George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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Ecuador-focused SolGold (LSE: SOLG) is considering a phased approach to the development of its flagship Cascabel copper-gold project in the Andean country as a way to reduce upfront capital and construction time.
The company, which merged last year with Cornerstone Capital Resources to consolidate 100% ownership of Cascabel, also said it had deferred the definitive feasibility study for the project and Porvenir’s preliminary economic assessment.
Porvenir is a copper-gold deposit located about 100 km north of the Ecuador-Peru border and 100 km south of the Fruta Del Norte deposit held by Lundin Gold (TSX: LUG).
The announcement, included in SolGold’s March quarter results, also said the company was negotiating access rights and ownership for the mine’s proposed tailings. All other project work will focus on obtaining permits and agreements to allow for development.
“SolGold plans to provide an update as the various value-adding options are evaluated and a clearer picture of the future direction of the studies and timeframes emerges,” the miner said.
SolGold approached Ecuador’s Ministry of Energy and Mines in August 2022 to begin negotiations for an exploitation agreement for Cascabel.
The company says it expects the contract to be finalized before year-end.
SolGold noted that as part of the announced project evaluation, it is looking into a range of financing and strategic options to secure additional funding, including selling a direct or indirect stake in Cascabel, divesting other assets or other transactions.
The miner ended the quarter with a cash balance of $48.1 million plus $25.4 million of shares held. It said management expects current cash balances to last beyond June 2024.
Losing Newcrest
SolGold faces the possibility of losing Newcrest Mining (ASX: NCM), one of its top investors, within the next couple of years if Newmont (TSX: NGT; NYSE: NEM) succeeds in its takeover of the Australian miner and brings those assets into the fold.
Newmont said on Monday it would seek to generate $2 billion cash in portfolio savings, including selling non-core assets, with the transaction.
Newcrest’s 10.3% stake in SolGold could be one of the positions the U.S. gold giant may seek to divest.
The Cascabel project, located in the Imbabura province of northwest Ecuador, is one of the most ambitious mining projects in a country that is keen to develop mineral resources to spur its sluggish economy.
According to the pre-feasibility study published in April last year, annual production will average 132,000 tonnes of copper, 358,000 oz. of gold and 1 million oz. of silver during Cascabel’s 55-year mine life.
This means the asset has the potential to become one of the 20 largest copper-gold mines in South America.
It’s estimated that the global copper industry needs to spend more than $100 billion to build mines able to close what could be an annual supply deficit of 4.7 million tonnes by 2030.
That is an unfortunate name considering how many words starting with Ju are pronounced in Latin American countries…. Apt even…
They called a new target Juank? Have they hired Slug as regional project manager or something?
Yes I have the same issue with threads displaying posts in reverse chronological order, started sometime this week I think.
Part 2
"The Miocene property lies adjacent to Mirasol Resources Ltd.’s (“Mirasol”) Titan project. Cornerstone’s concessions are
located on an extension of the mineralized trend of the Titan Project and shares the same geology and surface indicators as the Titan project."
Cornerstone has an option and farm-in agreement with Newcrest.
"On 14 June 2016, Cornerstone announced that CESA entered into an agreement with ENAMI, Ecuador's state mining
company, creating a structure for ENAMI and CESA to prospect and explore for mineral projects in Ecuador using
Cornerstone's proprietary geological data base...On 6 March 2017, Cornerstone announced that on 3 March 2017 Ecuador's Ministry of Mining granted ENAMI eight concession titles in the Imbabura and Carchi provinces...In October 2018, Cornerstone completed an airborne magnetic and radiometric regional survey on its Espejo, Playa Rica and
Rio Magdalena Blocks, which are currently under ENAMI-CESA Strategic Alliance."
"Cornerstone has incurred expenditures in respect of the ENAMI-CESA Strategic Alliance totaling approximately CAD
$17,384,276 on 31 December 2022, all of which is exploration expenditures. Exploration work to date has consisted largely of geochemistry work (both soil and rock sample work), prospecting, and geological mapping, and on 18 June 2022, the Company issued a news release outlining strong rock sampling assay results which confirm the potential of Cu-Mo and Cu-Au porphyry targets."
It is understood that CGP/SOLG plan to continue exploration of the Espejo, Playa Rica and Rio Magdalena blocks.
Thank you Redknight you posted something useful.
I was looking for the date for the exploitation license.
So either we are sold by then or we have to start construction.
As all financing will be required to be in place.
On the day before the CGP merger was announced, the SP was 17.46p, valuing SOLG at c£400m...
The MD&A states: that the merger valued CGP at £96.7m...
The current MCap is £538m so...at face value it seems that the merger has added an incremental value of c£41m at current SP, over and above the ascribed value...
"The Company continues to pursue its strategy as an integrated explorer and developer..." (NOTE Not a miner Quady.)
"the Company has until January 4, 2024, to complete the negotiation process (on the exploitation agreement for the Cascabel project) with the establishment of a non-binding term sheet..."
"US$15,471,936 transaction costs (US$7,963,098 incurred by SolGold plc and US$7,508,838 incurred by Cornerstone Capital Resources)." So we only incurred half...
