TIDMSOLG
RNS Number : 8070E
SolGold PLC
14 February 2018
14 February 2018
SolGold plc
("SolGold" or the "Company")
Cascabel Exploration Update
Aguinaga Drilling Program to Commence in March 2018
The Board of SolGold (LSE / TSX code: SOLG) is pleased to
provide an update on the upcoming drill program at the Aguinaga
prospect, at the Company's Cascabel copper-gold porphyry project in
Ecuador.
HIGHLIGHTS:
Ø Two diamond drill rigs to mobilise to Aguinaga in early March
2018.
Ø Five high priority drill targets identified.
Commenting on the Aguinaga targets, SolGold Technical Services
Manager, Benn Whistler said:
"The Aguinaga Prospect is a highly prospective copper gold
porphyry target that has demanded a detailed assessment since
discovery of the outcrop, and now it's ready to drill test. We are
excited to be moving two man-portable rigs up there imminently.
The targets we have now developed at Aguinaga are very
compelling due to the coincidence of diagnostic anomalies in key
supporting datasets, including surface mapping and sampling,
spectral alteration clay species mapping, soil-and
auger-geochemical results and the integration of magnetics, IP
chargeability and Magneto Telluric (MT) resistivity models.
First pass drilling will commence to test five high-priority
drill holes, initially up to 1200m deep, using two man-portable
drill rigs. Both drill rigs are planned to be moved into Aguinaga
later this month, once they have completed their current holes at
Alpala. Since the arrival of five large drill rigs into the Alpala
drill program, producing up to 100m of drill-core a day, SolGold is
able to make these rigs available to test the Aguinaga and other
peripheral targets."
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/8070E_-2018-2-13.pdf
FURTHER INFORMATION
The Cascabel Project (the "Project") is located on the northern
section of the prolific Andean Copper belt, 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, in northern
Ecuador, approximately three hours drive north of Quito, close to
water, power supply and Pacific ports (Figure 1). Having fulfilled
its earning 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
tenement.
SolGold has drill tested 5 of 15 copper-gold targets delineated
in the 50km(2) tenement with a focus, to date, on Alpala (Figure
2).
A second drilling program is set commence at the exciting
Aguinaga prospect, with two diamond drill rigs to mobilise to drill
sites being prepared at Aguinaga in early March 2018. The Aguinaga
prospect lies along a prominent topographic high (1615m) about 3km
northeast of the Alpala Deposit (Figure 3).
In 2015, along the upper section of Aguinaga Creek, field teams
discovered porphyry copper-gold, quartz stock-work veining and
telescoping of epithermal-gold style veining within potassic
altered porphyritic diorite. Rock saw-channel sampling over the
limited exposure, returned an open-ended nine metres grading more
than 1.0% copper and 0.7 g/t gold (Figures 4a and 4b).
The drill targets now developed at Aguinaga reflect several key
datasets. Highlights of some important features targeted
include:
-- Aguinaga occurs at the intersection of a deep seated regional
north-west trending structure with major north-east- and
north-trending lineaments, characterized by a similar structural
regime and host rocks that occur at the Alpala deposit. These
structural intersections are coincident with predictive 3D
geochemical anomalies at depth, based on classic metal formation
evident in the Yerington copper porphyry system in Nevada, and
applied to surface geochemical data at Cascabel. (Figures 5a and
5b).
-- A classic 500m x 500m magnetic high at Aguinaga is surrounded
by an annular magnetic low. The size and geometry of this magnetic
expression is characteristic of a large porphyry centre with a
magnetite-destructive halo caused by phyllic and argillic
alteration, similar to magnetic signatures at the Bajo de la
Alumbrera, Grasberg and Batu Hijau porphyry deposits (Figure
6).
-- A very strong annular chargeability high with a central
tapering root at Aguinaga which is consistent with
sulphide-bearing, disseminated and/or stock-work style
mineralisation peripheral to and above a porphyry stock (Figure
7).
-- A strong and deep-seated Magneto-Telluric (MT) resistivity
anomaly that extends to depth is potentially associated with strong
porphyry-style alteration and mineralisation. Recent test work on
altered and mineralised drill core samples from the Alpala deposit
showed that altered rocks at Alpala were significantly more
conductive than surrounding fresh rocks, hence the MT anomalies at
Aguinaga are considered significant (Figure 8).
