma in the Santa Cruz province ofArgentina. It contains the Cap Oeste Prospect and Breccia Valentina Prospect. PGD's Property 29 'La Bajada' is contiguous with the El Tranquilo Property andcontains a number of gold anomalous and geologically encouraging areas. Cap-Oeste Prospect Drilling has commenced on the highly prospective Cap-Oeste Prospect. Resultsfrom the first 11 holes are now available and significant intersections include: +-------------+---------+----------+--------+--------+ |Drill Hole |From |Interval |Gold |Silver | |No. |metres |metres | | | | | | |g/t |g/t | +-------------+---------+----------+--------+--------+ |COR-001-R | 44.0| 13.0| 11.55| 47.49| +-------------+---------+----------+--------+--------+ |including | 50.0| 5.0| 28.70| 84.10| +-------------+---------+----------+--------+--------+ |and | 65.0| 5.0| 1.40| 28.20| +-------------+---------+----------+--------+--------+ |COR-002-R | 48.0| 6.0| 2.36| 68.20| +-------------+---------+----------+--------+--------+ |COR-007-R | 49.0| 5.0| 5.80| 68.40| +-------------+---------+----------+--------+--------+ |COR-008-R | 40.0| 10.0| 3.61| 32.70| +-------------+---------+----------+--------+--------+ |COR-011-RD | 105.6| 7.9| 3.36| *| +-------------+---------+----------+--------+--------+ To date, 20 drill holes have been completed for a total of 1,690 metres,consisting of 8 Reverse Circulation ("RC") drill holes spaced along 350 metresof the anomaly established by trenching earlier this year, a further 8 step backdrill holes, RC with a diamond tail, with the remaining holes as an explorationfence across the southern extension of the anomaly. Results from the remaining 9holes are pending and will be announced in due course. Drilling has confirmed the presence of a wide (up to 20 metres) gold mineralisedzone of more than 0.5g/t with a high grade core. The zone remains open at depthand along strike in both directions. Further drilling is underway to the southeast and north west along strike in order to extend the zone, together withadditional step back drill holes. Breccia Valentina Prospect Drilling has commenced on the Breccia Valentina Prospect, located approximately5 kilometres along strike from Cap-Oeste. Results from the first 2 holes are nowavailable and significant intersections include: +-------------+---------+----------+--------+--------+ |Drill Hole |From |Interval |Gold |Silver | |No. |Metres |metres | | | | | | |g/t |g/t | +-------------+---------+----------+--------+--------+ |BVA-002-D | 26.0| 12.5| 2.38| *| +-------------+---------+----------+--------+--------+ |Including | 28.0| 5.2| 3.35| *| +-------------+---------+----------+--------+--------+ |And | 129.0| 5.0| 3.11| *| +-------------+---------+----------+--------+--------+*Results are pending The above results confirm that the gold tenor is improving with depth. Breccia Valentina is interpreted as a structurally controlled phreatic brecciapipe characterised at surface by high level silica hosting highly anomalous goldin veins and breccias formed in association with an adjacent dome. Thiscompelling conceptual target, the model for which potentially hosts economicgold grades at depth, is typical of other Pacific Rim phreatic breccias hostingeconomic gold resources. To date, 7 diamond drill holes have been completed for a total of 1,094 metresalong the anomaly established by trenching earlier this year. Results of theremaining 5 holes are pending. The El Tranquilo property block also contains other highly prospective areaswhich require further exploration in order to define the potential for drilltargets. 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 In October 2007 a NI 43-101 compliant resource was announced at a 0.3g/t goldcut off of Measured and Indicated at 161,346 ounces gold and an additionalInferred Resource of 73,725 ounces of gold. Patagonia Gold Plc was sufficiently encouraged with the results to engage CAM,the consulting and engineering group from Lakewood, Colorado, USA., to prepare aScoping Study for the project. A controlled source audio frequency magnetotellurics ("CSAMT") geophysics surveyis nearing completion on the interpreted southern extension of the Lomada deLeiva mineralised zone as well as on its northerly trend towards Breccia Sofia.The survey has also targeted sub parallel structures to the east, the upperportions of which were identified by previous drilling. Currently drill sections in conjunction with the geophysical survey results arebeing interpreted to form the basis of an infill and expansion drill programmeat Lomada de Leiva. This drilling will also include metallurgical holes as wellas pit design holes anticipated from the Scoping Study A 3,000 metre drilling programme is planned on Lomada de Leiva and Breccia Sofiato commence early in Q1, 2008. 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. www.patagoniagold.com 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) 7833 926 694 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) 7925 7852 This information is provided by RNS The company news service from the London Stock Exchange