Patagonia Gold to resume exploration at El Tranquilo

VANCOUVER, Dec. 29, 2020 - Patagonia Gold Corp. (“Patagonia” or “the Company”), (PGDC.TSXV) announces a new drilling campaign at its El Tranquilo gold/silver property in the province of Santa Cruz, Argentina. The property encompasses the Company’s Cap Oeste gold/silver Project, which includes the former surface mine and current heap leach operations (the “Capo Project”) and Pan American Silver’s COSE (Cap Oeste Sur Este) mine (see map below).

The initial focus of the program will be on the Monte Leon target followed by other targets defined by the Company’s geological team (please see map below). Monte Leon is located about 11 km southeast of the Capo Project.

Patagonia Gold Corp. El Tranquilo Drill Targets

A Media Snippet accompanying this announcement is available by clicking on the image or link below:

Patagonia Gold Corp. El Tranquilo Property, Santa Cruz, AR

Highlights of the El Tranquilo Property and the Monte Leon target

• Large, 81,000 hectare property.
• Host to the Company’s former surface mine at the Capo Project and Pan American’s COSE underground mine.
• Exploration targets are within Jurassic-aged volcanic host rocks similar to those that host mineralization at the Capo Project and COSE mines.
• Multiple, NW-trending, low sulfidation mineralized structures, including in the Monte Leon target.
• Mineralization at Monte Leon occurs as stockworks and structures in breccias with near-surface oxide potential;
  • Monte Leon zone is approximately 500 m long on strike (NW) and over 200 m wide (NE) within a +2 km long NW-trending corridor.
  • Two, main structures defined to date within the breccia – “A” and “B”.
    

Prior exploration at Monte Leon was conducted by Patagonia Gold Plc (“Patagonia Plc”) in 2010 and 2011 and consisted of 16 trenches, 15 core holes and a series of shallow rotary air blast (“RAB”) holes. Trenches were used to define initial drilling sites. At the time of the exploration, Patagonia Plc was listed on AIM. However, following the reverse takeover of Hunt Mining Corp. in July 2019, it is now a wholly owned subsidiary of the Company.

Trench Results:

18 trenches, 4,007 meters total length, with reported assays (07-Apr-2011) ranging from:

• Trench TR-018-MLN with 28 horizontal meters grading 0.30 g/t Au.
• Trench TR-016-MLN with 7.5 horizontal meters grading 5.05 g/t Au within 48 meters horizontal meters grading 1.01 g/t Au.

Drill Results:

15 core holes, 3,953 meters total length, with reported assays (06-Jun-2011 and 24-Oct-11) ranging from:

• Hole MLN-004-D with 28 meters grading 0.54 g/t Au and 4 g/t Ag, starting at 18 meters downhole, including 1.5 meters grading 21.21 g/t Au and 321 g/t Ag.
• Hole MLN-003-D with 74 meters grading 1.07 g/t Au and 107 g/t Ag starting at 22 meters downhole including 7 meters grading 1.44 g/t Au and 1,018 g/t Ag.
• Hole MLN-014-D with 0.7 meters grading 80.3 g/t Au and 16 g/t Ag starting at 301.2 m downhole.
  

Christopher van Tienhoven, Chief Executive Officer of Patagonia, said, “We are excited to recommence exploration on our large and prospective El Tranquilo property with an initial focus on the Monte Leon target where we believe there is potential to define both near-surface, oxide-style and deeper, higher grade, sulfide-style mineralization.”

The Company expects to commence drilling of up to 5,000 meters of core in early 2021 with a budget of US$1.5 M. New discoveries at Monte Leon and the greater El Tranquilo area are expected to be synergistic with the Company’s current residual, oxide leaching operations at the Capo Project as well as potential future, higher grade material from the Cose-style mineralization below the surface mine. The Cose-style mineralization is a subset of the current mineral resources at the Capo Project, containing 478,000 tonnes of indicated mineral resources grading 12.62 g/t Au and 472.4 g/t Ag, which the Company is studying for potential to be recovered by underground mining and mill processing. The mineral resource estimate was prepared by Cube Consulting Pty Ltd with an effective date of December 31, 2018, in the technical report entitled “NI 43-101 Technical Report, Mineral Resource Estimate on the Cap Oeste Gold-Silver Project, Santa Cruz Province, Argentina” (the “Technical Report”). For additional information, including with respect to the key assumptions, parameters and methods used in respect of the mineral resource estimate, refer to the Technical Report, which is available on SEDAR.

Qualified Person’s Statement

Donald J. Birak, an independent geologist and Registered Member of SME and Fellow of AusIMM and the qualified person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical content of this press release.

QA/QC

The historic analytical data referenced herein was reported by Patagonia plc and was disclosed in summary format in four press releases in 2010 and 2011 (please see: http://patagoniagold.com/archives/patagonia-gold-plc/). All historic data was prepared by Alex Stewart International - a certified, independent laboratory with facilities in Argentina. The qualified person reviewed assay certificates and QAQC reports by Alex Stewart. The qualified person recommended that twin holes and umpire laboratory checks of a suite of historical drill pulps, if available, be part of the exploration program planned for the new program at Monte Leon in 2021 to help validate the historic data for potential use in new mineral resource estimation. For the new exploration program, the qualified person has recommended that a certified, independent laboratory be used again as the primary laboratory and that certified reference materials (“CRMs”) and blanks be added to the sample stream submitted to the primary laboratory.

About Patagonia Gold

Patagonia Gold Corp. is a mining and development company listed on the TSX Venture Exchange. The Company seeks to grow shareholder value through exploration and development of gold and silver projects in the Patagonia region of Argentina. The Company is primarily focused on the Calcatreu project in Rio Negro and the development of the Cap Oeste underground project. Patagonia, indirectly through its subsidiaries or under option agreements, has mineral rights to over 365 properties in several provinces of Argentina and Chile and is one of the largest landholders in the Province of Santa Cruz, Argentina.

For more information, please contact:

Dean Stuart
T: 403 617 7609
E: dean@boardmarker.net

Christopher van Tienhoven, Chief Executive Officer
Patagonia Gold Corp.
E: cvantienhoven@patagoniagold.com

FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking statements, including, but not limited to, statements with respect to the drilling campaign, including the focus, timing, budget and results of such program, and the Company’s future plans and intentions. Wherever possible, words such as “may”, “will”, “should”, “could”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict” or “potential” or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management’s current beliefs and are based on information currently available to management as at the date hereof.

Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. The Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.