TIDMSOLG
RNS Number : 4495C
SolGold PLC
19 October 2020
19 October 2020
SolGold plc
("SolGold" or the "Company")
Second Drill Hole at Porvenir Intersects Over 258m of
Visible Porphyry Mineralisation as Drilling Continues
The Board of SolGold (LSE & TSX: SOLG) is pleased to provide
an update on its Porvenir Project, held by Green Rock Resources
S.A, a 100% owned and unencumbered subsidiary of SolGold.
Highlights
Ø PDH-20-002, the second drill hole at the Porvenir Project, at
Cacharposa is at a current depth of 273.7m. PDH20-002 has so far
intersected 258.2m of visual chalcopyrite mineralisation from 15.5m
depth, including chalcopyrite percentages of up to an estimated 3.0
% by volume with associated porphyry style total quartz vein
abundance of up to a measured 28.0 % by volume.
Ø PDH-20-002 is being drilled from the same location as
PDH-20-001 at a steeper angle of -75 degrees towards the same
direction, with minimum target depth of 750m. PDH-20-002 is
targeted to more fully transect the interpreted core of the
Cacharposa porphyry system (Figure 2).
Ø A second drill rig is planned to be mobilised to Cacharposa
Creek later this month, and sited approximately 200m west-northwest
of PDH-20-001 with a view to test the central and western portions
of the system including the potential root of the core of the
system, which may extend deeper than 1000m as indicated by 3D
geochemical modelling.
Ø Mineralisation in Cacharposa Creek is part of a 1700m long
northerly-trending mineralised corridor, up to 1000m wide. The
mineralisation styles, size and geometry at Cacharposa are
consistent with the surface exposure of a vertically extensive,
well-preserved porphyry copper-gold system .
Ø Due to highly encouraging visual estimates at Cacharposa and
the growing potential for the presence of a large, strongly
mineralised porphyry copper-gold system, SolGold is planning a
larger revised 50,000m drilling program.
Ø While visual measurements and observations of drill core are
extremely encouraging and SolGold believe provide initial
validation of the prospectivity of Cacharposa at Porvenir, readers
are strongly cautioned that the information in this press release
is of a preliminary nature and the visual mineralization observed
has not yet been assayed. The intensity of visual mineralisation
should not be used to estimate grade or commercial viability at
this stage.
References to figures relate to the version visible in PDF
format by clicking the link below:
http://www.rns-pdf.londonstockexchange.com/rns/4495C_1-2020-10-19.pdf
Nick Mather, CEO of SolGold, re-iterated the implementation of
SolGold's broader regional exploration strategy:
"The mineral zonation and close correlation between chalcopyrite
and magnetite is giving us a lot of confidence in the model and our
drillhole target strategy at Porvenir. More broadly, across
SolGold's 14 exploration Targets in Ecuador, its increasingly
obvious that the gross controls to orebody emplacement in the
Ecuadorean sector of the Andean Copper Belt replicate. SolGold's
blueprint is rapidly refining in its application to our social,
environmental, regulatory, and operating processes and SolGold's
geological understanding. The cost and time savings and
efficiencies SolGold will enjoy as we replicate discoveries are
immense. It goes to rapid growth and value creation for SolGold
shareholders and Ecuador. Hole PDH-20-002 is continuing to confirm
our view that the Cacharposa system is potentially very large and
rich. "
Further Information
SolGold is continuing to pursue its strategy to become a tier 1
copper producing company through aggressive exploration of its
extensive tenement portfolio in Ecuador. The first pass regional
exploration program is fully funded until mid- to late-2021.
The Porvenir Project is in Southern Ecuador, some 100 km north
of the Peruvian border ( Figure 1 ). The project is situated within
the eastern most metallogenic portion of the Ecuadorian sector of
the Andean Copper Belt which hosts several of the world's largest
and most significant copper and gold deposits in Columbia, Ecuador,
Peru, Argentina and Chile, including the Fruta Del Norte gold
project owned by Lundin Gold, approximately 100km to the
north-northeast.
Drilling commenced at the Cacharposa Target (Cacharposa), within
the Porvenir Project area on 15th September 2020 as part of a
revised 50,000m drilling program at Porvenir.
