TIDMSOLG
RNS Number : 7854X
SolGold PLC
29 November 2017
29 November 2017
SolGold plc
("SolGold" or the "Company")
Promising New Copper Prospects Discovered at the Porvenir and
Timbara Projects.
The Board of SolGold (AIM code: SOLG) is pleased to provide an
update on exploration at its 100% owned Porvenir and Timbara
Projects, in Southern Ecuador. The prospect is held in the 100%
owned subsidiary Green Rock Resources.
HIGHLIGHTS:
Ø Outcropping porphyry style copper mineralisation discovered at
Porvenir and Timbara.
Ø Both projects are of Jurassic age similar to nearby Fruta del
Norte, Mirador and Santa Barbara deposits.
Ø Results from rock chip samples collected at the Porvenir
Project include:
-- 1.58% Cu in sample R03000587
-- 4.27% Cu in sample R03000588
-- 1.30% Cu in sample R03000592
Ø Results from rock chip samples collected during stream
reconnaissance at the Timbara Project include:
-- 2.44% Cu in sample R03000216
-- 1.59% Cu in sample R03000232
-- 1.64% Cu in sample R03000221
-- 1.23% Cu in sample R03000203
-- 1.00% Cu in sample R03000205
Ø Rock chips at Porvenir Project were identified by following up
highly anomalous Cu stream sediment geochemistry over a 6km x 5.5km
area.
Ø Prospecting at Timbara is at a very early phase with only 1 of
4 concessions prospected thus far. Early rock chip results indicate
copper mineralisation over a NE-SW corridor up to 4.5km long x
1.2km wide.
References to figures and tables relate to the version of this
release visible in PDF format by clicking the link below:
http://www.rns-pdf.londonstockexchange.com/rns/7854X_-2017-11-28.pdf
Introduction:
SolGold is continuing to pursue its strategy to become a tier 1
copper producing company through aggressive exploration of its
extensive tenement portfolio in Ecuador. SolGold now has multiple
field teams operating, utilising a specialised method of rapid
prospect recognition in each of its 4 regional subsidiary
companies. Led by highly experienced senior geologists, teams have
successfully located copper occurrences in 6 projects indicative of
large mineralised porphyry systems.
As previously announced, SolGold's technical teams have recently
discovered an extensive new corridor of porphyry copper
mineralisation at its 100% owned La Hueca Project and now two
exciting new mineralised prospects have been discovered at Green
Rocks's Porvenir and Timbara Projects located along trend,
southwest of the La Hueca Project.
Both the Porvenir and Timbara Projects are located in southern
Ecuador on the prolific Andean Copper belt which is renowned as the
production base for nearly half of the world's copper, (Figure 1).
SolGold holds a 100% interest in these two Projects through its
Ecuadorean subsidiary company, Green Rock Resources S.A. Both
projects are hosted in Ecuador's eastern Jurassic Belt, which
contains the Fruta del Norte epithermal gold deposit (14 million
ounces gold), the Mirador copper porphyry deposit (3 million tonnes
copper) and the Santa Barbara gold-(copper) porphyry deposit (8
million ounces gold).
Exploration Activities & Results
Four Green Rock field teams have recently been conducting rapid
first pass exploration on the Porvenir and Timbara Projects.
Exploration activities include stream sediment, panned heavy
concentrate and rock chip sampling along with detailed mapping.
SolGold's method of rapid evaluation of project areas is again
producing exciting early results, establishing new porphyry copper
camps for follow-up exploration.
Porvenir Project
A stream sediment sampling program at the Porvenir Project
delineated two geochemical anomalies within the larger 6km x 5.5km
stream anomaly, the Derrumbo and Bartolo prospects (Figure 2).
Initial follow-up stream reconnaissance rock chip sampling returned
very high copper results of up to 4.27% Cu from the outcrop samples
on the Bartolo prospect and significant copper results of up to
0.8% Cu were returned from the Derrumbo prospect.
Copper mineralisation in the porphyry outcrops is related to
chalcopyrite content with associated chalcocite - covellite -
magnetite (Figures 3, 4 & 5). Three main hydrothermal
alteration styles can be distinguished at the Porvenir:
-- Early-stage alteration defined by magnetite-rich and sulfide
poor zones with abundant epidote veinlets and disseminations;
-- Chlorite -sericite alteration related to the main mineralised stage; and
-- Late-stage, strong quartz-sericite-pyrite alteration.
Future Work
The next phase of exploration at Porvenir will comprise auger
soil geochemistry to delineate drill targets. Additional specialist
soil sampling teams are being readied to begin this work. The new
teams will allow current field teams to continue initial evaluation
of SolGold's 77 granted regional tenements. An aeromagnetic survey
is planned over the Porvenir Project.
The soil teams will collect samples for both multi-element
geochemistry and ASD analysis. Results of the soil programs will be
used to design future drilling programs.
Timbara Project
Field teams have recently started first pass evaluation
activities on one of four Timbara Project tenements (Figure 6).
