Patagonia Gold Intersects High-Grade Gold-Silver Mineralization at Belen West, Calcatreu

Patagonia Gold Corp. (PGDC) released assay composites from core and reverse circulation (RC) drilling at its Belén and Nelson properties. All drilling was completed after the January 14, 2026, effective date of the mineral resource estimate (MRE) used in the September 2026 preliminary economic assessment (PEA). Consequently, these results are not included in the current resource model or mine plan.

The release highlighted several significant intercepts. Headline hole BE-032R at Belén West, an RC hole with a total depth of 31 meters, returned 8 meters at 15.71 g/t Au and 476.6 g/t Ag from 21 meters down-hole. This interval includes 5 meters at 25.45 g/t Au and 808.4 g/t Ag from 24 meters, which further includes 1 meter at 68.3 g/t Au and 3,209 g/t Ag from 28 meters. Two shallower intervals in the same hole returned 1 meter at 1.82 g/t Au from 12-13 meters and 1 meter at 6.87 g/t Au from 17-18 meters.

Other notable results included:

• BE-040R (Belén West): 4 meters at 9.8 g/t Au and 12 g/t Ag from 7 meters, including 2 meters at 17.65 g/t Au and 18.5 g/t Ag.
• BE-059R (Belén): 6 meters at 6.59 g/t Au and 19.17 g/t Ag from 11 meters, including 1 meter at 34.1 g/t Au and 31 g/t Ag.
• NLO-033-D (Nelson, diamond core): 7.7 meters at 3.24 g/t Au and 55.94 g/t Ag from 65.8 meters, including 5 meters at 4.8 g/t Au and 85 g/t Ag, which includes 0.6 meters at 15.2 g/t Au and 293 g/t Ag.

In total, 51 holes—37 at Belén and 14 at Nelson—intersected material at or above the 0.3 g/t Au compositing cut-off. Seven new Belén holes returned no significant results (NSR). Full tables for all holes, including those with no significant results, were published.

Additional material intervals at Belén not featured in the headline results include BE-070-R with 8 meters at 5.3 g/t Au (including 1 meter at 36.0 g/t Au), BE-048-R with 7 meters at 5.91 g/t Au, BE-054A-R with 4 meters at 5.32 g/t Au, BE-049-R with 7 meters at 4.42 g/t Au, and BE-038-R with 12 meters at 1.72 g/t Au. At Nelson, non-headlined intervals included NLO-030-D with 4.45 meters at 3.45 g/t Au, NLO-028-D with 3.55 meters at 3.08 g/t Au, NLO-032-D with 4.4 meters at 2.88 g/t Au, NLO-036-D with 1.8 meters at 3.85 g/t Au, and NLO-037-D with 10.9 meters at 1.33 g/t Au.

The company also reported a new ENE-striking vein splay, named "Julieta," at the northern end of Belén, though no assays were reported for this feature. Looking forward, Patagonia Gold plans approximately 10,000 meters of drilling over the next 12 months. To support cost and scheduling objectives, the company intends to purchase a Boart Longyear LF90D rig, with arrival expected by the end of November 2026. The company’s property block covers 55,000 hectares, containing more than 20 kilometers of exposed hydrothermal structures, of which only 5.7 kilometers carry defined resources. There are 32 identified targets, with only seven currently carrying resources.

Patagonia Gold Corp. (PGDC) released results from drilling at its Calcatreu project that do not constitute an earnings release, as there are no new financial results to assess. Prior-period context shows Q1-2026 revenue of US$2.07 million, a net loss of US$4.51 million, cash holdings of US$0.27 million, a working capital deficit of US$13.98 million, and total debt of US$51.9 million. The company also noted a US$40 million Black River preferred injection with a stated Preferred/Catch-Up/Pro-Rata distribution policy that ranks ahead of the common equity.

The drilling results post-date the 14 January 2026 Mineral Resource Estimate (MRE) effective date and are excluded from both the MRE and the Preliminary Economic Assessment (PEA). The current MRE defines 13.22 million tonnes (Mt) at 2.18 grams per tonne (g/t) gold (Au) and 19.8 g/t silver (Ag), comprising 1.50 Mt Measured, 5.28 Mt Indicated, and 6.44 Mt Inferred. The PEA outlines a 16-year, 483,000 ounces (koz) Au and 3.25 million ounces (Moz) Ag operation with an after-tax net present value (NPV) of approximately US$370 million at US$3,500/oz gold and US$35/oz silver, a 315% after-tax internal rate of return (IRR), and a 0.5-year payback period.

At a market capitalization of approximately C$210 million, the stock trades at roughly 0.4 times the PEA's after-tax NPV. The release does not change the NPV today but partially de-risks the question of whether there is more rock behind the 6.44 Mt of Inferred material in the plan and the 16-year life. The equity has not embedded an exploration premium, having risen from C$0.14 in October 2025 to C$1.33 on 2 March 2026 on a construction, permit, and production-start narrative alongside a rising gold price. The stock then round-tripped 66% to C$0.41-0.45, sitting in a flat C$0.41-0.49 base through September and early October 2026.

