TIDMSOLG
RNS Number : 1311W
SolGold PLC
06 February 2017
6 February 2017
SolGold plc
("SolGold" or the "Company")
Interim Financial Report
The Board of SolGold Plc (SolGold or the Company) is pleased to
advise all shareholders and interested investors of the release of
the Company's Interim Financial Report for the six-month period
ended 31 December 2016. The report is available via clicking the
link below, or in the Investor Centre of the Company's website.
http://www.rns-pdf.londonstockexchange.com/rns/1311W_-2017-2-6.pdf
By order of the Board
Karl Schlobohm
Company Secretary
Contacts:
Mr Nicholas Mather Tel: +61 (0) 7 3303 0665
SolGold Plc (Executive Director) +61 (0) 417 880 448
nmather@solgold.com.au
Mr Karl Schlobohm Tel: +61 (0) 7 3303 0661
SolGold Plc (Company Secretary)
kschlobohm@solgold.com.au
Mr Ewan Leggat / Richard Morrison Tel: +44 (0) 20 3470 0470
SP Angel Corporate Finance LLP (NOMAD and Broker)
Ewan.leggat@spangel.co.uk / richard.morrison@spangel.co.uk
Follow us on twitter @SolGold_plc
NOTES TO EDITORS
SolGold is a Brisbane, Australia based, AIM--listed (SOLG)
copper gold exploration and future development company with assets
in Ecuador, Solomon Islands and Australia. SolGold's primary
objective is to discover and define world--class copper--gold
deposits. The Board and Management Team have substantial vested
interests in the success of Company, as shareholders as well as
strong track records in the areas of exploration, mine appraisal
and development, investment, finance and law. SolGold's experience
is augmented by state of the art geophysical and modelling
techniques and the guidance of Newmont trained porphyry expert Dr
Steve Garwin.
SolGold was shortlisted as a nominee for the Mining Journal
Explorer Achievement Award for 2016.
The Company announced USD54m in capital raisings in September
2016 involving Maxit Capital LP, Newcrest International Ltd and DGR
Global Ltd, all undertaken at substantial premiums to previous
raisings and SolGold has, at January 2017, USD46 million in
available cash to continue the exploration and development of its
flagship Cascabel Project.
Coincident with those capital raisings, Mr Scott Caldwell (CEO
of TSX-listed Guyana Goldfields Inc) joined the SolGold Board on 9
September 2016. Mr Caldwell is a mining engineer with over 30 years
of experience building and operating gold and base metal mines
worldwide, including USA, Canada, Russia, Zimbabwe, Chile and
Indonesia and was in 2016 recognised as CEO of the year for
South-American resource companies.
Cascabel, SolGold's 85% owned world class flagship copper--gold
porphyry project, is located in northern Ecuador on the
under--explored northern section of the richly endowed Andean
Copper Belt. SolGold owns 85% of Exploraciones Novomining S.A.
("ENSA") and approximately 11% of TSX--V--listed Cornerstone
Capital Resources, which holds the remaining 15% of ENSA, the
Ecuadorian registered company which holds 100% of the Cascabel
concession.
The investment by Newcrest into 10% of SolGold and investment
into SolGold by Guyana Goldfields, Maxit Capital and its clients,
endorses Ecuador as a mining destination, the management team at
SolGold, the dimension, size and scale of Alpala, the general
prospectivity of Cascabel and its multiple targets. The gold
endowment, location, infrastructure, logistics are important
competitive advantages offered by the project.
To date SolGold has completed geological mapping and soil
sampling over 25 km(2) , along with and an additional 9km(2) of
Induced Polarisation and 14km(2) Magnetotelluric "Orion" surveys
over the Alpala cluster and Aguinaga targets. SolGold has, at
January 2017, completed over 28,000m of drilling and expended over
USD39 million on the program, corporate costs and investments into
Cornerstone. Intense diamond drilling is planned for the next 12
months with multiple drill rigs. This has been completed without
lost time injury or environmental incident, employing a workforce
of up to 150 Ecuadoreans workers and geoscientists.
Cascabel is characterised by fourteen (14) identified targets,
world class drilling intersections over 1km in length at
potentially economic grades, and high copper and gold grades in
richer sections, as well as logistic advantages in location,
elevation, water supply, proximity to roads, port and power
services; and a progressive legislative approach to resource
development in Ecuador. To date, SolGold has drill tested only one
of the 14 targets, being Alpala.
The Alpala deposit is open at depth and in the upper extensions,
as well as to the north, north-east, south-east and south-west. The
mineralised zones at Alpala, and Moran some 700 m to the north, and
Aguinaga some 2km north east, are closely modelled by magnetic
signatures and currently encompass over 10Bt of magnetic rock,
anticipated on the basis of a strong relationship between copper
sulphides and magnetite, to be mineralised with copper and
gold.
SolGold is focussing on extending the dimensions of Alpala
before completing a resource statement and drill testing of the
other key targets within the Cascabel concession at Alpala South
East, Aguinaga, Trivino, Moran, Alpala Northwest, Hematite Hill,
Cristal, Parambas, Carmen, Tandayama-America and Chinambicito. The
Company is planning further metallurgical testing and completion of
a conceptual early stage mine and plant design and a scoping study
for an economic development at Cascabel. SolGold is investigating
both high tonnage / low-medium grade open cut and underground block
caving operations, and a high grade / low tonnage initial
underground development.
Drill hole intercepts are calculated using a data aggregation
method, defined by copper equivalent cut-off grades and reported
with up to 10m internal dilution, excluding bridging to a single
sample. Copper equivalent grades are calculated using a gold
conversion factor of 0.89, determined using copper price of
USD2.20/pound and gold price of USD1350/ounce.
Following a comprehensive review of the geology and
prospectivity of Ecuador, SolGold and its subsidiaries have also
applied for additional exploration licences in Ecuador over a
number of additional promising porphyry copper gold targets
elsewhere in the Country. SolGold is negotiating external funding
options which could provide the Company with the ability to have
these projects fully funded by a third party while focussing on
Cascabel.
In Queensland, Australia the Company is evaluating the future
exploration plans for the Mt Perry, Rannes and Normanby projects.
Joint venture agreements are being investigated for a joint venture
partner to commit funds and carry out exploration to earn an
interest in the tenements.
SolGold retains interests in its original theatre of operations,
Solomon Islands in the South West Pacific, where the 100% owned, as
yet undrilled, Kuma prospect on the island of Kuma exhibits surface
geological characteristics which are traditionally indicative of a
large metal rich copper gold intrusive porphyry system. SolGold
intends in the future to apply intellectual property and experience
developed in Ecuador to target additional world class copper gold
porphyries at Kuma and other targets in Ecuador and Argentina.
SolGold is based in Brisbane, Queensland, Australia. The Company
has a total of 1,431,166,605 fully-paid ordinary shares, 33,975,884
options exercisable at 28p and 12,875,884 options exercisable at
14p on issue.
CAUTIONARY NOTICE
The news release may contain certain statements and expressions
of belief, expectation or opinion which are forward looking
statements, and which relate, inter alia, to the Company's proposed
strategy, plans and objectives or to the expectations or intentions
of the Company's directors. Such forward-looking 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 forward-looking statements. Accordingly, you
should not rely on any forward-looking statements and save as
required by the AIM Rules for Companies or by law, the Company does
not accept any obligation to disseminate any updates or revisions
to such forward-looking statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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