TIDMSOLG
RNS Number : 2706U
SolGold PLC
02 December 2021
2 December 2021
SolGold plc
("SolGold" or the "Company")
Drilling Update: Tandayama-Ameríca, Cascabel Project
The Board of Directors of SolGold (LSE & TSX: SOLG) is
pleased to provide a drilling update on its Tandayama-Ameríca
("TAM") porphyry copper-gold deposit at the Cascabel project in
northern Ecuador.
The TAM deposit contains a maiden Mineral Resource Estimate
("MRE") of 233Mt @ 0.33% CuEq([1]) for 0.53Mt Cu, and 1.20Moz Au in
the Indicated category, plus 197Mt @ 0.39% CuEq for 0.52Mt Cu, and
1.24Moz Au in the Inferred category. The TAM deposit lies
approximately 3km north of the Alpala deposit that comprises 2,663
Mt at 0.53% CuEq([2]) in the Measured plus Indicated categories and
contained metal content of 9.9 Mt Cu, 21.7 Moz Au and 92.2 Moz
Ag([3]) at the Company's Cascabel project, held by Exploraciones
Novomining S.A. ("ENSA"), an 85% owned subsidiary of SolGold.
HIGHLIGHTS
Ø A total of approximately 26,000m of diamond drilling from 33
drill holes has now been completed at the TAM deposit, equating to
an additional c.4,000m of resource extension and geotechnical
drilling completed since the recent release of the TAM maiden MRE
on 19 October 2021.
Ø The ongoing drilling points to further potential resource
growth, with final assay results from holes 19-24 extending
mineralisation potentially mineable by both open pit and
underground bulk mining methods.
Ø Highlights of assays received from holes 19-24 include:
-- Hole 24 : 568m @ 0.50% CuEq ([4]) including 220m @ 0.71% CuEq and 64m @ 1.01% CuEq
-- Hole 23 : 156m @ 0.37% CuEq including 48m @ 0.92% CuEq
-- Hole 19 : 455.7m @ 0.26% CuEq (open at depth) including 304m @ 0.31% CuEq and 48m @ 0.43%CuEq
Ø Recent assays bode well for future resource growth in the
southeast quarter of the open pit resource area and particularly in
the east and southeast depth extensions of the potential
underground resource area where the highest-grade mineralisation
encountered thus far remains open.
Ø Highlights of assays received from holes 14-18 (included in
the MRE) include:
-- Hole 18 : 186.0m @ 0.28% CuEq including 116m @ 0.36% CuEq
-- Hole 17 : 346.0m @ 0.29% CuEq including 90m @ 0.41% CuEq
-- Hole 16 : 193.2m @ 0.55% CuEq including 152m @ 0.65% CuEq
-- Hole 15 : 191.0m @ 0.31% CuEq including 119m @ 0.38% CuEq
-- Hole 14 : 530.5m @ 0.21% CuEq including 70m @ 0.34% CuEq
Ø Drilling continues at TAM utilising four diamond drill rigs.
The Cascabel project is still growing, and the additional resources
being identified at TAM provide a strategic fit towards the
development of the Cascabel property as a whole. Further updates to
the Cascabel resource base are planned.
([1]) Cut-off grades have been developed independently for open
pit mining methods and underground bulk mining methods. Cut-off
grades and copper equivalency used for reporting were base d on
third party metal price research, forecasting of Cu and Au prices,
and a cost structure from mining studies data available at the
time. Costs include mining, processing and general and
administration (G&A). Net Smelter Return (NSR) includes
metallurgical recoveries and off-site realisation (TCRC) including
royalties and utilising metal prices of Cu at US$3.30/lb and Au at
US$1,700/oz. The cut-off grade for potentially open pittable
material has been calculated at 0.16% CuEq using a copper
equivalency factor of 0.632 (whereby CuEq = Cu + Au x 0.632).,
while the cut-off grade for material potentially mineable by a bulk
underground mining method such as block caving has been calculated
at 0.28% CuEq using a copper equivalency factor of 0.654 (whereby
CuEq = Cu + Au x 0.654).
