TIDMSOLG
RNS Number : 1922C
SolGold PLC
11 April 2017
11 April 2017
SolGold plc
("SolGold" or the "Company")
Cascabel Exploration Update
Hole 22 extends the Alpala Central high grade core
approximately 200m closer to surface.
The Board of SolGold (AIM code: SOLG) is pleased to provide an
update on Hole 22 at the Company's Cascabel copper-gold porphyry
project in Ecuador.
HIGHLIGHTS:
Ø Hole 22 extends the Alpala Central high-grade core
approximately 200m closer to surface.
Ø Final results return:
-- 730m @ 0.52 % copper and 0.23 g/t gold from 446m (at 0.30% CuEq cut-off), including:
-- 384m @ 0.65 % copper and 0.34 g/t gold from 770m (at 0.50% CuEq cut-off), and
-- 100m @ 1.10 % copper and 0.57 g/t gold from 896m (at 0.70% CuEq cut-off).
Ø Hole 23R, 24, and 25 update planned before Easter.
Ø SolGold's current exploration team makes discovery of the
growing Alpala Deposit for 50km(2) of geophysical and geochemical
surveys, 34,000m of diamond drilling, and USD43M expenditure.
References to figures and tables relate to the version of this
release on the Company's website (www.solgold.com.au) or visible in
PDF format by clicking the link below:
http://www.rns-pdf.londonstockexchange.com/rns/1922C_-2017-4-11.pdf
FURTHER INFORMATION:
The Cascabel Project is located on the gold-rich northern
section of the prolific Andean Copper belt renowned as the
production base for nearly half of the world's copper, (Figure 1).
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,
in northern Ecuador, approximately three hours drive north of
Quito, close to water, power supply and Pacific ports (Figure 2).
SolGold holds an 85% interest in ENSA (Exploraciones Novomining
S.A.) which holds 100% of the Cascabel tenement.
Fifteen individual targets have been defined at Cascabel.
SolGold has successfully drill tested three of the fifteen targets,
being Alpala Central, Alpala Northwest, and Hematite Hill. Drill
testing of a fourth target, at Alpala Southeast is currently under
way (Hole 24) (Figure 3). The deposit at Alpala continues to grow
with each new drill hole. Current drilling focusses on defining the
geometry of the growing Alpala deposit, which is open in virtually
all directions. Over 34,000m of drilling has been completed to
date, and the arrival of Rigs 4, 5, 6 and 7 over the coming two
quarters will see drill testing expanding to Alpala East, Alpala
West, Trivinio and Aguinaga by mid-year. The drilling program
expands towards eight drilling rigs by year end, which will also
see drill testing of the Tandayama-America prospect. Drill hole
locations showing completed drilling and current holes 23R, 24, and
25 are shown in Figure 4.
Hole 21 (CSD-17-021), situated approximately 250m along strike
to the southeast of Holes 16 (856m @ 0.80% Cu, 1.04g/t Au), was
completed to a depth of 1619.2m on 17 March 2017. Hole 21
intersected significant copper sulphide mineralisation from around
685m to 1610m depth, reported on 4th April as a 925m interval
showing an average of >1.5 volume-percent chalcopyrite, based on
visual logging estimates. This includes a zone that averages
>2.0 volume-percent chalcopyrite over a down-hole length of
approximately 490m.
Assay results for Hole 21 are being finalised and are expected
in the coming week. Selected examples of mineralisation encountered
in Hole 21 are shown in Figure 5.
Hole 22 (CSD-17-022) was completed to a depth of 1311.2m on
5(th) March 2017 testing approximately 200m up-trend of Hole 19
from the same drill site. Hole 22 extends the Alpala Central high
grade core approximately 200m shallower. Final results
returned:
-- 730m @ 0.52 % copper and 0.23 g/t gold from 446m (at 0.30% CuEq cut-off), including:
-- 384m @ 0.65 % copper and 0.34 g/t gold from 770m (at 0.50% CuEq cut-off), and
-- 100m @ 1.10 % copper and 0.57 g/t gold from 896m (at 0.70% CuEq cut-off).
The position of Hole 22 is shown in cross-section A-A' in Figure
6. Selected examples of mineralisation encountered in Hole 22 are
shown in Figure 7.
Holes 23R, 24, and 25 are in progress at current depths of
579.1m, 868.7m, and 847.0m respectively. A detailed update on the
progress of these exciting holes, testing both depth and strike
extensions to the southeast of Alpala, is planned later this
week.