During a targeted program of stream sediment and panned heavy
concentrate collection, rock chip samples were collected of notable
mineralised outcrops. Whilst the results of the stream sediment
samples are still awaited, assays from the initial rock samples
have been returned. Results are very encouraging for both porphyry
and peripheral skarn style mineralisation distal to the porphyry
host.
Outcrops of porphyry style copper mineralisation typically
comprise vein and disseminated chalcopyrite, pyrite with traces of
bornite. Associated hydrothermal alteration is characteristically
sericite and chlorite. Skarn style outcrops are generally highly
fractured with quartz veins and epidote alteration present.
Sulphides in these outcrops comprise chalcopyrite, occurring with
magnetite, galena and pyrite (Figures 7, 8 & 9).
Whilst detailed sampling and mapping is required, early results
suggest a potential mineralised NE-SW trend of 4.5km with anomalous
outcrops suggesting a system corridor, variably altered and
mineralised, between 1.2km and 1.5km in width. Results from the
stream geochemical sampling will help establish the extent and
trend of this newly discovered copper prospect in the Timbara 2
tenement.
Future Work
Field teams are currently focussed on first pass evaluation of
the remaining three Timbara Project tenements. Once the stream
sediment and panned heavy concentrate programs have been completed
and results are returned, field teams will transition to targeted
systematic mapping and rock chip sampling of anomalous streams to
gain a better understanding of the geological controls,
hydrothermal alteration and style of Cu mineralisation at Timbara.
An aeromagnetic survey will also be carried out over the Timbara
Project.
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.
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.
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 (Broker)
ewan.leggat@spangel.co.uk
Follow us on twitter @SolGold_plc
NOTES TO EDITORS
SolGold is a Brisbane, Australia based, dual LSE and TSX--listed
(SOLG on both exchanges) 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.
In October 2017, at the Mines and Money Americas Conference in
Toronto, SolGold's Nicholas Mather won the award for the CEO of the
Year - Latin America. SolGold won the Exploration Award for Latin
America, and Ecuador won the Country Award for Latin America.
The Company announced USD54m in capital raisings in September
2016 involving Maxit Capital LP, Newcrest International Ltd and DGR
Global Ltd, and a USD41.2m raising in June of 2017 largely from
Newcrest International with USD1.2m raised from Ecuadorean
investors. All of these raisings were undertaken at substantial
premiums to previous raisings, and SolGold currently has circa
USD60m in available cash to continue the exploration and
development of its flagship Cascabel Project.
Mr Craig Jones joined the SolGold Board on 3 March 2017,
nominated to the Board of SolGold by Newcrest Mining, now a 14.54%
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" (Refer
www.solgold.com.au/cautionary-notice/) 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 5% 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. Subject to the terms of existing agreements,
Cornerstone is debt financed by SolGold for its share of costs to
completion of a Feasibility Study ("Financing Option").
In terms of repayment, SolGold shall receive 90% of
Cornerstone's share of earnings or dividends from ENSA or the
Tenement to which Cornerstone would otherwise be entitled until
such time as the amounts so received equal the aggregate amount of
expenditures incurred by SolGold that, but for the Financing
Option, would have been payable by Cornerstone, plus interest
thereon from the dates such expenditures were incurred at a rate
per annum equal to LIBOR plus 2 per cent until such time as SolGold
is fully reimbursed.
The investments by Newcrest for 14.54% of SolGold endorses
Ecuador as an exploration and mining destination, the management
team at SolGold, the dimension, size and scale of the growing
Alpala deposit, 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 56,800m of drilling and expended over
USD66M in Ecuador, which includes Cascabel exploration, regional
exploration, corporate costs and investments into Cornerstone. This
has been accomplished with a workforce of up to 260 Ecuadorean
workers and geoscientists, and 6 expatriate Australian
geoscientists. The results of 39 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, as indicated by Hole 12 (CSD-16-012) returning 1560m
grading 0.59% copper and 0.54 g/t gold including, 1044m grading
0.74% copper and 0.54 g/t gold.
The average grade of all metres drilled to date on the project
currently stands at 0.31% copper and 0.26 g/t gold. Intensive
diamond drilling is planned for the next 12 months with 12 drill
rigs expected to be operational by early 2018, targeting over
120,000m of drilling in 2018.
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 4 of the 15 targets, being
Alpala Northwest, Alpala Central, Hematite Hill, and Alpala
Southeast. Currently drill testing of Alpala Northwest, Alpala
Central and Alpala Southeast targets is underway, with drill
testing of the other priority targets to be considered following
the publication of the Company's maiden resource estimate for
Alpala, and the finalisation of further IP surveying and modelling
work currently 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 10Bt 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 Alpala Central, Alpala Northwest, Alpala West,
Alpala East, Alpala South East, Trivinio, and Carmen, over the
coming Quarter. Following completion of a Maiden Resource Estimate
and then drill testing the other key targets within the Cascabel
concession at Aguinaga, Tandayama-America, Moran, Cristal, 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 have been updated to reflect current
commodity prices, 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 widths 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 several
applications for additional exploration licences in Ecuador over a
number of promising porphyry copper gold targets throughout the
Country.
