Member Info for SavShare7

The other thing is that Cornerstone are dirt cheap at the moment (my own opinion) with the share price having been surpressed for a while now...there have been musings on the ceo.ca board about the impact that the share restructture that is being put into place with multiple share classes with different voting rights and a share consolidation is really screwing about with private investors, mainly favouring some of the larger investors, potentially those that swapped solgold shares for Cornerstone shares last year.... the thing that is clear is that there is a long game being played... and we little minnows will be the last to find out...

therefore i would prefer to be in than out... DYOR of course and read up! There is plenty on ceo.ca and on SEDAR filings...especially all the legal contracts as part of Solgold acquiring their 85% in ENSA originally.... GLA

Hi Mog, Solgold have first refusal rights for any disposal that Cornerstone may make for its' stake in ENSA. The only way round this, to realise value, is for Cornerstone to split the company (as it is doing) to wrap the ENSA stake (and solgold shares) up within a company that can be taken over.... Cornerstone's split should have been completed in June but they are now saying should be done in July... this may be a catalyst for someone to show their cards in terms of
interest in ENSA ... DYOR and GLA

Padmaster that definitely wins post of the day!

Certainly made me chuckle :)

Not Solgold, but worth a look to see the kind of information and value that a (what I personally would view to be) smaller project looks like, IRR and NPV etc...

https://www.juniorminingnetwork.com/junior-miner-news/press-releases/823-tsx/ssl/48762-sandstorm-gold-royalties-releases-hod-maden-pfs-and-increases-production-guidance.html

Sandstorm has just released the PFS for Hod Maden which has a lot less copper and a lot less gold than we have currently reported in the MRE. I know it is different capital requirements etc but interesting to see the size and excitement of this project against what we potentially have in Alpala, let alone the wider Cascabel tenement...

GLA and DYOR

Hi Grimbergen,

Totally agree. This is as much about infill drilling to increase confidence and grade (i.e. from inferred to indicated status) of the high grade core as it is about increasing the size. This is part of the journey alongside the PEA so we can go from "Estimated Resource" to "Resource Statement" and more to demonstrating an economically viable resource that we can go to the bank with :)

The key two bits from the RNS today that give me confidence are:
- "....extension to the high‐grade resource along the lower and northeast margins of the deposit."

- "We continue to observe extensive potential resource growth outside current inferred and indicated resource blocks at Alpala.  We expect to deliver a substantial conversion of previously estimated resource categoriesto higher grades as drill hole density increases throughout the deposit area, as well as a significant increase to the resource estimate of the high‐grade core at Alpala." 

Don't forget the high grade core (which they suggest are increasing in size, grade and confidence) is what they are looking to initially cover the CapEx required to build this mine. The rest, despite being lower grade, is viable as the upfront costs are covered by the high-grade core and makes this a potentially multi-generational mine...

For those that haven't seen it and are more visual in their analysis please do look at the June NY 121 Mining presentation which has a 3D model that shows the original MRE and an estimated increase in size based on assays to date, this shows what NM means when he says things like "...significant resource growth is expected in a revised MRE."

https://static1.squarespace.com/static/560a5feee4b0a63bf47c76f5/t/5b2a21d703ce6421e6c0969c/1529487846893/SOLG+121+New+York+Presentation.pdf

GLA and DYOR

I think you all mean over 100% increase in the total meters available that can be (i.e. over double what we had originally) included within an updated MRE not 56.8% increase... I think you mean that only 56.8% of the total meters drilled to date have been used in the original MRE....

DYOR and GLA

...of assay results pending.

Jeez, the sooner they construct the Ecuador ALS lab the better. There's clearly some money to be made with all of the exploration going to open up more labs surely!

I agree with what's been said already, 4 weeks lag (or more) for current outstanding assay results, a few weeks to incorporate into the model and then a release of an updated resource estimate, potentially with a PEA..., which could mean we can release the updated results as a Resource Statement rather than Resource Estimate, showing compliance with instrument 43-101? That would certainly up the ante...

GLA and DYOR

SatanClaus you need to stop this right now, it's becoming unerving how I am agreeing with you... If he is appointing an alternate for DGR when it is just ticking over then why not do the same for Solgold where there is arguably more activity at present...?! GLA and DYOR

Sorry for those that have SatanClaus on filter he brought up an interesting find:

"dgr global announced today that mather is stepping aside and appointing karl as an alternate director until july 6th. i am hoping that this is in some way related to solgold in that there is now some solgold third party talks going on and the alternate director thing is some sort of way of dealing with related party issues as there has to be some logical reason for this move."

That is an interesting one eh Satanclaus...he stepped down as Chairman for IRR a few weeks ago as well...

https://hotcopper.com.au/threads/ann-appointment-of-alternate-director.4265922/#.WzFG-1MvwWo

It is such a short period of time though..only until 6th July that seems a bit odd?

Found a current article in Spanish from EY dated June (link below) which summarises the original and amended wording of some of the paragraphs in the law that was passed which included the abolishment of the windfall tax. Using good old google translate (hence why it is difficult to interpret) the relevant section (page 53, articulo 93) comes out as:

https://www.ey.com/Publication/vwLUAssets/ey-tax-alert-comparativo-proyecto-ley-fomento-productivo-estabilidad-fiscal/$FILE/ey-tax-alert-comparativo-proyecto-ley-fomento-productivo-estabilidad-fiscal.pdf

"For this purpose the mining concessionaire, as well As the profit plants, they must pay a royalty equivalent to a percentage on the sale of the main mineral and minerals secondary, between 5% and 8% on sales, additional to the corresponding payment of the tax income, from the percentage of profits attributed to the State in accordance with this Law and the Value Added Tax

Aggregate determined in the tax regulations valid. To establish the royalty rate to be paid progressivity criteria will be observed, Production volumes of the mining concessionaire and / or type and price of minerals, as
establish the Regulation to this Law. The present Calculation formula will be applied as of the effective date of the Organic Law for Productive Development, Attraction of Investments, Employment Generation, and Stability and Fiscal Balance."

