Member Info for TheRouge

I don’t give a XXXX what they do after their shift ends!

A previous quote I saw from Newscrest recently made it pretty clear that they were happy with their investment but not looking to up it.

It was the news released 28 October - just a month typo...

Ignore me - they meant 28 October 2019

In the RNS....

Further, metallurgical data released by SolGold to the market on 28 November 2019 indicated significant improvements in both copper and gold recoveries of 3.8% and 21.6% respectively, which data has not yet been modelled financially.

Who is the 'comptroller'? And how much impact/influence do they have?

I was translating and sharing an article. I would have done so if the content was good or bad.

I am in investor with a 20-something pence average. I want the bastard share to go up as much as anyone. I just want information not mindless, repetitive ramping.

That took ages - hah.

Some good info in there - both bad and good.

....YET MORE

But in other concessions there have been complaints against the company such as those published by Plan V in the reports. In Carchi it is required that mining does not turn its back on communities and the Awá do not want mining in their territory. In Carchi, the Blanca concession awarded to Solgold also operates and is the second most advanced after Cascabel. In the first one a drill works, in the second nine. In Blanca, according to Taunton, the main conflict is with illegal mining. When a gold beta was discovered while a highway was being built, the mining fever turned the El Cielito sector, which is within the concession, into a hotbed of people. The illegal mine was controlled. For the executive of the company, the inconvenience arises because even a group of inhabitants has asked the State to grant 300 hectares of the concession where the beta is.

But the community has also accused the company of allegedly dividing people. Solgold has another explanation and that goes through the lack of employment. In Blanca, the company has given work to 34 people where the populations of influence reach 300 inhabitants. Daysi Cueva, regional coordinator of the project, explained that the only way they found to distribute the work was through a raffle. Under that modality, inhabitants of El Cielito, Río Verde, La Florida, Praderas, Miravalle, Pénjamo and San Patricio participated. “The labor need is very high, in each community there are 30 owners and we only had three places. They put all the names and we made a raffle and in that order they will be called. ”

The mining company has also found resistance from the Awá. The current Federation of the Awá Centers of Ecuador has been emphatic in not allowing the entry of legal and illegal mining. But during the administration of Florencio Cantincús, the company entered the Awá communities of El Tigre, El Pailón and Chorreras de Gualpi to report on the project. In that area the survey tasks have been completed, which consists in the search for mineral signs on the surface. They had four Awá promoters who helped translation during socializations. But so far there are no approaches with the new president of the Federation, Jairo Cantincús.

Mining in the north of the country, although it is just beginning, is moving at an accelerated pace between the expectations of the populations and of a State that seeks more resources.

...AND AGAIN AGAIN...

Although Solgold has given work to the inhabitants of the sector and surrounding communities -534 jobs have been opened only in Cascabel-, the presidents of the parish GAD feel the pressure of their people asking them to manage more job offer in the company. In the case of Lita, there are 16 communities and employment is centered in the area of ??influence that is basically nine communities. Josefa Espinoza, from Rocafuerte and with 63 years, worked in one of the nurseries. He said that the majority of the 70 families in his community work in the company. She earns $ 418 plus the benefits of the law.

Cachaco is another community of 60 families dedicated to agriculture, livestock and tourism. Rebeca Muñoz, president of the place, reiterated that the jobs in the mining company have saved the economy of the area. "So far you don't see anything, but all people have a zoom that some time something might happen." While Marcelo Tobar, president of the El Carmen community, neighbor of Santa Cecilia, said the entire community agreed with the company's income. In the absence of employment they saw it as an opportunity. In his experience he has not seen any impact on the environment.

Plan V returned days after visiting the camp and chatted with other inhabitants. The general opinion of the company is positive. Some keep on their cell phones the visits they have made to the camps even to the drills. Visitors must wear helmets, vests and industrial boots that the same company provides them. They also remember the reaction of the company when a few months ago they saw that in a ravine the sediments lowered possibly from the overflow of some sediment that people did not know how to explain. The employees, people say, cleaned up the rocks. During 2019, the company has received four complaints, two of them environmentally related to the cleaning of the platforms.

The company employs them for basic labor: transfer of equipment, cooks or nurseries. It has also promoted a bakery that the inhabitants administer and provide the bread in the camps. In Rocafuerte, Solgold has initiated a program to train the population in technical skills that will be required when the construction of the mine begins. "We want to show that mining doesn't destroy everything," Taunton adds.