OUTLOOK
Upgrade and expansion of site facilities are well underway at
Cascabel as the project continues to expand towards 7 rigs by
October and 10 rigs next year. The geology team have yet to define
the extents of the Alpala porphyry system, and the deposit remains
open in most directions, continuing to grow with each new drill
hole. An aggressive drill program, producing approximately 90,000m
of diamond drill core per annum from early 2018 is planned to
delineate the system limits along the greater Alpala trend prior to
a maiden resource statement, and to test the other multiple targets
within the concession. An increasing understanding of the deposit
is now leading to much larger step-outs in drilling as SolGold
directs its program towards the copper and gold at a prognosed
large and rich heart of the Alpala system.
Qualified Person:
Information in this report relating to the exploration results
is based on data reviewed by Mr Nicholas Mather (B.Sc. Hons Geol.),
the Chief Executive Officer of the Company. Mr Mather is a Fellow
of the Australasian Institute of Mining and Metallurgy who has in
excess of 25 years' experience in mineral exploration and is a
Qualified Person under the AIM Rules. Mr Mather 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
Mr Nicholas Mather Tel: +61 (0) 7 3303 0665
SolGold Plc (Executive Director) +61 (0) 417 880 448
nmather@solgold.com.au
Mr Karl Schlobohm Tel: +61 (0) 7 3303 0661
SolGold Plc (Company Secretary)
kschlobohm@solgold.com.au
Mr Ewan Leggat / Mr Richard Morrison Tel: +44 (0) 20 3470
0470
SP Angel Corporate Finance LLP (NOMAD and Broker)
ewan.leggat@spangel.co.uk
Follow us on twitter @SolGold_plc
NOTES TO EDITORS
SolGold is a Brisbane, Australia based, AIM--listed (SOLG)
copper gold exploration and future development company with assets
in Ecuador, Solomon Islands and Australia. SolGold's primary
objective is to discover and define world--class copper--gold
deposits. The Board and Management Team have substantial vested
interests in the success of the Company as shareholders as well as
strong track records in the areas of exploration, mine appraisal
and development, investment, finance and law. SolGold's experience
is augmented by state of the art geophysical and modelling
techniques and the guidance of porphyry copper and gold expert Dr
Steve Garwin.
SolGold was shortlisted as a nominee for the Mining Journal
Explorer Achievement Award for 2016. The Company announced USD54m
in capital raisings in September 2016 involving Maxit Capital LP,
Newcrest International Ltd and DGR Global Ltd, all undertaken at
substantial premiums to previous raisings and SolGold has (at March
2017) circa USD35 million in available cash to continue the
exploration and development of its flagship Cascabel Project.
Coincident with those capital raisings, Mr Scott Caldwell (CEO
of TSX-listed Guyana Goldfields Inc) joined the SolGold Board on 9
September 2016. Mr Caldwell is a mining engineer with over 30 years
of experience building and operating gold and base metal mines
worldwide, including USA, Canada, Russia, Zimbabwe, Chile and
Indonesia and was in 2016 recognised as CEO of the year for
South-American resource companies.
Mr Craig Jones also joined the SolGold Board on 3 March 2017,
nominated to the Board of SolGold by Newcrest Mining, a 10%
shareholder in SolGold. Mr Jones is a Mechanical Engineer and is
currently the Executive General Manager Wafi-Golpu
(Newcrest-Harmony MMJV). He has held various senior management and
executive roles within the Newcrest Group, including General
Manager Projects, General Manager Cadia Valley Operations,
Executive General Manager Projects and Asset Management, Executive
General Manager Australian and Indonesian Operations, Executive
General Manager Australian Operations and Projects, and Executive
General Manager Cadia and Morobe Mining Joint Venture. Prior to
joining Newcrest, Mr Jones worked for Rio Tinto.
Cascabel, SolGold's 85% owned world class flagship copper--gold
porphyry project, is located in northern Ecuador on the
under--explored northern section of the richly endowed Andean
Copper Belt. SolGold owns 85% of Exploraciones Novomining S.A.
("ENSA") and approximately 11% of TSX--V--listed Cornerstone
Capital Resources ("Cornerstone"), which holds the remaining 15% of
ENSA, the Ecuadorian registered company which holds 100% of the
Cascabel concession.
The investment by Newcrest into 10% of SolGold, and investment
into SolGold by Guyana Goldfields, Maxit Capital and its clients,
endorses Ecuador as an exploration and mining destination, the
management team at SolGold, the dimension, size and scale of the
growing Alpala, and the prospectivity of Cascabel and its multiple
targets. The gold endowment, location, infrastructure, logistics
are important competitive advantages offered by the project.
To date SolGold has completed geological mapping, soil sampling,
rock saw channel sampling, geochemical and spectral alteration
mapping over 25km(2) , along with an additional 9km(2) of Induced
Polarisation and 14km(2) Magnetotelluric "Orion" surveys over the
Alpala cluster and Aguinaga targets.
