TIDMSOLG
RNS Number : 0751V
SolGold PLC
31 October 2017
31 October 2017
SolGold plc
("SolGold" or the "Company")
New discovery by SolGold - High grade copper and gold sampling
results returned from the Machos -Florida -Santa Cruz- La Hueca
Project, Southern Ecuador
The Board of SolGold (TIDM: SOLG) is pleased to provide an
update on its 100% owned Machos - Florida Santa Cruz- La Hueca
Project ("the Project") in Southern Ecuador.
HIGHLIGHTS:
Ø Rock chip samples collected from the Project have returned
high grade copper and gold mineralisation from extensive
outcropping porphyry copper gold mineralisation over a broad 5km x
1km zone over an extensive area. Best results include:
o 13.82% Cu in sample R02000263
o 8.37% Cu in sample R02000310
o 4.08% Cu in sample R02000259
o 2.50% Cu in sample R02000307
o 1.80% Cu in sample R02000305
o See Photographs herein.
Ø 25km long porphyry trend identified.
Ø Jurassic in age similar to Fruta del Norte, Mirador and the
giant La Alumbrera mine in Argentina (Glencore).
Ø Samples were taken from an extensive zone of complex
multiphase copper sulphide and magnetite mineralised quartz veining
and hydrothermal alteration extending over an unclosed 5km long
zone.
Ø Stream sediment and panned concentrate sampling results have
highlighted additional areas of strongly anomalous copper and gold
mineralisation outside of the mineralised quartz vein zone, to be
followed up with detailed prospecting and field mapping.
References to figures and tables relate to the version of this
release on the Company's website (www.solgold.com.au) or visible in
PDF format by clicking the link below:
http://www.rns-pdf.londonstockexchange.com/rns/0751V_-2017-10-31.pdf
Further Information:
SolGold is continuing to pursue its strategy to become a tier
one copper company through the aggressive exploration of the
Company's extensive tenement portfolio in Ecuador.
The Machos - La Hueca Project is located on the gold-rich
northern section of the prolific Andean Copper belt which is
renowned as the production base for nearly half of the world's
copper, (Figure 1). SolGold holds a 100% interest in the Project
through its wholly owned Ecuadorean subsidiary company, Cruz del
Sol S.A.
CEO Nick Mather commented:
"Following the discovery of the Alpala copper gold porphyry in
Northern Ecuador and the rapid progression by SolGold towards the
definition of the size, grade and extent of the exciting Alpala
system, SolGold has developed a unique system and blueprint for the
discovery of world class copper gold porphyry systems in Ecuador.
This efficient blueprint, SolGold's status as the largest and most
active tenement holder in Ecuador, the highly endowed nature of the
geological terrain and the recent recognition of SolGold's
exploration achievements positions SolGold as the best entry to
copper-gold growth globally for investors. I am very confident that
this discovery will further differentiate SolGold from its
competitors in Ecuador over the coming year.
SolGold secured the first mover advantage in Ecuador three and a
half years ago in 2014. Following the Cascabel discovery, the
Company recognised the opportunity to secure and explore a
geological terrain with the same broad geology and potential for
similar copper endowment (plus gold benefits) along the Andean
spine of Ecuador from the Peruvian to the Colombian borders.
The greater La Hueca zone is huge, covering a strike length of
25km of rocks of the same age as the giant and rich Alumbrera mine
in Argentina across a corridor width of approximately 2km. The
prevalence of rich gold with abundant magnetite, chalcopyrite,
bornite and molybdenite assemblages suggests this system is rich,
large and oxidised. A happy recipe, and its 100% owned by SolGold.
We look forward to rapidly advancing this large and rich
system."
Approximately 14 of 22 copper gold porphyry targets have been
secured. To date SolGold has identified outcropping copper gold
porphyry systems on five (5) of these targets:
1. La Hueca Machos Florida Santa Cruz (as detailed in this announcement);
2. Machos;
3. Porvenir;
4. Timbarra; and
5. Sharug.
Several others also show surface mineralisation including San
Antonio and Agustin.