PDH-20-002, the second drill hole at the Porvenir Project, at
Cacharposa is at a current depth of 273.7m. PDH20-002 has so far
intersected 258.2m of visual chalcopyrite mineralisation from 15.5m
depth, including chalcopyrite percentages of up to an estimated 3.0
% by volume with associated porphyry style total quartz vein
abundance of up to a measured 28.0 % by volume.
PDH-20-002 is being drilled from the same location as PDH-20-001
at a steeper angle of -75 degrees towards the same direction, with
minimum target depth of 750m. PDH-20-002 is targeted to more fully
transect the interpreted core of the Cacharposa porphyry system
(Figure 2).
PDH-20-001, the first drill hole on the Porvenir Project, at
Cacharposa was completed at 909.3m depth, having intersected 893.4m
of visual chalcopyrite mineralisation from 15.9m depth, including
chalcopyrite percentages of up to an estimated 6.0 % by volume with
associated porphyry style total quartz vein abundance of up to a
measured 11.7 % by volume.
Visible copper sulphide mineralisation was observed in
PDH-20-001 from 15.9m to the end of the hole at 909.3m. The
dominant copper sulphide mineral observed was chalcopyrite, an
important ore-forming copper sulphide mineral containing 34.5%
copper. Pyrite and molybdenite are also common. Molybdenite is
particularly common in the last 200m of PDH-20-001 and supports
alteration indicators that suggest the hole passed into the
periphery of a mineralised porphyry copper-gold(-molybdenum)
deposit.
In PDH-20-001, detailed core logging, from the last reported
logged depth of 619.0m, to the end of hole depth of 909.0m, shows
chalcopyrite percentages of up to an estimated 2.6 % by volume with
associated porphyry-style quartz vein abundance of up to a measured
5.7 % by volume.
PDH-20-001 tested the eastern limits of the Cacharposa porphyry
system and SolGold geologists interpret that the hole passed across
the upper periphery of the core of a large, strongly mineralised
porphyry copper-gold system. PDH-20-001 passed beneath outcropping
surface mineralisation in Cacharposa Creek that returned an
open-ended rock-saw channel assay result of 147.8m @ 0.69% CuEq
(0.43 g/t Au, 0.37% Cu) including, 82.63m @ 1.08% CuEq (0.71 g/t
Au, 0.55% Cu). The results exhibit an approximate 1:1 copper (%) to
gold (g/t) ratio and an approximate 1:1 copper to gold ratio is
also expected from drill core assays.
The visual estimates of chalcopyrite in PDH-20-001 support a
larger, lower probability 3D geochemical model, and this
application now supports the geochemical footprint width of 1000m,
and indicates an updated scope for depth continuation of
mineralisation of approximately 1000m ( Figure 2 ). The geochemical
probability limits reflect the probability of finding a Yerington
like porphyry centre based on the surface geochemical results at
Cacharposa and is based upon modelling work performed by Fathom
Geophysics.
SolGold geologists are highly encouraged by the tenor of
mineralisation in what is interpreted to represent an intersection
peripheral to the centre of a highly mineralised porphyry
copper-gold system. Geological and rock-alteration vectors drawn
from surface rock-saw and drill core observations, including an
increasing chalcopyrite to pyrite ratio with depth beneath the
discovery outcrop, suggest that more intense copper mineralisation
can be reasonably expected deeper, and in the targeted core of the
system.
PDH-20-001 has intersected a number of different mineralised
intrusive phases and mineralisation styles, exhibiting a wide range
of porphyry style veining. The complex multi-phase nature of
mineralisation observed in PDH-20-001 is considered favourable to
the development of a significant system.
The Cacharposa target is characterised by coincident Cu, Mo, Au
and Cu:Zn soil anomalies that lie central to a magnetic high and
zone of Mn-depletion in soil (Figure 3). These styles of g round
RTP magnetics and geochemical signatures at Cacharposa are
characteristic of porphyry copper and copper-gold deposits
globally.
Mineralisation in Cacharposa Creek is part of a 1700m long
northerly-trending mineralised corridor, up to 1000m wide.
PDH-20-001 was collared in mineralisation and approximately 200m
north of the centre of coincident soil gold, copper, molybdenum and
Cu:Zn anomalies, drilling at a dip of -55 degrees towards the
east-southeast. The mineralisation styles, size and geometry at
Cacharposa are consistent with the surface exposure of a vertically
extensive, well-preserved porphyry copper-gold system.
