Member Info for mattlilly

Doesn't necessarily follow miagi...I don't think there's a requirement to RNS such results...if not NM can trot them about for maximum effect...

https://www.theassay.com/news/solgold-set-to-shine-light-on-rio-amarillo/

Blanca and/or La Hueca...

Increased holdings RNS for Valuestone...(bought in the market)

Porvenir 1500 metres

PFS/CFP

Rio Amarillo (blockbuster)...

Copper pushing towards a 3 year high and then a 6 year high beyond that...

Gold just slumped on Moderna vaccine news...94.5% effective....

Hi copperpot...I understand why you would want to ask that...production is surely at least four years away, so I expect I would get the party line, even though he is not an 'insider'.

I'e. something like "Nick has always said he is going to production..." and surely the next stage is PFS/CFP which is another step on the road to production.

Nobody could possibly say anything about a bid, because that would either be insider information or sheer speculation at a distance...

Please let me know if I've misunderstood, but I'm open to suggestions as to other questions...

"Grade is king in this business, and when you've got something like Blanca that has got some extraordinarily high gold grades on it only 8km from your main project, that itself has a less than four-year payback, 27% IRR and $4 billion NPV, for only $2.4-2.8 billion [upfront development] capital, then something like Blanca can conceivably provide a substantial amount of that capital requirement to get Cascabel going.

"So Blanca shapes as an early stage financing tool."

Mather said 100%-owned Porvenir had also yielded strong results from rock saw sampling along a zone of outcropping quartz veins, chalcopyrite, bornite and magnetite mineralised rock displaying similar characteristics to Alpala, but over a "much, much bigger outcrop" area along a creek called Cacharposa.

"The outcrop at Alpala was only 50m long in the Alpala Creek," Mather said.

"That's why we put the first drill hole there, and that was literally the tip of an iceberg."

At Porvenir SolGold had taken hand samples from rock saw channels in a continuous trench along the main identified outcrop over 114m, and Mather said there are "a number of [other] outcrops that extend over a zone in excess of 1km long and 800m wide".

"I can't tell you whether they all join up or not, but it is part of one whole mineralising system.

"We're itching to get drill rigs on to this because we can see the thing - the mineralisation over three dimensions - and it's very exciting from that point of view.

"We believe that Porvenir will be the second of SolGold's porphyry discoveries. It's bigger, it looks richer, it's 100% owned and I believe we will be able to get onto it rapidly and much more quickly bring it up to the same level as Alpala is now.

"So we'll be starting to put meat on our claims that we have a pipeline that we can rapidly explore, appraise and get to development stages.

"When they're gold-rich, and have economics like Alpala, each successive one that we get to develop and get capital payback on simply doubles, triples, quadruples the amount of net free cash that we're going to bank every year. That will put SolGold, sometime in the next 5-15 years, into the ranks of being a global copper-gold producer, and a major."

London-listed SolGold (SOLG) reported this week its structural mapping at Blanca confirmed "potential for multiple stacked flat-lying high-grade epithermal veins" from at least 118 artisanal mining tunnels in the 400m-by-200m Cielito area. It had also retrieved bonanza-grade gold rock chip samples from a "newly identified area of shallow artisanal workings … on the opposite ridge to the Cielito Vein", about 380m to the south-east, which was "thought to be part of the same system".

Mather said SolGold, Ecuador's biggest active mineral explorer with more than a dozen rigs currently turning at Cascabel sites, was selecting drill sites at Blanca.

"The thing that attracts us to it geologically is the underground artisanal mine workings that have been mapped on very high-grade epithermal gold veins that go up to over 600gpt. They're generally anywhere between 10cm and 2m wide with variable grades, but we do have a 200m-by-400m wide zone of concentrated artisanal workings on these veins.

"And inside that area we can see potential for a multi-million-ounce, very high-grade gold resource.

"That is just the sort of thing that is highly financeable, easily mineable, with gold easily recoverable, that could provide a huge boost to the first phase of SolGold's share of development costs at Cascabel.

"We're looking at Blanca very much as something that can bootstrap SolGold into covering costs of development at Cascabel for very low relative capital costs. Layer that over the already outstanding economics that we can see for Cascabel and there might not be an ultimate requirement for very much external funding at all to turn SolGold from explorer to producer.

"If we were to find anything that's mineable there we would have to integrate it into the Cascabel project and there'd be a number of discussions and studies we'd have to do to be able to do that.

Speaking with Mining Journal at Diggers & Dealers at Kalgoorlie, Western Australia, SolGold CEO Nick Mather said the company was waiting on permits to start drilling at Blanca, where rock chip sampling in and around about 120 artisanal workings concentrated in a 400m-by-200m area on the Cielito Vein has reportedly shown "bonanza style epithermal gold mineralisation" with copper.