Exploration Activities & Results
SolGold has had field teams on the ground conducting
reconnaissance sampling, mapping and prospecting at the La Hueca
Project for several months. The summary table below details the
total number of samples collected at the La Hueca Project to date.
A strike length of 25km of prospective copper gold porphyry targets
has been developed on the basis of outcropping mineralisation,
strong stream sediment anomalism for copper and gold, and strong
panned gold and magnetite concentrate results.
By comparison, the Alpala system was evident in a 50m channel in
Alpala creek only, and the total tenement size at the La Hueca,
Florida, Santa Cruz and Machos tenements is approximately three
times the size of Cascabel.
Summary Sample Table
PROJECT TYPE # SAMPLES
========== ================= ==========
Machos Rock chips 185
Machos Stream Sediment 79
La Hueca Rock chips 288
La Hueca Stream Sediment 101
========== ================= ==========
Total 653
Results from initial stream sediment and pan concentrate
sampling in the La Hueca tenement area have identified several
areas of interest known as the El Cerro Florida Naquipa and Eduardo
prospects from north to south. Streams over a 6km x 4km zone
draining the area of interest were ubiquitously rich in gold and
magnetite indicating the prevalence of the copper gold mineralised
porphyries in the area. The first stream anomaly followed up was
recognised as exhibiting significant potassic and propyllitic
alteration and mineralisation indicative of the presence of a large
porphyry system. Detailed mapping and rock chip sampling was
carried out to determine the extent of the alteration system. The
results are detailed in Table 1 outlined below.
A northeast - southwest striking quartz stockwork was identified
and mapped over a 5km length that remains open along strike
northwest and southeast, and lies within an altered corridor
several kilometres wide comprising mostly diorite host rocks. The
most significant zone mapped so far within this diorite hosted
quartz stockwork corridor displays very strong alteration and
mineralisation over an area 700m long by 450m wide, characterised
by with a multidirectional quartz vein network containing
diagnostic copper gold porphyry minerals including notably
chalcopyrite, bornite, molybdenite and magnetite associated with
chlorite, sericite and epidote alteration. This zone has returned
the highest grade copper and gold results.
Strong molybdenum mineralisation evident as molybdenite is
ubiquitous in the La Hueca system and SolGold's technical advisors
have opined that this indicates a substantial porphyry system
sourcing mineralisation from a deep seated and strongly metal
endowed batholith. SolGold believes that this is a favourable
indicator for the ultimate size and grade of the system being
explored at La Hueca.
Detailed mapping and sampling of the stockwork corridor
continues with several new areas of strong alteration and
mineralisation recently reported by the field teams to the
northeast, southwest and west. In addition, several large
geochemical stream anomalies outside of the stockwork corridor have
been identified at the La Hueca Project that are yet to be
investigated by SolGold's field teams.
SolGold will continue to provide updates on its regional
exploration program and the results of its continuing field
activities.
Qualified Person:
Information in this report relating to the exploration results
is based on data reviewed by Mr Nicholas Mather (B.Sc. Hons Geol.),
the Chief Executive Officer of the Company. Mr Mather is a Fellow
of the Australasian Institute of Mining and Metallurgy who has in
excess of 25 years' experience in mineral exploration and is a
Qualified Person. Mr Mather consents to the inclusion of the
information in the form and context in which it appears.
