Rio Negro's Golden Dawn: Calcatreu Project Nears Production

BUENOS AIRES, AR – December 24, 2025 – Patagonia Gold Corp. (TSXV: PGDC) is rapidly advancing construction on its flagship Calcatreu Project, positioning the company to launch production at the first-ever precious metals mine in Argentina's Rio Negro province. With major infrastructure nearing completion and first leaching on track for early 2026, the project represents a transformative moment for both the junior mining company and the regional economy.

A Fast Track to First Gold

Since receiving final construction permits in the fourth quarter of 2024, Patagonia Gold has executed a swift and efficient development plan. Construction officially broke ground in the first quarter of 2025, and the operational tempo has only increased. Mining activities commenced in August 2025 with the removal of topsoil, followed by the project's first successful blast in September.

Key infrastructure milestones achieved in late 2025 underscore the project's rapid progress. The explosives storage magazine, the first section of the critical heap leach pad, and the chemical storage facility are now complete. The carbon in column section of the processing plant is also nearing completion. As an interim measure to accelerate the path to revenue, the company plans to process the initial carbon at its existing facilities in Santa Cruz, with the full downstream components at Calcatreu expected to be fully operational within six months of the first leach.

The project is centered on a substantial mineral resource, estimated at 9.84 million tonnes with grades of 2.11 grams per tonne (g/t) of gold and 19.8 g/t of silver. This translates to an impressive 669,000 ounces of gold and 6.3 million ounces of silver, with a new NI 43-101 technical report expected in the second quarter of 2026 to update these resource and reserve estimates.

Fueling a Regional Economic Engine

The Calcatreu Project is more than a mining operation; it's an economic catalyst for a region new to the industry. Located approximately 85 kilometers from the town of Ingeniero Jacobacci, the mine is poised to inject significant investment and opportunity into the local community. The project currently employs 135 people, a number expected to grow as it transitions to full-scale operation.

A cornerstone of the company's local integration strategy is a formal commitment, or "Acta Compromiso," signed with the Río Negro government. This agreement mandates that a minimum of 80% of the project's workforce must be residents of the province, with a strong preference for those from Ingeniero Jacobacci. As of September 2025, the company was already exceeding this pledge, with 105 of its 130 contracted workers hailing from Río Negro. This commitment to local hiring is seen as a crucial driver of economic development and social stability in the province's Southern Region.

Support for the project within the local community has been vocal. In a public event in July 2024, over 600 residents, including youth groups and union representatives, gathered to express strong backing, citing the promise of new, high-quality jobs and economic diversification. The project's economic ripple effect is already being felt through substantial purchasing from local and provincial suppliers.

Navigating Local Support and Opposition

While the prospect of economic growth has garnered significant support, the project's development has not been without challenges. As the first precious metals mine in the province, Calcatreu has faced scrutiny and opposition from environmental organizations and some local Mapuche communities. The primary concerns revolve around the potential environmental impact of a large-scale open-pit mine and the use of cyanide in the heap leaching process.

Reports from late 2024 indicated that these groups continue to voice their rejection of the project, highlighting the delicate balance between economic development and environmental stewardship in a new mining jurisdiction. In response, Patagonia Gold has initiated a campaign of transparency and education to build trust and ensure its social license to operate.

The company has held public workshops detailing its plans for the safe transportation and handling of cyanide, outlining contingency plans, and explaining its environmental monitoring programs. Furthermore, Patagonia Gold has stated its intention to certify the Calcatreu operation under the rigorous International Cyanide Management Code, a voluntary industry program for the responsible management of cyanide used in gold recovery.

Financial Fortitude and Market Confidence

The market has responded with overwhelming enthusiasm to Patagonia Gold's strategic execution and rapid progress. The company's stock (TSXV: PGDC) has experienced a meteoric rise, increasing by over 1,000% in the last year. A key catalyst for this surge was the successful securing of a US$40 million investment in mid-2025. This crucial funding, provided by Black River Mine Inc.—an entity controlled by company director and major shareholder Carlos J. Miguens—is specifically earmarked for the Calcatreu Project's development.

This financing was a pivotal de-risking event, providing the capital necessary to push the estimated US$250 million project toward the finish line. The market's reaction, which saw the share price jump 43% to a new 52-week high following the investment announcement, signals powerful investor confidence in the management's ability to deliver the project on schedule and on budget.

Riding a Bullish Wave for Precious Metals

Patagonia Gold's timing appears impeccable as it approaches the production phase. The global market outlook for both gold and silver in 2026 is exceptionally bullish, creating a favorable price environment for new producers. Gold prices are projected by major financial institutions to remain elevated, with some forecasts reaching as high as $4,900 per ounce, driven by strong central bank purchasing, geopolitical uncertainty, and expectations of declining real yields.

Silver's outlook is equally, if not more, robust. Following a remarkable surge in 2025, analysts predict prices could range from $56 to $65 per ounce in 2026, with some aggressive forecasts calling for prices to potentially break $100. This optimism is fueled by a persistent structural supply deficit and explosive industrial demand for silver in high-growth sectors like solar panels, electric vehicles, and AI data centers. This confluence of rapid project development and a strong commodities market positions the Calcatreu Project for a highly profitable start as it begins pouring its first gold and silver.