Following the cessation of operations at the Cap-Oeste open pit in July 2018, Patagonia Gold is now focused on evaluating the development of the high-grade underground resource which contains approximately 300,000 oz AuEq at 20 g/t Au.
The CapOeste Project is located within a structural corridor extending six kilometres from the La Pampa prospect in the northwest to the Tango prospect in the southeast. To date, the CapOeste deposit has an identified and delineated strike extent of 1.2 kilometres.
Current pit operations have now advanced to a level where high grade COSEstyle hypogene mineralisation has been exposed enabling the Company to confirm the shoot’s dimensions, style of mineralisation and grade below the current pit. A subsequent reinterpretation of the deeper drilling and mineralisation intersected below the current pit has led to a material increase in the tonnage and contained gold and silver of this nonrefractory style of mineralisation (which falls within the COSEstyle mineralisation).
An updated JORC compliant resource model has been completed by CUBE Consulting to report on the ore below the current pit and shows a material increase in the COSEtype mineralisation within the CapOeste Measured and Indicated Resource of approximately 295,000 oz AuEq at an average grade of 19.40 g/t AuEq. This ore can be treated by cyanide leaching.
Alternatives to extract value from this high grade deposit are being reviewed.