TIDMSOLG
RNS Number : 5559Z
SolGold PLC
24 May 2021
24 May 2021
SolGold plc
("SolGold" or the "Company")
Drilling Results from Holes 1-7 at Tandayama-America Porphyry
Copper-Gold Target, Cascabel, indicative of significant resource
potential
The Board of SolGold (LSE & TSX: SOLG) is pleased to provide
an update on its Tandayama-America ("TAM") Porphyry Copper-Gold
target which lies approximately 3km north of the Alpala Deposit
that comprises 2,663 Mt at 0.53% CuEq in the Measured plus
Indicated categories and contained metal content of 9.9 Mt Cu, 21.7
Moz Au and 92.2 Moz Ag ([1]) , at the Company's Cascabel Project,
held by Exploraciones Novomining S.A ("ENSA"), an 85% owned
subsidiary of SolGold .
Highlights
Ø Drilling results from the Tandayama-America Porphyry
Copper-Gold target at Cascabel has intersected significant copper
and gold mineralisation, including numerous intercepts of over
100m% Copper Equivalent (CuEq) ([2] [3]) .
Ø Selected highlights of drill hole assays received from Holes 1
to 7 include:
-- Hole 1: 531m @ 0.30% CuEq, including 272m @ 0.44% CuEq
-- Hole 3: 1,040m @ 0.33% CuEq, including 350m @ 0.45% CuEq
-- Hole 5: 426m @ 0.37% CuEq, including 342m @ 0.43% CuEq
-- Hole 7: 522m @ 0.38% CuEq, including 230m @ 0.44% CuEq
Ø Assay results from drill holes 8-10 are pending and drilling
of Holes 9 and 10 is currently underway.
Ø Mineralisation at TAM forms a northwest trending corridor,
occupying an area 750m long by 500m wide, and extending from
surface to a depth of over 1,200m. Further drilling aims at
defining the extent of mineralisation towards the northwest, the
southeast and at depth where the deposit remains open.
Ø Due to the significance of results achieved thus far at TAM,
additional diamond drill rigs are to be mobilised to expedite
drilling.
Ø An NI 43-101 compliant Maiden Mineral Resource Estimate is
planned for later in 2021.
SolGold Executive Board Member and ENSA President, Mr Jason
Ward, commented on the work being advanced at Cascabel:
"Significant copper and gold mineralisation at the TAM target
will add to the already impressive metal inventory at Alpala. The
recent drilling results at TAM are indicative of a significant
prospective resource that appears amenable to bulk surface mining
methods. This seems likely to have a major beneficial impact on the
development of the Cascabel property as a whole and the further
upside of a potentially significant deep target beneath TAM is
certainly adding excitement to the growing possibilities at
Cascabel."
([1]) See "Cascabel Property NI 43-101 Technical Report, Alpala
Porphyry Copper-Gold-Silver Deposit - Mineral Resource Estimation,
January 2021" with an Effective date: 18 March 2020 and Amended
Date: 15 January 2021 (the "Amended Technical Report"), filed at
www.Sedar.com on January 29, 2021.
([2]) Copper Equivalent (CuEq) 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$1,700/oz.
([3]) Metre percent Copper Equivalent (m% CuEq) = interval
length (m) x grade of the entire interval (CuEq%). M% CuEq
calculation provides a standardised measure of comparing drilling
intercepts by calculating an analogous interval length that would
hold a CuEq% grade of 1% for each metre within the selected
interval.
References to figures relate to the version visible in PDF
format by clicking the link below:
http://www.rns-pdf.londonstockexchange.com/rns/5559Z_1-2021-5-24.pdf
Further Information
The TAM target lies approximately 3km north of the Alpala
Deposit, located on the Cascabel property within the Imbabura
province of northern Ecuador. The project area lies approximately
100km north of the capital city of Quito and approximately 50km
north-northwest of the provincial capital, Ibarra ( Figure 1 ).
