El Tranquilo Property Block – Cap Oeste
Breccia style bulk tonnage Au-Ag resource potential 
SANTA CRUZ, ARGENTINA

 

EL TRANQUILO PROPERTY BLOCK LOCATION

The El Tranquilo Project Block is situated approximately 65km southeast of Bajo Caracoles in the Santa Cruz Province, and encompasses at least 4 defined project areas, to date the two most significant of which are denominated Cap Oeste and Breccia Valentina. Good access to all the project areas, less than 2 hours drive from Bajo Caracoles.
Cap Oeste and Breccia Valentina are situated approximately 6km apart within an approximate 8km wide x 10km long window of variably clay-silica-Fe oxide altered Chon Aike volcanic rocks. This regional scale window of alteration is surrounded by Tertiary cover rocks which postdate the timing of alteration and related mineralization NW trending regional scale, structural corridor. This corridor is defined by multiple sub parallel zones of hydrothermal and fault brecciation, epithermal veining and pervasively developed high level style alteration and phreatomagmatically brecciated subvolcanic felsic domes.
  
 

PROPERTY OWNERSHIP

The El Tranquilo Block comprises a total of 40 sq km, held 100% by Patagonia Gold S.A (PGSA). These concessions were acquired in February 2007 from subsidiaries of Barrick Gold Corporation.

 
 

GEOLOGY

The stratigraphy of the Cap Oeste project area is characterized by a sub horizontal  +150m thick sequence of variably welded, ash vitric tuff  which overly a +100m thick, quartz crystal tuff unit both of which belong to the Jurassic aged Chon Aike Formation.

Mineralization at Cap Oeste is controlled by  a regional scale NW striking fault system that has cut the volcanic  stratigraphy which in cross section indicates normal vertical displacement greater than 100m and a component of right-lateral strike-slip displacement which has juxtaposed the upper and lower tuff units.

The structural regime and interpreted fault kinematics for the Cap Oeste area are consistent with regional E-W to NE-SW extension which is well documented in the Patagonian back-arc region during the Jurassic period as being the main spatial and genetic control for the localization of other precious metal deposits in the region.

 
  
 

EXPLORATION / DRILLING

Historic exploration completed between 1997-2003 by Barrick consisted of regional scale lag geochemistry and limited trench sampling over outcropping brecciation along a zone extending approximately 200m for which returned significant gold anomalism.
In 2007, PGSA conducted resampling and validation of previous trenching over the main zone and extended the exposure of breccia related mineralization at surface with additional trenching along a 900m strike length.
 

Diamond and RC drill testing at depth below the zones highlighted by the most significant trench results commenced in late 2007 for which a total of 85 holes for a total of 9,500m has been completed to March 2008, see drill plan map. Drilling to date has now defined a contiguous moderately southwest dipping, 20-45m wide mineralized zone over a strike length of 1.2km which remains open in all directions. Due to the promising results received to date further  drilling had been designated for the project which is scheduled to initially continue into Q2, 2008.

The most significant results received to date from current drilling are tabulated below, which include exceptional results of up to 2.8m@ 115.94g/t, Au and 1,875g/t Ag. The majority of bonanza high grade results relate to oxide zone mineralization extending from surface to a ~100m vertical depth within a southwesterly dipping zone of tectonic brecciation.
  
 
Cap Oeste Project -  Significant Drill Hole Intersections
Drill Hole No.
From (m)
Interval (m)  
Au g/t
Ag g/t 
CO-001-R
44.00
13.00
11.55
47.49
including
50.00
5.00
28.70
84.90
and
65.00
5.00
1.40
28.20
CO-002-R
48.00
6.00
2.36
68.20
CO-007-R
49.00
5.00
5.80
68.40
CO-008-R
40.00
10.00
3.61
32.70
CO-011-DR
103.00
9.50
2.92
65.42
including
106.95
4.70
5.23
132.94
CO-015-D
75.85
14.35
2.38
18.71
including
75.85
5.25
5.55
28.63
CO-016-D
91.95
13.45
11.93
388.76
including
91.95
5.05
30.47
1,011.56
including
93.15
1.20
94.28
3,410.00
CO-028-R
11.00
20.00
1.40
18.46
including
24.00
6.00
3.29
16.41
CO-031-R
11.00
11.00
2.30
2.23
including
17.00
5.00
4.54
1.66
CO-034-D
87.00
5.00
3.28
172.38
CO-036-D
47.10
12.30
14.03
55.91
including
52.60
5.30
31.05
100.35
CO-044-DR
55.00
5.00
5.44
33.49
including
56.00
3.00
7.71
11.91
CO-045-D
35.00
11.40
2.27
2.00
CO-051-D
79.00
12.00
3.20
26.57
including
81.00
5.10
4.79
23.99
CO-054-DR
132.00
7.00
47.16
769.35
including
133.10
2.80
115.94
1,874.93
CO-055-DR
160.00
11.80
2.79
144.20
including
168.30
2.70
9.28
453.27
 

Drill intercepts of the unoxidizd downdip extensions of this zone to have returned bonanza grades, i.e. 5m @ >30g/t Au.  This high grade core is enveloped by a wide halo of chalcedonic vein network and hydrothermal brecciation in the hanging wall and pyrite veinlet and disseminated hosted Au-Ag mineralization in the footwall respectively which collectively comprise a drilled width of up to 30m. A sectional interpretation is displayed below.