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Market: AIM
Sector: General Mining - Gold
EPIC: PGD
Latest Price: 28.38p  (-2.16% Descending)
52-week High: 71.00p
52-week Low: 22.00p
Market Cap: 212.15M
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Patagonia Gold
www.patagoniagold.com
Patagonia Gold is a mining explorer. It holds permits or options to purchase property in the Patagonian region of Argentina and Chile across an area of over 7,000 square kilometres. The company is exploring principally for gold and silver.

Major shareholders include Carlos Miguens, the Argentinean industrialist and Barrick Gold, the world’s largest gold miner. The company is led by Chairman, Sir John Craven, who is recently retired as Chairman of Lonmin, and Chief Executive Officer, Bill Humphries, the co-founder of the successful mining explorer, Brancote Holdings. He is also Chairman of Landore Resources, which is also an AIM listed mineral explorer.
Full Patagonia Gold profile here
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Patagonia Gold continues to find exceptional grades of gold and silver in Argentina

3rd Nov 2010, 12:50 pm Exceptional grades have been found at COSE

 

Patagonia Gold (LON:PGD) shares soared over 20 percent after it reported the latest batch of drill results which revealed “exceptionally high grade” gold and silver from its COSE project in Argentina.

One particular drill hole hit a five metre section where there was 162.78 grams per tonne of gold and 8,622 grams of silver per tonne.

The company said the central mineralised breccia zone of COSE, in the Santa Cruz Province, has been delineated within an area 75 metres down dip by 25 metres along strike with a true width of 3.5 to 4.5 metres.  

The mineralisation remains open in all directions.

In early trading on London’s AIM market the shares advanced around 22 percent to hit an intraday high at 26 pence. At 12:30 the shares were trading 4p higher at 25.25p.

PGD’s key projects are La Manchuria, Lomada de Leiva and COSE. Over the past three years PGD has delineated over 1 million ounces of gold equivalent across the three projects in the Santa Cruz province.

Interest in PGD’s key projects in the fashionable gold neighbourhood has driven an impressive share price performance.

The spotlight has been on the Santa Cruz since GoldCorp (NYSE:G) snapped up Andean Resources and its Cerro Negro gold project in September with a deal worth C$3.6 billion - a 35 percent premium.

Coinciding with the record breaking gold price rally, the GoldCorp-Andean deal has buoyed the rest of the region's explorers.

Furthermore PGD has been particularly strong in recent months, with ongoing drilling success at COSE, a resource upgrade at Manchuria and construction work getting started on the Lomada de Leiva gold-heap leach project.

The share has more than doubled in value since July from 12 pence to make a new all time high at 28.5 pence on the 22 September. The share settled down somewhat in recent weeks but this morning’s high grade result appear to have spark renewed investor interest.

The company kicked off a 24 hole, 7,000 metre, drilling campaign at COSE in September. So far 10 holes have been drilled for 2,645 metres.

This morning’s results cover the first 4 holes to be completed.

The main objective of the current programme is to test the potential for extension of the breccia and to increase the overall level of confidence in the existing model and grade continuity for the entirety of the known mineralised breccia-fault zone.

Additionally, Patagonia has contracted independent mining engineers called Ingenieria Y Construccion to provide a detailed preliminary mine design in conjunction with a timeline and financial model for the development of a decline access and an underground mine for the COSE project.

The mining engineers will evaluate the potential capital expenditure and operating costs involved in the development of a decline access and underground mine at COSE.

 

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