TIDMSOLG
RNS Number : 7708T
SolGold PLC
29 March 2021
29 March 2021
SolGold plc
("SolGold" or the "Company")
Ecuador Regional Exploration Update
The Board of Directors of SolGold (LSE & TSX code: SOLG) is
pleased to provide an update on the Regional Exploration program in
Ecuador. The Company continues to pursue its strategy as an
integrated explorer and developer, creating value for all
shareholders.
SolGold is highly encouraged by recent results out of its
regional exploration programme, particularly at the Porvenir
project in southern Ecuador where the Company has received strong
drilling results to date, and ongoing drilling continues to
intersect visible copper-sulphide mineralisation.
This further endorses the Company's blueprint of systematic
evaluation and exploration across its 75 concessions, having
created the successful blueprint at the Company's world class
Alpala project (9.9Mt Cu, 21.7Moz Au, 92.2Moz Ag). SolGold's
technical team continues to uncover high potential at each project
within the suite of concessions and will focus exploration efforts
where needed. The Company currently operates 12 drill rigs in
Ecuador employing more than 800 Ecuadorians.
HIGHLIGHTS:
Porvenir Project, Southern Ecuador: Cacharposa Target
Ø Three drill rigs on site and drilling of holes 12-14 is
currently underway
Ø Final assays from Holes 5,6 & 7 at the Cacharposa porphyry
copper-gold target returned encouraging results, including the best
intersections to date:
-- Hole 5: 528m @ 0.35% CuEq from surface, including 102m @ 0.66 % CuEq from 78m.
-- Hole 6: 818m @ 0.41% CuEq from 46m, including 138m @ 0.74 % CuEq from 540m.
-- Hole 7: 570m @ 0.75 % CuEq from 288m, including 204m @ 1.23 % CuEq from 316m.
Ø Visible copper-sulphide mineralisation encountered in Holes
8-11 (assay results pending) are highly encouraging and continue to
substantiate the growing potential for significant near-surface
resources at Cacharposa.
Blanca Project, Northern Ecuador: Cerro Quiroz Target
Ø Assays received from BDH-20-004 at Cerro Quiroz target
returned:
-- 9m @ 3.12 g/t Au, 7.5 g/t Ag, 0.74% Zn from 440m depth, including:
-- 2m @ 12.62 g/t Au, 24.9g/t Ag, 1.39% Zn
Ø Gold mineralisation encountered at Cerro Quiroz occurs
coincident with anomalous silver, copper and tellurium
geochemistry. The presence of gold-telluride mineralisation is
conspicuous at the nearby Cielito narrow-vein gold prospect, which
lies approximately 500m to the northeast.
Helipuerto Project, south east Ecuador: New Tinkimints Copper
Prospect
Ø Tinkimints copper prospect and the Helipuerto project
concessions is adjacent to Solaris Resources' Warintza deposit
within one of the most prolific portions of the Andean Jurassic
Porphyry Belt, which hosts the nearby Fruta Del Norte and Mirador
mines, the Santa Barbara, Panantza and, and SolGold's newly
discovered Cacharposa deposit at Porvenir.
Ø Extensive soil sampling over the last three months has
returned high values of copper in soil at Tinkimints, including up
to 0.7% Cu in soils. The Tinkimints prospect is characterised by
highly anomalous copper and copper/zinc in soil over a 1.5km by 1km
area.
Sharug Project, Southern Ecuador: Santa Martha Target
Ø Water extraction licence received for the Sharug project, the
final milestone to start drilling.
Ø Drilling planned to test the Santa Martha target that
represents a coincident alteration, geochemical and magnetic
anomaly characteristic of a copper-gold-molybdenum porphyry
system.
Rio Amarillo Project, Northern Ecuador: Varela Target
Ø Fathom Geophysics was commissioned to undertake 3D geochemical
modelling of the Varela target and the resulting 3D models have
significantly upgraded the Varela target, highlighting the
similarities between the Varela and Alpala lithocap footprints and
geochemical signatures. 3D geochemical modelling conducted by
Fathom Geophysics has proven highly predictive when used to target
porphyry style mineralisation at both the Alpala and Porvenir
projects.