-- The classically, diagnostic coincidence of soil geochemical
anomalies over the prospect is tremendously convincing. Coincident
highs in copper, gold, molybdenum and the Cu-Zn ratio in soil and
auger results are supported by a surrounding zone of low
manganese-in-soil, which is likely to be related to intense
late-stage hydrothermal alteration above the centre of the Aguinaga
porphyry system. These soil geochemical relationships are
characteristic of the metal zonation around porphyry copper-gold
deposits (Figure 9).
First pass drilling will commence with five high-priority drill
holes, initially up to 1200m depth, (Figures 10,11,12) using two
man-portable drill rigs. Both drill rigs are planned to be moved
into Aguinaga after completing their current holes at Alpala.
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 Member of the
Australasian Institute of Mining and Metallurgy, holds the
designation MAusIMM (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
Mr Nicholas Mather Tel: +61 (0) 7 3303 0665
SolGold Plc (Chief Executive Officer) +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 (Broker)
ewan.leggat@spangel.co.uk
Follow us on twitter @SolGold_plc
NOTES TO EDITORS
SolGold is a Brisbane, Australia based, dual LSE and TSX--listed
(SOLG on both exchanges) 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.
In October 2017, at the Mines and Money Americas Conference in
Toronto, SolGold's Nicholas Mather won the award for the CEO of the
Year - Exploration, Latin America. SolGold won the Exploration
Award for Latin America, and Ecuador won the Country Award for
Latin America. Each party then duly won the 2017 award for each
respective category on a global basis at London Mines and Money on
30 November 2017.
The Company announced USD54m in capital raisings in September
2016 involving Maxit Capital LP, Newcrest International Ltd and DGR
Global Ltd, and a USD41.2m raising in June of 2017 largely from
Newcrest International with USD1.2m raised from Ecuadorean
investors. All of these raisings were undertaken at substantial
premiums to previous raisings. In November 2017 SolGold raised a
further GBP45m at 25p per share, placed with institutions and
Newcrest pursuant to their anti-dilution rights. SolGold currently
has circa USD110m in available cash to continue the exploration and
appraisal of its flagship Cascabel Project, and with which to
conduct regional exploration programs on its 77 other 100%-owned
projects in its wholly owned subsidiary companies.
Mr Craig Jones joined the SolGold Board on 3 March 2017,
nominated to the Board of SolGold by Newcrest Mining, now a 14.54%
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" (Refer
www.solgold.com.au/cautionary-notice/) flagship copper--gold
porphyry project, is located in northern Ecuador on the
under--explored northern section of the richly endowed Andean
Copper Belt. Having fulfilled its earning requirements, SolGold is
a registered shareholder with an unencumbered legal and beneficial
85% interest in ENSA (Exploraciones Novomining S.A.) and
approximately 5% 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. Subject to the terms of existing agreements,
Cornerstone is debt financed by SolGold for its share of costs to
completion of a Feasibility Study.
In terms of repayment, SolGold shall receive 90% of
Cornerstone's share of earnings or dividends from ENSA or the
Tenement to which Cornerstone would otherwise be entitled until
such time as the amounts so received equal the aggregate amount of
expenditures incurred by SolGold that would have otherwise been
payable by Cornerstone, plus interest thereon from the dates such
expenditures were incurred at a rate per annum equal to LIBOR plus
2 per cent until such time as SolGold is fully reimbursed.
The investments by Newcrest for 14.54% of SolGold endorses
Ecuador as an exploration and mining destination, the management
team at SolGold, the dimension, size and scale of the growing
Alpala deposit, and the prospectivity of Cascabel and its multiple
targets. The gold endowment, location, infrastructure, and
logistics are important competitive advantages offered by the
project. 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 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 other targets at Aguinaga, Parambas,
Tandayama-America, Moran and Chinambicito.
