Last checked at 1 Sep 2015 07:06
1 September, 2015
SolGold plc
("SolGold" or the "Company")
Hole 12 Continues to Intersect High Grade Target at Alpala Central
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 Hole 12 (CSD-15-012) continues to intersect strongly mineralised diorite porphyry, confirming depth potential of the south-easterly extension of the mineralised system at Alpala Central.
Ø Rig 2 commences drilling of Hole 13 (CSD-15-013) at Alpala North-West.
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/6331X_-2015-9-1.pdf
FURTHER INFORMATION:
Drilling at Hole 12 continues, and on 1 September 2015 the hole was at a depth of 1065 metres. Hole 12 is oriented at an azimuth of 210 degrees and an inclination of ‐87 degrees from a collar position 75m to the south-east of the Hole 5 drill site.
Assay results for Hole 12 will be released in their entirety on the completion of the hole.
SolGold's geologists believe that the "Eastern Limb" zone represents broader, higher grade mineralisation at depth, and that it may coalesce with the "Main Limb". Drill testing of the prospective lower portion of the Eastern Limb zone is planned in the near future to assess the potential for a much wider target than previously recognised at Alpala Central.
Hole 12 has now intersected the main (or western) limb of mineralisation from 608m, and drilling has continued to intersect increasing grades to the current depth of 1065m. Drill core from 608m shows potassic alteration in association with the early "D10" diorite intrusion. SolGold's geologists believe that the presence of continuous visible disseminated chalcopyrite and trace bornite mineralisation, in conjunction with "B"-type quartz veins and "C"-type sulphide veins, confirms the significant south-easterly and depth extensions of the mineralised system at Alpala Central.
The interpreted trend of mineralisation is defined by "B"-type quartz abundance along the Hole 12 drilling path as illustrated by the south-west to north-east cross-section in Figure 1.
Drill core examples of mineralisation recently encountered in Hole 12 from 608m show early "B"-type Quartz-Magnetite-Chalcopyrite veins overprinted by "C"-type sulphide veins. These styles of veins are characteristic of porphyry copper-gold deposits around the globe (Figure 2).
Rig 2 commenced drilling hole Hole 13 at the Alpala North-West drill site on 29 August 2015. This hole will test the inferred porphyry centre at Alpala North-West.
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 / katy.birkin@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.