TIDMSOLG
RNS Number : 5460U
SolGold PLC
06 December 2021
06 December 2021
SolGold plc
("SolGold" or the "Company")
Hole 19 at Porvenir's Cacharposa returns one of the best
intersections to date
The Board of Directors of SolGold (LSE & TSX: SOLG) is
pleased to provide an update on the Regional Exploration programme
in Ecuador at the Porvenir held by Green Rock Resources S.A., a
100% owned and unencumbered subsidiary of SolGold.
HIGHLIGHTS:
Ø Drill holes 14 - 22 at Cacharposa have intersected further
significant copper and gold mineralisation.
Ø Hole 19 returned one of the best intersections to date with
722m @ 0.66% copper equivalent ("CuEq") ([1]) from surface.
Ø Significant intersections include:
-- PDH-21-019: 722m @ 0.66% CuEq from surface including 118m @ 1.13% CuEq from 12m
-- PDH-21-018: 124m @ 0.76% CuEq from 478m
-- PDH-21-016: 140m @ 0.47% CuEq from 408m
-- PDH-21-014: 132m @ 0.44% CuEq from 756m
Ø Recent drilling results continue to delineate a near surface,
large, mineralised porphyry system at Cacharposa that remains
open.
Ø Work is advancing on a maiden Mineral Resource Estimate
("MRE") for the Cacharposa deposit that is expected later this
month.
Ø Drilling is ongoing at Porvenir with three drill rigs on site
testing mineralisation at Cacharposa and surrounding targets.
SolGold's Executive Board Member and Head of Exploration, Mr
Jason Ward, commented on today's update at Porvenir:
"Results from Cacharposa continue to improve with Hole 19
representing one of the best intersections to date at the Porvenir
project. Mineralisation in this hole commenced from surface and
attests to the economic potential of this project. Cacharposa
continues to grow and with numerous other nearby mineralised
targets identified, we believe the Porvenir project has the
potential to become a Tier 1 copper - gold porphyry camp."
References to figures relate to the version visible in PDF
format by clicking the link below:
http://www.rns-pdf.londonstockexchange.com/rns/5460U_1-2021-12-3.pdf
FURTHER INFORMATION
Porvenir Project: Cacharposa Target
The Porvenir project is located approximately 100km north of the
Peruvian border ( Figure 1 ), in southern Ecuador and approximately
100km south of the 9.48 Moz Au Fruta Del Norte deposit ([2]) . The
Company's Porvenir project is held by Green Rock Resources S.A., a
100% owned and unencumbered subsidiary of SolGold.
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.
Reduced-to-the-pole ("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.
Drill holes 14-22 at Cacharposa intersected significant copper
and gold mineralisation, including a significant intercept of 722m
@ 0.66% CuEq (0.52% Cu, 0.23g/t Au) representing close to
480m%([3]) CuEq in hole 19 ( Figure 2 & 3 ). Selected
highlights of final drill hole assays received from Holes 14-19
include:
-- PDH-21-014: 132m @ 0.44% CuEq from 756m
-- PDH-21-016: 140m @ 0.47% CuEq from 408m
-- PDH-21-018: 124m @ 0.76% CuEq from 478m
-- PDH-21-019: 722m @ 0.66% CuEq from surface including 118m @ 1.13% CuEq from 12m
-- PDH-21-020: 122m @ 0.44% CuEq from 8m
-- PDH-21-021: 166m @ 0.38% CuEq from 182m
Significant intersections from final assays in drill holes 14-22
at Cacharposa are shown in Table 1 .
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.
Three drilling rigs are currently operating at Porvenir
continuing to delineate the extents of mineralisation at Cacharposa
along with testing other nearby mineralised targets at Mula Muerte
and Viño at the Porvenir project.
Drilling of hole 26 will commence shortly at Cacharposa and
assays from completed holes 23-25 are pending.
Work is advancing on a maiden MRE for Cacharposa expected later
this month with internal preliminary estimates indicative of a
significant prospective resource that appears amenable to bulk
surface mining methods.
([1]) Copper equivalency factor of 0.632 (whereby CuEq = Cu + Au
x 0.632) is based on third party metal price research, forecasting
of Cu and Au prices, and a cost structure from mining studies data
available from a similar deposit. 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.
([2]) Fruta Del Norte Mineral Resources, inclusive of Mineral
Reserves.
https://lundingold.com/en/fruta-del-norte/reserves-and-resources
.
([3]) Metre percent Copper Equivalent (m% CuEq) = interval
length (m) x grade of the entire interval (CuEq%). M% CuEq
calculation provides a standardised measure of comparing drilling
intercepts by calculating an analogous interval length that would
hold a CuEq% grade of 1% for each metre within the selected
interval.
Figure 1 : Location Map. SolGold's Porvenir Project in southern
Ecuador
Table 1 : Selected significant intercepts achieved at the
Cacharposa Deposit in Holes 14 - 22.
Figure 2 : Cacharposa Drilling Plan at Porvenir showing selected
highlights of drilling results to date, over topography and current
3D Numerical Models at > 0.1%, >0.4% and >0.7% CuEq
cut-off grades.
Figure 3 : Central Cross-section A-A' looking north-northeast
with window thickness of 100m and showing assay results received to
date over current 3D Numerical Modelling at > 0.1%, >0.4% and
>0.7% CuEq cut-off grades.
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.
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.
Copper Equivalent is currently calculated (assuming 100%
recovery of copper and gold) using a Gold Conversion Factor of
0.632 (whereby CuEq = Cu + Au x 0.632) is based on third party
metal price research, forecasting of Cu and Au prices, and a cost
structure from mining studies data available from a similar
deposit. 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.
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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