TIDMSOLG
RNS Number : 1961I
SolGold PLC
10 December 2020
10 December 2020
SolGold plc
("SolGold" or the "Company")
Drilling Underway at the Tandayama-America Porphyry Copper-Gold
Target, Cascabel
The Board of SolGold (LSE & TSX: SOLG) is pleased to provide
an update on its Cascabel Project, held by Exploraciones Novomining
S.A, an 85% owned subsidiary of SolGold.
Highlights
Ø Drilling has now commenced at the Tandayama-America porphyry
copper-gold target, Cascabel utilising 2 diamond drill rigs as part
of the ongoing Cascabel Feasibility Drilling Program.
Ø The Tandayama-America target is considered a significant
porphyry target characterised by coincident Cu-Mo-Au soil
geochemical highs centred upon outcropping mineralisation in the
Tandayama and America creeks.
Ø Rock-saw channel sampling over surface exposure in Tandayama
Creek returned a significant assay result of 37m @ 0.25%CuEq
(0.15Cu, 0.18 Au).
Ø The Tandayama-America target remained untested previously due
to the high demand of drilling rigs at the Alpala Deposit.
Ø Rig 5 is drilling the first hole at Tandayama-America,
TAD-20-001, and is at a current depth of 258m. Drilling has
intersected visible chalcopyrite copper sulphide mineralisation
from 55m depth, with additional visible molybdenite and sphalerite
mineralisation occurring from 199m depth.
Ø Rig 6 is drilling the second hole at Tandayama-America,
TAD-20-002, and is at a current depth of 104m. Drilling has
intersected visible chalcopyrite mineralisation from 44m depth,
including trace visible bornite from 68m depth.
References to figures relate to the version visible in PDF
format by clicking the link below:
http://www.rns-pdf.londonstockexchange.com/rns/1961I_1-2020-12-10.pdf
SolGold Technical Services Manager, Benn Whistler, commenting on
today's update said:
"We have always been interested in the drill targets at
Tandayama-America, however the prioritisation of the Alpala
Resource and Feasibility Drilling Programs has seen this target
scheduled to form part of the Cascabel Feasibility Sterilisation
Drilling Program now underway.
The Tandayama soil copper and molybdenum anomalies are two of
the largest anomalies on the project. The rock-saw channel assay
results from surface exposures in Tandayama Creek returned a
moderate intercept of 37m @ 0.25%CuEq and if this exposure
represents an intra-mineral intrusion there remains potential for
drill testing to intersect earlier, richer intrusions. At this
stage mineralisation does appear to be increasing down hole which
bodes well as both drill holes enter the area of combined cu-mo-au
soil anomalism ."
Further Information
The Alpala Deposit is located on the Cascabel property within
the Imbabura province of northern Ecuador, approximately 100km
north of the capital city of Quito and approximately 50 km
north-northwest of the provincial capital, Ibarra. The Alpala
deposit occurs upon the northern section of the prolific Andean
Copper Belt, 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 is a
three-hour drive north of Quito, close to water, power supply and
Pacific ports ( Figure 1 ).
SolGold holds an 85% registered and beneficial interest in ENSA
(Exploraciones Novomining S.A.) which holds 100% of the Cascabel
tenement.
Drilling targets within the Cascabel concession comprise a
cluster of Eocene aged porphyry deposits and prospects which
include:
-- The world class Alpala deposit, incorporating several targets
defined along The Greater Alpala Trend
including Alpala Central, Alpala NW, Trivinio, Alpala Western Limb, Alpala SE, and Alpala South),
-- The Aguinaga Porphyry Copper-Gold Deposit,
-- Chinambicito and Parambas porphyry Copper-Gold prospects, and
-- Untested porphyry targets at Tandayama-America, Moran and Upper Moran ( Figure 2 ).
Drilling has now commenced at the Tandayama-America porphyry
copper-gold target, Cascabel utilising diamond drill rigs 5 and 6
of the Cascabel fleet, as part of the ongoing Cascabel Feasibility
Sterilisation Program ( Figure 3 ).
Rig 5 is drilling the first hole at Tandayama-America,
TAD-20-001, and is at a current depth of 258m. Drilling has
intersected visible chalcopyrite copper sulphide mineralisation
from 55m depth, with additional visible molybdenite and sphalerite
mineralisation occurring from 199m depth.
Rig 6 is drilling the second hole at Tandayama-America,
TAD-20-002, and is at a current depth of 104m. Drilling has
intersected visible chalcopyrite mineralisation from 44m depth,
including trace visible bornite from 68m depth ( Figure 4 ).
The Tandayama-America target is considered a high-quality
porphyry target characterised by coincident Cu, Mo, Au, CuZn ratio,
and MoMn ratio soil geochemical highs centred upon outcropping
mineralisation in Tandayama and America creeks ( Figure 5 ).
Rock-saw channel sampling over surface exposure in Tandayama
Creek returned a significant assay result of 37m @ 0.25%CuEq
(0.15Cu, 0.18 Au), where B-type porphyry quartz veins hosting
chalcopyrite mineralisation were discovered at surface ( Figure 6
).
The Tandayama-America target remained untested previously due to
the high demand of drilling rigs at the Alpala Deposit.
Figure 1 : Location of Cascabel project in Imbabura Province,
northern Ecuador, highlighting the significant capital advantages
held by the project, with proximity to ports, road infrastructure,
hydro-electric power stations and the trans-continental power
grid.
Figure 2 : Drilling targets within the Cascabel concession
comprise a cluster of Eocene aged porphyry deposits and prospects
which include the untested porphyry targets at Tandayama-America,
Moran and Upper Moran.
Figure 3 : Drill plan at the Tandayama-America Porphyry
Copper-Gold Target, Cascabel Drilling showing planned and actual
drill holes over background soil Mo anomalism. Two diamond drill
rigs are now active as part of the ongoing Cascabel Feasibility
Sterilisation Program. Rig 5 is drilling the first hole at
Tandayama-America, TAD-20-001, and is at a current depth of 210m,
whilst Rig 6 is drilling the second hole at Tandayama-America,
TAD-20-002, and is at a current depth of 60m.
Figure 4 : Selected drill core example of visible
chalcopyrite-pyrite mineralisation, including trace visible
bornite, at 68.8m depth in TAD-20-002.
Figure 5 : The Tandayama-America target is characterised by
coincident Cu, Mo, CuZn ratio and MoMn ratio soil geochemical highs
centred upon outcropping mineralisation in Tandayama and America
creeks.
Figure 6 : Rock-saw channel sampling over surface exposure in
Tandayama Creek returned a significant assay result of 37m @
0.25%CuEq (0.15Cu, 0.18 Au). This work was completed in mid-2016 as
part of routine exploration on the tenement where B-type porphyry
quartz veins hosting chalcopyrite mineralisation were discovered at
surface.
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
SolGold Plc (Chief Executive Officer) Tel: +61 (0) 7 3303 0665
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
Fawzi Hanano / Eliza Michael
SolGold Plc (Investors / Media) Tel: +44 (0) 20 3823 2131
fhanano@solgold.com.au emichael@solgold.com.au
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
2,084,113,494 fully-paid ordinary shares and 112,275,000 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.
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