Ø The Varela target exhibits a classic well-preserved
metalliferous lithocap and hydrothermal alteration system with a
full complement of porphyry plume elements, the classic signature
of a large scale strongly mineralised porphyry
copper-gold(-molybdenum) system. Drilling is planned for
commencement in Q2 2021 following an assessment post the Ecuador
presidential elections.
Exploration Projects earn-out initiative
Ø In early March, SolGold commenced a process to identify
potential JV/earn-in partners over 10 of its 100%-owned early-stage
exploration projects containing 20 prospective concessions covering
86,000 hectares across Ecuador. These concessions were highly
sought after during the original bidding process.
Ø No comparable and reliable alternative entry routes to
exploration ground in Ecuador. Strong interest received from
several well-regarded counterparties with due diligence now
commenced.
Commenting on today's update on Porvenir, SolGold Technical
Services Manager, Benn Whistler, said:
"With continued robust drilling results from Cacharposa, the
geology department has commenced level-plan and cross-section
interpretation throughout the deposit, ahead of finalising 3D
geological models that will form the basis of the Cacharposa Maiden
Mineral Resource.
The Cacharposa Deposit covers around one square kilometre at
surface and covers a vertical column of over 900m, which is more
than the world's tallest building. Mineralisation remains open to
the north, the south and at depth, and the geometry and copper and
gold grades achieved through drilling thus far are considered
amenable for large scale mining methods. The recent drilling
results from Cacharposa are a testament to the quality of the
Company's regional exploration portfolio and we expect to add
further tonnage to the Company's resource base as exploration
continues in the country."
References to figures relate to the version visible in PDF
format by clicking the link below:
http://www.rns-pdf.londonstockexchange.com/rns/7708T_1-2021-3-29.pdf
Further Information
SolGold's regional exploration drive in Ecuador coordinates
multiple highly skilled field teams systematically exploring and
assessing 75 regional concessions across 14 provinces throughout
the country. The Company's regional concessions lie along the
prolific Andean Copper Belt which is renowned as the production
base for a significant portion of the world's copper and gold. The
Ecuador regional exploration drive currently focusses on 13 High
Priority Projects identified for aggressive exploration, five of
which are now considered core targets that have been elevated to
drill ready status ( Figure 1).
Porvenir Project, Southern Ecuador: Cacharposa Target
The Porvenir project is located approximately 100km north of the
Peruvian border, in southern Ecuador. The Cacharposa porphyry
copper-gold target is part of a 1,700m long northerly-trending
mineralised corridor, up to 1,000m wide. The target is
characterised by coincident Cu, Mo, Au and Cu/Zn soil anomalies
that lie central to a zone of Mn-depletion in soil. Soil molybdenum
geochemistry shows a broad high nested within the magnetic feature
and exhibits good inverse correlation with soil manganese. RTP
magnetics exhibit a central magnetic high surrounded by an annular
magnetic low. These characteristics together are typical of
numerous significant porphyry deposits globally, several of which
have become mines.
Final assays from Holes 5, 6 & 7 at the Cacharposa porphyry
copper-gold target returned encouraging results, including highly
significant intersections of over 400m% copper equivalent (Table
1), including:
-- Hole 5: 528m @ 0.35% CuEq from surface, including 102m @ 0.66 % CuEq from 78m.
-- Hole 6: 818m @ 0.41% CuEq from 46m, including 138m @ 0.74 % CuEq from 540m.
-- Hole 7: 570m @ 0.75 % CuEq from 288m, including 204m @ 1.23 % CuEq from 316m
Hole ID From To m Interval Cu % Au g/t Cu.Eq Cut-off m% (CuEq%)
m m % (CuEq%)
-------------- ----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-005 0 528 528 0.16 0.23 0.35 0.10 184.8
----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-005 40 182 142 0.24 0.35 0.53 0.20 75.3
----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-005 298 524 226 0.23 0.13 0.33 0.20 74.6
----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-005 78 180 102 0.46 0.26 0.66 0.30 67.3
-------------- ----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-006 46 864* 818 0.33 0.11 0.41 0.10 335.4
----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-006 72 194 122 0.30 0.22 0.46 0.20 56.1
----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-006 340 836 496 0.41 0.10 0.49 0.20 243.0
----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-006 82 194 112 0.31 0.23 0.48 0.30 53.8
----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-006 378 486 108 0.44 0.17 0.57 0.30 61.6
----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-006 520 678 158 0.59 0.14 0.69 0.30 109.0
----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-006 540 678 138 0.63 0.14 0.74 0.40 102.1
-------------- ----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-007 288 858 570 0.58 0.23 0.75 0.10 427.5
----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-007 312 856 544 0.61 0.24 0.78 0.20 424.3
----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-007 316 846 530 0.62 0.24 0.80 0.30 424.0
----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-007 316 612 296 0.76 0.37 1.04 0.40 307.8
----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-007 650 842 192 0.47 0.09 0.53 0.40 101.8
----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-007 316 520 204 0.90 0.48 1.23 0.50 250.9
----- ----- --------- ----- ------- ------ --------- -----------
PDH-20-007 334 462 128 1.13 0.59 1.59 1.00 203.5
----- ----- --------- ----- ------- ------ --------- -----------
* assays pending below
this depth.
