TIDMSOLG
RNS Number : 2110E
SolGold PLC
04 November 2020
4 November 2020
SolGold plc
("SolGold" or the "Company")
First Drill Hole Assays to 580m at Porvenir Returns
570m @ 0.69% CuEq, Open at Depth.
Assays from 580m to End of Hole Remain Pending.
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 Final assay results have been received for the first 580m of
the first drill hole at Porvenir (PDH-20-001) returning 570m @
0.69% CuEq (0.49% Cu, 0.27 g/t Au) from 10m to 580m at a cut-off
grade of 0.20% CuEq (open at depth). Assay results from 580m to end
of hole at 909.3m remain pending.
Ø The overall intersection in PDH-20-001 to 580m depth includes
zones of higher-grade material, coincident with the presence of
early dioritic and monzonitic intrusions, including:
-- 188m @ 0.73% CuEq (0.56 % Cu, 0.23 g/t Au) from 392 m to 580m
depth at a cut-off grade of 0.30% CuEq (open at depth). Assay
results from 580m to end of hole at 909.3m remain pending.
-- 106m @ 0.86% CuEq (0.67 % Cu, 0.25 g/t Au) from 474 m to 580m
depth at a cut-off grade of 0.70% CuEq (open at depth).
Ø Remaining assay results for PDH-20-001 are expected later this
month, and assays received to date confirm the potential for the
presence of a large strongly mineralised porphyry system at
Cacharposa as indicated by previously reported visual
estimates.
References to figures relate to the version visible in PDF
format by clicking the link below:
http://www.rns-pdf.londonstockexchange.com/rns/2110E_1-2020-11-4.pdf
Commenting on the assay results, Nick Mather, CEO of SolGold,
said:
"The assay results so far for the first hole at Porvenir are
highly encouraging, indicating a large and complex mineralising
copper gold porphyry system. In comparison to the first hole at
Alpala, the Cacharposa target at Porvenir presents longer and
better results, an excellent start to the Porvenir campaign. "
Further Information
SolGold is continuing to pursue its strategy to systematically
explore its extensive tenement portfolio in Ecuador. The first pass
regional exploration program is fully funded until mid- to late-
2021.
PDH-20-001, the first drill hole on the Porvenir Project, at
Cacharposa was completed at 909.3m depth on 11 October 2020,
announced on 13 October, having intersected 893.4m of visual
chalcopyrite mineralisation from 15.9m depth to the end of the
hole.
Final assay results have been received for the first 580m of the
first drill hole (PDH-20-001) at Cacharposa, Porvenir returning
570m @ 0.69% CuEq (0.49% Cu, 0.27 g/t Au) from 10m to 580m at a
cut-off grade of 0.20% CuEq (open at depth). Assay results from
580m to end of hole at 909.3m remain pending.
The overall intersection in PDH-20-001 to 580m depth includes
zones of higher-grade material, coincident with the presence of
early dioritic and monzonitic intrusions and includes the following
intersections ( Table1 ).
Hole ID From To Interval Cu Au CuEq Cut-off m% Comments
m m m % g/t % (CuEq%) (CuEq%)
Open at
PDH-20-001 10 580 570 0.49 0.27 0.69 0.20 393.3 Depth
----- ---- --------- ----- ----- ----- --------- --------- ---------
PDH-20-001 10 96 86 0.55 0.32 0.79 0.30 67.9
----- ---- --------- ----- ----- ----- --------- --------- ---------
PDH-20-001 108 378 270 0.46 0.30 0.68 0.30 183.6
----- ---- --------- ----- ----- ----- --------- --------- ---------
Open at
PDH-20-001 392 580 188 0.56 0.23 0.73 0.30 137.2 Depth
----- ---- --------- ----- ----- ----- --------- --------- ---------
PDH-20-001 14 90 76 0.60 0.33 0.85 0.50 64.6
----- ---- --------- ----- ----- ----- --------- --------- ---------
PDH-20-001 258 368 110 0.57 0.42 0.88 0.50 96.8
----- ---- --------- ----- ----- ----- --------- --------- ---------
Open at
PDH-20-001 406 580 174 0.58 0.24 0.75 0.50 130.5 Depth
----- ---- --------- ----- ----- ----- --------- --------- ---------
PDH-20-001 264 360 96 0.60 0.44 0.93 0.70 89.3
----- ---- --------- ----- ----- ----- --------- --------- ---------
Open at
PDH-20-001 474 580 106 0.67 0.25 0.86 0.70 91.2 Depth
----- ---- --------- ----- ----- ----- --------- --------- ---------
Notes:
1 . Significant down-hole drill intercepts are reported using
a data aggregation method based on 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.
2 . Copper Equivalent was 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 copper price of
US$3.30/lb and a gold price US$1700/oz.
3 . True width of down-hole intersections reported are therefore
expected to be approximately 55-60% of the down-hole lengths.
------------------------------------------------------------------------------------------
Table 1 : PDH-20-001 down-hole intercepts.
True widths of downhole intersections are not well constrained
as of yet. Drill hole one was drilled at an inclination of -55
degrees towards the east, and the interpreted orientation of the
Cacharposa Intrusive Complex and its associated porphyry
copper-gold mineralisation is subvertical, dipping approximately
85-90 degrees to the west. The true width of down-hole
intersections reported are therefore expected to be approximately
55-60% of the down-hole lengths.
Remaining assay results for PDH-20-001 are expected later this
month, and assays received to date confirm the potential for the
presence of a large strongly mineralised porphyry system at
Cacharposa as indicated by previously reported visual
estimates.
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).
PDH-20-001 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 porphyry Cu-Au system.
The current depth of PDH-20-002 is 839.9m and an update on
visual mineralisation encountered so far will be forthcoming later
this month.
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 150m, showing assay results to 580m in PDH-20-001 as
well as current and selected 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.
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 down-hole drilling intercepts and 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.
True widths of downhole intersections are not well constrained.
Drill hole one was inclined -55degrees towards the east, and the
interpreted trend of the Cacharposa Intrusive Complex and its
associated porphyry copper-gold mineralisation is subvertical,
dipping approximately 85-90 degrees to the west. The true width of
down-hole intersections reported are therefore expected to be
approximately 55-60% of the down-hole lengths.
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
DRLBIBFTMTIMMIM
(END) Dow Jones Newswires
November 04, 2020 02:00 ET (07:00 GMT)
Solgold (LSE:SOLG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Solgold (LSE:SOLG)
Historical Stock Chart
From Jul 2023 to Jul 2024