TIDMSOLG
RNS Number : 8349N
SolGold PLC
03 February 2021
3 February 2021
SolGold plc
Ecuador Regional Exploration Update
The Board and Executive Directors of SolGold ("SolGold" or the
"Company") (LSE & TSX code: SOLG) are pleased to provide an
exploration update on its regional exploration programme. The
Company continues to pursue its strategy as an integrated explorer
and developer, based on preservation of value for all shareholders.
The Company maintains its plan of applying its exploration
blueprint. This includes systematic and aggressive evaluation
across its exploration assets in Ecuador, which are held by four
wholly owned subsidiaries.
HIGHLIGHTS:
Porvenir Project, Southern Ecuador: Cacharposa Target
Ø Final assays from Holes 1, 2, 3 and 4 at Cacharposa porphyry
copper-gold target return encouraging results, including highly
significant intersections of over 400m% copper equivalent:
-- Hole 1: 928m @ 0.53 % CuEq from 10m, including 644m @ 0.65 % CuEq from 10m.
-- Hole 2: 818m @ 0.45 % CuEq from surface, including 690m @ 0.51 % CuEq from surface.
-- Hole 3: 304m @ 0.58 % CuEq from surface, including 264m @ 0.65 % CuEq from surface.
-- Hole 4: 934m @ 0.26% CuEq from 174m, including 272m @ 0.41 % CuEq from 234m.
Ø Visible copper-sulphide mineralisation encountered in Holes 5
to 8 (assay results pending) are highly encouraging and continue to
substantiate the growing potential for significant near-surface
resources at Cacharposa.
Ø An updated 25,000m drilling program is planned for 2021 at
Cacharposa following preliminary 3D geological and numeric
modelling that suggests the target may be amenable to large tonnage
open-pit mining methods.
Blanca Project, Northern Ecuador: Cerro Quiroz Target
Ø Partial preliminary assays from Cerro Quiroz Target indicate
that hydrothermal breccias may host significant gold
mineralisation. Final assays for Holes 1 and 2 are expected in the
coming month.
Ø A revised planned drilling program of up to 3000m for 2021 at
Blanca, is designed to test gold-bearing hydrothermal breccias at
Cerro Quiroz Target, and high-grade narrow vein epithermal gold
mineralisation along strike from the Cielito vein system.
Rio Amarillo Project, Northern Ecuador: Varela Target
Ø Completion of drill sites and core processing facilities in
conjunction with expansion of camp, office and fuel storage
facilities are underway in readiness for drilling. Recent technical
reviews of updated surface geochemical datasets are underway and an
upgraded initial 12,000m planned drilling program at the
high-quality Varela porphyry copper-gold target is planned for
commencement in Q2 2021.
La Hueca Project, Southern Ecuador: Target#6
Ø The initial drilling campaign at Target#6 porphyry
copper-gold-molybdenum prospect was postponed in November 2020
after completion of 1558m in Holes 1 to 3. Suspension of this
drilling program allowed redirection of the drill rig to the
priority Porvenir project. Technical reviews to better understand
the style and geometry of mineralisation at Target#6 and its
surrounding targets is being undertaken before further drilling
targets are finalised.
Sharug and Cisne Loja Projects, Southern Ecuador: Santa Martha
and Celen Targets
Ø Initial 3,000m drilling programs are planned for mid-2021, at
both the Santa Martha and Celen porphyry copper-gold targets,
following completion of 3D geophysical and geochemical modelling
and completion of the permitting processes for scout drilling.
References to figures relate to the version visible in PDF
format by clicking the link below:
http://www.rns-pdf.londonstockexchange.com/rns/8349N_1-2021-2-3.pdf
Further Information
SolGold's Regional Exploration Drive in Ecuador coordinates
multiple highly skilled field teams systematically exploring and
assessing 75 regional concessions across 14 Provinces throughout
the country. The Company's regional concessions lie along the
prolific Andean Copper belt which is renowned as the production
base for a significant portion of the world's copper and gold. The
Ecuador regional exploration drive currently focusses on 13 high
priority projects identified for aggressive exploration, 5 of which
are now considered Core Targets that have been elevated to drill
ready status (Table 1 & Figure 1).