SolGold, through its 4 subsidiary companies, has 100% ownership
of 77 granted concessions throughout Ecuador. Each subsidiary
company has technical teams, led by experienced senior geologists,
on the ground prospecting granted tenements and collecting baseline
data, whilst regional geophysics surveys are being planned. Copper
occurrences have been identified at 6 projects to date: La Hueca,
Machos, Rio Armarillo, Sharug, Porvenir and Timbara.
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 the Solomon Islands.
SolGold is based in Brisbane, Queensland, Australia. The Company
is listed on the LSE and TSX, with both exchanges using the ticker
code: SOLG, and currently has on issue a total of 1,516,245,686
fully-paid ordinary shares, 31,795,884 share options exercisable at
28p; 9,795,884 share options exercisable at 14p and 46,762,000
share options exercisable at 60p.
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. 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.
The Company recognises that the term "World Class" is subjective
and for the purpose of the Company's projects the Company considers
the drilling results at the growing Alpala Porphyry Copper Gold
Deposit at its Cascabel Project to represent intersections of a
"World Class" deposit on the basis of comparisons with other
drilling intersections from "World Class" deposits tabulated in
Table 1, some of which have become, or are becoming, producing
mines and on the basis of available independent opinions which may
be referenced to define the term "World Class" (or "Tier 1").
The Company considers that "World Class" deposits are rare, very
large, long life, low cost, and are responsible for approximately
half of total global metals production. "World Class" deposits are
generally accepted as deposits of a size and quality that create
multiple expansion opportunities, and have or are likely to
demonstrate robust economics that ensure development irrespective
of position within the global commodity cycles, or whether or not
the deposit has been fully drilled out, or a feasibility study
completed.
Standards drawn from industry experts (1Singer and Menzie, 2010;
2Schodde, 2006; 3Schodde and Hronsky, 2006; 4Singer, 1995;
5Laznicka, 2010) have characterised "World Class" deposits at
prevailing commodity prices. The relevant criteria for "World
Class" deposits, adjusted to current long run commodity prices, are
considered to be those holding or likely to hold more than 5
million tonnes of copper and/or more than 6 million ounces of gold
with a modelled net present value of greater than USD 1
Billion.
The Company cautions that the Cascabel Project remains an early
exploration stage project at this time. Despite the relatively high
copper and gold grades over long intersections and broad areas, and
widespread surface mineralization discovered at the Cascabel
Project to date, much of which has still not yet been drill tested,
the Company has yet to prepare an initial mineral resource estimate
at the Cascabel Project and any development or mining potential for
the project remains speculative. There is inherent uncertainty
relating to any project at an exploration stage, prior to the
determination of a mineral resource estimate, preliminary economic
assessment, pre-feasibility study and/or feasibility study. There
is no certainty that future results will yield the results seen to
date or that the project will continue to be considered to contain
a "World Class" deposit. Accordingly, past exploration results may
not be predictive of future exploration results.
From the drilling results at the growing Alpala Porphyry Copper
Gold Deposit (only) within the Cascabel Project, the Company
considers the deposit to have significant resource potential and
the data gathered has provided the basis for the estimation of an
exploration target over the area drilled to date. Initial 3D
modelling and grade shell interpolants have outlined an approximate
exploration target at Alpala that ranges from 729Mt at 1.06% copper
equivalent, using a cut-off grade of 0.4% copper equivalent, to
969Mt at 0.92% copper equivalent, using a cut-off grade of 0.3%
copper equivalent. These estimates equate to an endowment of
between 7.7-8.9Mt of contained copper equivalent (Figure A).
Copper equivalent grades used are calculated using a gold
conversion factor of 0.63, determined using a copper price of USD
3.00/pound and a gold price of USD 1300/ounce. 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. True
widths of down hole intersections are estimated to be approximately
25-50%.
The Company cautions that the potential quantity and grade
ranges (exploration target) disclosed above for the Alpala Porphyry
Copper Gold Deposit within the Cascabel Project is conceptual in
nature, and there has been insufficient exploration to define a
mineral resource, and the Company is uncertain if further
exploration will result in the exploration target being delineated
within a mineral resource estimate.
On this basis, the reference to the Cascabel Project as "World
Class" (or "Tier 1") is considered to be appropriate. Examples of
global copper and gold discoveries since 2006 that are generally
considered to be "World Class" are summarised in Table 2.
References cited in the text:
1. Singer, D.A. and Menzie, W.D., 2010. Quantitative Mineral
Resource Assessments: An Integrated Approach. Oxford University
Press Inc.
2. Schodde, R., 2006. What do we mean by a world class deposit?
And why are they special. Presentation. AMEC Conference, Perth.
3. Schodde, R and Hronsky, J.M.A, 2006. The Role of World-Class
Mines in Wealth Creation. Special Publications of the Society of
Economic Geologists Volume 12.
4. Singer, D.A., 1995, World-class base and precious metal
deposits-a quantitative analysis: Economic Geology, v. 90, no.1, p.
88-104.
5. Laznicka, P., 2010. Giant Metallic Deposits: Future Sources
of Industrial Metal, Second Edition. Springer-Verlag
Heidelberg.
This information is provided by RNS
The company news service from the London Stock Exchange
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