TIDMPGD
RNS Number : 4357O
Patagonia Gold PLC
07 November 2016
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7 November 2016
Patagonia Gold Plc
("Patagonia Gold" or the "Company")
Uruguay Exploration Update
Patagonia Gold Plc, the mining company with gold and silver
projects in Argentina, Chile and Uruguay, is pleased to provide an
update in respect of its exploration activities in Uruguay.
Highlights
-- Assay results received for first drilling completed on Zona
13 within the Chamizo exploration area
- Eight of the nine holes intersected mineralisation
- Significant intercepts reported in five of the eight
mineralised intervals, including CHDD-002 15.5 metres @ 1.38 g/t Au
and CHDD-004 16.2 metres @ 1.72 g/t Au
- Over 3.5 km of mineralised structure identified, only 900
metres of strike drilled to date at Zona 13, open in all
directions
- Geophysical surveys have proven to accurately define the
mineralised structure beneath post-mineralisation cover
-- Additional areas at Carreta Quemada and Zona 14 and 15 drill
ready, with coincident geophysical and geochemical anomalies
Christopher van Tienhoven CEO commented "We are pleased with the
results from our first drill programme in Uruguay, both the grade
and thickness of the mineralisation intersected on the main shear
to date are very encouraging and with a potential strike extent of
over 3.5 km, Zona 13 is looking like it has the potential to
develop into an important asset in our property portfolio. We look
forward to continuing work on Zona 13 and the adjacent properties
within the project area."
Further information
Since the Company exercised its option in January 2016 to
acquire, subject to achieving certain milestones, up to 100% of
Trilogy Mining Corporation's ("Trilogy") gold projects in Uruguay,
which includes, inter alia, Trilogy's existing Carreta Quemada and
Chamizo exploration gold projects as well as any future areas that
they may be granted, the Company has escalated its exploration
activities in country to seek to define drill targets. The Company
has undertaken and continues to undertake geological mapping, soil
and stream sediment geochemistry, ground magnetic and induced
polarisation surveys and has also completed its first drilling
programme at Zona 13 within the Chamizo exploration area. Set out
below are further details on the exploration activities to
date.
Figure 1: Location of properties in Uruguay.
(Please see the PDF document)
Chamizo - Zona 13
Following initial geophysical and geochemical programmes, the
Company has completed a 910 metre exploration diamond drilling
programme, consisting of nine holes, on Zona 13 within the Chamizo
exploration area, with all assay results having now been received.
Zona 13 was the first of a series of extensive Pole-Dipole Induced
Polarisation (PDIP) geophysical anomalies drilled on the Chamizo
joint venture area, with eight of the nine holes intersecting
mineralisation with significant assays reported in five of the
eight mineralised intervals, including 7.2 metres @ 2.64 g/t Au
from CHDD-002 and 16.2 metres @ 1.72 g/t Au from CHDD-004.
Length
Hole ID From To (m) Au g/t
----------- ------ ------ ------- -------
CHDD-001 31.0 55.4 24.4 0.60
----------- ------ ------ ------- -------
including 45.8 55.4 9.6 1.02
----------- ------ ------ ------- -------
CHDD-002 76.5 92.0 15.5 1.38
----------- ------ ------ ------- -------
including 86.0 92.0 7.2 2.64
----------- ------ ------ ------- -------
CHDD-003 48.0 84.0 36.0 0.72
----------- ------ ------ ------- -------
including 48.0 55.0 7.0 1.68
----------- ------ ------ ------- -------
CHDD-004 64.4 80.5 16.2 1.72
----------- ------ ------ ------- -------
CHDD-004 107.0 110.0 3.0 1.48
----------- ------ ------ ------- -------
CHDD-009 75.0 84.0 9.0 0.32
----------- ------ ------ ------- -------
Table 1: Significant intervals Zona 13 Chamizo Area
*Drillhole intervals are not true widths and the Company
estimates that the true widths are approximately 80% of the overall
reported widths. All holes were drilled at a dip of -55 degrees
from South to North, except for hole CHDD-001, which was drilled as
a scissor hole from North to South.
Figure 2: Location of drill holes within Zona 13, with
significant intersections annotated, over Dipole-Dipole IP
Chargeability grid.
(Please see the PDF document)
Figure 3: Geological Cross Section 7000m E from Zona 13, showing
scissored drillholes CHDD-001 and CHDD-002 and mineralised
intervals with respective grades
(Please see the PDF document)
Hole
ID East North RL Dip Azimuth Depth
---------- --------- ---------- ------ ---- -------- ------
CHDD-001 525104.8 6226730.9 90.8 -50 175 70.2
---------- --------- ---------- ------ ---- -------- ------
CHDD-002 525108.2 6226648.7 95.7 -50 355 150
---------- --------- ---------- ------ ---- -------- ------
CHDD-003 525354.5 6226711.7 103.4 -50 355 124.1
---------- --------- ---------- ------ ---- -------- ------
CHDD-004 525259.5 6226684.9 97.7 -50 355 124.7
---------- --------- ---------- ------ ---- -------- ------
CHDD-005 524847.1 6226596.5 83.6 -50 355 89.1
---------- --------- ---------- ------ ---- -------- ------
CHDD-006 524853.2 6226553.6 83.0 -50 355 92.6
---------- --------- ---------- ------ ---- -------- ------
CHDD-007 524703.3 6226480.1 81.4 -50 355 90.4
---------- --------- ---------- ------ ---- -------- ------
CHDD-008 525453.1 6226762.2 106.9 -50 355 76.0
---------- --------- ---------- ------ ---- -------- ------
CHDD-009 525654.2 6226818.5 107.0 -50 345 92.5
---------- --------- ---------- ------ ---- -------- ------
Table 2: Locations of HQ diameter (63.5 mm) diamond drill holes
drilled during August-September 2016 at Zona 13, Chamizo.