1 . Down-hole drill intercept data aggregation method based
on 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.
2 . Copper Equivalent calculation assumes 100% recovery of
copper and gold and uses a Gold Conversion Factor of 0.751
(CuEq = Cu + Au x 0.751), calculated from a copper price of
US$3.30/lb and a gold price US$1,700/oz. 3.True width of down-hole
intersections reported are estimated to be approximately 55-75%
of the down-hole lengths.
---------------------------------------------------------------------------------------
Table 1 : Significant intersections achieved from drill holes
5-7 at Cacharposa porphyry copper-gold target, Porvenir project,
Southern Ecuador.
Holes 8-11 have been drilled and drilling is currently underway
at holes 12-14. Visible copper-sulphide mineralisation encountered
in holes 8 through11 (assay results pending) are highly encouraging
and continue to substantiate the growing potential for a
significant near-surface resource at Cacharposa.
The drilling program for 2021 at Cacharposa is designed to test
a mineralised corridor over a 1,700m by 1,000m area. Further
updates will be forthcoming following receipt of final assays for
entire hole lengths.
The Cacharposa Deposit covers around one square kilometre at
surface and covers a vertical column of over 900m. Mineralisation
remains open to the north, the south and at depth, and the geometry
and copper and gold grades achieved through drilling thus far are
considered amenable for large scale mining methods.
The interpreted orientation of the Cacharposa Intrusive Complex
and its associated porphyry copper-gold mineralisation is
subvertical, dipping approximately 75 degrees to the northwest. The
true width of down-hole intersections reported are therefore
expected to be approximately 55-75% of the down-hole lengths,
depending on the orientation of any given drill hole (Figure 2
& 3).
There are currently three man-portable drill rigs operational at
Cacharposa.
Blanca Project, Northern Ecuador: Cerro Quiroz Target
The Blanca project is located approximately 8km northeast of
SolGold's flagship Alpala project in northern Ecuador. A
man-portable drill rig has been operating at Cerro Quiroz since 3
October 2020, with a break in operation over the Christmas period
due to COVID-19 related delays in assay turnaround time at the ALS
Global assay laboratory in Peru.
Four drill holes have been completed at the Blanca project for a
total of 2,041m. An initial 800m of drilling was completed in Holes
1 and 2 (BDH-20-001 and BHD-20-002) at the Cielito target in
September 2019. A second campaign from October to December 2020 at
the Cerro Quiroz target, completed a further 1,241m of drilling in
Holes 3 and 4 (BDH-20-003 and BDH-20-004) (Figure 4).
Assays received from BDH-20-004 at Cerro Quiroz target
returned:
-- 9m @ 3.12 g/t Au, 7.5 g/t Ag, 0.74% Zn from 440m depth, including:
-- 2m @ 12.62 g/t Au, 24.9g/t Ag, 1.39% Zn
Gold mineralisation intersected at Cerro Quiroz is associated
with a northeast trending structural zone hosted within silicified
hydrothermal breccia.
BDH-20-003, located approximately 250m northeast of BDH-20-004,
is interpreted to have intersected the same structural zone from
492m to 509m depth, returning anomalous gold of 17m @ 0.24g/t Au,
0.52g/t Ag.
The Cerro Quiroz target is characterised by a
northerly-trending, silicified topographic dome feature that occurs
coincident with anomalous Au-Cu-Mo-Ag-Pb-Zn soil geochemistry. This
signature is consistent with base-metal sulphide gold veining often
formed peripheral to a porphyry source and/or epithermal vein
systems (Figure 5).
