Patagonia Gold announced that the State Secretariat of Mining of the Province of Santa Cruz, Argentina, has approved the
Environmental Impact Study and has issued the necessary permit for the proposed trial heap leach operation at the Lomada de Leiva gold project.
Patagonia Gold reported that as a result of the positive Scoping study it has decided to progress the Lomada de Leiva Project
towards development with the aim of commencing production in the first half of 2010. A 1,500 metre drilling program will be carried out for geotechnical and sterilization purposes in May 2009 after which a full feasibility study will commence, scheduled for completion by the end of 2009. At the Manchuria Main Zone project the second phase of drilling, consisting of 20 holes for 4,119 metres was completed in November 2008. The drill campaign was most encouraging frequently intersecting high
grade gold and bonanza grade silver and confirming the robust mineralization.