Priority Core Target
Project Priority Targets (Drill Ready) Subsidiary
---------------------- --------------- -------------------------
Cacharposa, Target Green Rock Resources
1 Porvenir #2-16. Cacharposa S.A.
---------------------- --------------- -------------------------
Green Rock Resources
2 Sharug Santa Martha Santa Martha S.A.
---------------------- --------------- -------------------------
Green Rock Resources
3 Cisne Loja Celen Celen S.A.
---------------------- --------------- -------------------------
Carnegie Ridge Resources
4 Blanca Cielito, Cerro-Quiroz Cerro-Quiroz S.A
---------------------- --------------- -------------------------
Varela, Palomar, Carnegie Ridge Resources
5 Rio Amarillo Chalanes Varela S.A
---------------------- --------------- -------------------------
further work Carnegie Ridge Resources
6 Chical Esperanza, Espinosa required S.A
---------------------- --------------- -------------------------
further work
7 Cisne Victoria Victoria required Cruz Del Sol S.A
---------------------- --------------- -------------------------
further work
8 Coangos further work required required Cruz Del Sol S.A
---------------------- --------------- -------------------------
further work
9 Helipuertos further work required required Cruz Del Sol S.A
---------------------- --------------- -------------------------
Target #6, Target further work
10 La Hueca #1-5 required Cruz Del Sol S.A
---------------------- --------------- -------------------------
further work Green Rock Resources
11 Chillanes Central Chillanes required S.A.
---------------------- --------------- -------------------------
further work Green Rock Resources
12 Timbara Tunantza required S.A.
---------------------- --------------- -------------------------
further work Vale Rico Resources
13 Salinas Target #1 required S.A
--- --------------- ---------------------- --------------- -------------------------
Table 1 : SolGold's Ecuador Regional Exploration Drive is
focussed on 13 High Priority Projects, 5 of which are now
considered drill ready Core Targets.
Porvenir Project, Southern Ecuador: Cacharposa Target
The Porvenir Project is located approximately 100 km north of
the Peruvian border, within Southern Ecuador. The Cacharposa
porphyry copper-gold target is part of a 1700m long
northerly-trending mineralised corridor, up to 1000m wide. The
target is characterised by coincident Cu, Mo, Au and Cu/Zn soil
anomalies that lie central to a zone of Mn-depletion in soil. Soil
Molybdenum geochemistry shows a broad high nested within the
magnetic feature and exhibits good inverse correlation with soil
Manganese. RTP magnetics exhibit a central magnetic high surrounded
by an annular magnetic low. These characteristics together are
typical of numerous significant porphyry deposits globally, several
of which have become mines. (Figure 2).
Hole 1 at Cacharposa was re-entered and extended from 909.3m to
1122.9m depth. Holes 2, 3 and 4 were terminated at depth of
1200.1m, 750.6m and 1113.5m respectively. Final assays from Holes
1- 4 at Cacharposa porphyry copper-gold target returned the
following bulk intercepts:
-- Hole 1: 928m @ 0.53 % CuEq from 10m, including 644m @ 0.65 % CuEq from 10m.
-- Hole 2: 818m @ 0.45 % CuEq from surface, including 690m @ 0.51 % CuEq from surface.
-- Hole 3: 304m @ 0.58 % from surface, including 264m @ 0.65 % CuEq from surface.
-- Hole 4: 934m @ 0.26% CuEq from 174m, including 272m @ 0.41 % CuEq from 234m.
Final assays from Holes 1-4 at Cacharposa porphyry copper-gold
target have returned highly encouraging results, including
intercepts of over 400m% CuEq. (Table 2).
