- Patagonia Gold Corp. (PGDC) has signed a farm-in agreement with a private company operating in the mining sector
- The agreement is for a drilling program of up to 20,000 meters on the Monte Leon target
- The partner will fund a core drilling program to be conducted by the company
- Phase 1 will consist of 8,500 meters for the partner to earn a 20 per cent stake in Monte Leon, Phase 2 to drill a further 11,500 meters to earn an additional 30 per cent interest
- Patagonia Gold Corp. is a South America-focused mining company
- Patagonia Gold Corp. (PGDC) is up 100 per cent on the day, trading at C$0.01 per share at 9:30 am ET
Patagonia Gold Corp. (PGDC) has signed a farm-in agreement with a private company operating in the mining sector.
The agreement is for a drilling program of up to 20,000 meters on the Monte Leon target in the company’s El Tranquilo block of concessions to earn up to a 50 per cent interest in Monte Leon.
Monte Leon is situated within the El Tranquilo concession block, approximately 12 kilometres from Cap-Oeste in Argentina.
In 2021, the company completed an initial 6,000+ meters of rotary air blast drilling at Monte Leon designed to outline the surface footprint of anomalous gold and silver mineralization. This work continued in 2022, such that over 15,500 meters of RAB drilling have been completed.
The partner will fund a core drilling program to be conducted by the company, divided into two phases, to define the lateral and depth extent of epithermal-style mineralization at Monte Leon. Phase 1 will consist of 8,500 meters for the partner to earn a 20 per cent stake in Monte Leon and will have the option to advance to Phase 2 to drill a further 11,500 meters for a total of 20,000 meters to earn an additional 30 per cent interest in Monte Leon, for a maximum participation of 50 per cent.
Christopher van Tienhoven, Chief Executive Officer, commented on the news.
“We are excited about the opportunity of drilling this prospective target adjacent to the known Cap-Oeste Project. The drilling at Monte Leon is also a milestone moment for the company as, based on our work and historic drilling, we believe the property has potential for new, high-grade, precious metal mineralization.”
RAB drilling is a common exploration method used to identify near-surface mineralization.
At Monte Leon, RAB drilling has outlined several clusters of anomalous gold mineralization that will guide subsequent core drilling. Samples from the company’s RAB drilling were submitted to Alex Stewart International, a certified commercial analytical services company, along with blanks, duplicates and standards per company protocols for quality assurance and quality control purposes.
Patagonia Gold Corp. is a South America-focused mining company focused on the exploration and development of gold and silver projects in the Patagonia region of Argentina. Patagonia, indirectly through its subsidiaries or under option agreements, has mineral rights to over 430 properties in several provinces of Argentina and Chile and is one of the largest landholders in the province of Santa Cruz, Argentina.
Patagonia Gold Corp. (PGDC) is up 100 per cent on the day, trading at C$0.01 per share at 9:30 am ET.