So it sounds like they are proposing to use a clear and transparent formula to calculate a tax between 5-8% based on sales of minerals and potentially a royalty payment based on the size of the project and mineral resource? No mention of windfall tax....

Is that how others read it? Anyone speak spanish please?

GLA and DYOR

Apologies my Spanish is...well...non-existent but have been looking online and would be grateful to others to check as well but it looks like the proposal to abolish the windfall tax that was presented to the Ecuadorian National Assembly has been passed? Now it just needs to be signed into law by President Moreno?

This is the bill that was presented on 24th May - see link below for high level details:

https://www.ferrere.com/en/news/ecuador-urgent-economic-bill-of-law-project-presented-to-national-assembly/

And then found this which suggests it was passed with 73 votes for and 28 against - is this the same bill?

http://plenglish.com/index.php?o=rn&id=29989&SEO=ecuadorian-parliament-approves-urgent-bill-on-productive-development

Tried to find some mention on the major international news networks but can't find it. GLA and DYOR

your welcome twogoals :)

You're welcome All, just glad to be able to contribute to this board. GLA

Hi TheItalian, I wouldn't like to say but certainly the high grade core (which will make this economic or not through paying for initial development costs) looks to have significantly grown outside of the existing MRE footprint and would assume that a lot of the inferred tonnage will have been transferred into indicated to show a growth in confidence. DYOR and GLA

Hi Unic, from what NM said a month or so ago with regards to the Cornerstone arrangement I get the impression (everyone DYOR of course) that the strategy is to fast track to Feasibility as soon as is possible, we know that Cornerstone (or Cascabel Gold and Copper as it will be called) doesn't have the money or income streams to cover what may be close to $20m repayment under the debt arrangement, let alone what is required to contribute to ongoing development costs unless it dilutes the hell out of existing shareholders or manages to get debt funding....All they have are their other tenements and their c10% of Solgold shares (which they could sell to realise one of capital). So they will need to cough up money to cover the costs or dilute to a 0.5% Net Smelter Return that Solgold can buy out for a mere $3.5m.. The reason that they are spinning out the 15% of ENSA and Solgold shares is that they need the company to be taken out, they can't merely sell their stake in ENSA (as Solgold has the pre-emptive rights over any sale of ENSA) to realise the value.... It's a bit of a race with Cascabel Gold and Copper (as it will be called when they finally complete the spin-out of all Non-ENSA and Solgold assets) racing to get taken out and Solgold wanting to get to feasibility so it can buy the 15% of ENSA for peanuts!!! That's my take on things anyway...would be interested in other's thoughts... DYOR and GLA

Hi DG1, nothing in particular. Think focus is on what an extension to Trivinio may bring to the Alpala deposit... It's very similar to the London 121 presentation you can see on Youtube that Anna gave last month. GLA and DYOR

..., in my opinion, between May presentation and June presentation (yes I've got too much time on my hands, lol). https://static1.squarespace.com/static/560a5feee4b0a63bf47c76f5/t/5b2a212e1ae6cfec30bd7efd/1529487677057/SOLG+121+New+York+Presentation.pdf - $110m now spent ($100m in May) - 10 new exciting regional discoveries (8 in May) - all listed are: La Hueca, Rio Amarillo, Cisne Loja, Porvenir, Timbara, Cisne, Blanca – Nieves, Machos, Salinas, Chillanes. 2 Epithermal Gold projects and 8 Prophyr projects. - $70m in the bank ($80m in May) - They've removed the statement from the May presentation that talks about Newcrest having a non-blocking stake, perhaps to do with the expiration of some of their anti-dilution rights? - Looks like they've streamlined the presentation to the "good bits" (and removed a few slides) as they kept running out of time from watching previous presentations. - They've included more detail about the debt funding arrangement with Cornerstone and included this juicy bit: "SolGold holds pre-emptive rights over any disposals by Cornerstone"...hmmm..... - They confirm that Alpala NW extends to Trivinio and that Tandayama-America is to be drilled this year (slide 8) - They've included updated models for the Alpala resource and the high-grade core on slides 10 and 11. Both look significantly larger than that announced in the MRE.... - They've updated the diagram outlining the twin decline tunnels to get under Aguinaga and Alpala, stating 5.5mx5.5m tunnel...suggests to me that progress is being made on the PEA and PFS - Geophysics and Drilling is planned for some of the priority regional projects elsewhere in Ecuador - Additional details and photos updated in the 4 priority projects slide - La Hueca, Timbara, Blanca Nieves and Provernir (slide 16) It's a good read with new info so would suggest a look. GLA and DYOR

The high grade core estimated update from slide 11 does look pretty tasty I have to say.... PDF version now on the site instead of the original PPT version. https://static1.squarespace.com/static/560a5feee4b0a63bf47c76f5/t/5b2a212e1ae6cfec30bd7efd/1529487677057/SOLG+121+New+York+Presentation.pdf GLA and DYOR

Oh and it includes the speaker notes!