Hole ID From To Interval Cu Au g/t Cu.Eq Cut-off m% (CuEq%)
m m m % % (CuEq%)
PDH-20-001 10 938 928 0.39 0.18 0.53 0.10 491.8
--------- ------ -----------
PDH-20-001 10 654 644 0.47 0.24 0.65 0.20 418.6
------------ ----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-001 108 378 270 0.46 0.30 0.68 0.30 183.6
------------ ----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-001 392 610 218 0.53 0.20 0.69 0.30 150.4
------------ ----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-001 258 368 110 0.57 0.42 0.88 0.50 96.8
------------ ----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-001 406 592 186 0.58 0.23 0.75 0.50 139.5
------------ ----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-002 0 818 818 0.35 0.14 0.45 na 368.1
------------ ----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-002 0 692 690 0.39 0.17 0.51 0.10 351.9
------------ ----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-002 0 262 262 0.47 0.32 0.71 0.20 186.0
------------ ----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-002 274 692 418 0.34 0.07 0.40 0.20 167.2
------------ ----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-002 12 224 212 0.55 0.36 0.83 0.50 176.0
------------ ----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-002 578 680 102 0.62 0.09 0.69 0.50 70.4
------------ ----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-003 0 264 264 0.40 0.34 0.65 0.10 171.6
------------ ----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-003 0 304 304 0.35 0.30 0.58 na 176.3
------------ ----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-003 0 180 180 0.54 0.47 0.89 0.20 160.2
------------ ----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-003 0 160 160 0.59 0.51 0.98 0.30 156.8
------------ ----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-003 0 124 124 0.69 0.62 1.16 0.50 143.8
------------ ----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-004 174 740 566 0.25 0.06 0.30 0.10 169.8
------------ ----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-004 174 1108 934 0.22 0.05 0.26 na 242.8
------------ ----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-004 234 506 272 0.34 0.08 0.41 0.20 111.5
------------ ----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-004 262 444 182 0.43 0.09 0.50 0.30 91.0
------------ ----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-004 344 434 90 0.56 0.14 0.66 0.50 59.4
------------ ----- ----- --------- ----- ------- ------ --------- -----------
Notes:
1 . Down-hole drill intercept 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. Cut-off of 'na'refers to intervals
selected manually. 2. Copper Equivalent calculation assumes
100% recovery of copper and gold and uses 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 estimated to
be approximately 55-90% of the down-hole lengths.
Table 2 : Significant intersections achieved from drill holes
1-4 at Cacharposa porphyry copper-gold target, Porvenir Project,
Southern Ecuador.
Hole 5 has been completed at 1037m depth and Holes 6-8 are
currently underway. Visible copper-sulphide mineralisation
encountered in drill holes 5 to 8 (assay results pending) are
highly encouraging and continue to substantiate the growing
potential for a significant near-surface resource at Cacharposa.
Zones of visible copper mineralisation encountered in drill holes 5
to 8 are summarised in Table 3.
Hole ID Hole Logging Status Visible Copper-Sulphide Copper-Sulphide**
Depth Depth (volume percent)
(m) (m)
------- -------- ------------- -------------------------------- ------------------
from to (m) interval max*
(m)
------- -------- ------------- ----- ------- --------- ----- ------------------
completed,
assays
PDH-20-005 1037.0 1037.0 pending 80 528 448 2.4% Cpy
------------ ------- -------- ------------- ----- ------- --------- ----- ------------------
586 680 94 1.5% Cpy
------------ ------- -------- ------------- ----- ------- --------- ----- ------------------
730 746 16 1.2% Cpy, Bn
----- ------- --------- ----- ------------------
752 1030 278 1.2% Cpy
------------ ------- -------- ------------- ----- ------- --------- ----- ------------------
in progress,
assays Cc, Cpy,
PDH-20-006 551.0 538.0 pending 6.5 48 41.5 0.6% Bn
------------ ------- -------- ------------- ----- ------- --------- ----- ------------------
50 538 488 1.0% Cpy
------------ ------- -------- ------------- ----- ------- --------- ----- ------------------
PDH-20-007 800.5 780.0 138 196 58 0.6% Cpy
------------ ------- -------- ----- ------- --------- ----- ------------------
312 780 468 3.8% Cpy, Cc
------------ ------- -------- ----- ------- --------- ----- ------------------
PDH-20-008 229.5 106.0 0 106 106 na na
------------ ------- -------- ------------- ----- ------- --------- ----- ------------------
* maximum total copper sulphide. ** Cpy - chalcopyrite, Cc -
chalcocite, Bn - bornite
bold italic text : drilling in progress, visible
mineralisation open at depth.
------------------------------------------------------------------------- ----- ------------------
Table 3 : Zones of visible copper mineralisation encountered in
drill holes 5 to 8.
An updated 25,000m planned drilling program for 2021 at
Cacharposa is designed to test a mineralised corridor over a 1700m
by 1000m area. Further updates will be forthcoming following
receipt of final assays for entire hole lengths.
3D Numerical Interpolation of assay results received to date,
utilising the interpreted orientation of mineralisation within the
Cacharposa Intrusive Complex, provides an exploration tool for
targeting future drill holes. This work also provides a basic means
for determining potential mining methods at current metal prices.