....AND AGAIN

He kept the observations. Plan V asked the company to go to the area where the drills operate and where the graves are, but the lack of time to reach that place accessed by a ballast road and then on foot for a couple of hours was argued.

The audit team of the Comptroller also reported that there was no prior consultation process in the surrounding communities. But in this observation, the Comptroller's office was completely wrong, according to Tauton, because that process applies to the settlement of ancestral peoples. "It is also an obligation of the State."

Employment, relief
Cascabel is based on the parishes La Carolina and Lita dedicated basically to agriculture and livestock, where the lack of basic services exceeds 90%. In this area of ??the province of Imbabura, its inhabitants begin to work from very early ages and that makes them stop studying. Only 5% of the population is salaried, that is, they have a permanent job. Solgold's arrival in this sector of the country has been a relief for impoverished people affected by lack of employment, but also by other problems: violence and proximity to the border with Colombia, armed conflict, illegal mining and State abandonment of these populations crossed by a first-order route, the Ibarra-San Lorenzo, by which they take their products.

During the visit made by Plan V to the Rocafuerte camp, the company summoned five community leaders, most of them company employees. Nelson Espinoza, president of the Parish GAD of Lita, recalled that when the miner arrived there were doubts and fears that the sources of water will be contaminated. But then people opened the doors of their farms to the firm's employees and said they now see positive changes. He gave as an example Santa Cecilia, one of the two towns that are within the concession. According to him, that sector was about to disappear. "It was a dry creek." Now it has a way and stopped being an almost ghost town. He said that they have not had any inconveniences about the environment. He himself has requested examinations from the Public Water Company to verify the status of the tributaries and has not registered any damage.

.....AND AGAIN

Cascabel also has a water recirculation system that allows it to consume a third of what is authorized during drilling with the drills, says the concessionaire. The liquid once it enters the subsoil returns to the surface and passes through a sedimentation system in tubs. By gravity the thickest is settled and from there comes the most liquid fluid that passes through a centrifuge that separates the fine solids and the fluid is used again by 90%, according to the mining company. This is called ‘closed recirculation circuit’. 10% is discarded and goes to graves. That was the explanation of the company's experts.

But the Comptroller now criticized the Ministry of Environment for not having carried out a control on this system of recirculation and treatment of effluents - water served - in the drilling. Its explanation is more detailed about the recirculation system: in drilling, sludges formed by mixing water with chemicals are used and that the fluid injected into the subsoil, which returns the surface mixed with sand and other materials generated by the effect of the cut of the drill. The company, in its response, said the mixture is composed of 99% water and 1% additives.

In this process, the Comptroller identified several problems such as the lack of reports that certify that the fluids that returned to the surface did not contaminate the subsoil. In the inspections carried out by the Comptroller, he found a pit without “some treatment process”, as well as the lack of studies on wastewater. These observations generated a coming of answers between the Comptroller and the company. She defended herself and said that conclusions cannot be made with inspections of less than a day in a well. The entity, however, maintained that the concessionaire and the Environment reports attached documentation supporting the treatment and management of effluents in some of its wells.

Finally, in environmental matters, the Comptroller affirmed that the size of authorized vegetation clearing areas was exceeded. The entity once again questioned Environment for not making the respective verifications. The company informed that 84% of the intervened areas have been reforested, that is approximately 10,000 square meters. Hence, in the area they have created nurseries where the native species of the area that will be planted are grown.

In an interview with Plan V, the vice president of Solgold, Andrew Taunton, said they responded to the Comptroller's observations with a 56-page report after the draft was read on December 20, 2018. He said many of the complaints were related to laws that were not in force at the time of the concession. "We take care of the water," he said and added that they have complied with all changes in Senagua regulations. “As an industry we fulfill more than anyone. We return the water in better condition ”. He said that after his response "they never received a formal document". But the final report, published i

CONTINUED ONCE MORE....

According to the Comptroller's Office, the Water Regulation and Control Agency (ARCA) did not verify whether the company complied with the designs and plans of the collection works and the reforestation of the area of ??influence of water sources, obligations that the concessionaire must fulfill. Solgold replied that no recruitment work was required. However, for the Comptroller that was an obligation not fulfilled.

Another indication made by the control body is that in the Parambas gorge there were no meters to verify the water consumption for the platforms. The mining company responded with the respective reports, but the Comptroller's Office detected damage to two meters. The ARCA was questioned for not having made the respective inspections. "The aforementioned lack of control caused the flow of water used by the ENSA mining concessionaire in drilling activities to be unknown." The meters, the firm said, were being replaced and were installed during the inspection of the Comptroller's Office, which also found that the use of the flow did not exceed Senagua's authorization. At this point the ARCA was badly stopped in front of the control entity because to defend itself it even sent documentation about another mining project. The ARCA just made an inspection on July 18, 2018 and there reported that Solgold collected water from two unauthorized points.

