4 November
2024
SolGold plc
("SolGold" or the
"Company")
Commencement of Geotechnical
Investigations at the
Cascabel
Project
SolGold plc (LSE & TSX: SOLG) is
pleased to announce the commencement of geotechnical investigations
at the Cascabel Copper-Gold Porphyry Project in northern Ecuador,
marking an important milestone in the advancement of one of the
world's premier copper-gold projects. The
Cascabel Project's pre-feasibility study outlined a 28-year mine
plan based on an updated Mineral Reserve Estimate of 540 million
tonnes, containing 3.2 million tonnes of copper at 0.60%, 9.4
million ounces of gold at 0.54 g/t, and 28 million ounces of silver
at 1.62 g/t. This represents just 18%
of the overall resource defined to date and is based on metal
prices of US$1750/oz Au, US$3.85/lb Cu, and US$22.50 Ag. With
a capex of $1.55bn, the Project delivers a modelled after-tax IRR
of 24% and an NPV8% of $3.2bn using a staged development
strategy of 12Mtpa initial mining rate.1,2
The current geotechnical program
includes both geotechnical drilling and refraction seismic assessments to
gather important information on ground conditions and subsurface
characteristics, contributing to a refined understanding of the
site's geotechnical framework.
The initial phase of the
geotechnical investigations program, including the drilling
and ground geophysics, will focus on key infrastructure areas for
the mine. Data collected will inform excavation design, ground
support, and other critical components of the Project. This
approach supports SolGold's commitment to industry-leading safety
and operational standards and provides a solid basis for further
engineering design and planning. Should visual mineralization or
alteration be encountered, core samples will be assayed to ensure
that the proposed infrastructure locations will not impede
potential future resource expansion.
In conjunction with the start of
geotechnical investigations, SolGold has scheduled a technical
meeting in November with teams from SolGold and G Mining
Services Inc ("G Mining"). This meeting will focus on collaborative
planning and project optimizations, allowing both teams to align on
objectives that support a streamlined approach to the engineering
and construction phases. With a shared emphasis on efficiency,
innovation, and sustainability, the teams aim to optimize
foundational aspects to help position Cascabel as a major future
copper and gold supplier.
Scott Caldwell, CEO of SolGold, commented:
"Commencing the
geotechnical drilling program is a key milestone in the Cascabel
Project's timeline. The data collected will support our technical
teams in finalizing the mine's design, helping us advance toward
the Company's goal of delivering one of the largest
multi-generational copper-gold projects in the world. The upcoming
kickoff meeting with G Mining's technical team underscores
SolGold's commitment to integrating top-level planning and
sustainable development practices to deliver one of the world's
largest copper-gold resources responsibly."
The Cascabel Project represents a
high-grade copper-gold resource poised to meet the increasing
global demand for copper over the coming decades. In recent months,
SolGold has progressed multiple aspects of the project, including
permitting and infrastructure planning, while strengthening
relationships with local and national stakeholders. This
geotechnical drilling phase adds to the momentum as the Company
moves towards delivering a robust feasibility study in
2025.
SolGold is funded to deliver these
objectives, following a recent gold-only streaming agreement
with Franco-Nevada (Barbados)
Corporation and Osisko Bermuda Limited. This
agreement provides the Company with US$100m
to conduct the planned work and studies required to complete
permitting applications and the feasibility study, subject to
specific provisions. The agreement further provides US$650m for
development funding contingent upon conditions precedent and a
Final Development Investment Decision.3
SolGold is advancing strategies to
secure additional capital solutions to complete the remaining
development funding. The Company is also exploring early-stage
open-cut development of the Tandayama-Ameríca deposit to bring the Cascabel
Project's copper-gold production forward by several
years.
As SolGold advances its initiatives
at Cascabel, the Company remains dedicated to fostering strong
relationships with its stakeholders, prioritizing sustainable
development, and delivering long-term value. The insights gained
from the current geotechnical investigations will play a
significant role in shaping the subsequent phases of project
planning and execution. SolGold looks forward to keeping
stakeholders updated as we progress toward establishing Cascabel as
a key cornerstone copper-gold asset for the future.
Endnotes:
1.
Refer to news release dated 16 February 2024 on
SEDAR+ and the Company's website.
Link:
2024-02-16 Release
2.
Refer to news release dated 12 March 2024 on
SEDAR+ and the Company's website.
Link:
2024-03-12 Release
3.
Refer to news release dated 15 July 2024 on SEDAR+
and the Company's website:
Link:
2024-07-15 Release
CONTACTS
|
Chris Robinson
Director of Corporate
Operations
& Communications
|
Tel: +44
(0) 20 3807 6996
|
|
Tavistock (Media)
Jos Simson/Gareth
Tredway
|
Tel: +44
(0) 20 7920 3150
|
ABOUT SOLGOLD
SolGold is a leading resources
company focused on the discovery, definition and development of
world-class copper and gold deposits and continues to strive to
deliver objectives efficiently and in the interests of
shareholders.
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
environmental impact.
SolGold is listed on the London
Stock Exchange and Toronto Stock Exchange (LSE/TSX:
SOLG).
See www.solgold.com.au
for more information. Follow us on
X @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". 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.sedarplus.ca. 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.