First pass analysis at >0.10% CuEq cut-off grade, suggests that
the Cacharposa Target may be amenable to large tonnage open-pit
mining methods (Figure 3).
The interpreted orientation of the Cacharposa Intrusive Complex
and its associated porphyry copper-gold mineralisation is
subvertical, dipping approximately 75 degrees to the northwest. The
true width of down-hole intersections reported are therefore
expected to be approximately 55-90% of the down-hole lengths,
depending on the orientation of any given drill hole.
Currently 3 drilling man-portable drill rigs are operational at
Cacharposa. The planned introduction of a fourth machine has been
postponed considering the high rainfall in the area and its
limiting impacts on helicopter-support utilisation. Expanding the
fleet directly from 3 to 6 machines is preferrable considering that
a second helicopter support team will be required to expand the
fleet beyond 3 machines. The fleet expansion will be reassessed
once all 3 supplementary machines are available and dependant of
future drilling results.
Blanca Project, Northern Ecuador: Cerro Quiroz Target
The Blanca Project is located approximately 8km northeast of
SolGold's flagship Alpala Project in Northern Ecuador. A
man-portable drill rig has been operating at Cerro Quiroz since 3
October 2020, with a break in operation over the Christmas period
due to Covid-19 related delays in assay turnaround time at the ALS
Global assay laboratory in Peru. Drilling is planned to recommence
in February 2021.
Four drill holes have been completed at the Blanca Project for a
total of 2040.7m. An initial 800.1m of drilling completed in Holes
1 and 2 (BDH-20-001 and BHD-20-002) at Cielito Prospect in
September 2019. A second campaign from October to December 2020 at
the Cerro Quiroz Prospect, completed a further 1,240.6m of drilling
in Holes 3 and 4 (BDH-20-003 and BDH-20-004) (Figure 4).
The Cerro Quiroz Target is characterised by a
northerly-trending, silicified topographic dome feature that occurs
coincident with anomalous Au-Cu-Mo-Ag-Pb-Zn soil geochemistry. This
signature is consistent with base-metal sulphide gold veining often
formed peripheral to a porphyry source and/or epithermal vein
systems (Figure 5)
Partial assays from Hole 2 at Cerro Quiroz Target indicate that
hydrothermal breccia-hosted gold targets may host significant gold,
silver and zinc mineralisation over narrow intervals at
approximately 350m below surface. Final assays for Holes 1 and 2
are expected in the coming month. High grade narrow-vein epithermal
gold and telluride mineralisation is conspicuous at the nearby
Cielito Target, approximately 500m to the northeast.
At the Cielito prospect, drilling tested narrow-vein base-metal
sulphide gold-telluride lodes that were the focus of earlier
artisanal mining operations. Due to the course nature of the gold
encountered through drilling, a suite of check assay techniques
were used to verify the gold assay results. Final assay results
received for drill holes 1 and 2 at Cielito Prospect returned:
-- BDH-19-001: 0.27m @ 11.5 g/t Au from 97.1m depth, and
-- BDH-19-002: 0.06m @ 61.9 g/t Au from 49.0m, and 0.15m @ 32.6 g/t Au from 286.9m.
Whilst gold grades were encouraging, the intersection widths did
not provide sufficient encouragement to continue drill testing for
narrow-vein high-grade gold mineralisation at the Cielito
Prospect.
Further drill testing may target the central combined soil
geochemical high and sericite-illite alteration zones, dependant of
results received from Holes 3 and 4. A revised planned drilling
program of up to 3000m for 2021 at Blanca Project, is proposed to
test gold-bearing hydrothermal breccias at Cerro Quiroz Target, and
high-grade narrow vein epithermal gold mineralisation along strike
from the Cielito vein system.
Rio Amarillo Project, Northern Ecuador: Varela Target
The Rio Amarillo Project is located approximately 30km southeast
of the Company's flagship Alpala Porphyry Copper-Gold-Silver
Deposit, some 20 km northwest of the provincial capital,
Ibarra.
The regional position of the Rio Amarillo Project is
geologically consistent with district scale distribution of
porphyry deposits, with the Tier 1 Alpala (9.9 Mt Cu, 21.7 Moz Au,
92.2 Moz Ag) and Llurimagua (16.9 Mt Cu) deposits occurring some
30km and 60km away respectively.
