Update on Construction of Calcatreu Project
Patagonia Gold Hits Construction Milestones at Calcatreu as Production Cliff Approaches and Major Shareholder Doubles Down
The latest update (December 29, 2025) confirms that Patagonia Gold is in the final stages of construction at its flagship Calcatreu gold-silver project in Rio Negro, Argentina. Key developments include: - Mining activities and stockpiling are ongoing following the first blast in September 2025. - The chemical storage facility is complete, with 80 tonnes of product already on-site. - Infrastructure milestones achieved include the explosives magazine, camp (192-person capacity), 3 MW power plant, and fuel storage. - Immediate upcoming milestones for January 2026 include electric leak location tests on the leach pad and completion of the carbon-in-column (CIC) plant section. - First leaching is scheduled to commence in Q1 2026, marking the transition to production.
The news is Material - Positive as it validates the company’s transition from a cash-burning explorer/developer to a producer. - Timeline Consistency: The company is hitting its previously stated targets. In May 2025, it projected first leaching by the end of 2025/early 2026; the Q1 2026 target confirms they are largely on schedule despite the complexities of Argentinian operations. - Operational De-risking: Completion of critical infrastructure (power, fuel, explosives) significantly reduces the risk of further delays. - Resource Validation: The project boasts a Measured and Indicated resource of 9.84 million tonnes at 2.11 g/t Au and 19.8 g/t Ag (669,000 contained gold ounces). - Financial Significance: With Q3 2025 revenues from residual production at Cap Oeste totaling only $3 million against significant operating losses, the commencement of Calcatreu is essential for the company's survival and debt servicing.
Patagonia Gold is a mining company focused on Argentina. - Flagship Project: Calcatreu (Rio Negro Province). It is a low-sulfidation epithermal gold-silver system. - Secondary Assets: Cap Oeste (Santa Cruz), which is currently in residual production/leaching. - Pipeline: Large land package (>630 km2) including the Piche structure and recent option agreements with Newmont for the Tornado and Huracan properties.