Last checked at 25 Apr 2016 07:00
25 April 2016
SolGold plc
("SolGold" or the "Company")
Cascabel Exploration Update
The Board of Directors of SolGold (AIM: SOLG) wish to provide shareholders with the following update from its Cascabel Copper-Gold Porphyry Project in Ecuador.
HIGHLIGHTS:
Ø Hole 15R2 is currently drilling at a depth of 1401m, and continuing to intersect significant visible copper mineralisation, which is increasing with depth.
Ø Hole 17 is currently drilling at a depth of 519.4m in visible mineralisation.
Ø Updated Cascabel Project video ("Cascabel Now") available in the media section of the Company's website.
References to figures and tables relate to the version of this release on the Company's website (www.solgold.com.au) or visible in PDF format by clicking the link below:
http://www.rns-pdf.londonstockexchange.com/rns/1416W_-2016-4-24.pdf
FURTHER INFORMATION:
The Directors of SolGold advise that at 7am Central America time on Sunday 24 April 2016, Hole 15R2 (CSD-16-015R2) was drilling at a depth of 1401m and Hole 17 (CSD-16-017) was drilling at a depth of 519.4m. Both drill holes have intersected significant porphyry style copper-gold mineralisation at the Alpala deposit in Northern Ecuador (refer Figure 1 Location).
The Cascabel Project is located within the northern portion of the Andean copper belt, renowned as the host of 48% of the World's copper production, and numerous Tier 1 global resource assets (refer Figure 2 Regional Setting).
Hole 15R2 has intersected over 400m of porphyry style copper sulphide mineralisation thus far, as the hole progresses towards a planned depth of 1800m. Hole 15R2 is targeting extensions of the Alpala deposit to the north, and at depth, some 100m north of the deeper high-grade zone intersected in Hole 9, which returned 1050.8m @ 0.68% Cu and 0.92 g/t Au, including 420m @ 1.00 % copper and 1.34 g/t gold.
Hole 17 is being drilled from the same pad as Hole 16, and is targeting upper extensions of strong copper and gold mineralisation intersected in Holes 5 and 12, both of which returned world class intersections of over 1000m grading above 1% copper equivalent. Subject to ground conditions, and mineralisation encountered, Hole 17 has a planned depth of 1300m.
SolGold's understanding of the deposit continues to grow with each drill hole, and robust three dimensional geological and mineralisation models have been developed using the LeapfrogTM modelling software. The model is based on, and continually refined using, drill data from the Cascabel Project. Recent work on intrusive phases and geological markers at Alpala Central provide insight into the geometry of copper and gold mineralisation and the potential source intrusions.
This has led to the development of a series of three dimensional copper-isograde shells based on a series of preliminary copper grade interpolants to assist with the visualisation of the Alpala Central deposit. These isograde shells are visible in the Company's updated corporate video "Cascabel Now" available in the media section of the Company's website, and via BRR Media. These images are similar to those included in the Company's release of 30 March 2016. This information is not intended to represent a resource estimate. The Company continues to work towards the calculation of its maiden resource statement for the Cascabel Project, the exact timing of which will be dependent on, amongst other things, the progress of drilling throughout the year.
Also available in the presentation section of the Company's website is an updated project presentation "Towards a World Class Copper-Gold Development".
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.), the Chief Executive Officer of the Company. Mr Mather is a Fellow of the Australasian Institute of Mining and Metallurgy who has in excess of 30 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 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 Tel: +44 (0) 20 3470 0470
SP Angel Corporate Finance LLP (NOMAD and Broker)
ewan.leggat@spangel.co.uk
Follow us on twitter @SolGold_plc
NOTES TO EDITORS
SolGold is a Brisbane, Australia 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 high vested interests in the success of Company, holding approximately 14% of its issued share capital, as well as strong track records in the areas of exploration mine development, investment, finance and law. SolGold's experience is augmented by state of the art geophysical techniques and the guidance of Newmont trained porphyry expert Dr Steve Garwin.
Cascabel, the Company's world class 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 Exploraciones Novomining 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. By December 2015, the Company had completed approximately 25km2 of soil sampling, 14km2 of electrical surveys, 20,100m of drilling and expended approximately US$30m. Diamond drilling currently continues with two drilling rigs.
Cascabel is characterised by multiple targets, world class drilling intersections over 1km in length, and high copper and gold grades, as well as logistic advantages in location, elevation, water supply, proximity to road, port and power services and a progressive legislative approach to resource development.
SolGold is planning a resource statement at Alpala the most advanced target at Cascabel during 2016, in addition to drill testing the other key targets in the Cascabel concession at Aguinaga, Trivinio, Alpala Northwest, Hematite Hill, Alpala Southeast, Cristal, Tandayama-America and Chinambicito. By the end of 2016 the Company is planning further metallurgical testing, and completion of early stage mine and plant design and a scoping study for an economic development at Cascabel. SolGold is investigating both high tonnage / low grade open cut and high grade / low tonnage underground developments as a block caving operation.
Drill hole intercepts are calculated using a data aggregation method, defined by copper equivalent cut-off grades and reported with up to 10m internal dilution, excluding bridging to a single sample. Copper equivalent grades are calculated using a gold conversion factor of 0.6, determined using copper price of US$3/pound and gold price of US$40/gram.
In Queensland, Australia the Company is evaluating the future exploration plans 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.
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 953,897,601 ordinary shares issued, 4,820,000 options exercisable at 50p, 7,280,000 options exercisable at 28p and 9,280,000 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.