SolGold has completed over 78,500m of drilling and expended over
USD82M in Ecuador, which includes Cascabel exploration, regional
exploration, corporate costs and investments into Cornerstone. This
has been accomplished with a workforce of up to 260 Ecuadorean
workers and geoscientists, and 6 expatriate Australian
geoscientists. The results of all holes drilled and assayed to date
have produced some of the greatest drill hole intercepts in
porphyry copper-gold exploration history, as indicated by Hole 12
(CSD-16-012) returning 1560m grading 0.59% copper and 0.54 g/t gold
including, 1044m grading 0.74% copper and 0.54 g/t gold. Intensive
diamond drilling is planned for the next 12 months with up to 12
drill rigs operational.
SolGold has drill tested 5 of 15 copper-gold targets delineated
in the 50km(2) tenement with a focus on Alpala.
Further drill testing at Alpala will focus on:
-- Extending and infilling the Alpala Central area with Rigs, 1, 6 and 5.
-- Expanding the system at Alpala Northwest and Trivinio with Rigs 8, 9, 10, 11, and 12.
-- Testing extensions of the system at Alpala Southeast with Rigs 2, 3, and 4.
-- Testing geochemical and magnetic targets at Alpala West and Carmen with Rig 7.
There are currently 12 drilling rigs active at Alpala.
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 up to 800m width.
The remainder of the targets are scheduled for testing during
2018, subject to ongoing technical assessment, and completion of
ground magnetic modelling and Spartan Orion deep IP surveys.
The Company and its external consultants prepared an initial
mineral resource estimate at the Cascabel Project in December 2017.
Results are summarised in Table B attached.
The Mineral Resource Estimate was completed from 53,616m of
drilling, approximately 84% of 63,500m metres drilled as of
mid-December 2017, the cut-off date for the maiden resource
calculation. There remains strong potential for further growth from
more recent drilling results, and continued rapid growth of the
deposit.
The Company is currently planning further metallurgical testing
and completion of an independent Preliminary Economic Assessment
and Pre-Feasibility Studies 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 have been updated to reflect current
commodity prices, 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 widths 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 several
applications for additional exploration licences in Ecuador over a
number of promising porphyry copper gold targets throughout the
Country.
SolGold, through its 4 subsidiary companies, has 100% ownership
of 77 granted concessions throughout Ecuador. Each subsidiary
company has technical teams, led by experienced senior geologists,
on the ground prospecting granted tenements and collecting baseline
data, whilst regional geophysics surveys are being planned.
Significant copper occurrences have been identified at numerous
projects to date, including La Hueca, Machos, Rio Armarillo,
Sharug, Porvenir and Timbara.
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 the
Solomon Islands.
SolGold is based in Brisbane, Queensland, Australia. The Company
is listed on the LSE and TSX, with both exchanges using the ticker
code: SOLG, and currently has on issue a total of 1,696,245,686
fully-paid ordinary shares, 31,795,884 share options exercisable at
28p; 9,795,884 share options exercisable at 14p and 46,762,000
share options exercisable at 60p.
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. 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.
The Company recognises that the term "World Class" is subjective
and for the purpose of the Company's projects the Company considers
the drilling results at the growing Alpala Porphyry Copper Gold
Deposit at its Cascabel Project to represent intersections of a
"World Class" deposit. The Company considers that "World Class"
deposits are rare, very large, long life, low cost, and are
responsible for approximately half of total global metals
production. "World Class" deposits are generally accepted as
deposits of a size and quality that create multiple expansion
opportunities, and have or are likely to demonstrate robust
economics that ensure development irrespective of position within
the global commodity cycles, or whether or not the deposit has been
fully drilled out, or a feasibility study completed.
Standards drawn from industry experts (1) Singer and Menzie,
2010; (2) Schodde, 2006; (3) Schodde and Hronsky, 2006; (4) Singer,
1995; (5) Laznicka, 2010) have characterised "World Class" deposits
at prevailing commodity prices. The relevant criteria for "World
Class" deposits, adjusted to current long run commodity prices, are
considered to be those holding or likely to hold more than 5
million tonnes of copper and/or more than 6 million ounces of gold
with a modelled net present value of greater than USD 1
Billion.
The Company and its external consultants prepared an initial
mineral resource estimate at the Cascabel Project in December 2017.
Results are summarised in Table B attached.
The Mineral Resource Estimate was completed from 53,616m of
drilling, approximately 84% of 63,500m metres drilled as of
mid-December 2017, the cut-off date for the maiden resource
calculation. There remains strong potential for further growth from
more recent drilling results, and continue rapid growth of the
deposit.