(Projection: WGS84, UTM Zone 21 South)
The first reported assays have confirmed an ENE - WSW striking
mineralised shear zone (Tambo Viejo Shear Zone) of over 900 metres
in length that remains open at both ends and down dip.
Mineralisation is hosted within a steeply dipping to sub-vertical
shear zone up to 40 metres wide located at the contact between a
granodiorite body to the north and Paleoproterozoic (2.1 Ga,
Birimian age) greenschist facies metandesite schist and
intercalated metasediments to the south. Mineralisation manifests
as quartz-chlorite-sericite-carbonate-pyrite-arsenopyrite altered
graphitic schist, with mylonites, cataclasites and breccias
reflecting both brittle and ductile deformation. Quartz occurs as
stringers, porphyroblasts and breccia clasts.
The mineralised shear zone, interpreted to be associated with
the regional Cufré Shear Zone, is very effectively identified
through the use of PDIP and provides a rapid and cost effective
targeting tool to define the shear zone in the subdued terrain that
has almost no outcrop and widespread thin Quaternary cover
sequences. Geophysical anomalies extend approximately 1.1 km to the
west and 1.2 km to the east along strike from Zona 13 and remain
open in both directions. Aeromagnetic data indicates that the Cufré
structural corridor may have a strike length exceeding 30 km.
Additional targets under development include extremely
prospective PDIP Chargeability and Resistivity highs located
immediately adjacent to the principal shear zone that have never
been evaluated.
Chamizo - Zona 14
Over 3.5 km of anomalous arsenic in soil and coincident high
chargeability induced polarisation anomalies have been identified
within the Zona 14 prospect. The 'Clara' structure has been
identified as a very strong, steeply southeast dipping PDIP
chargeability anomaly coincident with a strong arsenic and low
level gold in soil geochemical sampling. The Clara structure is
interpreted as a regional scale graphitic shear zone that has never
been historically evaluated. As with the majority of the project
areas in the Chamizo and Carreta Quemada blocks there is little or
no outcrop and the exploration is reliant on geophysical and
geochemical surveys to identify the prospective target areas.
Chamizo - Zona 15
Similar in style to Zona 13, Zona 15 prospect is defined by a
strong (up to 10,580 ppb Au), multi-sample panned concentrate Au
anomaly defined during stream sediment sampling, which is located
adjacent to an E-W striking intense IP chargeability high and
resistivity low, that is interpreted to reflect another untested
graphitic shear zone with a strike length in excess of 3.0 km.
Carreta Quemada
To date an extensive surface Au-As-Sb-W in soil geochemical
anomaly coincident with ground magnetic and Gradient Array Induced
Polarisation (GRA IP) geophysical anomalies has been identified by
soil samples collected by auger from the undisturbed C Horizon.
These have returned seven samples greater than 0.5 g/t Au (500
ppb), with a maximum of 1.70 g/t Au (1700 ppb). The geochemical and
geophysical surveys have identified an initial NW-SE trending
target area with dimensions of approximately 1300 metres x 400
metres, coincident with a regional NW-SE striking structural
corridor exceeding 30 km in length, as indicated by aeromagnetic
data.
Nueva Helvecia and Colla Prospects
Preliminary geological mapping and rock chip sampling have been
undertaken across the prospects located approximately 50 km west of
Chamizo. Priority structural corridors have been identified by the
company following a geological mapping and geochemical soil and
rock chip sampling programme with some sporadic outcrops having
returned values up to 1.18 g/t Au. An application for prospecting
permits across the prospects has been lodged.
The geophysical and geochemical programmes to date have
identified a number of drill targets within the Zona 15, Zona 14
and Carreta Quemada areas which the Company will seek to drill in
due course. However, in the near term, efforts will be focused on
obtaining a better understanding of the potential of the Zona 13
structure along strike and down dip of the reported intervals.
Ends
About Patagonia Gold
Patagonia Gold Plc is a mining company that seeks to grow
shareholder value through exploration, development and production
of gold and silver projects in the southern Patagonia region of
Argentina. The Company is primarily focused on three projects: the
flagship Cap-Oeste/COSE project, the La Manchuria project and the
Lomada heap leach project. Patagonia Gold, indirectly through its
subsidiaries or under option agreements, has mineral rights to over
220 properties in several provinces of Argentina, Chile and
Uruguay.
Matthew Boyes, (BSC. Geology, Fellow AusIMM) Chief Operating
Officer for Patagonia Gold PGSA and a qualified person as defined
in Canadian National Instrument 43-101, has reviewed and verified
all scientific or technical mining disclosure contained in this
press release.
For more information, please contact:
Christopher van Tienhoven, Chief Executive Officer
Patagonia Gold Plc
Tel: +54 11 5278 6950
Richard Tulloch / Ritchie Balmer
Strand Hanson Limited (Nominated Adviser and Broker)
Tel: +44 (0)20 7409 3494
This announcement contains inside information.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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