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www.v o x markets.co.uk/articles

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Hofmaier’s move to SolGold highlights the significance of the Cascabel project and its potential for acquisition.

Ingo Hofmaier has joined SolGold from investment bank, Hannam & Partners.
Hofmaier formerly worked for Rio Tinto on the $5bn takeover of Ivanhoe Mines, on the integration of Riversdale and on the jv between Rio Tinto and Chinalco.

Question is, why is SolGold bringing in a deal-maker and expert corporate financier like Hofmaier?

SolGold announced its intention on 31st January to make an offer to acquire Cornerstone Capital and consolidate its holding in the giant Cascabel project in Ecuador.
Cornerstone dismissed the offer on 8th February with SolGold reporting that they were finalising the documentation for the offer on 26th March….
BHP and Newcrest are also significant shareholders and are seen as stalking SolGold following significant cash injections.
SolGold’s recent publication of a Preliminary Economic Assesment on the Cascabel project brings the team closer to potentially having to fend off a bid for the consolidated entity.
BHP and Rio Tinto are earning substantial cash from the sale of hundreds of millions of tonnes of iron ore at >$100/t in recent months and can easily afford to acquire projects like Cascabel for future construction.
Newcrest are expert in large-scale block cave mining as is Rio Tinto which is the operator at the major Oyu Tolgoi copper project in Mongolia which was formerly owned by BHP
Copper deficit: The world’s major copper mines in Chile are running out of resource with few new discoveries for their replacement.
Given that it can take 5-10 years to plan and build a major copper mine of this sort of scale the majors know they need to plan now to stay ahead in the next generation of copper mines.
Conclusion: SolGold’s Cascabel project offers one of just a few large-scale, copper projects while its large exploration area in Ecuador also offers potential for further discovery.

Hofmaier’s move to SolGold highlights the significance of the Cascabel project and its potential for acquisition.

"Despite further drill testing of extensions, the Alpala North targets are still open to the north, as shown by Hole 75 intersection (1918m @ 0.53% CuEq), 288m of which lies outside the existing Inferred Resource area."

Surely another one of the greatest drill hole intersections in the history of copper gold porphyry exploration?

It's way over a mile in length of mineralisation!

This monster is a monster of monsters and still growing into an even bigger monster of monsters.

GLA

Yes Tiger. They also state that material below a 2% cut off grade is not considered to have a reasonable prospect of economic extraction and is not considered part of the Resource.

Which suggests that material above the 2% cut off does so. There is potential there in secondary mineralisation at lower grade to extend the mine life.
GLA

6 year mine life is referred to in the Inferred Resource RNS.

The MRE will allow for a 6-year life-of-mine small scale operation to produce rock mass of only 5,500t/month containing 12,000 t zinc metal per year to Kabwe. While in-house attributable revenues are projected at about USD15 million annually at current price, the annual all in cost is projected not to exceed to USD2 million.

https://www.theafricareport.com/15263/us-china-trade-war-opens-a-market-for-african-rare-earth-suppliers/

Increasing market for rare earth's - Galileo mentioned.

GLA

Published on youtube 12th July.

https://youtu.be/K7OpIhNKhLE

GLA

Government approval of Jubilee commissioning of Sable refinery announced today.

"I am delighted that we have successfully achieved all conditions precedent for the implementation of the Sable Zinc Kabwe acquisition with the final approval from the ZCCPC being ratified and completion formalised. With the design process near finalised, this allows Jubilee to commence with the circuit upgrade and expansion of the Sable Zinc Kabwe refinery for the processing of the Kabwe tailings to produce zinc, vanadium and lead. The first phase of the project targets the production of Vanadium Pentoxide (V2O5) and a zinc concentrate with phase two bringing the zinc metal refining step and lead concentrate online.

Just bought in myself eyesblue. This seems a good investment at this price. Mr Bird has all the ducks lining up.
GLA

Yes cookie IMHO the Hannam target is rather conservative

No worries cookie. Onwards and upwards. We're now very well placed for the next developments and rerate.

https://mobile.twitter.com/SolGold_plc/status/1144237630139379712/photo/1

42% increase in metres drilled since last MRE.
80p share price target.

Don't necessarily think gov will allow this cookie, but came across this article so thought I would share it. Seems to be a columnist from a legitimate news source.
Regards
P

https://www.eluniverso.com/opinion/2019/06/23/nota/7388451/mafias-acechan?device=tablet

Columnist's opinion

In Ecuador, mining is a flourishing mafia business. In Urcuquí, in the vicinity of the Solgold operation, a world-class gold and copper mine, illegal mining has exploded and is growing dramatically. The press reports that neither the armed forces can enter.

The Constitutional Court rejected by formulism the request of an illegal miner, who pronounces itself depriving the State of its right to decide which areas open to oil and mining exploitation. When not pronouncing on the bottom, it maintains the uncertainty. Denying the State that right would not stop mining, but instead of being an activity regulated and conducted by reputable international firms, it would be reserved to the ELN and local mafias.

Colombian criminal organizations take hold in Ecuador. As they increase their power, they will buy and threaten judges, recruit policemen, elect assembly members. They can become a parallel government. The threat is that we lose control of our country.

Fair, accurate comments Qali, thanks

https://markets.ft.com/data/equities/tearsheet/forecasts?s=SOLG:LSE

Share price forecast
The 6 analysts offering 12 month price targets for SolGold plc have a median target of 76.00, with a high estimate of 145.00 and a low estimate of 41.00. The median estimate represents a 116.22% increase from the last price of 35.15.

Analysts' target prices (All on record DYOR).
JP Morgan 90p
Paradigm Capital C$0.85
Red Cloud C$1.47
Cormark C$1.40
Hannam 80p
Liberum 69p
National Bank of Canada C$1.10
Arden 86p with a £1.98 upside potential

Padmaster revised target £2+

Infestors' price £0.001

Agree, it would be good if CGP is sorted quickly Italian

X-ray - BHP were willing to make a move a couple of years ago when we had no PEA and less drilling results and no information on the other tenements, never mind a feasibility study.