TIDMSOLG
RNS Number : 4400C
SolGold PLC
13 April 2017
13 April 2017
SolGold plc
("SolGold" or the "Company")
Cascabel Exploration Update
Hole 24 at Alpala Southeast intersects strong copper sulphide
mineralisation, extending length of the Alpala Deposit by 570m.
Known length of the Greater Alpala Porphyry System nearly
doubled to over 1300m.
Hole 25 at Hematite Hill intersects strong copper sulphide
mineralisation.
The Board of SolGold (AIM code: SOLG) is pleased to provide an
update on Holes 23R, 24 and 25 at the Company's Cascabel
copper-gold porphyry project in Ecuador.
HIGHLIGHTS:
Ø Hole 23R intersects mineralised volcanic and fragmented
(breccia) rocks, with increasing visible chalcopyrite and
molybdenum mineralisation. Hole 23R, at a current depth of 643.1m,
is planned to intersect untested mineralisation from approximately
700m depth to approximately 1800m below surface and has a planned
hole depth of at least 2000m.
Ø Hole 24, Alpala Southeast, at a current depth of 933.0m,
intersecting strong chalcopyrite mineralisation and intense
multi-directional porphyry style quartz-chalcopyrite-bornite
veining. Strong copper sulphide mineralisation, with low pyrite
content, below 738.9m, indicates proximity to the rich core of the
Greater Alpala Porphyry System.
Ø Hole 24 visual logging estimates, over a 194.1m interval
(738.9 to 933.0m) show an average of >1.6 volume-percent
chalcopyrite. The abundance of chalcopyrite in this interval is
visually estimated to range from 0.5 to 2.5 volume-percent. The
abundance of bornite in this interval is visually estimated to
range from zero to 0.3 volume-percent. Chalcopyrite and bornite are
copper sulphide minerals that contain 34.6% and 63.3% copper,
respectively.
Ø Hole 24 extends the Alpala Deposit by 570m southeast of Hole
23R.
Ø Hole 24 extends the known length of the mineralised corridor
at Alpala to approximately 1200m from Hole 13 in the northwest,
implying a mineralised corridor length of 1300m.
Ø Hole 25, Hematite Hill, at a current depth of 938.5m,
intersecting intense multi-directional stock work veining with
increasingly strong chalcopyrite and bornite mineralisation from
772.2m depth. Visual logging estimates, this 166.3m interval
(772.2m to 938.5m) thus far shows an average of >2.8
volume-percent chalcopyrite, and an average of >0.6
volume-percent bornite.
Ø Hole 25 extends the Alpala Deposit approximately 250m to the
southeast of Hole 23R.
Ø Chalcopyrite-bornite mineralisation with magnetite and
potassic alteration in holes 24 and 25 indicate proximity to the
high temperature core of the Alpala system and the predictive
nature of the 3D Magnetic model at Cascabel.
Ø A fourth man-portable rig being mobilised to site ahead of the
arrival of Rigs 5, 6 and 7 over the coming two quarters.
Ø Drill testing to expand to high priority targets at Alpala
East, Alpala West, Carmen, Trivinio and Aguinaga by mid-year.
References to figures and tables relate to the version of this
release on the Company's website (www.solgold.com.au) or visible in
PDF format by clicking the link below:
http://www.rns-pdf.londonstockexchange.com/rns/4400C_1-2017-4-13.pdf
FURTHER INFORMATION:
The Cascabel Project is located on the gold-rich northern
section of the prolific Andean Copper belt renowned as the
production base for nearly half of the world's copper (Figure 1).
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,
in northern Ecuador, approximately three hours drive north of
Quito, close to water, power supply and Pacific ports (Figure 2).
SolGold holds an 85% interest in ENSA (Exploraciones Novomining
S.A.) which holds 100% of the Cascabel tenement.
Fifteen individual targets have been defined at Cascabel.
