PATAGONIA GOLD PLC – ACQUISITION OF ESTANCIA ‘EL TRANQUILO’ SANTA CRUZ PROVINCE, ARGENTINA
Patagonia Gold, through its 100% owned subsidiary Minera Minamalu S.A., has purchased the Estancia 'El Tranquilo', of area 20,000 hectares, covering the remaining land surface rights over the Company´s flagship Cap-Oeste gold and silver project together with other highly prospective gold areas.
El Tranquilo block:
PGD's El Tranquilo exploration and mining concession property block (El Tranquilo block), covering over 80 square kilometres, is located approximately 160 kilometres to the south-east of the town of Perito Moreno in the Santa Cruz Province of Argentina.
The El Tranquilo block contains Patagonia Gold's flagship Cap-Oeste gold and silver project; where the Company recently delineated a NI 43-101 compliant gold equivalent (AuEq) resource of 966,972 ounces AuEq within the Indicated category, with a further inferred resource of 266,968 ounce AuEq, as set out in the technical report titled "NI 43-101 Technical Report, Update of Cap Oeste Project, Santa Cruz Province, Argentina", dated November 14, 2011,prepared by Craig S. Bow Ph.D., CPG, and Robert L. Sandefur, P.E., of Chlumsky, Armbrust & Meyer, LLC (see the Company's press release dated November 30, 2011). El Tranquilo block also contains the COSE bonanza grade gold and silver deposit, where an underground mining operation is in preparation for commencement in Q1 2012, together with numerous other highly prospective gold and silver areas.
In December 2008, PGD purchased the Estancia 'La Bajada, of area 36,544 hectares, which gave PGD the land rights as well as the mineral rights over the south eastern sector of the Cap-Oeste project; the COSE Deposit and the prospects Monte Leon, and Breccia Valentina.
Purchase of Estancia 'El Tranquilo':
In December 2011 PGD purchased the adjacent Estancia 'El Tranquilo' which covers the remaining north eastern sector of the Cap-Oeste project. It also covers the highly prospective Don Pancho, Vetas Norte and Felix areas. The purchase price for 'El Tranquilo' was US$ 2,100,000 and comprises 20,000 hectares of land, dwellings, sheds, outbuildings and infrastructure.
With the above acquisition PGD now have the land surface rights as well as the mineral rights over the whole Cap-Oeste gold and silver deposit; the COSE bonanza grade gold and silver deposit and other very prospective gold and silver targets within the El Tranquilo block.
PGD considers that the ownership of the land rights as well as the mineral rights is essential for the orderly and unencumbered development of its projects.