Due to the highly encouraging visual estimates from the first
hole at Cacharposa (PDH-20-001) and growing potential for a large,
strongly mineralised porphyry copper-gold system at Cacharposa,
SolGold will plan a larger 50,000m drilling program, subject to
ongoing positive results.
A second drill rig is planned to be mobilised to Cacharposa
Creek later this month and sited approximately 230m west-northwest
of PDH-20-001 with a view to test the central and western portions
of the system ( Figure 3 ). Planning and logistical work is
underway to ramp up drilling by mobilising an additional five drill
rigs to site as quickly as COVID19 restrictions allow. The second
drill machine is planned to arrive late October, with another 2
machines expected to be finalised for mobilisation from Hubbard
Perforaciones Cuenca workshops in November.
Selected examples of mineralisation encountered in PDH-20-001 so
far are shown in Figures 4 and 5.
Ground reduced-to-the-pole (RTP) magnetics and geochemical
signatures at Cacharposa are characteristic of global porphyry
copper and copper-gold deposits. The RTP magnetics exhibit a
central magnetic high surrounded by an annular magnetic low . Soil
Molybdenum geochemistry shows a broad high nested within the
magnetic feature and exhibits good inverse correlation with soil
Manganese (Figure 6).
The coincidence of soil Copper, Gold and Cu:Zn geochemical
anomalies are classic signatures of porphyry copper-gold
deposits.
While visual measurements and observations of drill core are
extremely encouraging and SolGold believe provide initial
validation of the prospectivity of Cacharposa at Porvenir, readers
are strongly cautioned that the information in this press release
is of a preliminary nature and the visual mineralization observed
has not yet been assayed. The intensity of visual mineralisation
should not be used to estimate grade or commercial viability at
this stage.
Figure 1 : Location plan showing Porvenir Project in Southern
Ecuador, highlighting the locations of the Cacharposa and Alpala
porphyry deposits.
Figure 2 : Cross-section looking north-northeast with window
thickness of 100m, showing completed, current and planned drill
holes. Mineralisation and hydrothermal alteration intersected in
drilling so far shows good correlation between down hole geology
and 3D magnetic- and geochemical-models. 3D geochemical models are
contours of confidence for a porphyry centre based on the zoning of
metals at the Yerington porphyry deposit in Nevada, USA. The visual
estimates of chalcopyrite in PDH-20-001 support the larger, lower
probability contour.
Figure 3 : Cacharposa Mineralised Corridor plan view of the
Cacharposa Target (formerly Target 15) showing the zone of
interpreted coincident soil gold, copper, molybdenum and Cu:Zn
anomalies. The current hole path is shown in black with planned
drill hole paths shown in green. Future drill holes, aim to
intersect two main northwest and northeast-trending vein sets at
Cacharposa, and may exceed the planned lengths should
mineralization continue at depth. Additional drill holes to those
shown, will be planned to extend mineralisation to the south, north
and other directions dependant on drill results.
Figure 4 : Selected drill-core examples from surface to 150.0m
showing disseminated and vein-controlled chalcopyrite-pyrite
mineralisation.
Figure 5 : Selected drill-core examples from 150m to 250m
showing disseminated and vein-controlled chalcopyrite-pyrite
mineralisation.
Figure 6 : Ground reduced-to-the-pole (RTP) magnetics and
geochemical signatures at Cacharposa are characteristic of global
porphyry copper and copper-gold deposits. The RTP magnetics exhibit
a central magnetic high surrounded by an annular magnetic low (Top
Left). Soil Molybdenum geochemistry shows a broad high nested
within the magnetic feature (Top Centre) and exhibits good inverse
correlation with soil Manganese (Top Right). The coincidence of
soil Copper, Gold and Cu:Zn geochemical anomalies (Bottom Left,
Centre and Right) are classic signatures of porphyry copper-gold
deposits.
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.
