Patagonia Gold Corp. has been forced to halt certain operational activities at the Calcatreu project in Argentina’s Río Negro Province following a preventive, partial and temporary suspension order issued by the provincial Secretariat of Labour.

The administrative action follows an inspection carried out on August 19, 2026. Patagonia Gold is currently assessing the exact scope of the order and working alongside provincial regulators to resolve the matters raised with the goal of restarting normal operations as soon as possible. While the suspension remains in effect, essential work required to maintain site integrity and protect health and safety will continue at the remote operating centre.

The disruption impacts an asset that has advanced rapidly through construction and into initial metal recovery. Patagonia Gold secured full and final permitting for construction and development at Calcatreu in November 2024, clearing the path for construction activities to begin in the first quarter of 2025.

The project forms a central pillar of the company's South American portfolio and holds estimated measured and indicated mineral resources of 9.84 million tonnes grading 2.11 g/t gold and 19.8 g/t silver, containing 669,000 ounces of gold.

The suspension interrupts operations at a site that only recently reached the production phase. The project achieved a major operational milestone in June 2026 by dispatching its first gold and silver doré following the commencement of earlier leaching operations on the heap leach pad.

Alongside addressing the regulatory suspension and cooperating with provincial authorities, the project is also subject to ongoing technical evaluation. NCL Ltda is currently advancing an updated mineral resource estimate for the deposit, which is scheduled to be published in an upcoming technical report. Patagonia Gold has stated it will release further operational updates as discussions with the Río Negro Secretariat of Labour progress and additional details regarding the scope of the suspension become available.

Read the full announcement: Patagonia Gold Provides Update on Calcatreu Project