TIDMSOLG
RNS Number : 2271I
SolGold PLC
11 August 2021
11 August 2021
SolGold plc
("SolGold" or the "Company")
Ecuador Regional Exploration Update - Drilling Underway at
Sharug Project
The Board of Directors of SolGold (LSE & TSX code: SOLG) is
pleased to provide an update on the Regional Exploration programme
in Ecuador with the commencement of drilling at its Sharug Project
in southern Ecuador, held by Green Rock Resources S.A., a 100%
owned subsidiary of SolGold.
HIGHLIGHTS
Ø Drilling has commenced at the Santa Martha copper gold
porphyry target at the Sharug Project as part of an initial
six-hole drilling program testing extensive coincident surface
geochemical and geophysical anomalies
Ø Mineralisation at Santa Martha is part of a 600m wide by
1,200m long northeast trending corridor containing mineralisation
styles, size and geometry consistent with surface exposure of a
vertically extensive, well-preserved copper-gold porphyry
system
Ø The Santa Martha target is characterised by coincident soil
Cu, Au, Mo soil geochemistry, porphyry style alteration, and a
classic magnetic high surrounded by an annular magnetic low
Ø All scout drilling regulatory approvals have been received for
13 drilling platforms to accommodate multiple holes at the Santa
Martha target
Commenting on today's release, Mr Jason Ward, Executive Director
and Country Manager for SolGold in Ecuador said:
"Santa Martha displays all of the classic porphyry copper gold
signatures that SolGold has recognised through Ecuador and define
the blueprint we developed at the tier 1 Alpala project. The
permitting and organisation of the Santa Martha programme further
endorses SolGold's pan Ecuadorean activities and strategy and are a
testament to our hard-working team and supportive government and
communities.
It's a further step to becoming a large and integrated explorer,
developer and producer in Ecuador, on the most under explored and
prospective section of the Andean Copper Belt. SolGold is dominant
in Ecuador's exploration effort and results to date endorse this
strategy."
References to figures relate to the version visible in PDF
format by clicking the link below:
http://www.rns-pdf.londonstockexchange.com/rns/2271I_1-2021-8-10.pdf
FURTHER INFORMATION
SolGold continues to pursue its strategy to become a tier 1
copper and gold production company through aggressive exploration
of its extensive tenement portfolio in Ecuador. The regional
exploration programme is fully funded to 2022.
The Sharug project which contains the Santa Martha target is
located within the Miocene aged metallogenic Belt of southern
Ecuador (Figure 1) . All scout drilling regulatory approvals have
been received for the 100% SolGold owned Sharug Project in
Ecuador's Southern Copper-Gold Province for 13 drill pads to
accommodate multiple drill holes.
Drilling operations have commenced at the Santa Martha target in
the Sharug Project utilising one man-portable Hydracore(TM) 5000
hybrid man-portable machine modified to drill NQ sized diamond
drill core up to 1,800m depth . Hole 1 is part of a planned
six-hole 3,200m initial drilling program at Sharug ( Figures 4
& 5 ).
The Santa Martha copper-gold-molybdenum porphyry target covers
an area of 1,200m by 600m and remains open to the east on granted
Green Rock Resources S.A. (100% SolGold) tenure. The Santa Martha
target is characterised by coincident Cu, Au, Mo soil geochemistry,
porphyry style alteration, and a classic magnetic high surrounded
by an annular magnetic low ( Figure 3 ).
Mineralisation is exposed at surface at Santa Martha where
outcropping stockwork quartz veining is associated with a central
Cu-Au-Mo anomaly ( Figure 6 ).
The Santa Martha target geology consists of diorite and
quartz-diorite intruded by lesser tourmaline breccias. This
geological setting compares favourably with the geology at
SolGold's flagship Cascabel and Porvenir projects, where Solgold
has defined tier 1 resources and significant discoveries.
Hydrothermal alteration comprises zones of biotite-sericite,
quartz-sericite, chlorite, chlorite-epidote and sericite alteration
typical of fertile porphyry systems ( Figure 2 ).
The initial six-hole drilling program is planned to test the
coincident geochemical and geophysical anomalies at the Santa
Martha target. Seven additional platforms to accommodate multiple
additional holes have been permitted to allow for a seamless
extension of the program depending on initial results.
Figure 1 : Location plan showing Sharug Project in southern
Ecuador
Figure 2 : Prospect locations at the Sharug Project showing the
Santa Martha porphyry target and the Quillosisa epithermal Target
areas with concession outlines and geology mapping
Figure 3 : Interpretation of 3D magnetic inversion under RTP
ground magnetic data, showing secondary magnetic enrichment
surrounded by pervasive alteration and magnetite destruction
Figure 4 : Plan of permitted drilling platforms with the
drilling rig currently setup on the PDH15 platform displayed over
gridded copper in soil anomalism
Figure 5 : 3D magnetic inversion cross section of initial
drilling traverse at Santa Martha, showing copper results in
soil
Figure 6: Photos of outcropping quartz stockwork veining at the
Santa Martha target
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
Dennis Wilkins
Company Secretary
CONTACTS
Dennis Wilkins
SolGold Plc (Company Secretary) Tel: +61 (0) 7 3303 0660
dwilkins@solgold.com.au
Ingo Hofmaier
SolGold Plc (GM - Project & Corporate Tel: +44 (0) 20 3823 2130
Finance) ihofmaier@solgold.com.au
Fawzi Hanano
SolGold Plc (Investors / Media) Tel: +44 (0) 20 3823 2130
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 a large and 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
2,293,816,433 fully paid ordinary shares and 105,125,000 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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END
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