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“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 company has said in its management discussion and analysis accompanying its 2023 third-quarter report.
Regarding the ongoing strategic review, SolGold continues to evaluate financing alternatives, including potentially spinning out non-Cascabel assets.
Key Contracts, Suppliers and Consultants
Mining Plus (mineral resources and reserves estimates); Knight Piésold (environment, social, tailings and water studies); Wood (metallurgy, process plant and infrastructure, as well as financial evaluation); and Wood Mackenzie (marketing).
Location
Northern Ecuador.
Project Owner/s
Exploraciones Novomining, an 85%-owned subsidiary of SolGold.
Project Description
A prefeasibility study (PFS) has concluded that Cascabel has the potential to be a large, low-cost and long-life mining operation based on achievable, proven and tested mining and processing assumptions.
The mine is expected to produce a clean copper/gold/silver concentrate, to be sold to Asian and European smelters as part of a project construction financing package.
The project has an initial mineral reserve of 558-million tonnes containing 3.3-million tonnes of copper grading 0.58%, 9.4-million ounces of gold grading 0.52 g/t, and 30-million ounces of silver grading 1.65 g/t over an initial 26-year life-of-mine (LoM), with a potential LoM upside of more than 50 years following the initial LoM.
Access to the Alpala underground mine is expected to be through twin declines, starting from a boxcut near the surface and the first lift near the 300mRL. Block cave mining will be applied to the underground resource while all horizontal development will be undertaken using conventional drill-and-blast methods. The vertical development for the main ventilation rises will be excavated using blind sinking methods.
The crushed ore from the underground primary crushers will be conveyed to the surface and fed to the secondary crushing circuit. The product from the secondary crushing area will be transferred to the fine ore stockpile, and subsequently reclaimed to the high-pressure grinding rolls (HPGR) circuit.
The product from the HPGR circuit will be transferred to a grinding circuit comprising ball mills, each operating in closed circuit with a hydrocyclone cluster.
The project is initially expected to produce about 132 000 t/y of copper, 358 000 oz/y of gold and one-million ounces of silver (212 000 t/y copper equivalent), with peak copper production of 210 000 t/y (319 000 t/y copper equivalent).
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has an estimated pretax net present value, at an 8% discount rate, of $5.2-billion and an internal rate of return of 25.3%, with a payback of 4.7 years from the start of operations.
Capital Expenditure
$2.7-billion for the initial cave development, first process plant module and infrastructure.
Planned Start/End Date
Not stated.
Latest Developments
SolGold is evaluating a phased approach to the development of the Cascabel project to reduce upfront capital and shorten the development schedule.
It has also deferred the Cascabel definitive feasibility study, owing to the fluidity of the current capital cost landscape and the ongoing assessment of value-enhancing opportunities.
The company is prioritising capital allocation as part of a reorganisation plan, which aims to reduce costs and headcount, to preserve financial resources while derisking Cascabel.
Probably if the short is not closed from xib
Buy at 13p
Https://www.kitco.com/news/2023-05-18/Copper-concentrate-market-to-face-steep-deficit-from-2025.html
Https://twitter.com/NateGeraci/status/1659364293114994690/photo/1
I8med thanks for concern. I'm a different person away from here. I just have issues with idiots. Believe me she's a lucky girl, in a lucky country. With aucky loving papa
SharketMare I do not have it the wrong way round.
They don't hand out exploitation licenses to anyone.
The whole point is with the exploration licence, we have to prove it up and acquire the required permitting.
To get the exploitation license we need to show how we are going to build it
I am unsure if we also need funding in place to acquire the licence, but it's not as simple as you believe.
I should think the strategic review is considering all these aspects.
A granddaughter @ 9years and you still spend all your time bashing a share. Please dont share this expertise with the little girl. My sincere wishes to her for a much much better life.
"But somehow we require the exploitation license and to get that we need to construct Alpala."
Quady, we can't construct Alpala without an exploitation license. You have it the wrong way around.
