TIDMSOLG
RNS Number : 4142H
SolGold PLC
03 December 2020
3 December 2020
SolGold plc
("SolGold" or the "Company")
Porvenir Assay Results for Drill Holes 1 & 2
Three Drilling Rigs Now Active at Porvenir
The Board of SolGold (LSE & TSX: SOLG) is pleased to provide
an update on its Porvenir Project in southern Ecuador, held by
Green Rock Resources S.A, a 100% owned and unencumbered subsidiary
of SolGold.
Highlights
Ø Assay results received for first 758m of drill hole one at
Porvenir (PDH-20-001):
-- 748m @ 0.59% CuEq (0.43% Cu, 0.22g/t Au) from 10m to 758m
(open at depth) at a cut-off grade of 0.10% CuEq, including;
o 644m @ 0.65% CuEq (0.47% Cu, 0.24g/t Au) from 10m to 654m at a
cut-off grade of 0.20% CuEq
-- PDH-20-001 was terminated in visible chalcopyrite
mineralisation at 909m and assay results from 758m to end of hole
one at 909m are pending.
Ø Assay results received for first 500m of drill hole two at
Porvenir (PDH-20-002):
-- 500m @ 0.51% CuEq (0.36% Cu, 0.21g/t Au) from 0m to 500m
(open at depth) at a cut-off grade of 0.10% CuEq, including;
o 260m @ 0.71% CuEq (0.47% Cu, 0.32g/t Au) from 2m to 262m depth
at a cut-off grade of 0.20% CuEq.
-- Assay results from 500m to end of hole two at 1200m are pending.
Ø Overall intersections achieved so far in PDH-20-001 to 758m
and PDH-20-002 to 500m include several zones of higher-grade
mineralisation, coincident with the presence of early dioritic and
monzonitic intrusions.
Ø Rig 1 is currently drilling hole PDH-20-003 at a shallower dip
of -35 degrees, at the same azimuth as holes one and two, testing
near surface potential of mineralisation. PDH-20-003 is at a
current depth of 457m.
Ø Two additional drilling rigs are now on site at Cacharposa,
with Rig 2 sited approximately 230m west-northwest of PDH-20-001
and Rig 3 sited approximately 200m south of PDH-20-001.
Ø Rig 2 has commenced drill hole PDH-20-004, which is at a
current depth of 56m. Rig 3 continues rig-up for commencement of
PDH-20-005.
References to figures relate to the version visible in PDF
format by clicking the link below:
http://www.rns-pdf.londonstockexchange.com/rns/4142H_1-2020-12-3.pdf
Commenting on today's update at Porvenir, CEO Nicholas Mather
said:
"Encouragingly, the results continue to demonstrate the size and
complexity of the Cacharposa system and further drilling will
increasingly define the geometry and dimensions of the Cacharposa
system. The Green Rock team is performing a very high quality and
focussed program endorsing SolGold's strategy of a
multi-directional and coincident exploration effort on 14 wholly
owned targets throughout Ecuador."
Further Information
SolGold is continuing to pursue its strategy to systematically
explore its extensive tenement portfolio in Ecuador. The first pass
regional exploration program is fully funded until mid-to-late
2021.
Mineralisation and hydrothermal alteration intersected in
drilling so far shows complex geometry and further drilling is
required to interpret the geometry of mineralisation in
cross-section. Rigs 2 and 3 are positioned to provide a third
dimension to the current drilling section and SolGold geologists
believe the additional coverage afforded by these machines will
begin to unveil the geometry and potential extent of mineralisation
hosted within the Cacharposa Porphyry Cu-Au System.
A fourth drill machine is planned for arrival at the project as
soon as COVID-19 related restrictions allow.
Turn-around times for final assay results from ALS Global (Peru)
have been affected by a reduction in laboratory production
abilities due to COVID-19 related restrictions.
Drilling results so far finalised for drilling completed at
Cacharposa are summarised in Table 1 .
True widths of downhole intersections are not well constrained.
The first drill hole at Cacharposa, PDH-20-001, was drilled at a
declination of -55 degrees towards the east. The second drill hole
was drilled at a declination of -75 degrees. The interpreted
orientation of the Cacharposa Intrusive Complex and its associated
porphyry copper-gold mineralisation is subvertical, dipping
approximately 85-90 degrees to the west. The true width of
down-hole intersections reported are therefore expected to be
approximately 35-65% of the down-hole lengths.
Table 1 : Summary of down-hole intercepts at Cacharposa,
Porvenir.
Figure 1 : Location plan showing Porvenir Project in Southern
Ecuador, highlighting the location of the Cacharposa porphyry
target relative to the Alpala Project on the Cascabel concession in
northern Ecuador.
Figure 2 : Plan view of the Cacharposa Target showing locations
drilling rigs and drill holes over simplified geology and zones of
interpreted coincident soil gold, copper, molybdenum and Cu:Zn
anomalies.
Figure 3 : Cross-section looking north with window thickness of
50m, showing assay results to 758m in PDH-20-001 and to 500m in
PDH-20-002 and current and planned drill hole paths. Mineralisation
and hydrothermal alteration intersected in drilling so far shows
complex geometry and further drilling is required to interpret the
geometry of mineralisation in cross-section.
Figure 4 : Rig 2 drill site and commencement of PDH-20-004.
Figure 5 : Rig 3 Drill Site and rig-up of PDH-20-005.
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
Karl Schlobohm
Company Secretary
CONTACTS
Nicholas Mather Tel: +61 (0) 7 3303 0665
SolGold Plc (Chief Executive Officer)
nmather@solgold.com.au
Karl Schlobohm
SolGold Plc (Company Secretary) Tel: +61 (0) 7 3303 0661
kschlobohm@solgold.com.au
Ingo Hofmaier
SolGold Plc (GM - Project & Corporate Tel: +44 (0) 20 3823 2131
Finance) ihofmaier@solgold.com.au
Eliza Michael / Fawzi Hanano
SolGold Plc (PR / IR) Tel: +44 (0) 20 3823 2131
emichael@solgold.com.au 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 is the largest and
most 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.
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 700 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.
Advancing Alpala towards development
The resource at the Alpala deposit contains a high-grade core
which will be targeted to facilitate early cashflows and an
accelerated payback of initial capital. SolGold is currently
progressing its Pre-Feasibility Study and is fully funded through
to development decision following the Net Smelter Royalty Financing
with Franco-Nevada Corporation for US$100million. Franco-Nevada
will receive a perpetual 1% NSR interest from the Cascabel licence
area.
SolGold is currently assessing financing options available to
the Company for the development of the Alpala mine following
completion of the Definitive Feasibility Study.
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
2,084,113,494 fully-paid ordinary shares and 112,275,000 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$1700/oz.
True widths of downhole intersections are not well constrained.
Drill hole one was inclined -55degrees towards the east, and the
interpreted trend of the Cacharposa Intrusive Complex and its
associated porphyry copper-gold mineralisation is subvertical,
dipping approximately 85-90 degrees to the west. The true width of
down-hole intersections reported are therefore expected to be
approximately 55-60% of the down-hole lengths.
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. 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;
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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