By order of the Board
Karl Schlobohm
Company Secretary
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
CONTACTS
Mr Nicholas Mather Tel: +61 (0) 7 3303 0665
SolGold Plc (Executive Director) +61 (0) 417 880 448
nmather@solgold.com.au
Mr Karl Schlobohm Tel: +61 (0) 7 3303 0661
SolGold Plc (Company Secretary)
kschlobohm@solgold.com.au
Mr Ewan Leggat / Mr Richard Morrison Tel: +44 (0) 20 3470
0470
SP Angel Corporate Finance LLP (Broker)
ewan.leggat@spangel.co.uk
Follow us on twitter @SolGold_plc
NOTES TO EDITORS
SolGold is a Brisbane, Australia based, dual LSE and TSX--listed
(SOLG on both exchanges) copper gold exploration and future
development company with assets in Ecuador, Solomon Islands and
Australia. SolGold's primary objective is to discover and define
world--class copper--gold deposits. The Board and Management Team
have substantial vested interests in the success of the Company as
shareholders as well as strong track records in the areas of
exploration, mine appraisal and development, investment, finance
and law. SolGold's experience is augmented by state of the art
geophysical and modelling techniques and the guidance of porphyry
copper and gold expert Dr Steve Garwin.
In October 2017, at the Mines and Money Americas Conference in
Toronto, SolGold's Nicholas Mather won the award for the CEO of the
Year - Latin America. SolGold won the Exploration Award for Latin
America, and Ecuador won the Country Award for Latin America.
The Company announced USD54m in capital raisings in September
2016 involving Maxit Capital LP, Newcrest International Ltd and DGR
Global Ltd, and a USD41.2m raising in June of 2017 largely from
Newcrest International with USD1.2m raised from Ecuadorean
investors. All of these raisings were undertaken at substantial
premiums to previous raisings, and SolGold currently has circa
USD60m in available cash to continue the exploration and
development of its flagship Cascabel Project.
Mr Craig Jones joined the SolGold Board on 3 March 2017,
nominated to the Board of SolGold by Newcrest Mining, now a 14.54%
shareholder in SolGold. Mr Jones is a Mechanical Engineer and is
currently the Executive General Manager Wafi-Golpu
(Newcrest-Harmony MMJV). He has held various senior management and
executive roles within the Newcrest Group, including General
Manager Projects, General Manager Cadia Valley Operations,
Executive General Manager Projects and Asset Management, Executive
General Manager Australian and Indonesian Operations, Executive
General Manager Australian Operations and Projects, and Executive
General Manager Cadia and Morobe Mining Joint Venture. Prior to
joining Newcrest, Mr Jones worked for Rio Tinto.
Cascabel, SolGold's 85% owned "World Class" (Refer
www.solgold.com.au/cautionary-notice/) flagship copper--gold
porphyry project, is located in northern Ecuador on the
under--explored northern section of the richly endowed Andean
Copper Belt. SolGold owns 85% of Exploraciones Novomining S.A.
("ENSA") and approximately 5% of TSX--V--listed Cornerstone Capital
Resources ("Cornerstone"), which holds the remaining 15% of ENSA,
the Ecuadorian registered company which holds 100% of the Cascabel
concession. Subject to the terms of existing agreements,
Cornerstone is debt financed by SolGold for its share of costs to
completion of a Feasibility Study ("Financing Option").
In terms of repayment, SolGold shall receive 90% of
Cornerstone's share of earnings or dividends from ENSA or the
Tenement to which Cornerstone would otherwise be entitled until
such time as the amounts so received equal the aggregate amount of
expenditures incurred by SolGold that, but for the Financing
Option, would have been payable by Cornerstone, plus interest
thereon from the dates such expenditures were incurred at a rate
per annum equal to LIBOR plus 2 per cent until such time as SolGold
is fully reimbursed.
The investments by Newcrest for 14.54% of SolGold endorses
Ecuador as an exploration and mining destination, the management
team at SolGold, the dimension, size and scale of the growing
Alpala deposit, and the prospectivity of Cascabel and its multiple
targets. The gold endowment, location, infrastructure, logistics
are important competitive advantages offered by the project.
To date SolGold has completed geological mapping, soil sampling,
rock saw channel sampling, geochemical and spectral alteration
mapping over 25km(2) , along with an additional 9km(2) of Induced
Polarisation and 14km(2) Magnetotelluric "Orion" surveys over the
Alpala cluster and Aguinaga targets.
