TIDMSOLG
RNS Number : 7768A
SolGold PLC
03 January 2018
3 January 2018
SolGold plc
("SolGold" or the "Company")
Cascabel Exploration Update
Alpala Maiden Mineral Resource Estimate
120 Mt High Grade Core @1.8% CuEq (60% Indicated) within
1.08 Bt @ 0.68% CuEq (5.2 Mt Cu, 12.3 Moz Au, 40% Indicated)
The Board of SolGold (LSE and TSX code: SOLG) is pleased to
announce the results of the Alpala Maiden Mineral Resource Estimate
(MRE) at the Cascabel Project, the Company's 85% owned copper-gold
porphyry project in Ecuador (refer Further Information below). The
MRE has been reported in accordance with the Canadian Institute of
Mining, Metallurgy and Petroleum (CIM) Definition Standards for
Mineral Resources and Mineral Reserves (May 2014).
HIGHLIGHTS:
Ø Alpala Maiden Mineral Resource Estimate across both Indicated
and Inferred classifications totals a current 1.08 Bt @ 0.68% CuEq
(7.4 Mt CuEq) at 0.3% CuEq cut off, some 40% of which is in the
Indicated category (by tonnage).
Ø Contained metal content totals a current 5.2 Mt Cu and 12.3
Moz Au, some 45% of which is within the Indicated category (by
contained metal).
Ø Higher grade core has a current 120 Mt @ 1.8% CuEq (2.0 Mt
CuEq) at a 1.1% CuEq cut off, some 60% of which is in the Indicated
category (by tonnage);
Ø A further 100 Mt @ 1.0% CuEq (1.0 Mt CuEq) is added to the
high grade core if a 0.9% CuEq cut off is used, some 50% of which
is in the Indicated category (by tonnage).
Ø Estimate completed from 53,616m of drilling, approximately 84%
of 63,500m metres drilled to date.
Ø Assay results still pending for a further 9,844m of drill core
(16%) of the total to 21 December 2017.
Ø Strong potential for further growth in the deposit from
pending assay results from recent drilling, conversion of current
inferred to indicated mineral resources, and discovery of
additional mineralisation in unclosed areas such as Alpala East, up
dip Alpala Central, and Alpala North West and South East.
Ø 11 diamond drill rigs currently active at Cascabel, with a
total of 12 to be active in January 2018. Over 120,000 metres
planned in 2018.
SolGold's CEO and Managing Director, Mr Nick Mather, commented
on the Alpala MRE: "This maiden Mineral Resource Estimate (MRE) is
a tremendous start and in our view by no means represents a final
size or grade because the deposit is still growing. That the maiden
MRE is so big, achieved with so few drill holes and that such a
large percentage is in the indicated category is testimony to the
size of the system at Alpala. SolGold plans to announce updated MRE
statements throughout 2018. We plan to immediately follow this
maiden MRE up with initiation of a PEA (Preliminary Economic
Assessment) of the deposit at Alpala, towards commencement of the
PFS (pre-Feasibility Study) later in 2018.
Unlike many producers, this project is unhedged to copper prices
going into what we see as a copper bull market for some years to
come. Along with Cascabel's extraordinary logistic and expected
capital advantages in a progressive and constructive regulatory and
fiscal environment plus the multiplicity of as yet untested
targets, this all creates a very exciting outlook for SolGold."
SolGold's Chief Technical Advisor Dr Steve Garwin commented on
the upside at Alpala saying: "The maiden Mineral Resource estimate
indicates strong potential to grow with additional drilling. There
is room to convert Inferred Mineral Resources into Indicated
Mineral Resources by infilling areas where the current drill hole
spacing exceeds 150m, and there exists potential to convert
unclassified mineralisation to Inferred Mineral Resources.
This is particularly important in the Alpala Northwest area,
where drill holes will target the north-westerly plunge to the
deposit and add to the current resources; this will increase the
contained metal content of the growing deposit.
The MRE reflects the assays at hand. Additional results from
recently completed, ongoing, and future holes will add to the
resource total. The potential for discovery of additional copper
and gold mineralisation at Alpala West, Trivinio and Alpala South
East (south of CSD-24) is high. Aguinaga is a very attractive drill
target, well supported by surface mapping, geochemical results and
geophysical models which we expect to be finalised soon."