SolGold has completed over 34,000m of drilling and expended over
USD43M on the program, corporate costs and investments into
Cornerstone. This has been accomplished without lost time injury or
environmental incident, employing a workforce of up to 176
Ecuadoreans workers and geoscientists and 6 expatriate Australian
geoscientists. The results of 26 holes drilled (including
re-drilled holes) and assayed to date have produced some of the
greatest drill hole intercepts in porphyry copper-gold exploration
history including Hole 12 (CSD-16-012) returning 1002m grading 0.76
% copper and 0.77 g/t gold. The average grade of all metres drilled
to date on the project boasts 0.32 % copper and 0.27 g/t gold.
Intensive diamond drilling is planned for the next 12 months with
10 drill rigs expected to be operational by years' end, targeting
over 90,000m of drilling per annum.
Cascabel is characterised by fifteen (15) identified targets,
world class drilling intersections over 1km in length at
potentially economic grades, and high copper and gold grades in
richer sections, as well as logistic advantages in location,
elevation, water supply, proximity to roads, port and power
services; and a progressive legislative approach to resource
development in Ecuador. To date, SolGold has drill tested 3 of the
15 targets, being Alpala Central, Alpala Northwest, and Hematite
Hill. Currently drill testing of the Alpala Southeast target is
underway.
The Alpala deposit is open in multiple directions and the
mineralised corridor marked for drill testing of the greater Alpala
cluster occurs over a 2.2km strike length from Trivinio in the
northwest to Cristal in the southeast. The mineralised corridor is
known to be prospective over approximately 700m width. High
priority targets within the Alpala cluster, at Moran approximately
700m to the north, and at Aguinaga approximately 2.3km north east,
are closely modelled by 3D MVI magnetic signatures that currently
encompass over 15Bt of magnetic rock. Based on a strong spatial and
genetic relationship between copper sulphides and magnetite, this
body of magnetic rock is considered to be highly prospective for
significant copper and gold mineralisation, and requires drill
testing.
SolGold is focussing on extending the dimensions of the Alpala
deposit including Hematite Hill, Alpala South East, Cristal, Alpala
Northwest and Trivinio before completing a resource statement and
drill testing of the other key targets within the Cascabel
concession at Alpala West, Carmen, Alpala East, Moran, Aguinaga,
Tandayama-America, Parambas, and Chinambicito.
The Company is currently planning further metallurgical testing
and completion of an independent Pre-Feasibility Study at Cascabel.
SolGold is investigating both high tonnage open cut and underground
block caving operations, as well as a high grade / low tonnage
initial underground development towards the economic development of
the copper gold deposit/s at Cascabel.
Drill hole intercepts are calculated using a data aggregation
method, defined by copper equivalent cut-off grades and reported
with up to 10m internal dilution, excluding bridging to a single
sample. Copper equivalent grades are calculated using a gold
conversion factor of 0.63, determined using an updated copper price
of USD3.00/pound and an updated gold price of USD1300/ounce. True
width of down hole intersections are estimated to be approximately
25-50%.
Following a comprehensive review of the geology and
prospectivity of Ecuador, SolGold and its subsidiaries have also
applied for additional exploration licences in Ecuador over a
number of promising porphyry copper gold targets throughout the
Country. SolGold is negotiating external funding options which will
provide the Company with the ability to have some of these projects
fully funded by a third party while focussing on Cascabel.
In Queensland, Australia the Company is evaluating the future
exploration plans for the Mt Perry, Rannes and Normanby projects,
with drill testing of the Normanby project planned for the coming
quarter. Joint venture agreements are being investigated for a
joint venture partner to commit funds and carry out exploration to
earn an interest in the tenements.
SolGold retains interests in its original theatre of operations,
Solomon Islands in the South West Pacific, where the 100% owned,
but as yet undrilled, Kuma prospect on the island of Guadalcanal
exhibits surface lithocap characteristics which are traditionally
indicative of a large metal rich copper gold intrusive porphyry
system. SolGold intends in the future to apply intellectual
property and experience developed in Ecuador to target additional
world class copper gold porphyries at Kuma and other targets in
Ecuador and Argentina.
SolGold is based in Brisbane, Queensland, Australia. The Company
listed on London's AIM Market in 2006, under the AIM code 'SOLG'
and currently has a total of 1,431,166,605 ordinary shares issued,
together with 33,975,884 options exercisable at 28p and 12,875,884
options exercisable at 14p.
CAUTIONARY NOTICE
This news release may contain certain statements and expressions
of belief, expectation or opinion which are forward looking
statements, and which relate, inter alia, to the Company's proposed
strategy, plans and objectives or to the expectations or intentions
of the Company's directors. Such forward-looking 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 forward-looking statements. Accordingly, you
should not rely on any forward-looking statements and save as
required by the AIM Rules for Companies or by law, the Company does
not accept any obligation to disseminate any updates or revisions
to such forward-looking statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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