SolGold has completed over 53,500m of drilling and expended over
USD50M on the program, which includes corporate costs and
investments into Cornerstone. This has been accomplished with a
workforce of up to 260 Ecuadorean workers and geoscientists, and 6
expatriate Australian geoscientists. The results of 39 holes
drilled (including re-drilled holes) and assayed to date have
produced some of the greatest drill hole intercepts in porphyry
copper-gold exploration history, as indicated by Hole 12
(CSD-16-012) returning 1560m grading 0.59% copper and 0.54 g/t gold
including, 1044m grading 0.74% copper and 0.54 g/t gold.
The average grade of all metres drilled to date on the project
currently stands at 0.31% copper and 0.26 g/t gold. Intensive
diamond drilling is planned for the next 12 months with 12 drill
rigs expected to be operational by early 2018, targeting 126,000m
of drilling in 2018.
Cascabel is characterised by fifteen (15) identified targets,
"World Class" drilling intersections over 1km in length at
potentially economic grades, and high copper and gold grades in
richer sections, as well as logistic advantages in location,
elevation, water supply, proximity to roads, port and power
services; and a progressive legislative approach to resource
development in Ecuador.
To date, SolGold has drill tested 4 of the 15 targets, being
Alpala Northwest, Alpala Central, Hematite Hill, and Alpala
Southeast. Currently drill testing of Alpala Northwest, Alpala
Central and Alpala Southeast targets is underway, with drill
testing of the other priority targets to be considered following
the publication of the Company's maiden resource estimate for
Alpala, and the finalisation of further IP surveying and modelling
work currently underway.
The Alpala deposit is open in multiple directions and the
mineralised corridor marked for drill testing of the greater Alpala
cluster occurs over a 2.2km strike length from Trivinio in the
northwest to Cristal in the southeast. The mineralised corridor is
known to be prospective over approximately 700m width.
High priority targets within the Alpala cluster, at Moran
approximately 700m to the north, and at Aguinaga approximately
2.3km north east, are closely modelled by 3D MVI magnetic
signatures that currently encompass over 10Bt of magnetic rock.
Based on a strong spatial and genetic relationship between copper
sulphides and magnetite, this body of magnetic rock is considered
to be highly prospective for significant copper and gold
mineralisation, and requires drill testing.
SolGold is focussing on extending the dimensions of the Alpala
deposit including Alpala Northwest, Hematite Hill, Alpala South
East, Cristal, Trivinio, Alpala West, Alpala East, Carmen, Parambas
and Alpala South before completing a Maiden Resource Estimate and
then drill testing the other key targets within the Cascabel
concession at Aguinaga, Tandayama-America, Moran, and
Chinambicito.
The Company is currently planning further metallurgical testing
and completion of an independent Pre-Feasibility Study at Cascabel.
SolGold is investigating both high tonnage open cut and underground
block caving operations, as well as a high grade / low tonnage
initial underground development towards the economic development of
the copper gold deposit/s at Cascabel.
Drill hole intercepts have been updated to reflect current
commodity prices, using a data aggregation method, defined by
copper equivalent cut-off grades and reported with up to 10m
internal dilution, excluding bridging to a single sample. Copper
equivalent grades are calculated using a gold conversion factor of
0.63, determined using an updated copper price of USD3.00/pound and
an updated gold price of USD1300/ounce. True widths of down hole
intersections are estimated to be approximately 25-50%.
Following a comprehensive review of the geology and
prospectivity of Ecuador, SolGold and its subsidiaries have also
applied for additional exploration licences in Ecuador over a
number of promising porphyry copper gold targets throughout the
Country. To date 59 such concessions have been granted and
announced. SolGold is negotiating external funding options which
will provide the Company with the ability to have some of these
projects fully funded by a third party while focussing on
Cascabel.