The market has been given no drill-result anchor on Belén West to price against, as no prior intercept for this zone appears in available history. The stock is therefore priced as though exploration success at Calcatreu is worth close to nothing. An 8-meter intercept at 15.71 g/t Au and 476.6 g/t Ag is roughly five to seven times the deposit's gold grade and about twenty-four times its silver grade. This result occurred in a new sub-zone 450 meters west of the operating pit and was repeated in half a dozen neighboring holes.

The result is not company-transforming. It represents a narrow high-grade shoot in a bulk heap-leach system, consisting of one excellent hole plus a handful of good ones, with no metallurgy data, no true width, and a headline composite that fails an arithmetic cross-check. It does not add a tonnage block on its own but argues that the next resource update has upside.

On a TSXV junior with a long-suffering shareholder base, a headline reading "15.71 g/t Au and 476.6 g/t Ag over 8 m, including 68.3 g/t Au and 3,209 g/t Ag" at a stock pinned at 0.4x NAV and 66% below its high makes a double-digit percentage reaction plausible. Shares already ticked from C$0.41 to C$0.45 on 9 October, the last trading day before this release.

Patagonia Gold Corp. (TSXV: PGDC), formerly Hunt Mining Corp., is an Alberta-incorporated company with its head office in Buenos Aires and registered office in Vancouver. The firm reports under IFRS and focuses on gold and silver projects in the Santa Cruz, Río Negro, and Chubut provinces of Argentina.

The company’s flagship asset is the Calcatreu mine in Río Negro, a low-sulphidation epithermal Au-Ag deposit developed for open-pit, heap leach processing with carbon-in-column recovery. Patagonia acquired the property from Pan American Silver in 2018. Following the receipt of permits in November 2024, construction began in the first quarter of 2025. Leaching operations commenced on 15 April 2026, with the first doré produced on 8 June 2026. By 27 August 2026, the company had dispatched its third doré, totaling 996 AuEq oz.

The current mineral resource estimate for Calcatreu stands at 13.22 million tonnes grading 2.18 g/t Au and 19.8 g/t Ag at a 0.50 g/t AuEq cut-off. This includes 1.50 million tonnes of Measured resources at 3.03 g/t Au and 23.1 g/t Ag; 5.28 million tonnes of Indicated resources at 2.39 g/t Au and 23.1 g/t Ag; and 6.44 million tonnes of Inferred resources at 1.54 g/t Au and 15.5 g/t Ag.

A preliminary economic assessment, corrected on 6 October 2026, outlines a project life of approximately 16 years. The plan projects the recovery of 483,000 ounces of gold and 3.25 million ounces of silver. Initial capital expenditure is estimated at US$52.5 million, of which US$30.7 million was spent in 2025, with sustaining capital of US$47 million. The assessment yields an after-tax net present value (10%) of approximately US$370 million and an after-tax internal rate of return of roughly 315%, with a payback period of approximately 0.5 years. Cash costs are projected at US$1,332 per ounce, with an all-in sustaining cost (AISC) of US$1,439 per ounce. Gold and silver recoveries are estimated at 63% and 45%, respectively.

Other assets include the Cap-Oeste mine in Santa Cruz, which is currently producing via residual heap leach while underground development of COSE-style mineralization is under review. Historically, material from Cap-Oeste was trucked approximately 100 kilometers to the Martha plant. The Lomada de Leiva heap leach in Santa Cruz is effectively in closure, with field work suspended over the winter to be finalized. The Martha plant in Santa Cruz remains on care and maintenance, featuring a 480 tonnes per day crushing, grinding, and flotation circuit.

Patagonia also holds partner-funded exploration interests. Astra Exploration earned an 80% stake in the La Manchuria project by spending over US$3.0 million, with Patagonia retaining a 20% carried interest until a NI 43-101 report defines one million ounces of AuEq. An additional 10% is available to Astra for US$5.0 million in cash, with dilution below 10% converting to a 1% net smelter return (NSR). The Tornado and Huracán projects are under option to Newmont. Other exploration holdings include La Josefina (a Fomicruz joint venture), Homenaje, Nico, Mina Angela, La Sarita, Bajo Pobre, El Gateado, Las Mellizas, and La Esperanza.

As of the first quarter of 2026, Patagonia had 467.55 million shares outstanding. The company reported total debt of US$51.9 million and total equity of US$24.1 million, resulting in a book value per share of US$0.05.

An investor presentation supplied by the company is considered materially stale. Its resource tables carry effective dates of 31 December 2018, and its financials cover the six months ended 30 June 2021. The document describes Calcatreu as an exploration-stage project and lists a 2021 share count of 467.1 million and 104.1 million warrants at C$0.13 expiring in March 2024. The presentation is useful only for asset inventory and royalty or permitting context; no figures within it should be treated as current.