References to figures and tables relate to the version of this
release visible in PDF format by clicking the link below:
http://www.rns-pdf.londonstockexchange.com/rns/7768A_1-2018-1-2.pdf
FURTHER INFORMATION:
SolGold holds a registered and beneficial unencumbered 85%
interest in Explorationes Novomining S.A. ("ENSA") which owns 100%
of the Cascabel licence subject to a private royalty which may be
purchased by SolGold for US$4.0m at development decision. Following
the preparation of a Feasibility Study by ENSA, Cornerstone - which
currently holds a 15% interest in ENSA - will be obligated to
contribute to the funding of ENSA. Subject to the terms of
agreements with Cornerstone, ENSA is being funded by SolGold to
completion of a feasibility study. Cornerstone must contribute
pro-rata to at least 10% to maintain an equity interest in the
Cascabel Project and ENSA, and will be obligated to repay to
SolGold its 15% share of all expenses to that point (save for the
cost of SolGold's acquisition of its 85% interest, $2.5m,
completed) plus interest from 90% of Cornerstone's share of the
proceeds from the project. Should Cornerstone elect not to, or fail
to, contribute to at least 10% then Cornerstone's interest in the
project will convert to a 0.5% Net Smelter Return Royalty ("NSR")
which SolGold may acquire for US$3.5 million.
Over 63,500m of drilling has been completed to date at SolGold's
(85% owned) Alpala Deposit, 53,616m of which were used for the
Maiden Mineral Resource Estimate (MRE). The deposit remains open in
multiple directions, and continues to grow with each new drill
hole.
Alpala Maiden Mineral Resource Estimate
The Alpala Maiden MRE, across both Indicated and Inferred
classifications totals a current 1.08 Bt @ 0.68 % CuEq (at 0.3%
CuEq cut off), with a contained metal content of 5.2 Mt Cu, and
12.3 Moz Au, some 45% of which is within the Indicated
classification (by contained metal).
The Alpala Maiden MRE contains a high grade core totalling 120Mt
@ 1.8% CuEq at a 1.1% CuEq cut off highlighting the reasonable
prospects for eventual economic extraction by underground mass
mining methods such as block caving.
Strong potential for further growth from additional recent
drilling results for which assays are pending, and continued rapid
growth of the deposit, driven by 12 active diamond drill rigs in
2018, are expected to be realised throughout the coming year and
SolGold plans to announce updated MRE statements as additional
mineralisation is encountered.
Alpala Mineral Resource statement as of 18 December 2017
Resource Tonnage Grade Contained Metal
Category (Mt)
------------- ----------- -------- --------------------- ----------------------
Cu Au CuEq Cu Au CuEq
(%) (g/t) (%) (Mt) (Mt) (Mt)
------------- ----------- -------- ----- ------- ----- ------ ------ ------
>1.1% CuEq Indicated 70 1.1 1.3 1.8 0.7 2.8 1.2
------------- ----------- -------- ----- ------- ----- ------ ------ ------
Inferred 50 1.1 1.3 1.8 0.5 1.9 0.8
------------------------- -------- ----- ------- ----- ------ ------ ------
0.9 - 1.1%
CuEq Indicated 50 0.7 0.5 1.0 0.3 0.9 0.5
------------- ----------- -------- ----- ------- ----- ------ ------ ------
Inferred 50 0.7 0.5 1.0 0.4 0.9 0.5
------------------------- -------- ----- ------- ----- ------ ------ ------
0.3 - 0.9%
CuEq Indicated 310 0.4 0.2 0.5 1.2 2.3 1.6
------------- ----------- -------- ----- ------- ----- ------ ------ ------
Inferred 550 0.4 0.2 0.5 2.0 3.5 2.6
------------------------- -------- ----- ------- ----- ------ ------ ------
Total >0.3%
CuEq Indicated 430 0.5 0.4 0.8 2.3 6.0 3.4
------------- ----------- -------- ----- ------- ----- ------ ------ ------
Inferred 650 0.4 0.3 0.6 2.9 6.3 4.0
------------------------- -------- ----- ------- ----- ------ ------ ------
Notes:
-- Mr. Martin Pittuck, MSc, CEng, MIMMM, is responsible for this
Mineral Resource estimate and is an "independent qualified person"
as such term is defined in NI 43-101
-- The Mineral Resource is reported using a cut-off grade of
0.3% copper equivalent calculated using [copper grade (%)] + [gold
grade (g/t) x 0.6] based on a copper price of US$2.8/lb and gold
price of US$1,160/oz
-- The Mineral Resource is considered to have reasonable
potential for eventual economic extraction by underground mass
mining such as block caving
-- Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability
-- The statement uses the terminology, definitions and
guidelines given in the CIM Standards on Mineral Resources and
Mineral Reserves (May 2014).