Perhaps one of the strongest observations has to do with the discharge of wastewater without complying with environmental regulations. In the camps there are treatment plants, which after that process the waters are discharged into the environment. In the visit that Plan V made to these facilities, the experts assured that the water that returns to the creeks leaves even cleaner and is verified by the Environmental Observatory in which people from the surrounding towns that have been trained to read the results participate of the analysis. The possible contamination of water sources has been a constant concern of the communities since the beginning of the project. Magaly Arce, president of the Observatory and the Parambas community, said that every six months they receive water and soil analyzes and so far they have not found any irregularities.

The Comptroller recalled that since 2015 the company had a system of sewage and gray water treatment for the concession camps. This began operating in July of that year. But in Alpala there was a high presence of oils and fats in treated waters, among other elements. The current plants using oxygenation chambers came into operation in August 2017. But the Comptroller's Office found that there were still substances that exceeded the allowed values. The company replied that it took corrections, which were then verified. "However, for 1 year 8 months the treated wastewater discharged into the environment did not comply with environmental regulations," said the Comptroller.

CONTINUED AGAIN...

Cascabel is a source of astronomical figures. In this, approximately 140 million have been invested so far. The project is in the advanced exploration phase. That is, it has been possible to determine the size and shape of the deposit. The next stage will be the economic evaluation of the deposit. The Australian company estimates that this phase will end in 2021 and at the end of the same year it plans to begin the construction of the mine. At that time, he estimates that the foreign investment that will be needed will be 2.8 billion dollars. While the capital for the infrastructure of the mine during its useful life will be 7.6 billion and the operating expenses of 25.9 billion.

"The costs are very expensive because the best technology in the world is going to be used," Yard said. Cascabel will be an underground mine and the Australian firm promises to use ‘block caving’ technology, which is a system of exploitation by sinking blocks. Countries like Chile use it. The ‘panel caving’ could also be used, which is a technology that uses the same principle as the previous one.

For the first five years, according to Solgold, they will only have expenses. But when production begins, they expect to receive resources for almost $ 1 billion in just one year. In taxes, according to their calculations, they will pay 17,000 million during the 50 years of the mine's useful life. In addition to these revenues are royalties for the area of ??impact ranging between 3 and 8% of mine production. These royalties are resources that go to the State and return to the populations in works. This will occur when the production phase begins. "Imbabura Prefecture has a budget of 40 million, royalties during the life of the mine will be more than 1,000 million," said Taunton. They expect to employ up to 5,000 people. Rattlesnake is a great promise.

Not all that glitters is gold

Cascabel is in the advanced exploration phase. The main job has been drilling with holes to extract the mineralized rock. This machinery uses hollow drill bits that recovers rock cylinders that are evidence of everything in the depth. The company has drilled more than 200 km from various angles to the rock mass to record the presence of minerals. It ensures that this exploration is of very low environmental impact. But the Comptroller does not think the same. In his final report on the Cascabel project, he observed the ministries of Energy, Environment, Senagua and the company on six issues, four of them related to the environment.

Solgold obtained the mining title in 2010 and the environmental license on August 23, 2013. It has two authorizations for the use and use of water granted in 2013 and 2017, which allows it to use 13 points of liquid collection for both industrial activities - basically for drilling - as for domestic use in the two camps that are in the concession, Rocafuerte and Alpala.

CONTINUED....

Solgold explores in 76 concessions
"Today's copper is tomorrow's environment," said Jason Ward, president of Solgold, in Ecuador during the exhibition he did on October 29. That day Plan V visited the Rocafuerte camp where the team that manages the environmental, social and technical issues of Cascabel is located. Ward, who is Australian and travels to his country every month, said the career in the mining industry is mostly for copper. Technology and the search for clean energy increasingly demand this resource. The main copper deposits were discovered 100 years ago and since 2010 no significant reserves had been found until Cascabel. Of every 1,000 projects, only one can become a mine, according to world statistics. In Ecuador there are 400 concessions, but expectations are higher. Yard believes that there could be more than one mine in the country because of its geographical conditions.

