21st Jun 2007 07:00
Patagonia Gold PLC21 June 2007 PATAGONIA GOLD PLC Trading Symbol PGD.L PROGRESS REPORT ON THE LOMADA DE LEIVA PROJECT AND EXPLORATION AT LA MANCHURIA Highlights •Resource drilling on the Lomada de Leiva Project, located on the La Paloma property, continues to report very encouraging results including an intersection of: 21 metres at 8.49g/t gold from drill-hole LLD 26. •Validation of historic drilling at La Manchuria Prospect confirms significant mineralization, including 0.6m at 158 g/t gold and 0.9m at 5,669 g/t silver in separate samples. Lomada de Leiva Project Field work, including drilling and trenching, has now concluded for this seasonon Patagonia Gold's (PGD) principal project, the 100% owned Lomada de Leiva. Results are awaited from the last 11 drill holes and from 14 sawn trenches thatwere cut across the surface outcrop of the mineralised zone above the drilledsections. These trenches will represent near surface horizontal drill holes. In addition samples have been submitted from significant drill intersections for'bottle Roll' metallurgical gold extraction tests with different grinds andleach times. Check assays have also been dispatched for QA/Qc work with twoindependent and Certified Laboratories. All of this work will conform toCanadian National Instrument (NI) 43-101 standards. All geological, geochemical and physical data is currently being collated fordispatch to Chlumsky, Armbrust and Meyer LLC, an international mineralresources, consulting and engineering group from Lakewood, Colorado, U.S.A. whowill undertake the NI43-101 compliant resource estimate on Lomada de Leiva. La Manchuria Property PGD's 100% owned La Manchuria property, consisting of 5 expidentes (miningconcession) covering 5,575 hectares, is located approximately 150km to the southeast of the La Paloma property in the Santa Cruz province of Argentina. TheManchuria 'Main zone' Prospect is within the same regional corridor thatcontains the operational mines, Mina Martha to the south and Huevos Verdes tothe north. Historic exploration work included soil and rock chip sampling, geophysics,trenching to enable sawn channel sampling and two drill programmes of reversecirculation (RC) and diamond drill holes comprising 22 drill holes for a totalof 3,104 metres. PGD has undertaken a vigorous exploration and validation programme at LaManchuria in order to plan for a drilling campaign scheduled to commence afterthe southern winter in early October. Validation of historical data included;taking rock chip samples, cutting of new sawn channel samples along side ofprevious sawn channels and the re sampling of 1/4 drill cores. Significant sawn channel results include; +---------+----------+----------+---------+ | Trench | Interval | Gold | Silver | | No. |in metres | | | | | | g/t | g/t | +---------+----------+----------+---------+ | TR 03 | 2.00| 0.41| 173.0| +---------+----------+----------+---------+ | TR 04 | 1.00| 4.91| 206.0| +---------+----------+----------+---------+ | TR 05 | 3.00| 17.04| 60.2| +---------+----------+----------+---------+ | and | 1.50| 29.00| 160.0| +---------+----------+----------+---------+ Selected historical drill core was quartered and re-assayed. Significantintersections are listed below. +---------+----------+----------+---------+---------+ | Drill | From | Interval | Gold | Silver | |Hole No. | Metres | metres | | | | | | | g/t | g/t | +---------+----------+----------+---------+---------+ | LM98-1 | 110.20| 1.50| 7.12| 951| +---------+----------+----------+---------+---------+ | LM98-2 | 89.47| 0.40| 61.20| 163| +---------+----------+----------+---------+---------+ | and | 95.47| 0.60| 158.20| 235| +---------+----------+----------+---------+---------+ | LM98-6 | 50.00| 1.00| 6.11| 272| +---------+----------+----------+---------+---------+ | LM98-8 | 33.05| 1.00| 1.77| 579| +---------+----------+----------+---------+---------+ | and | 149.50| 1.50| 10.10| 63| +---------+----------+----------+---------+---------+ | LM98-9 | 3.02| 1.50| 1.53| 597| +---------+----------+----------+---------+---------+ | and | 61.90| 1.50| 10.32| 15| +---------+----------+----------+---------+---------+ | LM98-10 | 54.64| 0.90| 15.30| 5,669| +---------+----------+----------+---------+---------+ | and | 87.85| 0.65| 15.90| 457| +---------+----------+----------+---------+---------+ | and | 166.00| 1.03| 1.00| 423| +---------+----------+----------+---------+---------+ | LM98-11 | 115.00| 1.50| 30.20| 106| +---------+----------+----------+---------+---------+ | LM98-12 | 6.00| 1.50| 0.43| 541| +---------+----------+----------+---------+---------+ | and | 42.00| 1.50| 9.08| 74| +---------+----------+----------+---------+---------+ Mineralization is associated with a low to intermediate Sulphidation epithermalquartz-adularia vein system. Veins are characteristically narrow on average lessthan 1m but contain bonanza grades of both gold and silver. Vein mineralizationis strongly structurally controlled with a preferential NW strike to the veinswarms and densely sheeted zones. The host rock is a sequence of rhyolitic tuffswhich is underlain by andesite. The competence of the rhyolite is not considered as favourable as andesite forhosting mineralization; accordingly the October drill programme will also bedesigned to test the depth potential of the veins below the rhyolite into themore receptive andesite to determine if the veins expand with depth. The previous drill programmes were not extensive enough to systematicallyexplore the 'Main zone' and significant potential remains in this zone to betested. In addition the property also contains other geological prospective targets. Arock chip sample (28902), taken 200m southeast from Trench 3 and outside of the'Main zone' reported 16.4 g/t gold and 1,970 g/t silver. Update on Chubut mining suspension We have recently been informed that our appeal to the Supreme Court has beendismissed. Accordingly our future plans in the Chubut Province will bedetermined as and when the mining and exploration exclusion is lifted. The newdefinitions of acceptable mining activities within the above zone are expectedfrom the Provincial government in the near future. Meanwhile Patagonia Gold and its operating subsidiaries are focusing all oftheir resources in the Santa Cruz and San Juan provinces of Argentina. 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 Anthony Cardew/Tim Robertson Patagonia Gold Plc Tel: +44 (0) 20 7930 0777 Tel: + 44 (0)2 7409 7444 Fax: +44 (0) 20 7925 0647 www.patagoniagold.com Email: [email protected] Trading Symbol PGD.L This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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