TIDMSOLG
RNS Number : 4692X
SolGold PLC
13 August 2018
13 August 2018
SolGold plc
("SolGold" or the "Company")
Cascabel Exploration Update
Exceptional Recent Drilling Results at Alpala Reveal
a Larger, More Cohesive High Grade Core
The Board of SolGold (LSE and TSX code: SOLG) is pleased to
provide an update on recent infill drilling at Alpala Central, at
the Company's Cascabel project in Northern Ecuador.
HIGHLIGHTS:
Ø Exceptional assay results from recent infill and extension
drilling at Alpala Central reveal a far more robust high-grade core
than previously modelled.
Ø Hole 57 (Alpala Central Infill):
832m @ 1.41% CuEq (0.72% Cu, 1.10g/t Au), incl.
562m @ 1.72% CuEq (0.85% Cu, 1.37g/t Au), incl.
304m @ 2.52% CuEq (1.15% Cu, 2.18g/t Au), incl.
182m @ 3.46% CuEq (1.49% Cu, 3.14g/t Au)
Ø Hole 55R (Alpala Central NW Extension):
1062m @ 1.02% CuEq (0.69% Cu, 0.52g/t Au), incl.
548m @ 1.36% CuEq (0.86% Cu, 0.80g/t Au), incl.
220m @ 2.07% CuEq (1.22%Cu, 1.34g/tAu)
Ø Hole 41-D1-D2 (Alpala Central Infill): Partial assay results
to 1458m.
512m @ 1.09% CuEq (0.59% Cu, 0.80g/t Au), open at depth,
incl.
326m @ 1.51% CuEq (0.77% Cu, 1.18g/t Au), open at depth,
incl.
128m @ 2.51% CuEq (1.11% Cu, 2.23g/t Au), open at depth.
Commenting on today's release, Mr Eduardo Valenzuela, the
Company's Study Manager, said: "From a potential mining
perspective, the updated proposed MRE, could provide not only a
stronger resource base but also a larger and more cohesive
high-grade core which could be mined at a higher production rate in
the early years thus enhancing the project NPV and IRR."
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/4692X_1-2018-8-10.pdf
FURTHER INFORMATION
The Cascabel Project is located on the northern section of the
prolific Andean Copper belt, 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 in northern
Ecuador, approximately three-hour drive north of Quito, close to
water, power supply and Pacific ports (Figure 1). 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
tenement covering approximately 50km(2) .
A maiden Mineral Resource Estimate (MRE) for the Alpala deposit,
estimated from the initial 53,616m of drilling and released in
December 2017, comprised:
Ø 430 Mt @ 0.8% CuEq (at 0.3% CuEq cut off) in the Indicated
category, and 650 Mt @ 0.6% CuEq (at 0.3% CuEq cut off) in the
Inferred category;
Ø contained metal content of 2.3 Mt Cu in the Indicated category
and 2.9 Mt Cu in the Inferred category; and
Ø contained metal content of 6.0Moz Au in the Indicated
category, and 6.3Moz Au in the Inferred category.
A further 80,538m of drilling has been completed since
development of the maiden MRE (Figure 2), and major resource growth
is expected in a revised MRE. SolGold is now aiming to expand and
upgrade the resource, with infill and extension drilling at Alpala
Central expected to expand and enrich the high-grade core as well
as adding major growth to the overall resource.
Exceptional assay results from recent infill and extension
drilling at Alpala Central is revealing a more robust high-grade
core than estimated in the December 2017 MRE. This recent drilling
shows that early stage diorite and quartz diorite intrusions, rich
in copper and gold, are far more continuous than previously
modelled.
Drill hole assays have been received for 111,010m of a total
134,155m on the project. Approximately 11,300m of drilling has
assays pending, with 11800m accounted for as non-assayed top
holes.
Highlights of assay results expected to add to the existing MRE
at Alpala are tabulated in Figure 3.
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.),
Exploration Manager Global of the Company. Mr Ward is a Member of
the Australasian Institute of Mining and Metallurgy, holds the
designation MAusIMM (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
Mr Nicholas Mather Tel: +61 (0) 7 3303 0665
SolGold Plc (Chief Executive Officer) +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
Ms Anna Legge Tel: +44 (0) 20 3823 2131
SolGold Plc (UK Market IR / PR)
alegge@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
ABOUT SOLGOLD
SolGold is a leading exploration company focussed on the
discovery and definition of world-class copper and gold deposits.
In 2017 SolGold's management team was recognised as an example of
excellence in the industry, and continue to strive to deliver
objectives efficiently and in the interests of shareholders.
SolGold is the largest and most active concession holder in Ecuador
and is aggressively exploring the length and breadth of this highly
prospective section of the Andean Copper Belt.