Drilling from the TAM Copper-Gold target at Cascabel has
intersected significant copper and gold mineralisation. Final assay
results from drill holes 1-7 returned numerous intercepts of over
100m% CuEq ( Table 1 ).
Selected highlights of drill hole assays received from Holes 1
to 7 include:
-- Hole 1: 531m @ 0.30% CuEq, including 272m @ 0.44% CuEq
-- Hole 2: 487m @ 0.20% CuEq
-- Hole 3: 1,040m @ 0.33% CuEq, including 350m @ 0.45% CuEq
-- Hole 4: 364m @ 0.28% CuEq, including 312m @ 0.30% CuEq
-- Hole 5: 426m @ 0.37% CuEq, including 342m @ 0.43% CuEq
-- Hole 6: 358m @ 0.29% CuEq, including 160m @ 0.49% CuEq
-- Hole 7: 522m @ 0.38% CuEq, including 230m @ 0.44% CuEq
Selected examples of mineralisation encountered at TAM to date
are provided in Figure 2 .
Assay results from drill holes 8-10 are pending and drilling of
Holes 9 and 10 is currently underway.
Drilling at TAM continues with three diamond drill rigs and
further expansion of the TAM drilling fleet is planned ( Figure 3
). Cross sections through the centre of the target are provided in
Figure 4 .
The intersection of noteworthy porphyry stockwork mineralisation
encountered in Hole 9 in the deeper portions of the drilling area
contained high abundance of B-type quartz-chalcopyrite veining (
Figure 5 ). This intense mineralisation hosted within a pre-mineral
intrusive breccia host rock, suggests that a fluid-rich source
intrusion may be intersected through further drilling at depth, and
highlights the potential for a deeper bulk underground target that
may lie beneath the current drilling area. Further drilling is
planned to test for the potential of a deep-rooted porphyry
system.
Mineralisation at TAM forms a northwest trending corridor,
occupying and area 750m long x 500m wide extending from surface to
a depth of over 1,200m. The TAM target lies open is several
directions:
1. to the northwest and shallow
2. to the southeast from surface to unknown depth, and
3. at depth below the area of current drill testing
The 2021 proposed drilling program focusses on three main
factors:
-- drilling to define the northwest and southeast limits of
mineralisation amenable to bulk surface mining methods, and
-- drilling to define the depth extent and character of
mineralisation with potential amenability to bulk underground
mining methods,
-- infill drilling to increase drill density and geological confidence.
An NI43-101 compliant Maiden Mineral Resource Estimate is
planned for the TAM target later in 2021.
Hole From To Interval Cu Au Cu.Eq Cut-off m% (CuEq) Comments
ID m m m % g/t % (CuEq%)
------------ ------ --------- ----- ----- ------ ---------- ---------
Open at
TAD-20-001 220 751 531 0.20 0.13 0.30 0.10 159.4 Depth
------------ ----- ------ --------- ----- ----- ------ --------- ---------- ---------
330 624 294 0.28 0.19 0.42 0.20 123.5
------------ ----- ------ --------- ----- ----- ------ --------- ---------- ---------
350 622 272 0.29 0.19 0.44 na 119.7
------------ ----- ------ --------- ----- ----- ------ --------- ---------- ---------
TAD-20-002 21 100 79 0.11 0.15 0.22 0.10 17.4
------------ ----- ------ --------- ----- ----- ------ --------- ---------- ---------
Open at
202 690 488 0.12 0.10 0.20 0.10 97.6 Depth
------------ ----- ------ --------- ----- ----- ------ --------- ---------- ---------
TAD-20-003 252 1,292 1,040 0.24 0.11 0.33 0.10 343.3
------------ ----- ------ --------- ----- ----- ------ --------- ---------- ---------
502 1,214 712 0.28 0.13 0.37 0.20 263.4
------------ ----- ------ --------- ----- ----- ------ --------- ---------- ---------
632 982 350 0.34 0.15 0.45 0.30 157.5
------------ ----- ------ --------- ----- ----- ------ --------- ---------- ---------
TAD-20-004 690 1,054 364 0.21 0.08 0.28 0.10 101.9
------------ ----- ------ --------- ----- ----- ------ --------- ---------- ---------
742 1,054 312 0.23 0.09 0.30 0.20 93.6
------------ ----- ------ --------- ----- ----- ------ --------- ---------- ---------
TAD-20-005 218 644 426 0.25 0.16 0.37 0.10 157.6
