Last checked at 19 Aug 2015 07:41
19 August, 2015
SolGold plc
("SolGold" or the "Company")
Hole 12 Intersects Visual Copper Mineralisation
Known High Grade Copper-Gold Zones Extended
Rig 2 Mobilised to Commence Hole 13
The Board of SolGold (AIM code: SOLG) is pleased to provide the following exploration update for the Company's Cascabel copper-gold porphyry project in Ecuador.
HIGHLIGHTS
Ø Second drill rig (Rig 2) is at Cascabel and is being prepared on the T1 target site at Alpala.
Ø Hole 12 (CSD - 15 - 12) is at a depth of 647.6 metres and drilling continues after a bit change.
Ø Encouraging visible copper mineralisation increasing with depth in Hole 12.
Ø Intense visible copper mineralisation intersection from 608m deep in Hole 12.
Ø Alpala Central zone extended to over 450m.
Ø Initial intersections extend north-east target by 150m.
Ø Detailed infill mapping and sampling at Alpala confirms the integrity of the Alpala Structural Zone.
Ø Aguinaga target summary in preparation.
References to figures and tables in the announcement and Appendices 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/4530W_-2015-8-19.pdf
FURTHER INFORMATION
The Directors of SolGold advise that Hole 12 is progressing and has reached a depth of 647.6 metres having been in variable but generally increasing visible copper sulphide mineralisation since a depth of 88.4 metres. Hole 12 is being drilled at an inclination of -87° towards 210° (south-west), parallel to and 75m south east of Hole 5. The intersection of strong copper mineralisation demonstrates a significant south easterly trend extension to mineralisation to the south east. The diamond drill core shows an increasing intensity of disseminated and vein style copper sulphide and pyrite mineralisation with occasional bornite and increasing quartz veining and biotite mica mineralisation. These features, increasingly evident in the core, are indicative of closer proximity to the causative intrusive heat source thought to represent one of the centres of mineralisation at Cascabel. SolGold has identified three porphyry targets along the Alpala Structural Zone, of which Alpala Central is one, and the location of all drilling undertaken to date. With regard to the other two targets, T1 will be drilled by Rig 2 in Hole 13, and the South East Alpala target will be tested by Hole 14 pending the results of current drill holes.
SolGold's geologists are currently conducting a detailed infill of the soil sampling grid over the 2.5 x 0.5 km Alpala Structural Zone which has to date yielded spectacular drill hole intersections as summarised in Table 1. The infill mapping and sampling program has confirmed the continuity of the mineralised and veined sequence of volcanic rocks and intrusive porphyries. Additional near surface drill targets are being defined from this work.
The second drilling rig has arrived on site at Alpala and is currently being established on the T1 target at north-west Alpala. The rig has been modified in the contractor's workshops, at Cuenca in Southern Ecuador, to be able to drill faster and deeper, enabling drill hole tests of the very rich mineralisation encountered in Holes 5 and 9 to date, and to deepen Hole 8 which intersected the mineralised porphyry but did not drill the full expected section, evidently still present underneath the Hole 8 termination point. The drilling of Hole 8 was ceased due to difficult ground conditions, however the bottom 22m returned 0.91% Cu and 0.78g/t Au from 1,290m as part of an intersection of 448m @ 0.56% Cu and 0.64g/t Au.
The T1 target is located underneath strong surface alteration of the host rocks, including the development of high-temperature clays and depletion of manganese with copper and zinc enrichment, suggesting a strong causative intrusion underneath T1. The target is well supported by detailed geophysical data collected and interpreted by SolGold's experts, and is expected to host significant copper gold mineralisation. T1 is characterised by a strong magnetic core and a surrounding conductive halo, a relationship typical of mineralised porphyry systems such as Alumbrera in Argentina; Batu Hijau, Elang and Grasberg in Indonesia. SolGold will also use the dual rig capability at Alpala to drill shallow targets outcropping along the Alpala Structural Zone. In addition, a detailed geophysical review of the target at Aguinaga has been completed, and a summary is being prepared for release shortly.
The Directors of SolGold also wish to advise that the eruption in Ecuador from the Cotopaxi Volcano (located approximately 50kms south of Quito) is not affecting operations in the field at Cascabel or at the Company's Quito office. Volcanic eruptions are relatively common on the circum-Pacific Rim of Fire and relevantly on the Andean Copper Belt which hosts some of the world's largest copper mines.
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 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.
By order of the Board
Karl Schlobohm
Company Secretary
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 / 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 Harriet Jackson Tel: +44 (0) 7768 537 739
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 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. Diamond drilling continues.
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.
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, 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.