Assays from BDH-20-004 at the Cerro Quiroz target indicate that
hydrothermal breccia-hosted gold targets may host significant gold,
silver and zinc mineralisation over narrow intervals at
approximately 350m below surface. High grade narrow-vein epithermal
gold and telluride mineralisation is conspicuous at the nearby
Cielito target, approximately 500m to the northeast.
Helipuerto Project, south east Ecuador: New Tinkimints Copper
Prospect
The Tinkimints copper prospect and the Helipuerto project
concessions lie within one of the most prolific portions of the
Andean Jurassic Porphyry Belt, which hosts globally significant
copper and gold deposits in Ecuador, several of which have been
developed into mines, such as the nearby Fruta Del Norte and
Mirador mines, the Santa Barbara, Panantza and Warintza deposits,
and SolGold's newly discovered Cacharposa deposit at Porvenir
(Figure 6).
The Tinkimints prospect is located adjacent to Solaris's
Warintza copper deposit from which recent drilling results returned
a world class intersection of 922m @ 0.94% CuEq from surface
(announced 22(nd) March 2021).
The Tinkimints prospect is characterised by highly anomalous
copper and copper/zinc in soil over a 1.5km by 1km area. High
values of copper in soil are observed at Tinkimints, including
0.71% Cu and 0.16% Cu in soils (Figure 7).
Extensive and systematic geological and geochemical field
programs are underway at Helipuerto with an initial focus on the
delineation of the size and tenor of the new Tinkimints copper
prospect.
Sharug Project, Southern Ecuador: Santa Martha Target
The Sharug project is located in the Miocene Belt in southern
Ecuador. SolGold has recently received the water extraction licence
for the Sharug project clearing the way for drilling to commence at
the Santa Martha target. The Santa Martha copper-gold-molybdenum
porphyry target covers an area 1.2km by 0.5km and remains open to
the east. This target is characterised by coincident porphyry style
alteration (Figure 9), anomalous soil geochemistry and a classic
magnetic annular low in the RTP magnetic data (Figure 10).
The Santa Martha target consists of diorite, quartz diorite and
small zones of tourmaline breccia. Hydrothermal alteration
comprises zones of biotite-sericite, quartz-sericite, chlorite,
chlorite-epidote and sericite alteration.
An initial 3,000m drilling program is planned for mid-2021,
following completion of operational facilities at the site. This
program will target the coincident geochemical and geophysical
anomalies at the Santa Martha target ( Figure 11 ).
Rio Amarillo Project, Northern Ecuador: Varela Target
SolGold's 100% -owned Rio Amarillo project in northern Ecuador
lies approximately 30km southeast of the Company's flagship Alpala
porphyry copper-gold-silver deposit which holds a Measured plus
Indicated Resource of 2.66 Bt @ 0.53% CuEq (9.9 Mt Cu, 21.7 Moz Au,
92.2 Moz Ag). The Rio Amarillo project comprises three concessions,
Rio Amarillo 1, 2 & 3.
The main target areas at Varela, Florida, Palomar and Chalanes
exhibit porphyry style surface mineralisation and alteration
covering a vertical extent of up to 1,500m over a 12km-long by
3km-wide northeast-trending, highly
magnetic, porphyry belt. The major northeast trending magnetic belt is intersected by a secondary northwest-trending magnetic feature, likely to represent the intersection of two deep-seated crustal-scale fracture zones, later filled by intrusive bodies with magnetic characteristics indicative of strongly differentiated and mineralised systems. This structural regime has strong similarities to that encountered at the Alpala deposit, located about 30km to the northwest.
Fathom Geophysics was commissioned to undertake 3D geochemical
modelling based on the Cohen and Halley studies (Cohen 2011 and
Halley et al., 2015). Both models are based on the Yerington model
but use slightly different geochemical thresholds as the Halley
model incorporates data from other porphyry districts. The
resulting 3D models have significantly upgraded the Varela target,
highlighting the similarities between the Varela and Alpala
lithocap footprints and geochemical signatures. The Fathom 3D
models have proven highly predictive when used at both the Alpala
and Porvenir projects for targeting porphyry mineralisation.