Ecuador dedicated to become a serious mining nation
Ecuador has, over the last 5 years, been recognised globally as
a frontrunner in emerging mining nations as it develops regulatory
and fiscal frameworks to facilitate the development of a fiscally,
socially and environmentally strong and responsible mining
industry.
Dedicated stakeholders
SolGold employs a staff of over 400 and at least 90% are
Ecuadorean. This is expected to grow as the operations at Alpala,
and in Ecuador generally, expand. 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 data base to enable the delivery
of ore grade intersections from nearly every drill hole at
Alpala.
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 in northern
Ecuador, an approximately three hour drive north of Quito, close to
water, power supply and Pacific ports (Figure 1).
Alpala has 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.
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$3.5m.
Approximately 123,500m of diamond drilling has been completed on
the project. With 12 rigs currently active on the project (10 rigs
drilling on the Alpala cluster, and 2 rigs drilling at the Aguinaga
prospect, SolGold produces some 10,000m of core every month. The
Cascabel drill program currently focusses on extending and
upgrading the status of the Alpala Resource, as well as further
drill testing of the rapidly evolving Aguinaga prospect. Drill
testing of the Trivinio target has commenced, whilst the numerous
other untested targets, namely at Moran, Cristal, Tandayama-America
and Chinambicito, are flagged for drill testing as overall program
demands allow.
Since the publication of the Alpala Maiden Mineral Resource
Estimate in January 2018, which outlined a contained metal
inventory of 5.2 million tonnes of copper and 12.6 million ounces
of gold, the company has nearly doubled both drilled and reported
meterage and will produce a revised resource statement addressing
the evident growth in the size of the deposit at the conclusion of
the current Alpala drill programme. Investors should consult the
technical report dated December 18, 2017 for a detailed account of
the assumptions on which the estimates were based as well as any
known legal, political, environmental and other risks that could
materially affect the development of the resources.
Getting Alpala advanced towards development
SolGold has appointed feasibility management to initially
address the production of a preliminary economic assessment (PEA),
prior to the prefeasibility and feasibility studies.
The resource at the Alpala deposit boasts a high grade core
which, in the event of the construction of a mine, is targeted to
facilitate early cashflows and an accelerated payback of initial
capital. SolGold is currently investigating development and
financing options available to the company for the development of
Cascabel on reaching feasibility.
SolGold's regional push
SolGold is using its successful and cost efficient blueprint
established at Alpala, and Cascabel generally, to explore for
additional world class projects across Ecuador. SolGold is the
largest and most active concessionaire in Ecuador having recognised
as early as 2014 that the country hosted the same untested
prospectivity as the Northern Chilean section of the Andean Copper
Belt, which accounts for some 25% of the world's copper
resources.
The Company believes Alpala is just the beginning for SolGold in
Ecuador. The Company wholly owns four other subsidiaries active
throughout the country that are now focussed on ten 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 from Alpala.
SolGold is listed on the London Stock Exchange and Toronto Stock
Exchange (LSE/TSX: SOLG). The Company has on issue a total of
1,696,245,686 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.
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. 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. 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 (1) Singer and Menzie,
2010; (2) Schodde, 2006; (3) Schodde and Hronsky, 2006; (4) Singer,
1995; (5) Laznicka, 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 and its external consultants prepared an initial
mineral resource estimate at the Cascabel Project in December 2017.
Results are summarised in Table B attached.
The Mineral Resource Estimate was completed from 53,616m of
drilling, approximately 84% of 63,500m metres drilled as of
mid-December 2017, the cut-off date for the maiden resource
calculation. There remains strong potential for further growth from
more recent drilling results, and continue rapid growth of the
deposit.
Any development or mining potential for the project remains
speculative.
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%.
On the basis of the drilling results to date and the results of
the Alpala Maiden Mineral Resource Estimate, 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 A.
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.
Notes:
-- Mr. Martin Pittuck, MSc, CEng, MIMMM, is responsible for this
Mineral Resource estimate and is an "independent qualified person"
as such term is defined in NI 43-101.
-- The Mineral Resource is reported using a cut-off grade of
0.3% copper equivalent calculated using [copper grade (%)] + [gold
grade (g/t) x 0.6] based on a copper price of US$2.8/lb and gold
price of US$1,160/oz.
-- The Mineral Resource is considered to have reasonable
potential for eventual economic extraction by underground mass
mining such as block caving.
-- Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability.
-- The statement uses the terminology, definitions and
guidelines given in the CIM Standards on Mineral Resources and
Mineral Reserves (May 2014).
-- The MRE is reported on 100 percent basis.
-- Values given in the table have been rounded, apparent
calculation errors resulting from this are not considered to be
material.
-- The effective date for the Mineral Resource statement is 18th December 2017.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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