Love your use of emojis novice. do you know theres an emoji movie out over here. I watched it with my 9 year old granddaughter. if you get the chance, you should give it a look mate. I think you will enjoy it. also loved how you twisted my name. pretty clever mate
Covgaz we may one day get a buyer.
But somehow we require the exploitation license and to get that we need to construct Alpala.
Until there is a buyer.... which could be Monday week or Monday in 5 years, so relax cov, 🚀
And there is no buyer
Alpala isn't a mine....
Fortissimo well put there exactly
Ecuador was due to go to the elections in Feb 2025. Any buyer of Alpala will know this. Just like they know Ecuador will go into elections in 2029 after that and 2034 and so on. Alpala is a 30 to 50 year mine. Mirador whilst much smaller has been running 'production' during Correa reign in 2019 through to Lasso now. They've not been effected. Why would they?
At end of the day, political is 'heated' in South America but 99% of the time business remains unaffected. Yes, you will get some constant lefty governments upping taxes nominees from time to time but it rarely lasts. Even UK ups taxes on likes of BP and Shell et al when prices are high although to be hints it's lip service stuff and more Storyville headlines for Tories rather than real deliverable action.
For the Chinese, they have a way of being the sugar daddy for Ecuador - it gives them the unique position of holding 'debt' as leverage tool. The chinese would be the best bet for Alpala if you were going on the basis of who would carry the most power with an Ecuador gov. China or BHP or Anglo etc. China wins hands down.
We've had left and right already in Ecuador running the show and it's not effected SOLG at all. The left are pro mining and the right are pro mining. And let's face it, with high inflation and post covid woes... every country out there needs big business to do well and boosters to GDP. Ecuador people want better wages. They want lower prices on day to day items. A new government are going to need loads of wonga coming in if they want to stay in power beyond Feb 2025. So I see the future as bullish for mining in Ecuador on that basis alone.
Never forget that mining industry here is now about 4th biggest earner and contributor to GDP. Any goverment wether left, centre or right would commit financial harrikarri if did not support!
GLA
DK
Looking in from the outside understand a bit of trepidation! Would be interested in any Ecuadorian or ex pat living here views??
GLA
DK
Evening all.
Have been layed up in bed for past few days a bit ill, but back up and running ok, to find this current situation.
Lasso perhaps didnt fancy his chances with the national assembly, so he has surely on the back of advice invoked the cruz muerte, cross of death, or mutual death( however you wish to interpret it). Basically means he will rule by decree until new elections can be arranged for both national assembly and presidency, I would guesstimate 5 to 6 months. As I understand his comments he would rather take his chances with the electorate than the disruption seeking Correist infested national assembly. Good decision, who knows? Risky? Yes. Best case scenario is re elected, worst case IMO is Correo backed opposition is elected ( maybe by proxy cos if Correo returns in person he himself will be arrested on previous corruption charges ! )Dont forget this is politics and also this is Ecuador. If you cant take the heat, get out of Ecuador kitchen and go cook in Oz or Canada etc.
ATB
DK
I think Ortherncopper answered your question Bozi.
Timing is everything and there's transformational and there's delusional, not saying that you are by the way.
Can you remind me who the first bidder was ?
Without Govt permission it's just a lot of long holes in the mountains, then the licences run out and then it's the Govts collection of long holes in the mountains that somebody was good enough to show them was full of copper and gold.
You've got to know when to hold 'em etc .
To be fair Bozi, if we had flipped it… let’s say around the time BHP were happy to pay 45p for a small stake, we would not have been rueing the lost opportunity cost of sticking with it for the last circa 5 years since then, hoping for transformational growth
Why Jezzoo?
On what planet do you find a tier 1 and flip it on to the first bidder?
SOLG might come off. It might not. But some of us were in it for transformational growth, not a flip and onto the next one jobby.
Well said bubble , that suited your agenda then. This share is a shocker , how could anyone hold confidently?
BPHL and Scrat good posts there recommended,zoros as ever on form with your negativity does make a good opinionated board lol!!:):)