TIDMSOLG
RNS Number : 1323O
SolGold PLC
05 February 2021
5 February 2021
SolGold plc
("SolGold" or the "Company")
Alpala Pre-Feasibility Study Update
The Board of Directors of SolGold (LSE & TSX: SOLG) wishes
to provide an update regarding progress of the Pre-Feasibility
Study ("PFS") with respect to the Alpala Project ("Project") on the
Cascabel concession in northern Ecuador.
The Project Committee ("Committee"), chaired by Non-Executive
Director Keith Marshall, has reviewed the work undertaken to date
on the Alpala PFS and provided its recommendation to the Board on
the next steps to progress to completion of a revised Alpala PFS
covering the entire Cascabel concession.
The Committee has determined that additional work is required to
sufficiently address a number of mine development and metallurgical
alternatives and potential upsides, including the resource
potential on other targets within the Cascabel concession.
Commenting on today's PFS update, SolGold CEO, Mr Nick Mather
said:
"The objective of a revised study encompassing all of the
Cascabel targets is to reduce the risk of a very large initial
capex on a large underground development and deliver a study which
demonstrates a lower technical risk through better defined upsides
in resources, operating costs and recoveries and augments
production with early stage open cuttable resources. Continued
strength in global copper and gold markets will further endorse the
strategy of making the Cascabel project lower risk, quicker to
build and bring to production if a development decision is made and
with reduced upfront capital exposure. We believe the extra time to
be spent on the revised study is well founded and will lay the
basis for the next phase of the evolution of SolGold. This endorses
SolGold's strategy for the future."
The Committee has identified the key work required and noted
that it would be advisable to consider adjusting the current draft
mine development plan and the draft mine production plan to de-risk
the project with a view to facilitating the expeditious development
and optimised capital requirements.
On the basis of the report of the Project Committee, the Board
of Directors has requested SolGold management to review both the
current draft mine development plan and draft mine production plan,
specifically:
-- to examine an alternative mine access to accelerate the development of the cave,
-- to examine the draft mine production plan with a view to
ascertaining the optimum production rate, with the most likely
scenario being a reduction of the previously contemplated mining
rate but at higher grades from a reduced footprint in the early
stages of operations,
-- to study an optimised block cave footprint targeting higher
grade material in the early stages, whilst maintaining expansion
capabilities through plant and infrastructure addition
strategies,
-- to correspondingly optimise the capital cost and construction
schedules of all related downstream milling, processing and
tailings operations,
-- to undertake a thorough re-assessment of all potential
near-surface mining options at the Alpala Deposit, and
-- to investigate the resource potential at satellite targets on
the Cascabel concession, including Tandayama-America, Aguinaga and
Moran.
Management is also investigating other options and scenarios to
deliver further value, including adoption of dedicated hydro-power
plants, and the improvement of metallurgical recoveries.
Further drilling, including the collection of more extensive
geotechnical, hydrogeological and metallurgical data sets, has been
underway over the last six months. The provision of more extensive
data sets will address uncertainties, which are typical for a
project of this scale and stage.
Exploration drilling completed at the Tandayama-America target,
situated 3km north of the Alpala deposit, in the last three months,
and at the Aguinaga target in Q2 & Q3 of 2018, has intersected
mineralised porphyry copper-gold systems with potential to
ultimately yield further resources which may be included in the
development plan.
The Company has taken this opportunity to commit a portion of
its drilling fleet to a planned 28,795m resource extension program
at the Alpala Deposit, with the remaining portion of the drilling
fleet committed to a planned 19,250m resource delineation program,
at the three satellite prospects for 2021.
With the extra work required, the publication of a PFS is not
expected until late 2021. SolGold will update the market in due
course on progress of the PFS.
SolGold is confident that the additional time and work to
complete a PFS on the scope of the entire Cascabel concession is in
the Company's best interest and will result in the delivery of a
PFS that has the benefit of the consideration of various upside
potential and a broader range of production and development
scenarios than is currently available.
By order of the Board
Karl Schlobohm
Company Secretary
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.
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.
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
UPDDZGGZVKVGMZG
(END) Dow Jones Newswires
February 05, 2021 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