Any development or mining potential for the project remains
speculative.
On the basis of the drilling results to date and the results of
the Alpala Maiden Mineral Resource Estimate, the reference to the
Cascabel Project as "World Class" (or "Tier 1") is considered to be
appropriate. Examples of global copper and gold discoveries since
2006 that are generally considered to be "World Class" are
summarised in Table A.
References cited in the text:
1. Singer, D.A. and Menzie, W.D., 2010. Quantitative Mineral
Resource Assessments: An Integrated Approach. Oxford University
Press Inc.
2. Schodde, R., 2006. What do we mean by a world class deposit?
And why are they special. Presentation. AMEC Conference, Perth.
3. Schodde, R and Hronsky, J.M.A, 2006. The Role of World-Class
Mines in Wealth Creation. Special Publications of the Society of
Economic Geologists Volume 12.
4. Singer, D.A., 1995, World-class base and precious metal
deposits-a quantitative analysis: Economic Geology, v. 90, no.1, p.
88-104.
5. Laznicka, P., 2010. Giant Metallic Deposits: Future Sources
of Industrial Metal, Second Edition. Springer-Verlag
Heidelberg.
Table A: Tier 1 global copper and gold discoveries since 2006.
This table does not purport to be exhaustive exclusive or
definitive.
Resource Tonnage Grade Contained Metal
Category (Mt)
------------ ----------- -------- --------------------- -----------------------
Cu Au CuEq Cu Au CuEq
(%) (g/t) (%) (Mt) (Moz) (Mt)
------------ ----------- -------- ----- ------- ----- ------ ------- ------
>1.1%
CuEq Indicated 70 1.1 1.3 1.8 0.7 2.8 1.2
------------ ----------- -------- ----- ------- ----- ------ ------- ------
Inferred 50 1.1 1.3 1.8 0.5 1.9 0.8
------------------------ -------- ----- ------- ----- ------ ------- ------
0.9 -
1.1% CuEq Indicated 50 0.7 0.5 1.0 0.3 0.9 0.5
------------ ----------- -------- ----- ------- ----- ------ ------- ------
Inferred 50 0.7 0.5 1.0 0.4 0.9 0.5
------------------------ -------- ----- ------- ----- ------ ------- ------
0.3 -
0.9% CuEq Indicated 310 0.4 0.2 0.5 1.2 2.3 1.6
------------ ----------- -------- ----- ------- ----- ------ ------- ------
Inferred 550 0.4 0.2 0.5 2.0 3.5 2.6
------------------------ -------- ----- ------- ----- ------ ------- ------
Total
>0.3%
CuEq Indicated 430 0.5 0.4 0.8 2.3 6.0 3.4
------------ ----------- -------- ----- ------- ----- ------ ------- ------
Inferred 650 0.4 0.3 0.6 2.9 6.3 4.0
------------------------ -------- ----- ------- ----- ------ ------- ------
Table B: Alpala Mineral Resource statement as of 18 December
2017
Notes:
-- Mr. Martin Pittuck, MSc, CEng, MIMMM, is responsible for this
Mineral Resource estimate and is an "independent qualified person"
as such term is defined in NI 43-101.
-- The Mineral Resource is reported using a cut-off grade of
0.3% copper equivalent calculated using [copper grade (%)] + [gold
grade (g/t) x 0.6] based on a copper price of US$2.8/lb and gold
price of US$1,160/oz.
-- The Mineral Resource is considered to have reasonable
potential for eventual economic extraction by underground mass
mining such as block caving.
-- Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability.
-- The statement uses the terminology, definitions and
guidelines given in the CIM Standards on Mineral Resources and
Mineral Reserves (May 2014).
-- The MRE is reported on 100 percent basis.
-- Values given in the table have been rounded, apparent
calculation errors resulting from this are not considered to be
material.
-- The effective date for the Mineral Resource statement is 18th December 2017.
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLGGUAGPUPRPWW
(END) Dow Jones Newswires
February 14, 2018 02:00 ET (07:00 GMT)
Solgold (LSE:SOLG)
Historical Stock Chart
From Apr 2024 to May 2024
Solgold (LSE:SOLG)
Historical Stock Chart
From May 2023 to May 2024