SolGold has successfully drill tested three of the fifteen targets,
being Alpala Central, Alpala Northwest, and Hematite Hill. Drill
testing of a fourth target, at Alpala Southeast is currently under
way (Hole 24) (Figure 3). The deposit at Alpala continues to grow
with each new drill hole. Current drilling focusses on defining the
geometry of the growing Alpala Deposit, which is open in virtually
all directions. Over 34,000m of drilling has been completed to
date, and the arrival of Rigs 4, 5, 6 and 7 over the coming two
quarters will see drill testing expanding to Alpala East, Alpala
West, Trivinio and Aguinaga by mid-year. The drilling program
expands towards eight drilling rigs by year end, which will also
see drill testing of the Tandayama-America prospect. (Figure 4).
SolGold now believes that a number of targets clustered within the
Alpala area may coalesce.
Commenting on today's announcement from the project base at
Rocafuerte, Chief Geologist Mr Santiago Vaca said "Hole 24 is a
huge breakthrough for the project. It extends the Alpala deposit by
approximately 570m to the southeast. The known corridor of
mineralisation now has a footprint approximately 1300m long and
700m wide. It's a very exciting project. We are very interested in
the drill core we see coming from Holes 24 and 25 at the moment, as
we are logging potassic alteration with very strong chalcopyrite
and bornite mineralisation with magnetite. This and the relatively
low pyrite, indicate proximity to the targeted rich core of the
porphyry system. We believe this southeast extension zone has
potential to double the size of the Alpala Deposit and with the
increasing bornite content it is likely to increase the grade also.
Extensions at depth and closer to surface should add many more
tonnes to the growing Alpala Deposit."
Hole 23 (CSD-17-023) at Alpala Northeast was abandoned at 159.0m
depth after drilling contractors experienced technical difficulties
downhole. It is being redrilled as Hole 23R (CSD-16-023R) which
continues drilling near vertical at a current depth of 643.1m
testing approximately 125m below and in between Holes 12 and 16. To
date Hole 23R has intersected hydrothermal breccia and strong
phyllic alteration, with the presence of clasts of mineralised
porphyry within the breccia. Hole 23R is being drilled sub-vertical
to intersect deep untested pockets of mineralisation upto 1800m
below surface and has a planned hole depth of approximately 2000m.
The position of Hole 23R is shown in cross-section A-A' in Figure
5. Mineralisation is increasing with depth in Hole 23R.
Hole 24 (CSD-17-024) continues drilling at Alpala Southeast, at
a current depth of 933.0m testing approximately 570m to southeast
of Hole 23R. Hole 24 confirms the extension of the known
mineralised corridor at Alpala to approximately 1300 from Hole 13
in the northwest. Hole 24 nearly doubles the strike length of
mineralisation confirmed by drilling along the Alpala trend.
Hole 24 is intersecting increasingly strong copper sulphide
mineralisation. Drill core from Hole 24 below 738.9m shows strong
chalcopyrite and bornite mineralisation with significant magnetite,
and low pyrite content, indicating proximity to the predicted
copper and gold rich core of the greater Alpala Porphyry
System.
Hole 24 visual logging estimates, over this 194.1m interval
(738.9m to 933.0m) thus far show an average of >1.6
volume-percent chalcopyrite. The abundance of chalcopyrite in this
interval is visually estimated to range from 0.5 to 2.5
volume-percent. The abundance of bornite in this interval is
visually estimated to range from zero to 0.3 volume-percent.
Chalcopyrite and bornite are copper sulphide minerals that contain
34.6% and 63.3% copper, respectively.
Hole 24 lies approximately 100m north of Malte Creek, where
visible chalcopyrite and bornite mineralisation was noted in
surface geological mapping. The Alpala Southeast prospect area is
characterised by coincident Molybdenum and Copper/Zinc soil
geochemical highs, as well as intense and advanced argillic
alteration identified from soil auger chip spectral analysis. High
dickite and pyrophyllite clay content, mark high temperatures of
formation typical of that surrounding a porphyry core. Surface
indications are being confirmed by drilling. Hole 24 has a planned
hole depth of at least 2000m. Selected examples of mineralisation
encountered in Hole 24 are shown in Figure 6.