The Varela porphyry copper-gold target is characterised by a
well-preserved metalliferous lithocap and hydrothermal alteration
system with a full complement of porphyry plume chemical elements,
the classic signature of a large scale strongly mineralised
Porphyry Copper-Gold(-Molybdenum) system.
Significant upgrade of Varela Target ( announced 8 October 2020)
highlighted strong similarities between Varela and Alpala Lithocap
footprints and geochemical signatures. More recent technical
reviews of updated surface geochemical datasets have resulted in an
upgraded initial 12,000m planned drilling program at the
high-quality Varela porphyry copper-gold target, planned for
commencement in Q2 2021. Initial drilling at Varela will test
underneath outcropping porphyry style vein stockworks which
returned surface rock-saw channel sample results of 99m @ 0.34%
CuEq including 25.1m @ 0.58% CuEq.
Commencement of drilling originally planned for November 2020
was delayed due to permitting and COVID-19 related delays resulting
in further expansion of camp facilities to accommodate for
isolation requirements now in place. Completion of drilling
platforms and core processing facilities in conjunction with
expansion of camp, office and fuel storage facilities are underway
in readiness for drilling.
La Hueca Project, Southern Ecuador: Target#6
The initial drilling campaign at Target#6 porphyry
copper-gold-molybdenum prospect was postponed in November 2020
after completion of 1558m in Holes 1 to 3. Suspension of this
drilling program allowed redirection of the drill rig to the
priority Porvenir project. Technical reviews to better understand
the style and geometry of mineralisation at Target#6 and its
surrounding targets is being undertaken before further drilling
targets are finalised.
Sharug Project, Southern Ecuador: Santa Martha Target
At the Sharug Project, scout drilling applications are prepared
for submittal ahead of planned drill testing of the Santa Martha
porphyry copper-gold target. The Santa Martha Target is
characterised by coincident Cu-Au-Mo soil geochemical anomalies
centred upon an RTP magnetic low interpreted to represent magnetic
destruction in association with significant surface alteration. An
initial 3,000m drilling program is planned for mid-2021, following
completion of operational facilities at the site.
Cisne Loja Projects, Southern Ecuador: Celen Target
At the Cisne Loja Project, field geological, structural and
alteration mapping in combination with soil and rock geochemical
sampling have identified a 1000m x 750m zone of coincident Cu-Au-Mo
soil geochemical anomalism centred upon an RTP magnetic high with
an annular magnetic low. Field mapping has identified zones of
magnetite-chalcopyrite porphyry veining and diagnostic secondary
copper minerals, neotocite, malachite and azurite within the target
area. An initial 3,000m drilling program is planned for mid-2021,
following completion of 3D geophysical and geochemical modelling,
and the completion of the permitting processes for scout
drilling.
Figure 1: Location Map. SolGold's Ecuador Regional Exploration
Drive, showing the 13 High Priority Projects identified for
aggressive exploration, 5 of which are now considered Core Targets
that have been elevated to drill ready status.
Figure 2: Drilling Plans showing completed and planned drill
holes over RPT ground magnetics (top left) and geochemical
signatures at Cacharposa. RTP magnetics exhibit a central magnetic
high surrounded by an annular magnetic low. Coincident soil
Cu-Au-Mo-Cu/Zn geochemistry highs lie nested within the RTP
magnetic feature and exhibit good inverse correlation with soil
Mn.
Figure 3: Cross-section along the paths of drill holes 1-4 at
Cacharposa, looking north-northeast with window thickness of 50m,
and showing assay results received to date and significant bulk
intersections reported, over current 3D Numerical Modelling at >
0.1% CuEq cut-off grade considered a significant evaluation level
for potential large tonnage open-pit mining methods.
Figure 4: Drilling Plan showing completed and planned drill
holes over soil Au geochemistry and sericite-illite alteration
zones (yellow polygons) at Cerro Quiroz and Cielito Prospects.
Figure 5: Drilling Plans showing completed and planned drill
holes over soil geochemical signatures and sericite-illite
alteration zones (yellow polygons) at Cerro Quiroz and Cielito
Prospects.
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
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
Eliza Michael / Fawzi Hanano
SolGold Plc (Media / Investors) Tel: +44 (0) 20 3823 2131
emichael@solgold.com.au / fhanano@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. 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.
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.
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END
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