Plato Gold posts preparations for first drilling at Lolita Project, Santa Cruz, Argentina
Plato Gold Corp. [TSX-V: PGC; OTCQB: NIOVF; FSE: 4Y7; WKN: A0M2QX], an exploration company with a portfolio of properties in Northern Ontario and Santa Cruz, Argentina, reported that preparations are advancing for the first ever drill program at the gold-silver Lolita Project, Santa Cruz, Argentina.
Representatives from Plato and its subsidiary in Argentina, Winnipeg Minerals S.A., met with representatives from the Government of the Province of Santa Cruz at the Prospectors and Developers Conference (PDAC) in Toronto in early March.
The Secretariat of Mining of Santa Cruz is encouraging new exploration projects to feed the existing pipeline of production. Previously, Plato had submitted studies and documentation constituting an updated environment impact assessment report. The Secretariat of Mining of Santa Cruz approved the report in late March of 2025, and Plato is now authorized to conduct a diamond drilling campaign. Santa Cruz Province is the largest producer of precious metals in Argentina with exports values at US$1.789 billion in 2024.
In parallel, Plato began talks with drilling, camp and geological contractors to undertake the planned work. Contractors have been selected and the process of signing formal contracts is underway.
In conjunction with the financing of the drill program, Plato has entered loan agreements to borrow an aggregate principal amount of US$1,050,000. The loans are unsecured and will bear interest at 7% per annum and become due and payable one year from the date of issuance (the Maturity Date) unless repaid earlier at the option of Plato.
At the option of the lenders, the loans may be convertible into common shares of Plato at the closing price of Plato’s common shares on the trading day prior to the Maturity Date or the date of any early repayment of the principal amount at the option of Plato, subject to a minimum allowable conversion price of $0.05 per common share.
The principal amount of the loans is expected to be advanced to the ompany as soon as approval of the TSX Venture Exchange for the loan transactions is received. The securities issued and issuable pursuant to the loan transactions will be subject to a four-month and one day hold period.
Anthony Cohen, President and a director of Plato, has entered into a loan agreement to lend US$1,000,000 to Plato which constitutes a “related party transaction”. The company is relying upon exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 in connection with the related party transaction on the basis that the fair market value of the loan is not more than $2.5 million.
Intentions are to commence drilling in the southern hemisphere fall (May 2025) so that drilling can be completed before the southern winter arrives. Plato plans to drill about ten diamond drill holes at the Panza, Espalda and Corazon targets with lengths of approximately 200 to 400 metres. The targets comprise high-level, expressions of low-sulphidation, epithermal vein systems with strong pathfinder anomalies of arsenic, antimony and mercury looking for the precious metal level in the system in the sub-surface.
Lolita has never been drill-tested, or even been explored for precious metals, prior to Plato Gold’s work. However, significant resources of precious and base metals are present at Pingüino Project of Unico Silver Limited, adjoining Lolita, and new drilling by Unico at Sierra Blanca suggest that gold-silver resources may be developed there too. Unico Silver reports 92 million ounces of silver equivalent resources on their Cerro Leon project (combining Pingüino and nearby properties).
In Argentina, Plato owns a 95% interest in Winnipeg Minerals S.A., an Argentina incorporated company that holds a number of contiguous mineral rights totalling 9,672 hectares with potential for gold and silver.