Qualified Person:
Information in this report relating to the exploration results
is based on data reviewed by Mr Jason Ward ((CP) B.Sc. Geol.), the
Chief Geologist of the Company. Mr Ward is a Fellow of the
Australasian Institute of Mining and Metallurgy, holds the
designation FAusIMM (CP), and has in excess of 20 years' experience
in mineral exploration and is a Qualified Person for the purposes
of the relevant LSE and TSX Rules. Mr Ward 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
CONTACTS
Nicholas Mather Tel: +61 (0) 7 3303 0665
SolGold Plc (Chief Executive Officer)
nmather@solgold.com.au
Karl Schlobohm
SolGold Plc (Company Secretary) Tel: +61 (0) 7 3303 0661
kschlobohm@solgold.com.au
Ingo Hofmaier
SolGold Plc (GM - Project & Corporate Tel: +44 (0) 20 3823 2131
Finance) ihofmaier@solgold.com.au
Gordon Poole / Nick Hennis
Camarco (Financial PR / IR) Tel: +44 (0) 20 3757 4997
solgold@camarco.co.uk
Andrew Chubb Tel: +44 (0) 20 7907 8500
Hannam & Partners (Joint Broker and Financial
Advisor)
solgold@hannam.partners
Ross Allister / David McKeown Tel: +44 (0)20 7418 8900
Peel Hunt (Joint Broker and Financial
Advisor)
solgold@peelhunt.com
James Kofman / Darren Wallace Tel: +1 416 943 6411
Cormark Securities Inc. (Financial Advisor)
dwallace@cormark.com
Clayton Bush / Scott Mathieson Tel: +44 (0) 20 3100 2184
Liberum (Joint Broker and Financial Advisor)
Clayton.Bush@liberum.com
Follow us on twitter @SolGold_plc
ABOUT SOLGOLD
SolGold is a leading resources company focussed on the
discovery, definition and development of world-class copper and
gold deposits. In 2018, SolGold's management team was recognised by
the "Mines and Money" Forum as an example of excellence in the
industry and continues to strive to deliver objectives efficiently
and in the interests of shareholders. SolGold is the largest and
most active concession holder in Ecuador and is aggressively
exploring the length and breadth of this highly prospective and
gold-rich section of the Andean Copper Belt.
The Company operates with transparency and in accordance with
international best practices. SolGold is committed to delivering
value to its shareholders, while simultaneously providing economic
and social benefits to impacted communities, fostering a healthy
and safe workplace and minimizing the environmental impact.
Dedicated stakeholders
SolGold employs a staff of over 700 employees of whom 98% are
Ecuadorean. This is expected to grow as the operations expand at
Alpala, and in Ecuador generally. SolGold focusses its operations
to be safe, reliable and environmentally responsible and maintains
close relationships with its local communities. SolGold has engaged
an increasingly skilled, refined and experienced team of
geoscientists using state of the art geophysical and geochemical
modelling applied to an extensive database to enable the delivery
of ore grade intersections from nearly every drill hole at Alpala.
SolGold has over 80 geologists on the ground in Ecuador exploring
for economic copper and gold deposits.
About Cascabel and Alpala
The Alpala deposit is the main target in the Cascabel
concession, located on the northern section of the heavily endowed
Andean Copper Belt, the entirety of which is renowned as the base
for nearly half of the world's copper production. The project area
hosts mineralisation of Eocene age, the same age as numerous Tier 1
deposits along the Andean Copper Belt in Chile and Peru to the
south. The project base is located at Rocafuerte within the
Cascabel concession in northern Ecuador, an approximately
three-hour drive on sealed highway north of the capital Quito,
close to water, power supply and Pacific ports.
Having fulfilled its earn-in requirements, SolGold is a
registered shareholder with an unencumbered legal and beneficial
85% interest in ENSA (Exploraciones Novomining S.A.) which holds
100% of the Cascabel concession covering approximately 50km(2) .
The junior equity owner in ENSA is required to repay 15% of costs
since SolGold's earn in was completed, from 90% of its share of
distribution of earnings or dividends from ENSA or the Cascabel
concession. It is also required to contribute to development or be
diluted, and if its interest falls below 10%, it shall reduce to a
0.5% NSR royalty which SolGold may acquire for US$3.5million.
Advancing Alpala towards development
The resource at the Alpala deposit contains a high-grade core
which will be targeted to facilitate early cashflows and an
accelerated payback of initial capital. SolGold is currently
progressing its Pre-Feasibility Study and is fully funded through
to development decision following the Net Smelter Royalty Financing
with Franco-Nevada Corporation for US$100million. Franco-Nevada
will receive a perpetual 1% NSR interest from the Cascabel licence
area.
