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.

Cap­Oeste Resource

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.

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