-- The MRE is reported on 100 percent basis
-- Values given in the table have been rounded, apparent
calculation errors resulting from this are not considered to be
material
-- The effective date for the Mineral Resource statement is 18th December 2017
Grade tonnage curves indicate a range of grade and tonnage
options for the deposit (Figure 1). This figure shows Indicated,
Inferred and Total Mineral Resource tonnages, and average CuEq
grades as a function of CuEq cut-off grade.
Figure 1: Alpala MRE Grade-Tonnage Curve: all classified
material within the block model.
Geological Modelling
Based on the genetic understanding of the deposit and the drill
core logs prepared by SolGold, SRK has developed a 3D model of the
multi-phase intrusions. The earlier, better mineralised phases were
modelled as they would have formed originally allowing for a good
confidence to be gained in the original geometry and continuity of
these well mineralised bodies before their continuity was
interrupted by subsequent intrusion of later phases. The
lithological domains, in order of age, comprise:
-- Pre-mineral Volcano-sedimentary host rocks (V);
-- Early mineralised Diorite 10 and Quartz Diorite 10 (D10 & QD10);
-- Intra-mineral Diorite 15 and Quartz Diorite 15 (D15 & IM);
-- Late-mineral Diorite 20 and Quartz Diorite 20 (LM & LM QD);
-- Post-mineral dykes (PM); and
-- Hydrothermal breccia (BX).
The resultant lithological domains are shown below in Figures 2
and 3.
Figure 2. 550m Level Plan illustrating the lithological domains
across Alpala
Figure 3. Example section illustrating the lithological domains
across Alpala
Grade domains have been developed based on concentric modelling
of vein intensity and copper equivalent (CuEq) grade calculated
using [copper grade (%)] + [gold grade (g/t) x 0.6] using the
following guidance criteria:
-- low grade - where CuEq exceeds 0.15%;
-- medium grade - where B vein intensity exceeds 4% or CuEq grade exceeds 0.7% CuEq; and;
-- high grade - where CuEq grade exceeds 1.5%.
The geological model domains are a combination of the
lithologies and the concentric grade zones. The low-grade domain
defines a lobate-lens shape with a 1,900m strike extent dipping
sub-vertically to the northeast and spanning a 1,850m vertical
interval from the relatively small mineralised outcrop at around
1,650masl to the current base of mineralisation at -200masl with a
keel plunging 25 deg to the northwest.
Copper and gold grades from each of the geological model domains
were first composited to 10m lengths and then assessed
statistically; domains were combined on this basis where
appropriate. Variography was used to assess grade continuity in the
resultant estimation domains to determine sample search and kriging
parameters for block grade estimation.
A block model encapsulating the entire model has 40m x 40m x 40m
blocks for grade estimation and 5m x 5m x 5m minimum sub-blocks for
domain boundary definition. A multi-pass kriging routine was used;
most classified blocks were estimated in the first pass using
search radii in the plane of the deposit ranging from 70m to over
200m depending on variography results per domain. The search
strategy ensured all blocks in the model were assigned grades and
densities.
No grade capping has been used; following statistical analysis
and visual assessment of high grades a check estimate was completed
to confirm that the MRE is not materially biased by the highest
grades as they are well supported in their respective domains.
The resultant grade block model is shown below in Figures 4 and
5.
Figure 4. 550m Level Plan illustrating the block model grades
across Alpala
Figure 5. Example Section illustrating the block model grades
across Alpala
A cut-off grade of 0.3% CuEq has been used for the Mineral
Resource statement. This compares well with other large-scale
underground copper-gold miners and developers who have published
Mineral Resource statements in recent years. This value also agrees
with a calculation based on first principles including long term
market forecast metal prices (US$ 2.8 /lb Cu and US$ 1,160 /oz Au)
plus a 30% price premium for assessing resources, operating costs
based on peer group review, smelter terms based on assuming clean
concentrate and 90% metal recovery based on reviewing typical
industry values and preliminary mineralogy work for Alpala.
