Patagonia Gold Corrects Calcatreu Project Costs Boosting Financial Metrics

Patagonia Gold Corp. (TSXV: PGDC) has issued corrections to key financial metrics and economic results from its Preliminary Economic Assessment (PEA) for the Calcatreu Gold-Silver Project in Argentina. The corrections, announced on October 6, 2026, address errors in the Cash Cost and All-In Sustaining Cost (AISC) figures, which initially included estimated income tax, a metric that should exclude income tax under the World Gold Council’s methodology. The company also corrected the calculation of the regional development tax, which had been incorrectly applied to total revenue rather than separately to gold and silver revenue.

The silver recovery assumption was also revised from 30% to 45%, though this change did not affect the modelled silver production or economic results. The corrected figures show a significant improvement in the project’s financial outlook, with the after-tax net present value (NPV) increasing from $334 million to $370 million, the internal rate of return (IRR) rising from 282% to 315%, and the payback period shortening from 0.6 years to 0.5 years. The Cash Cost and AISC were reduced by approximately 38% and 36%, respectively.

The PEA outlines a 16-year mine life, with the revised financial metrics based on gold and silver prices of $3,500/oz and $35/oz, respectively. The sensitivity analysis indicates that the project’s NPV is most sensitive to changes in the gold price, with lesser impacts from capital costs, operating costs, and the discount rate. Christopher van Tienhoven, CEO of Patagonia Gold, emphasized that the corrections ensure the accuracy of the disclosed metrics and economic results.

The technical report, prepared in accordance with National Instrument 43-101, will reflect these revised figures and will be filed on the company’s SEDAR+ profile within 45 days of the initial news release. The report will also include the silver recovery assumption of 45% already incorporated in the PEA economic model. The PEA remains preliminary, and there is no certainty that the projected results will be realized.