Last checked at 12 May 2015 08:07
12 May, 2015
SolGold plc
("SolGold" or the "Company")
Cascabel Exploration Strategy and Management Update
The Board of SolGold (AIM code: SOLG) wishes to provide the following update in relation to the overall strategy and management of the on-going exploration of the Company's flagship Cascabel Project in Ecuador.
Exploration Strategy and Outlook
Ø High grade focus
Ø More intersections
Ø Faster and cheaper drilling
Ø Broadening range of targets
SolGold is focussing on the high grade mineralisation at Cascabel. A high grade zone of up to 85Mt at 3.0% Cu Eq is targeted at Alpala Central. SolGold believes this zone can deliver a strong economic fingerprint which will underwrite the future of the Company.
In order to deliver results more rapidly, SolGold is in the process of mobilizing a second rig to Cascabel, and also plans to drill deviated holes from existing holes 5, 7, 8, 9, 10 and 11 to increase the rate of pierce points into the ore body. This strategy has the capacity to save up to 24 days drilling for each deviation hole, enabling up to 10 penetrations per rig per annum, an increase of up to 40% per rig. The second rig may also be used to extend the strike-length of the known Cu-Au mineralization at Alpala, which remains open.
If the determination is made to have two rigs drilling multiple deviated holes off the initial parent holes, the Company expects to be able to drill 20 more holes (18,000 metres) and reduce the all-in costs of drilling from $720 to $480 per metre.
On the basis of these planned changes, and the drilling results obtained to date, the Company is targeting the delivery a maiden inferred resource in approximately 12 months.
Exploration Management Changes
Following the Company's initial exploration success at Cascabel, the management and technical oversight of the Cascabel Project has now been split into two separate but co-dependent components, with personnel appointed as Chief Technical Advisor and Exploration Manager respectively.
Dr Steve Garwin will undertake and supervise the responsibilities and duties associated with the Chief Technical Advisor role, drawing on his vast experience with gold and porphyry copper-gold systems around the world. Steve has over 27 years of experience as an exploration geologist and is one of the leading authorities on porphyry, epithermal and Carlin-style mineralization in the circum-Pacific region and applies methods of structural geology and geochemistry towards gold and base-metals exploration. He has previously worked with Newmont Miniong for ten years, including two years as Chief Geologist in Nevada, USA. He has been involved with several exploration and mining projects including the Batu Hijau Cu-Au porphyry deposit (where he completed his PhD), the Indo Muro epithermal gold-silver vein system and the Mesel sediment-hosted gold deposit in Indonesia, mines of the Carlin Trend and Battle Mountain district in Nevada, the Whistler porphyry deposit in Alaska, and the Santa Barbara Au-porphyry deposit in SE Ecuador. Steve has been instrumental to date in the recognition of the mineralisation systems at Alpala, and the implementation of state-of-the-art detailed mapping and logging strategies on site. These processes are leading to accurate drill hole targeting and rapid progression to resource definition.
Mr Jason Ward will undertake the role of Exploration Manager for the Cascabel Project, in addition to his current roles as SolGold's Ecuadorean Country Manager and President of ENSA (the Cascabel Project holding company, 85% owned by SolGold). Jason is a highly experienced geologist who has worked for SolGold since its inception, playing a leading role in the exploration of the Company's founding projects in the Solomon Islands. He has developed, over the last 20 years, outstanding skills in landholder relations, local labour force development and project and exploration management and is applying these skills at Cascabel to the great benefit of SolGold.
Dr Bruce Rohrlach has ceased his role as General Manager - Exploration for the Company to pursue other opportunities, but remains available on a consultancy basis if required by SolGold. The Board of SolGold would like to sincerely thank Dr Rohrlach for his tireless efforts and vision in the generation of the Cascabel Project and the pioneering work that he undertook to identify and define the key initial targets therein.
By order of the Board
Karl Schlobohm
Company Secretary
Qualified Person:
Information in this report relating to the exploration results is based on data reviewed by Mr Nicholas Mather (B.Sc. Hons Geol.), Executive Director of the Company. Mr Mather is a Fellow of the Australasian Institute of Mining and Metallurgy who has in excess of 25 years' experience in mineral exploration and is a Qualified Person under the AIM Rules. Mr Mather consents to the inclusion of the information in the form and context in which it appears.
Contacts:
Mr Alan Martin
SolGold Plc (CEO and Managing Director) Tel: +61(0) 488 223 828
amartin@solgold.com.au
Mr Nicholas Mather Tel: +61 (0) 7 3303 0665
SolGold Plc (Executive Director) +61 (0) 417 880 448
nmather@solgold.com.au
Mr Karl Schlobohm Tel: +61 (0) 7 3303 0661
SolGold Plc (Company Secretary)
kschlobohm@solgold.com.au
Mr Ewan Leggat/Ms Katy Birkin Tel: +44 (0) 20 3470 0470
SP Angel Corporate Finance LLP (NOMAD and Broker)
Ewan.leggat@spangel.co.uk
Richard Greenfield/ Alexandra Carse Tel: +44 (0) 20 7647 2800
GMP Securities Europe LLP (Joint Broker)
richard.greenfield@gmpeurope.com
Mr Dominic Barretto / Ms Anna Legge Tel: +44 (0) 7747 788 221
Yellow Jersey PR Limited (Financial PR)
dominic@yellowjerseypr.com
Follow us on twitter@SolGold_plc
NOTES TO EDITORS
SolGold is a Brisbane based, AIM-listed (SOLG) copper gold exploration and development company with assets in Ecuador, the Solomon Islands and Australia. The Company's objective is to create substantial shareholder value by discovering and defining world-class copper-gold deposits. SolGold's Board and Management Team have significantly vested interests in the Company as well as strong track records in the areas of exploration mine development, investment, finance and law.
Cascabel, the Company's flagship copper-gold porphyry project, is located in North West Ecuador on the under-explored northern section of the richly endowed Andean Copper Belt. SolGold owns 85% of ExploracionesNovomining S.A. ("ENSA") and approximately 11% of TSX-V-listed Cornerstone Capital Resources, which holds the remaining 15% of ENSA, the Ecuadorian registered company which holds 100% of the Cascabel concession. To date the Company has completed geological mapping, soil sampling, 14km2 and 9km2 Induced Polarisation and Magnetotelluric "Orion" surveys at the Alpala and Aguinaga targets respectively. Diamond drilling continues.
In Queensland, Australia the Company is evaluating the forward exploration for the Mt Perry, Rannes and Normanby projects. Joint venture agreements are still being investigated with the strategy for the joint venture partner to commit funds and carry out exploration to earn an interest in the tenements.
In the Solomon Islands, SolGold holds three tenements; Kuma, Lower Koloula and Malukuna.
SolGold's Board and Management have significantly vested interests in the Company, holding approximately 14% of its issued share capital.
SolGold is based in Brisbane, Queensland, Australia. The Company listed on London's AIM Market in 2006, under the AIM code 'SOLG' and currently has a total of 760,453,071 fully paid ordinary shares, 12,820,000 options exercisable at 50p, 12,730,000 options exercisable at 28p and 9,730,000 options exercisable at 14p.
CAUTIONARY NOTICE
The news release may contain certain statements and expressions of belief, expectation or opinion which are forward looking statements, and which relate, inter alia, to the Company's proposed strategy, plans and objectives or to the expectations or intentions of the Company's directors. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and save as required by the AIM Rules for Companies or by law, the Company does not accept any obligation to disseminate any updates or revisions to such forward-looking statements.