Last checked at 10 Dec 2015 07:00
10 December 2015
SolGold plc
("SolGold" or the "Company")
Cascabel Exploration Update
Results from Hole 13 at Alpala Northwest Extend the
Known Strike Length of Copper and Gold Mineralisation
Along the Greater Alpala Trend to Over 600m
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 First batch of assay results from 926m to 1302m in Hole 13 (CSD-15-013) return an open ended intersection of 376m @ 0.52 % copper and 0.25 g/t gold.
Ø Confirmation of copper-gold mineralisation at Alpala Northwest, extends the known strike length of the greater Alpala porphyry system to over 600m.
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/5901I_-2015-12-10.pdf
FURTHER INFORMATION:
Hole 13 (CSD-15-013) initial batch of assay results, from 926m to 1302m, have returned an open ended interval of 376m @ 0.52 % Cu, and 0.25 g/t Au, including two higher grade intervals as shown in Table 1. Remaining assays are expected before the end of the year.
The intersections achieved in Hole 13, increase the known strike extent of copper and gold mineralisation along the greater Alpala trend to over 600m (Figure 1). Significant portions of the Alpala porphyry system remain untested and mineralisation remains open in all directions.
Zones of high copper / zinc values in soil samples indicate higher temperatures of mineralisation and suggest that there are several untested porphyry centres within the greater Alpala area (Figure 2). The most promising of these areas will be investigated by field programs that involve the clearing of outcrop, trenching, geological mapping and rock saw channel sampling. Of particular interest is a 200m zone that lies between Holes 13 and 11.
Detailed drill section and level plan interpretations are ongoing and the continual update of geology models, B-vein abundance models, and copper grade models show the emerging geometry of the copper and gold system at Alpala Central and Alpala Northwest (Figures 3 and 4).
Drill holes 14 and 15 (CSD-15-014 and CSD-15-015) are currently under way. Hole 14 is currently at 1320m, and Hole 15 is currently at 706m depth. Both holes have intersected visible porphyry style stock work veining and updates on these holes will be forthcoming in due course.
An aggressive drilling program is planned for the coming year in order to test the numerous targets being developed at Alpala, Aguinaga, and the recently defined Trivino.
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 Tel: +44 (0) 20 3470 0470
SP Angel Corporate Finance LLP (NOMAD and Broker)
Ewan.leggat@spangel.co.uk
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 October 2015, the Company had completed approximately 25km2 of soil sampling and 14km2 of electrical surveys, 21,000m of drilling and expended approximately US$30m. Diamond drilling continues with two drilling rigs completing approximately 8000 metres per rig each per annum.
Cascabel is characterised by multiple targets, world class intersections rich in high grades of copper and gold, 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 at Aguinaga, Tandayama America and Chinambicito in the Cascabel concession. 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.
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 822,716,605 ordinary shares allotted, 4,820,000 options exercisable at 50p, 7,280,000 options exercisable at 28p and 9,280,000 options exercisable at 14p. On 2 October 2015, SolGold issued two 12 month Convertible Notes for A$1.25m and £500,000 each respectively, convertible at the greater of 1.75 p or 80% of volume weighted average price over the 5 days preceding the date of notification of conversion.
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.