Hole 25 (CSD-17-025), at Hematite Hill, intersecting intense
multi-directional stock work veining with increasingly strong
chalcopyrite and bornite mineralisation from 772.2m depth to
current depth of 938.5m. Based on visual logging estimates, this
166.3m interval (772.2m to 938.5m) thus far shows an average of
>2.8 volume-percent chalcopyrite, and an average of > 0.6
volume-percent bornite. The abundance of chalcopyrite in this
interval is visually estimated to range from >0.5 to >6.0
volume-percent chalcopyrite. The abundance of bornite in this
interval is visually estimated to range from zero to 4.0
volume-percent bornite. Chalcopyrite and bornite are copper
sulphide minerals that contain 34.6% and 63.3% copper,
respectively.
Hole 25 has a planned depth of at least 2000m. Selected examples
of mineralisation encountered in Hole 25 are shown in Figure 7.
GEOPHYSICS
SolGold has completed the ground magnetic survey over Cascabel,
and preparations are being finalised to commence a detailed
Orion-Spartan 3D IP survey across most of the licence area (Figure
8). Processing of this improved magnetic data is underway and this
work will not only augment the existing geophysical targets at
Alpala and Aguinaga, but further investigate the promising
Tandayama-America anomaly and other satellite targets on the
property. Following analysis of these datasets, Solgold will
further refine drill targets along the Alpala cluster, as well as
those at Moran, Aguinaga, and Tandayama-America. A 'LIDAR'(c)
topographic control survey is being planned for commencement
mid-year.
OUTLOOK
Upgrade and expansion of site facilities are well underway at
Cascabel as the project continues to expand towards 7 rigs by
October and 10 rigs next year. The geology team have yet to define
the extents of the Alpala porphyry system, and the deposit remains
open in most directions, continuing to grow with each new drill
hole. An aggressive drill program, producing approximately 90,000m
of diamond drill core per annum from early 2018 is planned to
delineate the system limits along the greater Alpala trend prior to
a maiden resource statement, and to test the other multiple targets
within the concession.
The presence of magnetite with chalcopyrite and bornite with
potassic alteration endorses the predictive nature of the 3D
Magnetic model at Cascabel. The magnetic bodies at Alpala, Moran
and Aguinaga envelope approximately 15 billion tonnes of untested
magnetic rock. SolGold is excited by the strong correlation between
magnetics and copper mineralisation in this system.
An increasing understanding of the deposit is now leading to
much larger step-outs in drilling as SolGold directs its program
towards the copper and gold at a predicted large and rich heart of
the Alpala system.
Qualified Person:
Information in this report relating to the exploration results
is based on data reviewed by Mr Nicholas Mather (B.Sc. Hons Geol.),
the Chief Executive Officer of the Company. Mr Mather is a Fellow
of the Australasian Institute of Mining and Metallurgy who has in
excess of 25 years' experience in mineral exploration and is a
Qualified Person under the AIM Rules. Mr Mather 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
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 / Mr Richard Morrison Tel: +44 (0) 20 3470
0470
SP Angel Corporate Finance LLP (NOMAD and Broker)
ewan.leggat@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 the 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 porphyry copper and gold 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 March
2017) circa USD35 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.
Mr Craig Jones also joined the SolGold Board on 3 March 2017,
nominated to the Board of SolGold by Newcrest Mining, a 10%
shareholder in SolGold. Mr Jones is a Mechanical Engineer and is
currently the Executive General Manager Wafi-Golpu
(Newcrest-Harmony MMJV). He has held various senior management and
executive roles within the Newcrest Group, including General
Manager Projects, General Manager Cadia Valley Operations,
Executive General Manager Projects and Asset Management, Executive
General Manager Australian and Indonesian Operations, Executive
General Manager Australian Operations and Projects, and Executive
General Manager Cadia and Morobe Mining Joint Venture. Prior to
joining Newcrest, Mr Jones worked for Rio Tinto.