The Varela target exhibits a classic well-preserved
metalliferous lithocap and hydrothermal alteration system with a
full complement of porphyry plume elements, the classic signature
of a large scale strongly mineralised porphyry
copper-gold(-molybdenum) system as seen in the 3D model (Figure
12).
The cluster of porphyry targets delineated so far at Rio
Amarillo are supported by high quality magnetic data which reveals
a highly magnetic NE/SW trending corridor, spatially coincident
with porphyry style surface mineralisation covering a vertical
extent of up to 1,500m over a 12km long northeast trending porphyry
belt.
Exploration Projects earn-out initiative
In early March, SolGold commenced a process to identify
potential JV/earn-in partners over 10 of its 100%-owned
early-stage, grass roots exploration projects containing 20
prospective concessions covering 86,000 hectares across Ecuador.
These concessions were highly sought after during the original
bidding process and there are currently no comparable and reliable
alternative entry routes to exploration ground in Ecuador.
SolGold is seeking partners on concessions that are at the start
of the exploration process to provide for a quicker discovery
timeline and be value accretive to SolGold shareholders.
There has been strong interest from several well-regarded
counterparties with due diligence now commenced. SolGold expects
negotiations to continue in the coming period. Whilst SolGold is
encouraged by the level of interest, there can be no certainty as
to the potential outcome of this process.
The following projects are included in this process: Aurora, El
Descanso, Agustin, Yatubi, Zhucay, Machos, San Antonio, Carmen, El
Cisne and Sacapalca.
Figure 1: Location Map. SolGold's Ecuador Regional Exploration
Drive, showing the 13 High Priority Projects identified for
aggressive exploration, five of which are now considered Core
Targets that have been elevated to drill ready status.
Figure 2: Cacharposa Drilling Plan at Porvenir showing completed
drill holes over molybdenum/manganese ratio soil geochemistry.
Figure 3: Cross-section along the paths of drill holes 4, 5 and
7 at Cacharposa, looking northeast with window thickness of 150m,
and showing assay results received to date, over current 3D
Numerical Modelling at > 0.1% CuEq cut-off grade.
Figure 4: Drilling Plan showing completed and planned drill
holes over soil Au geochemistry and sericite-illite alteration
zones (yellow polygons) at Cerro Quiroz and Cielito Prospects at
Blanca. Projects to surface the interpreted gold bearing structure
intersected in both the Cerro Quiroz drill holes.
Figure 5: Drilling Plans showing completed and planned drill
holes over soil geochemical signatures and sericite-illite
alteration zones (yellow polygons) at Blanca's Cerro Quiroz and
Cielito Prospects.
Figure 6: Location map of the Helipuerto project with respect to
other nearby mineral deposits.
Figure 7: Map showing the soil and stream sediment copper
geochemical anomaly at Helipuerto's Tinkimints prospect. Ridge and
spur auger soil line returned highly anomalous copper to 0.7%
Cu.
Figure 8: RTP Heli-mag data flown over the Tinkimints
prospect.
Figure 9: Alteration map showing the characteristic alteration
signature associated with porphyry systems - Santa Martha prospect,
Sharug.
Figure 10: Sharug - RTP magnetic image displaying a
characteristic signature annular low over the Santa Martha target
potentially representing magnetite destruction by porphyry related
fluid similar to many mineralised porphyry deposits.
Figure 11: Sharug Project - plan of geological mapping and
surface geochemistry at the Santa Martha porphyry target. The
polygons outline the highest values of copper in soil anomalies
that a drilling program has been designed to test.
Figure 12 : Varela lithocap footprint and geochemical signature,
showing mapped lithocap area (yellow), Mo/Mn geochemical highs
(magenta outlines) and selected planned drill holes (green). The
lithocap and rock Mo/Mn anomalies at Varela are of similar scale
and magnitude to that at the Alpala Deposit.
Figure 13 : Varela target section view, looking SSW, with window
width 2000m showing 3D geochemical models produced by Fathom
Geophysics which are interpreted to show an extensive and fully
preserved porphyry system underneath the Varela lithocap area.
Section also shows planned drill holes targeting both the Cohen and
Halley modelled mineralisation .
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
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
Fawzi Hanano / Eliza Michael
SolGold Plc (Investors / Media) Tel: +44 (0) 20 3823 2131
fhanano@solgold.com.au / emichael@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 800 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. 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 114,775,000 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.
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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END
UPDEADDNALSFEEA
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