25th Jul 2007 07:00
Patagonia Gold PLC25 July 2007 PATAGONIA GOLD PLC Trading Symbol PGD.L 25 July 2007 PROGRESS REPORT EXPLORATION AT BRECCIA VALENTINA Trenching at the Breccia Valentina Prospect confirms significant mineralizationabove an inferred fissure vein system, including 34m @ 0.89 g/t gold, 5kilometres along strike from the previously reported, highly prospective, CapOeste Prospect. In February of this year, Patagonia Gold (PGD) acquired Barrick Group's entireexploration property portfolio in the Santa Cruz Province of Argentina. Theportfolio contains 70 expedients (mineral titles) in six groups coveringapproximately 200,000 hectares in the highly prospective Deseado massive regionof Santa Cruz. PGD has concentrated its exploration efforts on three of these property groups; •The La Paloma property group, which contains the Lomada de Leiva Project on which PGD has completed a 9,000 metre infill drill programme to advance the existing resource to Canadian National Instrument 43-101 compliance. (Progress Report 21 06 07) •La Manchuria, located approximately 150km to the south east of the La Paloma property, on which PGD has completed exploration and validation works. (Progress Report 21 06 07). •The El Tranquilo property group, located approximately 120km to the south east of La Paloma containing the Cap Oeste Prospect, on which PGD has completed exploration and validation works (Progress Report 21 06 07), and the Breccia Valentina Prospect. Breccia Valentina Prospect. PGD has undertaken an exploration programme in order to plan a drill campaign inOctober. Validation of historical data included detailed mapping, taking rockchip samples and trenching for sawn channel sampling. Results from the trenchinginclude: +----------+-----------+----------+-----------+ |Trench No.|Interval in| Gold | Distance | | | metres | |from TR-20 | | | | g/t | | +----------+-----------+----------+-----------+ | TR 20 | 4.0| 0.37| 00m| +----------+-----------+----------+-----------+ | TR 19 | 14.1| 0.13| 50m SE| +----------+-----------+----------+-----------+ | TR 04 | 34.0| 0.89| 100m SE| +----------+-----------+----------+-----------+ |including | 20.0| 1.19| | +----------+-----------+----------+-----------+ | TR 18 | 54.9| 0.47| 150m SE| +----------+-----------+----------+-----------+ |including | 4.0| 2.96| | +----------+-----------+----------+-----------+ | TR 17 | 60.0| 0.20| 200m SE| +----------+-----------+----------+-----------+ A further trench, number 21, was excavated 150m to the north east and contained83.4m @ 0.13 g/t gold including 2m @ 0.39 g/t gold. This trench is interpretedto be on a second, parallel structure, or an off set of the main zone. The Breccia Valentina Prospect is located less than 5 kilometres along strikefrom the previously reported, highly prospective, Cap Oeste Prospect whichincluded results from trenching of 37.5 metres at 1.89g/t. Additionally it isonly 50 kilometres from the La Manchuria property which has reported drillsamples of 0.6 metres of 158 g/t gold and 0.9 metres of 5,669 g/t silver inseparate samples. These three prospects are all located within easy trucking distance of eachother. Furthermore Manchuria is located only 60 kilometres from an existingmine. 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. The El Tranquilo property block also contains other highly prospective areaswhich require further exploration in order to define the potential for drilltargets. Lomada de Leiva Project All results from the recently completed drilling programme on PGD's principalproject, the 100% owned Lomada de Leiva have now been received. Drilling results not previously reported include: +---------+----------+----------+---------+ | Drill | From | Interval | Gold | |Hole No. | Metres | metres | | | | | | g/t | +---------+----------+----------+---------+ | LPD-27 | 49.0| 17.0| 3.15| +---------+----------+----------+---------+ |including| 57.0| 5.0| 5.8| +---------+----------+----------+---------+ | LPD-30 | 40.0| 5.0| 2.26| +---------+----------+----------+---------+ | LPD-32 | 6.0| 10.0| 2.54| +---------+----------+----------+---------+ | and | 42.0| 11.0| 3.00| +---------+----------+----------+---------+ | LPD-34 | 30.0| 36.0| 3.52| +---------+----------+----------+---------+ |including| 59.0| 7.0| 8.86| +---------+----------+----------+---------+ Geological, geochemical and physical data is currently being collated fordispatch to Chlumsky, Armbrust and Meyer LLC, an international mineral resourcesconsulting and engineering group from Lakewood, Colorado, U.S.A. who willundertake the NI43-101 compliant resource estimate on Lomada de Leiva, scheduledfor completion in September. Planning. Preparations are well advanced for a proposed 10,000 metre drill programme onthe above properties, scheduled to commence in October 2007, of which: 3000metres is allocated for La Paloma to target potential resources adjacent toLomada del Leiva; 3,500 metres is allocated for La Manchuria to infill the MainZone for production of a NI43-101 compliant resource and 3,500 metres forBreccia Valentina and Cap Oeste on targets defined by this seasons exploration. Environmental Impact Assessments (EIA) for Manchuria, Cap Oeste and BrecciaValentina have already been approved, whilst EIA preparation for continueddrilling at La Paloma supervised by an Independent consultant company is nearingcompletion. 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 RobertsonPatagonia Gold Plc Tel: +44 (0) 20 7930 0777Tel: + 44 (0)2 7409 7444 Fax: +44 (0) 20 7925 0647www.patagoniagold.com Email: [email protected] Symbol PGD.L This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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