Patagonia Gold Corp, a prominent player in the mining industry, has recently announced key updates regarding the construction of its flagship project, Calcatreu. Situated in the southern region of Rio Negro, Argentina, this project is positioned 85 kilometers south of Ingeniero Jacobacci and boasts a low-sulfidation, epithermal gold and silver mineralization system visible at the surface.
Having secured all necessary permits, construction efforts commenced shortly thereafter. The company anticipates beginning the leaching process in the near future. Mining operations officially kicked off in agosto, with topsoil removal and the initial blasting phase taking place in settembre. Mineralized material is currently being stockpiled in the crushing area, with plans to place it on the leach pad starting in gennaio.
Construction Progress and Infrastructure Development
As of now, the project has made significant strides in its construction timeline. The explosives storage facility was completed by agosto, designed to hold up to 75 tonnes of explosives. Patagonia Gold has enlisted the services of Enaex, a well-known blasting supplier in the region, to ensure safety and efficiency in operations.
Leach Pad and Chemical Storage
Completion of the first section of the leach pad is a critical milestone, with electric leak location tests scheduled for gennaio. Following these tests, the company plans to commence loading mineralized material from the existing stockpile onto the pad. Additionally, a chemical storage facility capable of holding 120 tonnes of various products was finalized in dicembre, with 80 tonnes already on-site. Patagonia Gold is also pursuing certification through the Cyanide Code, with an audit visit planned for early gennaio.
Operational Enhancements and Workforce Engagement
In tandem with construction, the carbon in column section of the processing plant is nearing completion and is expected to be operational by gennaio. While the elution, electrowinning, and furnace components have been received and installed, the company will temporarily transport loaded carbon to its facilities in Santa Cruz for processing. The doré produced will subsequently be shipped to Rio Negro for refining. The operational components of the plant are projected to become functional approximately sei mesi dopo l’inizio delle operazioni.
Infrastructure development is also a priority, with a camp designed to accommodate 192 personnel nearing completion. About half of the camp facilities are already operational, including food services. To support the mining fleet and power plant, three 1MW diesel generators have been installed and tested, alongside a fuel storage capacity of 140,000 liters.
Community Engagement and Workforce Recruitment
Currently, the Calcatreu project employs 135 individuals, predominantly sourced from Ingeniero Jacobacci and the surrounding Rio Negro Province. A select number of specialized roles are filled by professionals from other regions, bringing valuable experience from previous precious metals operations. As the first precious metals project in Rio Negro, the company is committed to fostering local partnerships and keeping community stakeholders informed about ongoing developments.
Patagonia Gold engaged NCL Ingeniera y Construccion to update mineral resource and reserve estimates in a new technical report, adhering to the National Instrument 43-101 requirements. The company anticipates releasing this report in the near future.
Qualified Person’s Statement
Donald J. Birak, an independent consulting geologist and registered member of SME, has reviewed and approved the scientific and technical data presented in this update. His latest site visit took place recently, ensuring that the information provided is accurate and up to date.
For further details about the Calcatreu project and its mineral resources, interested parties can refer to the technical report titled “NI 43-101 Technical Report, Mineral Resource Estimate, Calcatreu Gold-Silver Project, Rio Negro Province, Argentina,” which became effective on December 31, 2018, available on the company’s profile on SEDAR+.
About Patagonia Gold
Patagonia Gold Corp is a publicly traded mining firm focusing on gold and silver exploration and development in South America, specifically within Argentina’s Patagonia region. The company is dedicated to increasing shareholder value by advancing projects like Calcatreu and the Cap-Oeste underground project. With over 375 properties across various provinces, Patagonia Gold stands as one of the largest landholders in Santa Cruz, Argentina.