([2]) Alpala MRE was reported at a cut-off grade of 0.21% copper
equivalent (CuEq) using a copper equivalency factor of 0 613
(whereby CuEq = Cu + Au x 0.613). Cut-off grades and copper
equivalency used for reporting were based on third party metal
price research, forecasting of Cu and Au prices, and a cost
structure from mining studies data available at the time. Costs
include mining, processing and general and administration
(G&A). Net Smelter Return (NSR) includes metallurgical
recoveries and off-site realisation (TCRC) including royalties and
utilising metal prices of Cu at US$3.40/lb and Au at
US$1,400/oz.
([3]) See "Cascabel Property NI 43-101 Technical Report, Alpala
Porphyry Copper-Gold-Silver Deposit - Mineral Resource Estimation,
January 2021" with an Effective date: 18 March 2020 and Amended
Date: 15 January 2021 (the "Amended Technical Report"), filed at
www.Sedar.com on January 29, 2021.
([4]) Significant down-hole drill intercepts at TAM are reported
using a 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.
Copper equivalency factor of 0.632 is used (whereby CuEq = Cu + Au
x 0.632) and is based on third party metal price research,
forecasting of Cu and Au prices, and a cost structure from mining
studies data available at the time. Costs include mining,
processing and general and administration (G&A). Net Smelter
Return (NSR) includes metallurgical recoveries and off-site
realisation (TCRC) including royalties and utilising metal prices
of Cu at US$3.30/lb and Au at US$1,700/oz.
References to figures relate to the version visible in PDF
format by clicking the link below:
http://www.rns-pdf.londonstockexchange.com/rns/2706U_1-2021-12-1.pdf
FURTHER INFORMATION
The TAM deposit lies approximately 3km north of the Alpala
deposit, at the Cascabel project, held by ENSA, an 85% owned
subsidiary of SolGold . The project area lies within the Imbabura
province of northern Ecuador approximately 100 km north of the
capital city of Quito and approximately 50 km north-northwest of
the provincial capital, Ibarra (Figure 1).
To date a total of approximately 26,000m of diamond drilling has
been completed at the TAM deposit, with drill holes 30-33 currently
underway utilising four diamond drilling rigs ( Figure 2 ). Assay
results from Holes 25-33 are pending. An additional c.4,000m of
resource extension and geotechnical drilling has been completed
since the release of the TAM maiden MRE on 19 October 2021.
Holes 1-19 were drilled for resource definition in the central,
north, west portions of the deposit. Holes 20, 21, 22, 27, 30 and
32 were drilled specifically for geotechnical purposes, targeting
the proposed west wall of the potential pit design. All remaining
holes focus on resource extension to the growing underground
resources.
A summary of drilling results achieved since hole 14 are
included in Table 1 .
The full size and tenor of the TAM system has not yet been
tested. Mineralisation remains open to the south and east and at
depth. Further surface geochemical anomalies to the east of the
current drilling area require drill testing.
The maiden MRE at TAM totals 233Mt @ 0.33% CuEq for 0.53Mt Cu,
and 1.20Moz Au in the Indicated category, plus 197Mt @ 0.39% CuEq
for 0.52Mt Cu, and 1.24Moz Au in the Inferred category.
The TAM maiden MRE dataset comprised 17,535m of diamond drilling
from holes 1-23, 458m of surface rock-saw channel sampling from 72
outcrops, and 14,566m of final assay results from holes 1-18.
Potentially open pittable Mineral Resources comprise 201Mt @
0.33% CuEq in the Indicated category, plus 61.8Mt @ 0.44% CuEq in
the Inferred category, at a cut-off grade of 0.16% CuEq.
Potentially open pittable Mineral Resources include a higher-grade
near-surface zone containing 10.6Mt @ 0.41% CuEq and 5.1Mt @ 0.45%
CuEq that should support early cash flows and accelerate pay back
of initial pre-production capital for the Cascabel Project.
Mineral Resources potentially mineable by underground bulk
mining methods comprise 32Mt @ 0.35% CuEq in the Indicated
category, plus 135.2Mt @ 0.37% CuEq in the Inferred category, at a
cut-off grade of 0.28% CuEq.
