SolGold encouraged by drilling results at Hole 9, analysts less so

Ecuador-focused gold miner SolGold unveiled what it described as the "encouraging" results of its most recent copper-gold porphyry exploration efforts at drill-hole 9, at its Cascabel project which is within the Alpala field.The first batch of assay results unearthed 1.56 grams per ton of gold at a depth of 160 metres and 0.84% copper at 650 metres.Hole 9 had been drilled to a depth of 1,246.28m and had a planned minimum depth of 1,800m.Porphyry copper deposits, for example, are those formed from hydrothermal fluids.Commenting on the results, chief Alan Martin highlighted how they increased his confidence that the Alpala structural zone target and parallel structures were in fact high-level parts of a broader gold-rich porphyry system at depth."Central Alpala is increasingly looking like a large and predictable system, with very encouraging and reliable vectors being established from drilling, mapping, geochemistry and geophysical surveys at Alpala."Nevertheless, analysts at Shore Capital were rather more reserved in the reaction. In a research note e-mailed to clients they explained that " the proof of the Alpala pudding is in the drilling - and a lot more holes than just Hole 5 (and possibly Hole 9) will be required to delineate a sensible resource."While they anticipated a positive share price reaction in the wake of the company's announcement, they continued to believe that a fund-raising was likely "anytime within the next few weeks, given the company's latest financials.As of 15:35 shares in Sol Gold were 13.33% higher at 4.25p.