SolGold is currently assessing financing options available to
the Company for the development of the Alpala mine following
completion of the Definitive Feasibility Study.
SolGold's Regional Exploration Drive
SolGold is using its successful and cost-efficient blueprint
established at Alpala, and Cascabel generally, to explore for
additional world class copper and gold projects across Ecuador.
SolGold is the largest and most active concessionaire in
Ecuador.
The Company wholly owns four other subsidiaries active
throughout the country that are now focussed on thirteen high
priority gold and copper resource targets, several of which the
Company believes have the potential, subject to resource definition
and feasibility, to be developed in close succession or even on a
more accelerated basis compared to Alpala.
SolGold is listed on the London Stock Exchange and Toronto Stock
Exchange (LSE/TSX: SOLG). The Company has on issue a total of
2,072,213,495 fully-paid ordinary shares and 113,175,000 share
options.
Quality Assurance / Quality Control on Sample Collection,
Security and Assaying
SolGold operates according to its rigorous Quality Assurance and
Quality Control (QA/QC) protocol, which is consistent with industry
best practices.
Primary sample collection involves secure transport from
SolGold's concessions in Ecuador, to the ALS certified sample
preparation facility in Quito, Ecuador. Samples are then air
freighted from Quito to the ALS certified laboratory in Lima, Peru
where the assaying of drill core, channel samples, rock chips and
soil samples is undertaken. SolGold utilises ALS certified
laboratories in Canada and Australia for the analysis of
metallurgical samples.
Samples are prepared and analysed using 100g 4-Acid digest ICP
with MS finish for 48 elements on a 0.25g aliquot (ME-MS61).
Laboratory performance is routinely monitored using umpire assays,
check batches and inter-laboratory comparisons between ALS
certified laboratory in Lima and the ACME certified laboratory in
Cuenca, Ecuador.
In order to monitor the ongoing quality of its analytical
database, SolGold's QA/QC protocol encompasses standard sampling
methodologies, including the insertion of certified powder blanks,
coarse chip blanks, standards, pulp duplicates and field
duplicates. The blanks and standards are Certified Reference
Materials supplied by Ore Research and Exploration, Australia.
SolGold's QA/QC protocol also monitors the ongoing quality of
its analytical database. The Company's protocol involves
Independent data validation of the digital analytical database
including search for sample overlaps, duplicate or absent samples
as well as anomalous assay and survey results. These are routinely
performed ahead of Mineral Resource Estimates and Feasibility
Studies. No material QA/QC issues have been identified with respect
to sample collection, security and assaying.
Reviews of the sample preparation, chain of custody, data
security procedures and assaying methods used by SolGold confirm
that they are consistent with industry best practices and all
results stated in this announcement have passed SolGold's QA/QC
protocol.
The data aggregation method for calculating Copper Equivalent
(CuEq) for rock-saw channel sampling intervals are reported using
copper equivalent (CuEq) cut-off grades with up to 10m internal
dilution, excluding bridging to a single sample and with minimum
intersection length of 50m.
Copper Equivalent is currently calculated (assuming 100%
recovery of copper and gold) using a Gold Conversion Factor of
0.751 (CuEq = Cu + Au x 0.751), calculated from a current nominal
copper price of US$3.30/lb and a gold price of US$1700/oz.
See www.solgold.com.au for more information. Follow us on
twitter @SolGold plc
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. Factors that could cause actual results to differ
materially from such forward-looking information include, but are
not limited to, risks relating to the ability of exploration
activities (including assay results) to accurately predict
mineralization; errors in management's geological modelling;
capital and operating costs varying significantly from estimates;
the preliminary nature of visual assessments; delays in obtaining
or failures to obtain required governmental, environmental or other
required approvals; uncertainties relating to the availability and
costs of financing needed in the future; changes in equity markets;
inflation; the global economic climate; fluctuations in commodity
prices; the ability of the Company to complete further exploration
activities, including drilling; delays in the development of
projects; environmental risks; community and non-governmental
actions; other risks involved in the mineral exploration and
development industry; the ability of the Company to retain its key
management employees and skilled and experienced personnel; and
those risks set out in the Company's public documents filed on
SEDAR at www.sedar.com . 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.
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