In fact, he has the expectation that in 12 of the 76 concessions that Solgold has in Ecuador, a new Rattle can be found. These concessions are located from the border with Colombia to almost the border with Peru. Most are in the exploration phase, that is, in the search for evidence of deposits. The 76 concessions are managed by five local concessionary companies. "We are looking for large-scale deposits for the country that we believe exist like those in Chile, Peru, Colombia and even Alaska," said Andrew Taunton, vice president of Solgold to Plan V.

That number makes it the main mining concession company in the country. Solgold operates primarily in Ecuador and the North Solomon Islands in Australia. Of its 12 main projects in the country, seven can have gold and five, copper. Ecuador, according to Yard, is a territory where it is possible to find a lot of copper. According to official figures, it is estimated that in 2021 revenues from mining reach 4% of GDP, only surpassed by oil. But the Australian businessman argues that in 2028 the profits from mining will exceed those of oil.

Cascabel is a source of astronomical figures. In this, approximately 140 million have been invested so far. The project is in the advanced exploration phase. That is, it has been possible to determine the size and shape of the deposit. The next stage will be the economic evaluation of the deposit. The Australian company estimates that this phase will end in 2021 and at the end of the same year it plans to begin the construction of the mine. At that time, he estimates that the foreign investment that will be needed will be 2.8 billion dollars. While the capital for the infrastructure of the mine during its useful life will be 7.6 billion and the operating expenses of 25.9 billion.

This is a google translation from this article: https://www.planv.com.ec/historias/sociedad/la-promesa-llamada-cascabel

The promise called Cascabel

Cascabel is a mining project of astronomical figures. The executives of Solgold, the Australian company that manages the project, say they have complied with Ecuadorian laws and the parameters to take care of the environment. However, the Comptroller has complaints on six issues. Plan V interviewed the managers, experts and inhabitants of the surrounding communities to make an x-ray of the project. This work is part of a series of reports on the extractive industry in Ecuador.

The Alpala Monster
In an area of ??230,000 square meters there is evidence of the richest deposit in copper and gold of Ecuador. There are thousands of rock cylinders extracted from the heart of Alpala, the main deposit discovered in the Cascabel mining concession. Under sheds, hundreds of boxes keep half of those cylinders of reddish, green and white rock. The other half is sent to laboratories in Lima that examine the presence or absence of 48 elements. In industry jargon, these evidences are called "witnesses." Its name is no coincidence because its collection is the only proof of what exists in a field. And Cascabel's is of gigantic magnitudes.

Plan V interviewed the authorities and experts of the Solgold concessionaire to size what the geology of the north of the country hides. Cascabel is located between the parishes La Carolina and Lita, in the province of Imbabura. They are inside the so-called Andean Copper Belt. The age of its rocks is estimated at 39 million years. In November 2018, Australian Solgold reported that Alpala contained 11 million tons of copper, 23 million ounces of gold and 100 million ounces of silver. That is, in gold it is the largest deposit found in the last 10 years: it contains 10% of that resource available in the world. In copper, however, it is in fifth place. According to experts, it is rare that in a single mine there is copper and gold in large quantities. Hence Alpala is in the world class category.

To reach that discovery it was necessary to drill wells of more than 2,600 meters, the deepest reported in Ecuador so far. In fact, 17 Alpala wells are in the top 40 of the best mineralized intersections in the world. That means that mineralized rock exists continuously over more than 1 km. There are wells, such as N.12, which contain minerals from the surface to more than 2 km deep.

Cascabel's history starts in 2007. In that year it was concessioned to the Ecuadorian company Santa Bárbara Copper & Gold. In 2011, the Canadian company Cornerstone acquired the shares of Santa Barbara. Cornerstone in turn sold 85% of its shares to the Australian firm Solgold, which assumed the Cascabel project under the Ecuadorian subsidiary Exploraciones Novomining (ENSA).

I haven't seen this anywhere else but one tweet saying 'Liam Twigger your story is so inspirational. Congratulations ?? on your appointment to the Board of SolGold Plc.'

https://www.businessinsider.com.au/why-this-md-switched-his-career-trajectory-from-pro-footballer-to-corporate-advising-and-how-its-helping-him-give-back-2019-11

It could be:
1. Permit for surface at gold mine required (blanca nieves)
2. To unlock the funding plan for commencing next phase work at both mines
3. In order to part fund + lower value financing plan for extensive ongoing mining at Alpala

Just a possibility.
I think the permit delays have stuffed up whatever the strategy was re: Cornerstone and possibly delayed a funding option.

Ok, thanks

Isn't MRE3 due after PFS?

It says 2020 Q2 on the slide from a recent Solgold pres...