On 28 December 2017, the Company announced that it had entered into a Definitive Agreement with Pan American Silver Corp to acquire the Calcatreu Deposit for a total consideration of US$15 million.  Patagonia Gold has made the initial payment of US$5 million with the balance of US$10 million paid on 18 May 2018.  As a result of the transaction, Patagonia Gold, through a wholly owned subsidiary, has acquired Minera Aquiline Argentina SA which owns 100% of the Calcatreu Deposit.



  • Updated resource estimate reported increase in total AuEq contained ounces to 1.17Moz
  • Resource update confirms potential to increase resource
  • Geophysics programme under way to be completed in August 2018
  • Drilling targeted for September 2018

Geology and Mineralisation

The Calcatreu Deposit is a high grade (2.325 g/t AuEq) low sulphidation gold system with the mineralisation outcropping at surface.  An independent mineral resource estimate was completed by Micon International Limited of Toronto in 2008 for the Calcatreu Deposit, prepared in accordance with the Canadian National Instrument 43-101 requirements and set out the current resource, which contains 8 million tonnes at 3.04 g/t AuEq for 780,000 oz in the Indicated category and a further 255,000 oz at 2.32 g/t AuEq in the Inferred category.  This resource model was completed in 2008 using a gold price of US$650/oz and a silver price of US$12.50/oz.  The surrounding land package has over 25,000 hectares of sparsely explored terrain.

More recently, CUBE Consulting Ltd was contracted to prepare an updated JORC/NI 43-101 compliant resource estimate for the Calcatreu project.  A full reinterpretation and analysis of all available drill data and existing geological modelling data was undertaken. The updated resource model is tabled below.

Zone Indicated Grade (g/t) Contained Metal (kOz)
Tonnes Au Ag AuEq Au Ag AuEq**
Veine 49 5,688 2.9 26.8 3.2 528 4,893 592
Nelson 1,400 1.6 18.6 1.9 74 839 85
Castro Sur 1,728 1.6 18.1 1.8 88 1,008 101
TOTAL Indicated 8,816 2.43 23.78 2.75 690 6,740 778
Zone Inferred Grade (g/t) Contained Metal (kOz)
Tonnes Au Ag AuEq Au Ag AuEq**
Veine 49 2,198 1.8 17 2 128 1,201 144
Nelson 1,477 1.5 15.5 1.7 70 736 80
Belen 681 1.6 22.1 1.9 35 35 41
Castro Sur 3,215 1.1 9.8 1.2 110 110 123
TOTAL Inferred 7,571  1.41 14.12  1.59 343 3,438 388
NOTES: Gold equivalent (AuEq) values are calculated at a ratio of 76.5:1 Au/Ag.
Rounding errors for totals may occur. Not depleted by Mineral Reserves.


Indicated resources remained unchanged from 2008 with an increase of approximately 130koz reported in the Inferred category.  The opportunity exists to convert a portion of the existing Inferred resources into a higher category through additional drilling and studies to elevate the current level of confidence in the interpretation.  The main focus of Patagonia Gold over the next 12 month period will be to add to this resource base before commencing a feasibility study for the project.

Work to Date

An Induced Polarization survey has commenced along the 3 km of strike between Vein 49 and Castro Sur to better delineate existing chargeability and resistivity anomalies from previous surveys.  Approximately 35 line kilometres of survey is being completed in the first stage of the programme before moving focus to the southern area of Vein 49 and Belen-Nelson vein area.  To date, only outcropping veins have been drill tested and the Company believes that there is a good opportunity to discover further resources blind to the surface.

The objective of this first pass survey is to have a drill programme designed and permitted to commence in September 2018, predominantly on concealed targets proximal to the main existing resource at Vein 49. In conjunction with the ongoing geophysical surveys, a team of geologists will be carrying out updated field recognisance and mapping study and geochemical rock chip sampling for the remainder of the land package. Calcatreu will be the primary exploration focus for the Company during 2018.

Total global net attributable resources for the Group are shown under this Projects tab as Reserves and Resources


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