Patagonia Gold Corrects Economic Metrics for Calcatreu Project
Patagonia Gold Corp. (TSXV: PGDC) has issued corrections to key financial metrics and economic results for its Calcatreu Gold-Silver Project in Argentina. The corrections, announced on October 6, 2026, address inaccuracies in the Preliminary Economic Assessment (PEA) released on September 28, 2026. The company clarified that the Cash Cost and All-In Sustaining Cost (AISC) figures initially included estimated income tax, which should have been excluded according to World Gold Council guidelines. Additionally, the regional development tax calculation was incorrect, and the silver recovery assumption was misreported as 30% instead of 45%.
The revised figures show significant improvements. The after-tax net present value (NPV) at a 10% discount rate increased from $334 million to $370 million, while the internal rate of return (IRR) rose from 282% to 315%. The payback period shortened from 0.6 years to 0.5 years. The Cash Cost and AISC were also reduced by approximately 38% and 36%, respectively, due to the corrections. These changes do not affect the underlying economic analysis but provide a more accurate reflection of the project's financial metrics.
The PEA outlines a 16-year mine life with revised economic indicators based on gold and silver prices of $3,500/oz and $35/oz, respectively. The project's NPV remains most sensitive to changes in the gold price. Christopher van Tienhoven, CEO of Patagonia Gold, emphasized that the corrections ensure accurate disclosure of the PEA results. The technical report, to be filed within 45 days, will reflect these revised metrics.
The PEA is preliminary and includes inferred mineral resources, which are not yet economically viable. The project's potential development and economic performance remain uncertain. The corrections do not alter the underlying assumptions or the project's mineral resource estimates, which total approximately 1.50 million tonnes of measured resources, 5.28 million tonnes of indicated resources, and 6.44 million tonnes of inferred resources.