Patagonia Gold PEA Reveals Strong Project Economics
News related to:Patagonia Gold Corp · 2 min read
VANCOUVER, British Columbia, Sept. 28, 2026 /CourierPR/ -- Patagonia Gold Corp., a company based in Canada, has released a Preliminary Economic Assessment (PEA) for its flagship Calcatreu Gold-Silver Project in Río Negro Province, Argentina. The PEA, prepared by NCL Ingeniería y Construcción SpA in accordance with National Instrument 43-101, provides an independent assessment of the long-term technical and economic potential of the Calcatreu Gold-Silver Project.
The PEA outlines an approximately 16-year mine life, with an after-tax NPV (10%) of approximately US$334 million, an after-tax IRR of approximately 282%, and a payback period of approximately 0.6 years. The assessment is based on gold and silver prices of US$3,500/oz and US$35/oz, respectively, and estimates life-of-mine production of approximately 483,000 ounces of gold and 3.25 million ounces of silver.
The PEA also outlines a significant capital requirement of approximately US$52.5 million, of which approximately US$30.7 million was incurred during 2025. Approximately 84% of the plant feed during the first five years is sourced from measured and indicated mineral resources. The updated Mineral Resource Estimate (MRE) contains approximately 1.50 million tonnes of measured mineral resources grading 3.03 g/t of gold and 23/1 g/t of silver, 5.28 million tonnes of indicated mineral resources grading 2.39 g/t of gold and 23.1 g/t of silver, and 6.44 million tonnes of inferred mineral resources grading 1.54 g/t Au and 15.5 g/t Ag.
The current mine plan incorporates Veta 49, Nelson, Belén, Piche, and Castro Sur, and remains subject to further optimization, including opportunities to smooth annual production over the mine life. Additional mineralized structures and exploration targets have been identified across the broader Calcatreu District, and the deposits included in the MRE remain open for expansion at depth and variably along strike.
The PEA envisions conventional open-pit mining operations, using crushing, heap leaching, and carbon-in-column (CIC) processing to produce gold-silver doré. The economic analysis indicates that the Project's NPV is most sensitive to changes in the gold price and comparatively less sensitive to changes in capital costs, operating costs, and the discount rate.
The production schedule evaluated in the PEA incorporates four deposits, Veta 49, Nelson, Belén, and Castro Sur, within the broader Calcatreu district. The District hosts additional mineralized structures and exploration targets outside the deposits currently incorporated into the Long-Operable Mine (LOM) plan. The PEA identifies potential resource growth from further exploration near the current deposits and across the broader district as an opportunity.
The preliminary economic assessment is a preliminary in nature and is partly based on Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the preliminary economic assessment will be realized.
The PEA is supported by a technical report that will be filed under Patagonia's profile on SEDAR+ within 45 days of the date of this news release. The technical report will be prepared in accordance with National Instrument 43-101 and will be reviewed and approved by the Company's Qualified Persons as defined by National Instrument 43-101.