Patagonia Gold Regulatory News (PGD)

4 Jul 2006 13:55

Patagonia Gold PLC04 July 2006 Patagonia Gold Plc ("Patagonia Gold" or the "Company") Patagonia Gold Plc announces that the Provincial Government of Chubut inArgentina passed the following legislation on 29th June 2006 "To suspend for a term of THIRTY SIX (36) months the metal-bearing miningactivity, with the exception of alluvial ore, in the area comprised between theParallels 42 degrees and 44 degrees 30' Latitude South, the Meridian line 70degrees 30' West Longitude and the international limit with Chile, in accordance with what has been established by Section 3 of the Provincial Consititution." This exclusion zone covers a number of Patagonia Gold's exploration propertiesincluding the Huemules project, Leleque and Nahuel Pan areas, and the CrespoProject. Patagonia Gold has a substantial exploration property portfolio outside of thisexclusion zone, including the Gastre and El Morro projects. In addition theBoard has recently taken a decision to devote an increasing proportion of thefinancial and human resource to exploration in other provinces In light of this new development the above expansion programme will beaccelerated. ENDS For more information, please contact: Richard Prickett / Bill HumphriesPatagonia Gold PlcTel: + 44 (0)20 7409 7444www.patagoniagold.com Anthony Cardew/Tim RobertsonTel: +44 (0) 20 7930 0777Fax: +44 (0) 20 7925 0647Email: tim.robertson@cardewgroup.com This information is provided by RNS The company news service from the London Stock Exchange