The geological model has been built to satisfy a number of
objectives, primarily the MRE but also to assist with drill hole
targeting. The model therefore contains estimated blocks in a
greater volume than the classified Mineral Resource. The
unclassified parts of the model represent opportunities for future
drilling to grow the deposit model in most directions.
Overall the quality control review concluded that industry
standard sample preparation and assaying methods have been used and
that the vast majority of laboratory batches performed well in
terms of accuracy; there are no significant concerns regarding core
recovery or repeatability of field duplicates.
The remaining considerations for classification are geological
continuity, quality of grade estimation and the adequacy of
existing drillhole coverage. Overall the low and medium grade
domains have very good continuity, but the high grade domains are
smaller scale and more variable in terms of drillhole spacing with
respect to their size. Some high grade features are well defined by
several drillhole intersections allowing confident interpretation
of their true thickness, dip extent and strike continuity.
In some areas of the model the existence of high grade features
or their proportions with respect to medium grade mineralisation
are less well demonstrated. Where high grade features have been
modelled albeit with lower confidence, the model in the vicinity
has been classified as Inferred.
SRK has drawn classification outlines on multiple level plans to
limit and classify the MRE. In the core of the deposit where SRK
has modelled high grade features, Indicated status has been given
for contiguous areas containing several intersections spaced up to
150m apart horizontally with the perimeter drawn between 50m and
75m from the intersections; the perimeter also includes the outcrop
of the deposit. Surrounding the Indicated part of model, Inferred
status has been assigned to contiguous areas containing several
intersections spaced up to 200m apart horizontally with the
perimeter drawn between 100m and 150m from the intersections.
Forward Program at Alpala
Drilling to date indicates a true width of the mineralised
envelope of up to 800 metres, a length in excess of 1500 metres and
over 1800m vertical extent from surface. Over 120,000m of drilling
is planned for 2018 using 12 diamond drill rigs. Drilling currently
focuses on:
-- Extending and infilling the Alpala Central area with Rigs, 1, 6 and 5.
-- Expanding the system at Alpala Northwest and Trivinio with Rigs 8, 9, 10, 11, and 12.
-- Testing extensions of the system at Alpala Southeast with Rigs 2, 3, and 4.
-- Testing geochemical and magnetic targets at Alpala West and Carmen with Rig 7.
SolGold has drill tested 5 of 15 copper-gold targets delineated
in the 50 km(2) tenement with a focus on Alpala. The remainder of
the targets, including Aguinaga, Trivinio, Moran, Parambas and
Tandayama-America are scheduled for testing in 2018 following
completion of ground magnetic modelling and Spartan Orion deep IP
surveys.
ABBREVIATIONS USED
CuEq - copper equivalent Cu - copper
Au - gold m - metres
incl. - including MRE - Mineral Resource Estimate
NW - northwest
Qualified Person:
The Alpala MRE is reported by Mr Martin Pittuck (MSc, CEng,
MIMMM, FGS) of SRK, who is a Qualified Person as defined in NI
43-101, independent of SolGold, who has reviewed and approved the
technical contents of this announcement.
Information in this report relating to 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 under the JORC Code and NI 43-101. Mr Mather
supervised the preparation of this release and consents to the
inclusion of the information in the form and context in which it
appears.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of the
Regulation (EU) No 596/2014 until the release of this
announcement.
By order of the Board
Karl Schlobohm
Company Secretary
Brisbane, Australia
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 - Exploration, Latin America. SolGold won the Exploration
Award for Latin America, and Ecuador won the Country Award for
Latin America. Each party then duly won the 2017 award for each
respective category on a global basis at London Mines and Money on
30 November 2017.
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. In November 2017 SolGold raised a
further GBP45m at 25p per share, placed with institutions and
Newcrest pursuant to their anti-dilution rights. SolGold currently
has circa USD110m in available cash to continue the exploration and
appraisal of its flagship Cascabel Project, and with which to
conduct regional exploration programs on its 77 other 100%-owned
projects in its wholly owned subsidiary companies.
