Patagonia Gold Regulatory News (PGD)

27 Apr 2005 07:00

Patagonia Gold PLC27 April 2005 27 April 2005 Patagonia Gold Plc EXPLORATION UPDATE Patagonia Gold (PGD) continues to expand the drill targets on its principalproperties in Argentina, Chile and New Zealand together with making newdiscoveries. The Company has under licence, application or option: 79 properties covering3,380 km2 in Southern Argentina, distributed across the Rio Negro, Chubut andSanta Cruz provinces; 39 properties covering 104 km2 in Southern Chile and 19properties covering 4,630 km2 in both the North and South Islands of NewZealand. Highlights Gastre. -The discovery of significant disseminated copper mineralization withvalues of >3% copper and associated silver values of 170g/t along strike and tothe east of IMA's Navidad silver project. Cerro Colorado. -Sampling over the central zone has returned significant resultsincluding 28.1g/t gold and 88.1g/t silver over 2 metres. Cerro El Morro. -One of the main structures has now been traced for over onekilometre with values in the south east of 3.7g/t gold and 269g/t silverincreasing to 24.6g/t gold and 233g/t silver in the north west. Crespo. -The discovery of new veins and the extension of known mineralizationconfirm this as a gold rich district of high potential. Argentina The Gastre Block: consisting of 10 cateos covering 950 square kilometres, islocated in north central Chubut within the proven mineralized belt extendingfrom IMA's Navidad silver project in the south east to Aquiline's tenements,containing the Calcatreu gold project, in the northwest and is consideredextremely prospective to host both base metal and precious metal mineralization. Mapping and sampling of the southern section of the claims, in a zone namedCopper Hill, has identified significant disseminated copper mineralization withvalues of >3% copper and associated silver values of 170g/t. The mineralizationis related to an extensive linear structure, which has the same orientation andis along strike from one of the major Navidad mineralized zones to the east.Over 4.5 kilometres to the west, along the same trend, copper mineralization hasalso been identified, with values >1% Copper and >50g/t silver. 300 metres southeast of Copper Hill in the base of the Canadon Asfalto sequence,(host to the Navidad deposit), rock chip samples have reported results of >3%copper and 71g/t silver in disseminated mineralization. In addition previousprospecting in an area adjacent to this copper rich trend returned values of upto 5.1g/t gold and 52g/t silver. Significant Samples include Property Sample Copper Silver % pmGastre 33957 3.10% 71.7 33958 1.63% 37.0 33959 2.29% 47.7 33962 3.23% 170.0 33964 1.84% 89.9 Cerro Colorado: this exciting prospect comprising two minas and a cateo,covering almost 200 square kilometres is located in the Andean cordillera to thesouth of Esquel and contains mineralization typically associated with ahi-sulphidation gold system. Extensive chip channel sampling over the centralzone of 700 metres x 300 metres of advanced argillic alteration has returnedvery significant gold results, including: o 28.1g/t gold 88.1g/t silver over 2 metres o 6.22g/t gold 28.3g/t silver over 7 metres o 7.31g/t gold 32.2g/t silver over 5 metres o 6.65g/t gold 65.6g/t silver over 7 metres The mineralized system is postulated to have a stratigraphic control being fedby NE striking structures. Further infill sampling and detailed mapping will nowbe carried out prior to drill programme preparation. Cerro El Morro: further exploration of this cateo has identified additionalveining. Sampling has increased the tenor of the mineralization with a samplefrom the last programme returning 24.6g/t gold and 233g/t silver.A recently completed geophysics survey (combined magnetic, IP and chargeability)over the vein field has enabled better definition of the structures which inplaces have no surface expression. One of these structures, now traceable forover a kilometre, contains values in the south east of 3.7g/t gold and 269g/tsilver increasing to 24.6g/t gold and 233g/t silver in the north west, with thegeophysics also indicating the structure to be considerably wider in the northwest.An Environmental Impact Study has been submitted to the Rio Negro Province andon receipt of the approval a 2,000 metres scout drill programme will commence Crespo Project: continued exploration of this established gold district hasmaintained the momentum of discovery with two new sub parallel veins, extendingfor over 2.3 kilometres, having recently been discovered in the central southernpart of the property. Mapping and sampling of these veins ('V' and 'Y') iscurrently in progress.Additionally the Pedro vein has now been extended to over 2 kilometres with anumber of grades >3g/t gold. The recently completed geophysics survey conducted over the 'Paleosurface'successfully defined a 300 metres x 100 metres resistive zone with co-incidentchargeability linking the two highest anomalous gold samples. The discovery of new veins and the extension of known mineralization in theCrespo Project area confirm this as a gold rich district of high potential.Further discoveries are anticipated. PG has increased its landholding in thearea and now controls an area of 535 square kilometres in 6 cateos. Environmental Impact Studies are currently being prepared for submission inadvance of drill testing several of the above targets. Chile Exploration in Chile remains focused in the Puerto Ibanez area and in the regionto the south of the Cerro Bayo mine of Coeur in the Jenemeini area.Reconnaissance sampling of the latter has identified geology prospective forboth epithermal gold mineralization as well as gold-silver-base metalmineralization, with values >5g/t gold and >500g/t silver (separate samples), asa result of which 25 new pedimentos have been staked. Significant Samples include Property Sample Gold Silver Lead ppm ppm % Jenemeini Area 40058 5.15 148.0 4.4 40042 4.00 533.0 0.1 40050 3.38 2.5 0.1 40051 2.21 138.0 20.5 40046 2.16 152.0 0.8 40053 0.36 48.5 2.8 New Zealand Exploration on HPD New Zealand's permits at Bendigo, Macetown and Nenthorncontinues, with extensive soil sampling programmes being carried out on allthree properties. Bendigo Permit-soil sampling has identified the northwestern extension to theRise and Shine shear zone. Coincident gold and arsenic results define a strikelength of 3 kilometres with a width of 400 metres. Soil sampling is currentlyunderway on the SE extension of the zone.Macetown Permit-soil sampling, with results of up to 11.3g/t gold, has definedthe possible extension of the Premier lode, with mineralization present over the1,500 metres tested to date. In addition, the sampling identified a sub-parallelzone. A further 4.5 kilometres of the zone remains to be tested.Nenthorn Permit-soil sampling has outlined extensions to the Bonanza lode (LotsWife) and is clearly defined by over 3.7 kilometres strike of mapped quartz. Twosub parallel linear anomalies have also been defined at Redbank with thesouthern anomaly extending over 3.6 kilometres.The Nenthorn Permits are adjacent to the Macraes gold mine operated by OceanaGold, which since commissioning in 1990 has produced 1.7Mozs of gold. HPD has programmed for a 3,000 metre Reverse Circulation exploratory drillingcampaign to be carried out prior to winter on one of the above properties,subject to the results of infill soil sampling and satisfactory accessarrangements being completed. ENDS For more information please contact Bill Humphries / Richard Prickett Leesa PetersPatagonia Gold Plc Conduit PRTel: + 44 (0)20 7409 7444 Tel: +44(0)20 7618 8708www.patagoniagold.com /+44(0)781 215 9885 This information is provided by RNS The company news service from the London Stock Exchange