Mineral Resources potentially mineable by underground bulk
mining methods include a higher-grade core, that remains open to
the east, southeast and at depth, containing 16.4Mt @ 0.43% CuEq in
the Indicated category, plus 70.4Mt @ 0.46% CuEq in the Inferred
category, at a cut-off grade of 0.28% CuEq.
The estimation process followed the Canadian Institute of
Mining, Metallurgy and Petroleum (CIM) "Estimation of Mineral
Resources and Mineral Reserves Best Practice Guidelines" (CIM,
2019). The Mineral Resource Estimate is stated in accordance with
CIM Definition Standards (CIM, 2014) and Canadian National
Instrument 43-101 (NI 43-101).
Figure 1 : Location of TAM, Alpala and Aguinaga deposits at the
Cascabel project.
Figure 2 : Comparative plan (TOP) and section (BOTTOM) views of
TAM MRE dataset (LEFT) and the current additional drilling achieved
(RIGHT).
Plan view (TOP LEFT) shows TAM maiden MRE assays from holes 1-18
and surface rock-saw channel samples from 72 outcrops. Plan view
(TOP RIGHT) shows additional assays received from holes 19-24, as
well as black drill traces of holes 25-32 that have assays
pending.
Section view (BOTTOM LEFT) looking north, with unlimited window
thickness, showing the potential open pit and underground
optimisation shapes identified at TAM in relation to the additional
drilling completed thus far at TAM.
Table 1 : Selected intercepts achieved in drill holes 14-24 at
the TAM deposit, Cascabel.
Certain information contained in this announcement would have
been deemed inside information.
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.
Information in this report relating to the Mineral Resource
Estimate was reviewed by Dr Andrew Fowler. Dr Fowler is a Chartered
Professional Member of the Australasian Institute of Mining and
Metallurgy and has in excess of 20 years' experience in Mineral
Resource Estimation, open pit mining, underground mining and
mineral exploration. He is an independent Qualified Person for the
purposes of the relevant LSE and TSX Rules. Dr Fowler consents to
the inclusion of the information in the form and context in which
it appears.
By order of the Board
Dennis Wilkins
Company Secretary
CONTACTS
Dennis Wilkins
SolGold Plc (Company Secretary) Tel: +61 (0) 417 945 049
dwilkins@solgold.com.au
Ingo Hofmaier
SolGold Plc (Acting CFO) Tel: +44 (0) 20 3823 2130
ihofmaier@solgold.com.au
Fawzi Hanano / Lia Abady
SolGold Plc (Investors / Communication) Tel: +44 (0) 20 3823 2130
fhanano@solgold.com.au / labady@solgold.com.au
Tavistock (Media)
Jos Simson/Gareth Tredway Tel: +44 (0) 20 7920 3150
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 aggressively
exploring the length and breadth of this highly prospective and
gold-rich section of the Andean Copper Belt which is currently
responsible for c40% of global mined copper production.
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.
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 a large and active concessionaire in Ecuador.
The Company wholly owns four other subsidiaries active
throughout the country that are now focussed on a number of high
priority copper and gold 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
2,293,816,433 fully paid ordinary shares and 34,250,000 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.
Alpala Copper Equivalency (CuEq) was calculated (assuming 100%
recovery of copper and gold) using a Gold Conversion Factor of
0.613 (CuEq = Cu + Au x 0.613), calculated from a nominal copper
price of US$3.40/lb and a gold price of US$1,400/oz.
TAM open pittable and underground resources were estimated using
a Copper Equivalency (CuEq) calculated from estimated costs,
including mining, processing and general and administration
(G&A), whereby Net Smelter Return (NSR) includes metallurgical
recoveries and off-site realisation (TCRC) including royalties, and
utilising the updated nominal copper price of US$3.30/lb and a gold
price of US$1,700/oz to produce a Gold Conversion Factor of 0.632
(CuEq = Cu + Au x 0.632) for open pittable resources and 0.654
(CuEq = Cu + Au x 0.654) for underground resources.
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, including the plan for
developing the Project currently being studied as well as the
expectations of the Company as to the forward price of copper. 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 and/or
mine development plan; 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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