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 ("Cornerstone"), 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 an exploration and mining destination, the
management team at SolGold, the dimension, size and scale of the
growing Alpala, and the 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, soil sampling,
rock saw channel sampling, geochemical and spectral alteration
mapping over 25km(2) , along with an additional 9km(2) of Induced
Polarisation and 14km(2) Magnetotelluric "Orion" surveys over the
Alpala cluster and Aguinaga targets.
SolGold has completed over 34,000m of drilling and expended over
USD43M on the program, corporate costs and investments into
Cornerstone. This has been accomplished without lost time injury or
environmental incident, employing a workforce of up to 176
Ecuadoreans workers and geoscientists and 6 expatriate Australian
geoscientists. The results of 26 holes drilled (including
re-drilled holes) and assayed to date have produced some of the
greatest drill hole intercepts in porphyry copper-gold exploration
history including Hole 12 (CSD-16-012) returning 1002m grading 0.76
% copper and 0.77 g/t gold. The average grade of all metres drilled
to date on the project boasts 0.32 % copper and 0.27 g/t gold.
Intensive diamond drilling is planned for the next 12 months with
10 drill rigs expected to be operational early 2018, targeting over
90,000m of drilling per annum.
Cascabel is characterised by fifteen (15) 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 3 of the
15 targets, being Alpala Central, Alpala Northwest, and Hematite
Hill. Currently drill testing of the Alpala Southeast target is
underway.
The Alpala Deposit is open in multiple directions and the
mineralised corridor marked for drill testing of the greater Alpala
cluster occurs over a 2.2km strike length from Trivinio in the
northwest to Cristal in the southeast. The mineralised corridor is
known to be prospective over approximately 700m width. High
priority targets within the Alpala cluster, at Moran approximately
700m to the north, and at Aguinaga approximately 2.3km north east,
are closely modelled by 3D MVI magnetic signatures that currently
encompass over 15Bt of magnetic rock. Based on a strong spatial and
genetic relationship between copper sulphides and magnetite, this
body of magnetic rock is considered to be highly prospective for
significant copper and gold mineralisation, and requires drill
testing.
SolGold is focussing on extending the dimensions of the Alpala
Deposit including Hematite Hill, Alpala South East, Cristal, Alpala
Northwest and Trivinio before completing a resource statement and
drill testing of the other key targets within the Cascabel
concession at Alpala West, Carmen, Alpala East, Moran, Aguinaga,
Tandayama-America, Parambas, and Chinambicito.
The Company is currently planning further metallurgical testing
and completion of an independent Pre-Feasibility Study at Cascabel.
SolGold is investigating both high tonnage open cut and underground
block caving operations, as well as a high grade / low tonnage
initial underground development towards the economic development of
the copper gold deposit/s at Cascabel.
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 0.63, determined using an updated copper price
of USD3.00/pound and an updated gold price of USD1300/ounce. True
width of down hole intersections are estimated to be approximately
25-50%.
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 promising porphyry copper gold targets throughout the
Country. SolGold is negotiating external funding options which will
provide the Company with the ability to have some of 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,
with drill testing of the Normanby project planned for the coming
quarter. 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,
but as yet undrilled, Kuma prospect on the island of Guadalcanal
exhibits surface lithocap 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
listed on London's AIM Market in 2006, under the AIM code 'SOLG'
and currently has a total of 1,431,166,605 ordinary shares issued,
together with 33,975,884 options exercisable at 28p and 12,875,884
options exercisable at 14p.
CAUTIONARY NOTICE
This 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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