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 would have otherwise 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 other targets at Aguinaga, Parambas,
Tandayama-America, Moran and Chinambicito.
SolGold has completed over 63,000m of drilling and expended over
USD69M in Ecuador, which includes Cascabel exploration, regional
exploration, 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 60 holes drilled (including
re-drilled holes, daughter holes and current 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,
including non-mineralised intersections, currently stands at 0.30%
copper and 0.24 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 over 120,000m 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.
SolGold has drill tested 5 of 15 copper-gold targets delineated
in the 50km2 tenement with a focus on Alpala.
Further drill testing at Alpala will focus on:
-- Extending and infilling the Alpala Central area with Rigs, 1, 6 and 5.
-- Expanding the system at Alpala Northwest and Trivinio with Rigs 8, 9, 10, 11, and 12.
-- Testing extensions of the system at Alpala Southeast with Rigs 2, 3, and 4.
-- Testing geochemical and magnetic targets at Alpala West and Carmen with Rig 7.
There are currently 11 drilling rigs active at Alpala. The
Cascabel drilling fleet will expand to 12 drills with the arrival
of a large track mounted drill rig (Rig 12) during the last week of
December 2017.
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 up to 800m width.
The remainder of the targets are scheduled for testing in 2018,
subject to ongoing technical assessment, and completion of ground
magnetic modelling and Spartan Orion deep IP surveys.
The Company is currently planning further metallurgical testing
and completion of an independent Preliminary Economic Assessment
and Pre-Feasibility Studies 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 several
applications for additional exploration licences in Ecuador over a
number of promising porphyry copper gold targets throughout the
Country.
SolGold, through its 4 subsidiary companies, has 100% ownership
of 77 granted concessions throughout Ecuador. Each subsidiary
company has technical teams, led by experienced senior geologists,
on the ground prospecting granted tenements and collecting baseline
data, whilst regional geophysics surveys are being planned.
Significant copper occurrences have been identified at numerous
projects to date, including La Hueca, Machos, Rio Armarillo,
Sharug, Porvenir and Timbara.
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 1,696,245,686
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.
This release may contain "forward--looking information" within
the meaning of applicable Canadian securities legislation.
Forward--looking information includes, but is not limited to,
statements regarding the Company's plans for developing its
properties. Generally, forward--looking information can be
identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved". Forward--looking information is subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
the Company to be materially different from those expressed or
implied by such forward--looking information, including but not
limited to: transaction risks; general business, economic,
competitive, political and social uncertainties; future prices of
mineral prices; accidents, labour disputes and shortages and other
risks of the mining industry. Although the Company has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
information, there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no assurance
that such information will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward--looking information. The Company does not
undertake to update any forward-looking information, except in
accordance with applicable securities laws.
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. 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 (1) Singer and Menzie,
2010; (2) Schodde, 2006; (3) Schodde and Hronsky, 2006; (4) Singer,
1995; (5) Laznicka, 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 and its external consultants prepared an initial
mineral resource estimate at the Cascabel Project in December 2017.
The Alpala Maiden Mineral Resource Estimate (MRE) across both
Indicated and Inferred classifications totals a current 1.08 Bt @
0.68% CuEq (7.4 Mt CuEq) at 0.3% CuEq cut off, some 40% of which is
in the Indicated category (by tonnage). Contained metal content
totals a current 5.2 Mt Cu and 12.3 Moz Au, some 45% of which is
within the Indicated category (by contained metal).
The higher grade core of the Alpala Deposit has a current 120 Mt
@ 1.8% CuEq (2.0 Mt CuEq) at a 1.1% CuEq cut off, some 60% of which
is in the Indicated category (by tonnage). A further 100 Mt @ 1.0%
CuEq (1.0 Mt CuEq) is added to the high grade core if a 0.9% CuEq
cut off is used, some 50% of which is in the Indicated category (by
tonnage).
The Mineral Resource Estimate was completed from 53,616m of
drilling, approximately 84% of 63,500m metres drilled to date.
There remains strong potential for further growth from more recent
drilling results, and continue rapid growth of the deposit.
Any development or mining potential for the project remains
speculative.
On the basis of the drilling results to date and the results of
the Alpala Maiden Mineral Resource Estimate, 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 A.
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 A: 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
END
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