Patagonia Gold Provides Metallurgical Testwork Update for Cap-Oeste Gold-Silver Deposit, Argentina
Tuesday, Feb 21, 2012

TORONTO, Feb. 21, 2012 /CNW/ - Patagonia Gold Plc (TSX:PAT, AIM:PGD) today announced metallurgical testwork results on its Cap-Oeste gold-silver deposit in Santa Cruz province, Argentina.

Highlights

--  Two testwork programmes completed to scoping study level for both sulphide and oxide composite samples from the Cap-Oeste project indicate the potential for good recoveries in both gold (Au) and silver (Ag)

--  Recoveries of Au and Ag to concentrate from sulphide samples reported up to 88.3% and 95.5% respectively.

--  Recoveries of Au and Ag from oxide testwork reported up to 98.8% and 97.5% respectively

As part of the development of the Cap-Oeste project, Patagonia Gold has initiated a series of metallurgical testwork programmes to ascertain the expected recoveries of Au and Ag from the Cap-Oeste mineralised material. The testwork is ongoing and additional testing and optimisation work is required before a definitive process route and expected recovery can be determined.

Sulphide Testwork
SGS Mineral Services, an independent laboratory located in Chile, recently completed mineralogical characterisation and flotation testwork on sulphide material samples from the Cap-Oeste project.

After a 30 minute cycle time recoveries of Au were 88.3% and 77.7% for composite samples 2 and 3 respectively while Ag reported 95.5% and 83.2% respectively for the same 2 samples.

Oxide Testwork

G&T Metallurgical Services Ltd, an independent consulting firm located in
British Colombia, has recently reported testwork results for a series of scoping level metallurgical tests carried out on a medium grade composite oxide sample gathered from historic Cap-Oeste drill core. The sample tested had Au and Ag grades of 6.78 and 604g/t respectively. Tests included gravity separation and cyanidation, non-aggressive (test 2) and aggressive (test 4), gravity separation, flotation and rougher flotation only.

SOURCE Patagonia Gold plc

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