Patagonia Gold (TSXV: PGDC) has released an updated preliminary economic assessment for its Calcatreu gold-silver project in Argentina, outlining an after tax net present value of US$334 million and an internal rate of return of 282%.
The study uses a 10% discount rate and pricing of US$3,500 per ounce of gold and US$35 per ounce of silver, drawn from three year trailing averages. Payback is estimated at 0.6 years.
The plan calls for conventional open pit mining over roughly 16 years, with crushing, heap leaching and carbon-in-column processing producing gold-silver doré. Life of mine output is estimated at 483,000 ounces of gold and 3.25 million ounces of silver, or an average of about 30,000 ounces of gold a year. Heap leach recoveries are pegged at 63% for gold and 30% for silver.
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Calcatreu is already operating. Leaching began in March and the company has since dispatched doré from site, so a large share of the upfront spending is behind it. Of the US$52.5 million initial capital estimate, US$30.7 million was incurred in 2025. Sustaining capital adds another US$47 million over the life of the mine.
Cash cost estimates come in at US$2,139 per ounce, with all-in sustaining costs of US$2,246 per ounce. That leaves a margin of about US$1,250 per ounce at the study’s gold price, and more than US$2,000 per ounce at spot.
The assessment is built on an updated mineral resource estimate totalling 6.77 million tonnes of measured and indicated resources grading 2.53 g/t gold and 23.1 g/t silver, alongside 6.44 million tonnes of inferred resources grading 1.54 g/t gold and 15.5 g/t silver.
“The PEA provides an updated independent assessment of Calcatreu following several years of technical work and investment by Patagonia Gold,” said Chief Executive Officer Christopher van Tienhoven, adding that the company intends to keep evaluating opportunities “to expand the mineral resource base through further exploration, metallurgical and other technical work.”
Patagonia Gold last traded at $0.405 on the TSX Venture.