The "Finance costs" for the quarter ended 31 March 2023 of US$3,797,545 are a non-cash, or 'notional' item unless we withdraw from the NSR Financing...
Exploration costs during the previous 9 months were minimal at c$41k but interestingly relate to "the costs capitalised to date on concessions held within the Company’s four 100% owned subsidiaries in Ecuador that were relinquished during the quarter." I.e. we relinquished four concessions...
2,558m of drilling was completed at TAM in the three months ended 31 March 2023.
437m of drilling was completed at Moran in the three months ended 31 March 2023
"..field programs are continuing at Helipuerto with an initial focus on the delineation of the size and tenor of the new Tinkimints copper prospect....mapping and sampling the area directly south of Solaris’ Warintza copper-gold porphyry discovery that abuts SolGold’s Helipuerto concessions....Exploration completed in the area south-east of the Warintza South defined a new target named Juank"
There will be "follow-up drilling" at CGP's Bramaderos and "The Company (CGP) believes its 100% owned “Shyri NW” concession, the site of the Vetas Grandes prospect, has the potential to host a significant epithermal-style gold-silver deposit."
Cana Brava has a binding farm in agreement with Newcrest. "The Company has the right to earn a 100% interest in the Caña Brava project in return for cash option payments each 6 months..."
"Cornerstone acquired the Tioloma property in March 2017 for strategic purposes; the property wraps around three sides of the Caña Brava property..."
"Bella Maria borders the NE boundaries of Lumina Gold’s Greater Cangrejos concession (Cangrejos has an Indicated mineral resource of 568 million tonnes of 0.73 g/t AuEq, with 10.4 Moz and 1.4 Blbs Cu). Initial results indicate that the property has excellent potential for hosting significant gold and copper mineralization..."
"The Miocene property lies adjacent to Mirasol Resources Ltd.’s (“Mirasol”) Titan project. Cornerstone’s concessions are
located on an extension of the mineralized trend of the Titan Project and shares the same geology and surface indica
If we leave out the 20m plus day on 28 April (was that Blacrock's last hurrah...?)...
Average volumes for the last 18 trading days have been c2.2 million
We seem unlikely to break 100k in the first 2 hours today, with only six non ALGO trades in the first 90 minutes.
So it seesm we are back to waiting and watching...again...
The quarterly report, whilst staing that we have no cash problems before June 2024 at the earliest, also implies that nothing much is going to happen either...
Which means we are mostly waiting for Bob's 'retail' process to come up with the first bid...
Hopefull that means more opportunities to trade the shares at the margins to try and increase the otherwise zero return formholding the shares. Indeed the only consolation at present seems to be that SOLG is not falling significantly whilst shares in general are going down (and likely to fall further, with the Debt Ceiliing impasse , renewed fears of recession and the growing credit worries in the US occupying investors' minds...)
Have a good day
There are elements of truth in both Quady's and nal's arguments, it's just a shame neither can accept it.
Like so much of our public debate, nuance has flown out of the window. Opinions become totally entrenched with the result that the discussion collapses into a stinking heap.
An investment case is rarely black and white and that is particularly true here. Any sensible investor would know that and would keep an open mind - sadly, we seem to have gone way beyond that position.
Open your minds, gentlemen - if you don't you're unlikely to succeed as an investor.
Now that's better green posts only from you ,
Oh needalife filtered ni time for dreaming people imho will listen to a balanced board
Yes good thanks pinot,indeed we been round the clock a bit now here our 3.2 and 10 will reward us one day lol!!:):) Ccx
Byron if you was in Australia, as you ridiculously claim. You will have read in the papers FMG are pulling out of Ecuador, because of political uncertainty. Solg philosophy. Post the first thing that comes into your head. Then rk, quady and bubble can think up a 28 paragraph post, of mind numbing unfactuall garbage, so as to sound smart.
One day you might have saved up enough cash to actually own some shares in your name... Pleb
Morning Bubble..... I'm good Thank You and yes still waiting impatiently It better be worth it. Hahahaha.
Hope life is treatiing you well my friend.
Pinot
:0)
Quady balanced board everyone has there own opinions
Morning Pinot ,hope your well my friend ,still waiting lols l!!:):)
Jezzoo what are you on about.
I only have reported two posters on here.
Lots of nasties on this site, but I don't report them.
"No one knows, you get fraud everywhere. "
Funny how you are blasé about serious fraud when it suits you Quads yet you are vehemently opposed to other equally serious topics, some that you repeatedly cancel new posters for.
Morning all.
I have to say, this year (and last year for that matter) my juniors portfolio is a thing of nightmares, I only managed to come out of PREM with no losses but otherwise SOLG, OMI, ECR, COBR, ARS, SDX, HUM are really painful.
Morning Shipright, morning all.....I agree with you Shipright I don't he does.
Pinot
:0)
I think Randy Smallwood might be Fort's other nickname...
The Italian yes agree there ,the progressing cascabel to production might just be a front t to what's actually going to happen let's see
Needalife what major shareholder has sold out of Solgold.