Patagonia Gold recaps construction work at Calcatreu

Executive Summary

• Patagonia Gold Corp. provided a construction and operational update on its Calcatreu project in Argentina, confirming that construction commenced in Q1 2025 following permit receipt.
• Mining activities began in August 2025 with topsoil removal, and the first blast occurred in September 2025. The company expects to commence first leaching in Q1 2026.
• Key infrastructure milestones include the completion of the explosives magazine, chemical storage facility, and the first section of the leach pad. The carbon-in-column plant section is nearing completion, with temporary tolling arrangements for downstream processing established.

Key Details

• Project Location & Geology: Located in Rio Negro, Argentina, 85 km south of Ingeniero Jacobacci. It is a low-sulphidation, epithermal gold and silver system with surface outcropping.
• Resource Estimates: Total measured and indicated mineral resources are estimated at 9.84 million tonnes at an average grade of 2.11 g/t gold and 19.8 g/t silver, yielding 669,000 ounces of gold and 6.3 million ounces of silver.
• Construction & Infrastructure Status:
  • Explosives: Magazine completed in August 2025 with 75-tonne capacity; blasting service outsourced to Enaex.
  • Leach Pad: First section completed; electric leak location tests scheduled for January 2026. Loading of stockpiled material is planned for January 2026.
  • Chemical Storage: Facility completed in December 2025 with 120-tonne capacity. 80 tonnes of product arrived on-site on Dec. 23, 2025.
  • Processing Plant: Carbon-in-column section nearing completion (expected Jan 2026). Components from FL Smith have arrived and been erected.
  • Downstream Processing: Due to incomplete downstream components, loaded carbon will be temporarily transported to Santa Cruz facilities on a tolling basis. Dore will be returned to Rio Negro for shipment to refinery. Downstream components expected to be operational at the project approx. six months after commencing operations.
  • Camp & Power: Camp capacity for 192 people nearing completion (half commissioned). Power sourced from three 1-MW diesel generators (installed/tested) with 140,000 litres fuel storage.
• Operational Timeline:
  • Q4 2024: Permits received.
  • Q1 2025: Construction commenced.
  • August 2025: Mining activities commenced (topsoil removal).
  • September 2025: First blast made.
  • December 2025: Chemical storage facility completed; chemicals arrived.
  • January 2026: Leach pad leak tests, material loading, and carbon-in-column completion expected.
  • Q2 2026: New NI 43-101 technical report (updating resources/reserves) expected to be released.
• Employment & Community: 135 employees currently, mostly recruited locally from Ingeniero Jacobacci or Rio Negro. Company maintains regular contact with local authorities and communities.
• Certification: Company intends to certify the project with the Cyanide Code; auditor visit planned for early January 2026.
• Technical Report: NCL Ingeniera y Construccion engaged in Q3 2025 to update mineral resource and reserve estimates. The new report will supersede the Dec. 31, 2018 technical report.

Notable Quotes

• No direct quotes from the CEO/President were included in the provided text.