Patagonia Gold acquiring four Argentina properties from Goldcorp

Gold and silver-focussed mining company Patagonia Gold has agreed to acquired four additional exploration property blocks located in the Province of Santa Cruz, Argentina, from Goldcorp, it announced on Friday.

The AIM-traded firm said the acquisition of four property blocks - Las Mellizas, San Agustin, La Esperanza and Mancha Blanca - was in exchange for a 1% net smelter royalty of any future production.

It said the properties were “highly prospective”, with limited historical exploration activity.

Previous drilling completed at the Las Mellizas property provided results with intersections of 7m at 64.6 g/t Au and 5 m at 22.2 g/t Au, the Patagonia board reported.

“With this acquisition, Patagonia Gold will consolidate the properties adjacent or near to its El Tranquilo block, thereby expanding the company's potential mineral resources in the highly prospective El Deseado Massif region,” said chief executive officer Christopher van Tienhoven.

“Future detailed exploration activities will be carried out in the acquired areas in order to seek to increase our inventory of resources.”