Argentine mining firm Patagonia Gold PLC has acquired four new exploration blocks for potential future gold mining. Patagonia Gold operates in Argentina, Uruguay, and Chile and is one of many mining firms beginning expansion in the wake of the rising gold price.
The sites, bought from Oroplata SA, are located in Santa Cruz, Argentina, and are Las Mellizas, San Agustin, La Esperanza and Mancha Blanca. They are considered to have promising signs of gold, silver, and other precious metals, with Patagonia planning to thoroughly inspect the regions.
Patagonia Chief Executive Christopher van Tienhoven said: "With this acquisition, Patagonia Gold will consolidate the properties adjacent or near to its El Tranquilo block, thereby expanding the company's potential mineral resources in the highly prospective El Deseado Massif region. Future detailed exploration activities will be carried out in the acquired areas in order to seek to increase our inventory of resources."
In return for the sites and assets, Oroplata SA – who are part of the larger Goldcorp Inc – will get a 1% net smelter royalty from any future production at any of these four sites.