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Patagonia Gold receives provisional permit to build Cap Oeste underground mine

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Cap-Oeste project. Image credit: Patagonia Gold.

(Kitco News) - Patagonia Gold (TSXV: PGDC) announced today that it has received a provisional permit to proceed with the development of the Cap-Oeste gold/silver underground project in Argentina.

Development of the project will focus on a high-grade portion of the current mineral resources, which lie under and peripheral to the depleted surface mine. The intention is to mine the Cap Oeste underground resource and truck the ore approximately 150 kms to the Martha plant where it will be processed to produce a concentrate.

The current mineral resource estimate for Cap Oeste is 919.3 koz of gold and 26,920 koz of silver in Measured, Indicated and Inferred categories.

CEO Christopher van Tienhoven said that “2018 Capo mineral resource contains a higher-grade component of 478,000 tonnes of indicated mineral resources, grading 12.6 g/t Au and 472 g/t Ag and containing 194,000 gold and 7.3 million silver ounces. This high-grade mineralization is hosted in a 'Cose-style' breccia setting, which we expect will form the basis for the potential underground project.”

Patagonia Gold Corp. is a mining and development company listed on the TSX Venture Exchange. The company seeks to grow shareholder value through exploration and development of gold and silver projects in the Patagonia region of Argentina. The company is primarily focused on the Calcatreu project in Rio Negro and the development of the Cap Oeste underground project. Patagonia, indirectly through its subsidiaries or under option agreements, has mineral rights to over 365 properties in several provinces of Argentina and Chile and is one of the largest landholders in the Province of Santa Cruz, Argentina.

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