In Queensland, Australia the Company is evaluating the future
exploration plans for the Mt Perry, Rannes and Normanby projects,
with drill testing of the Normanby project planned for the coming
quarter. Joint venture agreements are being investigated for a
joint venture partner to commit funds and carry out exploration to
earn an interest in the tenements.
SolGold retains interests in its original theatre of operations,
Solomon Islands in the South West Pacific, where the 100% owned,
but as yet undrilled, Kuma prospect on the island of Guadalcanal
exhibits surface lithocap characteristics which are traditionally
indicative of a large metal rich copper gold intrusive porphyry
system. SolGold intends in the future to apply intellectual
property and experience developed in Ecuador to target additional
"World Class" copper gold porphyries at Kuma and other targets in
Ecuador and the Solomon Islands.
SolGold is based in Brisbane, Queensland, Australia. The Company
is listed on the LSE and TSX, with both exchanges using the ticker
code: SOLG, and currently has on issue a total of 1,516,245,686
fully-paid ordinary shares, 31,795,884 share options exercisable at
28p; 9,795,884 share options exercisable at 14p and 46,762,000
share options exercisable at 60p.
CAUTIONARY NOTICE
News releases, presentations and public commentary made by
SolGold plc (the "Company") and its Officers may contain certain
statements and expressions of belief, expectation or opinion which
are forward looking statements, and which relate, inter alia, to
interpretations of exploration results to date and the Company's
proposed strategy, plans and objectives or to the expectations or
intentions of the Company's Directors. Such forward-looking and
interpretative statements involve known and unknown risks,
uncertainties and other important factors beyond the control of the
Company that could cause the actual performance or achievements of
the Company to be materially different from such interpretations
and forward-looking statements. Accordingly, the reader should not
rely on any interpretations or forward-looking statements; and save
as required by the exchange rules of the TSX and LSE or by
applicable laws, the Company does not accept any obligation to
disseminate any updates or revisions to such interpretations or
forward-looking statements. The Company may reinterpret results to
date as the status of its assets and projects changes with time
expenditure, metals prices and other affecting
circumstances.
The Company and its officers do not endorse, or reject or
otherwise comment on the conclusions, interpretations or views
expressed in press articles or third-party analysis, and where
possible aims to circulate all available material on its
website.
The Company recognises that the term "World Class" is subjective
and for the purpose of the Company's projects the Company considers
the drilling results at the growing Alpala Porphyry Copper Gold
Deposit at its Cascabel Project to represent intersections of a
"World Class" deposit on the basis of comparisons with other
drilling intersections from "World Class" deposits tabulated in
Table 1, some of which have become, or are becoming, producing
mines and on the basis of available independent opinions which may
be referenced to define the term "World Class" (or "Tier 1").
The Company considers that "World Class" deposits are rare, very
large, long life, low cost, and are responsible for approximately
half of total global metals production. "World Class" deposits are
generally accepted as deposits of a size and quality that create
multiple expansion opportunities, and have or are likely to
demonstrate robust economics that ensure development irrespective
of position within the global commodity cycles, or whether or not
the deposit has been fully drilled out, or a feasibility study
completed.
Standards drawn from industry experts (1Singer and Menzie, 2010;
2Schodde, 2006; 3Schodde and Hronsky, 2006; 4Singer, 1995;
5Laznicka, 2010) have characterised "World Class" deposits at
prevailing commodity prices. The relevant criteria for "World
Class" deposits, adjusted to current long run commodity prices, are
considered to be those holding or likely to hold more than 5
million tonnes of copper and/or more than 6 million ounces of gold
with a modelled net present value of greater than USD 1
Billion.