He couldn't put a schedule on the drilling at this stage, but said he was itching to get rigs active at Blanca, about 5km north of the Alpala deposit at Cascabel, and at the Porvenir porphyry copper-gold target in Ecuador's south.

"Having over the last four years developed a blueprint for the discovery recognition of the zonations and mineralising patterns at Alpala, and a blueprint for efficient appraisal of them, for which our exploration team has been gonged a few times, we can now apply that blueprint to these other targets in Ecuador, and Porvenir is the best looking of the lot of them," Mather said.

"Porvenir outcrops over a much, much bigger area than Alpala. So it's way better exposed - the drilling targets are sticking out of the ground. You can see them very easily.

"We've selected our drilling locations and started drill pad construction.

"I can't be specific about a start date but it is getting closer and closer."

Neither Blanca nor Porvenir have been previously drilled.

I'm in contact with somebody who is not only incredibly knowledgeable about mining in the Americas, but also in direct contact with their counterpart at SOLG...They also have shares in SOLG...

I had this exchange with them over the weekend:

"Porvenir looks amazing, but the one I'm really looking forward to is Rio Amarillo...what are your thoughts?" (rouge)

"Well Said - so am I" his immediate reply).

Onwards and upwards...

Thanks rcg...that's a pretty wide set of criteria compared to what some people have assumed on here and ADVFN...

I say again...a serious fund don't make an investment of that size, at the market price, without believing that they will make a meaningful gain...

Especially with the parentage, this buy puts a floor under the SP IMHO...

I can't remember where, but I saw something about their investment policy referring to them being a new fund and looking at a diverse range of mining investments, with, typically $10-30m...

So I don't believe they are specifically targeting SOLG, however, with their parentage it would not be surprising if they were acquiring stakes where the owners have a particular interest...and they've been in Ecuador for yonks, with influence on the Govt through funding...

Is it just possible that NM had other requests for Equity...i.e. going back to the 'extra $5 million" at the placing...and maybe they were told "the price is 31.95, take it or leave it..."

I say again, that price indicates1 to me that Valuestone, which is a new fund, believes they will at least double or treble their money...

From every perspective this should have been very good news and I don't know why the SP hasn't caught fire...a brief flirtation with 35p and we've slipped back again...

Yeesh!

It must be love at last Quady...BTW the IT experience I alluded to was 1974/6...officially an IT consultant...we did the likes of IT Security, etc...I guess these days I'd be doing Cybersecurity...fascinating...

I agree...after I qualified as a CA, I was recruited for our newly established IT Audit Department...we were the first firm to audit "through the box"...the rest were assuming GIGO...it was an amazing time to be in IT and I was trained in Systems Analysis, Programming and Operations, when everything was on punched cards...we had to write our own interrogation programs in COBOL...I had originally been fascinated by competing when I went on a programming course in 1966 (while the World Cup was on...), using Algol and Autocode...is anyone else on here old enough to remember those...?

That's fascinating Quady. What a diverse career...

Seriously, our experience complements each other, as I have a career almost entirely spent in Financial Services, as FD, CEO, Corporate Treasurer, with a strong emphasis on Corporate Finance...

As a matter of interest, when I wrote the first Business Risk Manual for the FS sector, all the 'Risk Management' texts at that time were written by Actuaries/Insurance specialists...the world moves on...

Cheers

I see Quady has sounded 'the last post'...very apt... ;-)

Just out of interest Quady...we know you are an actuary...what is your specific experience and knowledge base on Corporate Finance...?

First...let's get a sense of perspective...0.6% isn't going to stop any bid...

However I regard this purchase, though small, as incredibly bullish.

First, the ultimate owners are one of my serious candidates to either take over SOLG or at least acquire one of the mines...

I expect we can't rely on 'Chinese walls' in China, so no doubt a huge amount of informed intelligence and a certain amount of influence will have been passed down...

Next, this is just one of a number of prospective mining investments for a new fund. Fund managers like these don't invest out of benevolence, so they will either already know that there is a guaranteed minimum prife at which the holding will be taken out at if there is a bid (and that price would have to satisfy BHP & NCM as well, or...

They would expect to make a substantial profit on this investment, even if it is in the long run..

So I think this puts their current expectations at 65/100p minimum...

Finally, Porvenir has been specified...Valuestone wouldn't put a stipulation like that unless their masters had a specific interest in Porvenir, but this is an investment in SOLG, not one mine...so...

Nick has gratuitously linked the money to Porvenir...why?

To strongly reinforce the message that Porvenir is going to be so huge that it's worth raising new money, but meanwhile it 'releases' all the other money for the other drills and I suspect Rio is now the other priority...

So all in all VERY bullish and I will leave others to work out the significance of the escrow until March...

AIMO as usual...