------------ ----- ------ --------- ----- ----- ------ --------- ---------- ---------
230 572 342 0.29 0.19 0.43 0.30 147.1
------------ ----- ------ --------- ----- ----- ------ --------- ---------- ---------
328 566 238 0.31 0.17 0.44 0.40 104.7
------------ ----- ------ --------- ----- ----- ------ --------- ---------- ---------
TAD-20-006 76 434 358 0.19 0.13 0.29 0.10 103.8
------------ ----- ------ --------- ----- ----- ------ --------- ---------- ---------
200 360 160 0.32 0.22 0.49 0.20 78.4
------------ ----- ------ --------- ----- ----- ------ --------- ---------- ---------
232 352 120 0.36 0.27 0.56 0.40 67.2
------------ ----- ------ --------- ----- ----- ------ --------- ---------- ---------
TAD-20-007 230 752 522 0.26 0.16 0.38 0.10 198.4
------------ ----- ------ --------- ----- ----- ------ --------- ---------- ---------
276 506 230 0.28 0.22 0.44 0.30 101.2
------------ ----- ------ --------- ----- ----- ------ --------- ---------- ---------
524 722 198 0.29 0.14 0.40 0.30 79.2
------------ ----- ------ --------- ----- ----- ------ --------- ---------- ---------
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. True width of down-hole intersections reported are expected
to be approximately 35-95% of the down-hole lengths, depending on
the attitude of the drill hole.
3. 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$1,700/oz.
4. Metre percent Copper Equivalent (m% CuEq) = interval length
(m) x grade of the entire interval (CuEq%). M% CuEq calculation
provides a standardised measure of comparing drilling intercepts by
calculating an analogous interval length that would hold a CuEq%
grade of 1% for each metre within the selected interval.
Table 1 : Selected significant intercepts achieved at the TAM
target to date.
Figure 1 : Location of TAM, Alpala and Aguinaga at the Cascabel
project.
Figure 2 : Selected drill core examples of strong visible
chalcopyrite copper sulphide mineralisation within a quartz-diorite
intrusion in TAD-20-001. Drill core is HQ size or 63.5mm in
diameter.
Figure 3 : Drill Plan at the TAM target, looking down, showing
current and planned drilling over soil molybdenum geochemistry
anomalism. Drilling at TAM continues with three diamond drill rigs
and further expansion of the TAM drilling fleet is planned. Section
lines A-A' and B-B' correspond with Sections A-A' and B'B' provided
below in Figure 4.
Figure 4 : Drill Sections A-A' and B-B', looking northwest, with
a window thickness of 150m, showing modelled grade shells at the
TAM target where Low-, Medium- and High-Grade shells are modelled
utilising CuEq cut-off grades of 0.1%, 0.2% and 0.4%
respectively.
Figure 5 : Drill core examples of intense porphyry stockwork
mineralisation containing a high abundance of B-type
quartz-chalcopyrite veining, hosted within a pre-mineral intrusive
breccia host rock in Hole 9 at the TAM target. These rock types are
characteristic of host rocks proximal to a fluid-rich source
intrusion. Drill core is HQ size or 63.5mm in diameter.
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
Fawzi Hanano
SolGold Plc (Investors / Media) Tel: +44 (0) 20 3823 2131
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, with 76 concessions
covering approximately 3,100km(2), 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 which is currently responsible for c40%
of global mined copper production.
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 800 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.
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
2,292,316,432 fully paid ordinary shares and 108,375,000 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$1,700/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, including the plan for
developing the Project currently being studied as well as the
expectations of the Company as to the forward price of copper. 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 and/or
mine development plan; 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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