The Company cautions that the Cascabel Project remains an early
exploration stage project at this time. Despite the relatively high
copper and gold grades over long intersections and broad areas, and
widespread surface mineralization discovered at the Cascabel
Project to date, much of which has still not yet been drill tested,
the Company has yet to prepare an initial mineral resource estimate
at the Cascabel Project and any development or mining potential for
the project remains speculative. There is inherent uncertainty
relating to any project at an exploration stage, prior to the
determination of a mineral resource estimate, preliminary economic
assessment, pre-feasibility study and/or feasibility study. There
is no certainty that future results will yield the results seen to
date or that the project will continue to be considered to contain
a "World Class" deposit. Accordingly, past exploration results may
not be predictive of future exploration results.
From the drilling results at the growing Alpala Porphyry Copper
Gold Deposit (only) within the Cascabel Project, the Company
considers the deposit to have significant resource potential and
the data gathered has provided the basis for the estimation of an
exploration target over the area drilled to date. Initial 3D
modelling and grade shell interpolants have outlined an approximate
exploration target at Alpala that ranges from 729Mt at 1.06% copper
equivalent, using a cut-off grade of 0.4% copper equivalent, to
969Mt at 0.92% copper equivalent, using a cut-off grade of 0.3%
copper equivalent. These estimates equate to an endowment of
between 7.7-8.9Mt of contained copper equivalent (Figure A).
Copper equivalent grades used are calculated using a gold
conversion factor of 0.63, determined using a copper price of USD
3.00/pound and a gold price of USD 1300/ounce. Drill hole
intercepts are calculated using a data aggregation method, defined
by copper equivalent cut-off grades and reported with up to 10m
internal dilution, excluding bridging to a single sample. True
widths of down hole intersections are estimated to be approximately
25-50%.
The Company cautions that the potential quantity and grade
ranges (exploration target) disclosed above for the Alpala Porphyry
Copper Gold Deposit within the Cascabel Project is conceptual in
nature, and there has been insufficient exploration to define a
mineral resource, and the Company is uncertain if further
exploration will result in the exploration target being delineated
within a mineral resource estimate.
On this basis, the reference to the Cascabel Project as "World
Class" (or "Tier 1") is considered to be appropriate. Examples of
global copper and gold discoveries since 2006 that are generally
considered to be "World Class" are summarised in Table 2.
References cited in the text:
1. Singer, D.A. and Menzie, W.D., 2010. Quantitative Mineral
Resource Assessments: An Integrated Approach. Oxford University
Press Inc.
2. Schodde, R., 2006. What do we mean by a world class deposit?
And why are they special. Presentation. AMEC Conference, Perth.
3. Schodde, R and Hronsky, J.M.A, 2006. The Role of World-Class
Mines in Wealth Creation. Special Publications of the Society of
Economic Geologists Volume 12.
4. Singer, D.A., 1995, World-class base and precious metal
deposits-a quantitative analysis: Economic Geology, v. 90, no.1, p.
88-104.
5. Laznicka, P., 2010. Giant Metallic Deposits: Future Sources
of Industrial Metal, Second Edition. Springer-Verlag
Heidelberg.
Table 1: Globally significant drilling results for copper and
gold deposits. This table has been reviewed by Mr James Gilbertson
of SRK Exploration Services Ltd., the Company's independent
consultant and "Qualified Person", and does not purport to be
exhaustive.
Figure A: Exploration target over the area drilled to date.
Initial 3D modelling and grade shell interpolants have outlined an
approximate exploration target at Alpala that ranges from 729Mt at
1.06% copper equivalent, using a cut-off grade of 0.4% copper
equivalent, to 969Mt at 0.92% copper equivalent, using a cut-off
grade of 0.3% copper equivalent. These estimates equate to an
endowment of between 7.7-8.9Mt of contained copper equivalent.
Low-tonnage, very high-grade Exploration Targets also exist at
elevated cut-off grades of 0.7% and 1.0% copper equivalent (Lower
Insets).
Table 2: Tier 1 global copper and gold discoveries since 2006.
This table does not purport to be exhaustive exclusive or
definitive.
This information is provided by RNS
The company news service from the London Stock Exchange
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