TIDMSOLG
RNS Number : 8140S
SolGold PLC
06 October 2017
6 October 2017
SolGold plc
("SolGold" or the "Company")
Cascabel Exploration Update
Alpala copper-gold deposit continues to grow with
assay results from Holes 23R-D1, and 24-D1R.
Rigs 6 and 7 arrive at Cascabel.
The Board of SolGold (AIM and TSX code: SOLG) is pleased to
provide an update on the drilling results of Holes 23R-D1, and
24-D1R and the progress of drilling at Cascabel, the Company's 85%
owned copper-gold porphyry project in Ecuador.
HIGHLIGHTS:
Ø Hole 23R-D1 (Alpala Central) assay results return 695.1m
grading 1.37% copper equivalent (0.72% copper, 1.02 g/t gold) from
694.9m, including 458.0m grading 1.68% copper equivalent (0.88%
copper, 1.26 g/t gold) from 838.0m.
Ø Hole 24-D1R (Alpala Southeast) final assay results return
512.9m grading 0.53% copper equivalent (0.34% copper, 0.30 g/t
gold), including 262.8m grading 0.86% copper equivalent (0.52%
copper, 0.53 g/t gold) from 755.2m.
Ø Hole 23R-D1 extends known mineralisation in the central
portion of the Alpala Deposit approximately 90m to the east.
Ø Hole 24-D1R extends Alpala Southeast mineralisation beneath
Hole 24 by approximately 130m and is interpreted to represent the
upper portions of a strongly mineralised porphyry system at depth.
Further drill testing at Alpala Southeast by Rigs 2 and 3 is
underway.
Ø Drilling program is expected to be further expanded from the
previously advised 10 to 12 drill rigs by January 2018 targeting
drilling of 126,000m in 2018 . Man-portable drill rigs 6 and 7 have
arrived at Cascabel. Second and third drilling contractors signed
with Rigs 8,9,10 and 11 scheduled for arrival November 2017 and Rig
12 in January 2018.
Ø Geophysical 3DIP survey is on schedule with completion of the
Spartan portion (magneto telluric to 3km depth), and commencement
of the Orion portion (conductivity and resistivity to 2km depth) of
the state of the art hybrid survey. Data processing and final
results are expected mid-November 2017.
Ø Re-processing and maturation of 3D MVI magnetic models over
the greater Alpala area, Aguinaga, Tandayama-America, and
Chinambicito nears completion with final targeting expected to be
available mid-October.
Ø Assays for Holes 26-D1, 26-D2, 28, 29, 29-D1, 29-D2, 30,
30-D1, 31, 31-D1 and 32 remain pending.
Commenting on the current drilling, SolGold Technical Services
Manager, Benn Whistler said:
"Hole 23R-D1 and 24-D1R assay results demonstrate strong
potential for significant extensions to the Alpala Deposit into the
Alpala East and Alpala Southeast sectors. Current drilling at
Alpala Northwest, following up on the discovery of major extensions
northwest of the Alpala Deposit in Hole 26, is proving fruitful
with Hole 26-D2 currently intersecting strongly mineralised diorite
porphyry. Rigs 6 and 7 have recently arrived at site and this is
expected to expedite drilling at Alpala Central, Alpala Northwest
and Alpala West, ahead of the arrival of more rigs to bring the
project total to 12 rigs by January 2018. We have not yet found the
limits of the system at Alpala and we believe that our growing
understanding of the Alpala system, and the expansion of the
drilling fleet, will lead to rapid discovery of major extensions at
high priority targets, including Alpala Northwest, Alpala East,
Alpala West, Alpala Southeast. In fact we are scheduled to drill
126,000m in 2018, so you can see there is exponential growth
potential which is expected in the short-term. We have a strong
desire to drill test the exciting and untested satellite targets
at, Carmen, Trivinio, Parambas Aguinaga, Cristal, Moran, and
Tandayama-America, which are scheduled for drill testing on
completion of drill data collection for the Alpala Maiden Resource
Estimate, and on completion of Spartan-Orion hybrid 3DIP Survey and
maturing 3D MVI magnetic modelling. This work is being expedited
and the expansion of the drilling fleet is opening these doors for
us."
References to figures and tables relate to the version of this
release visible in PDF format by clicking the link below:
http://www.rns-pdf.londonstockexchange.com/rns/8140S_-2017-10-5.pdf
FURTHER INFORMATION:
Drilling Results - Continued Growth at Alpala
SolGold's Alpala deposit continues to grow with each new drill
hole as drilling focuses on high grade porphyry centres at Alpala
Northwest, Alpala Central and Alpala Southeast. Over 50,000m of
drilling has been completed to date along the greater Alpala trend
(Figure 1), with the use of the directional drilling techniques for
deviated path holes from existing parent holes (Devico(tm) ),
delivering significant time and cost advantages.
The Company is directing drilling capability and operations
currently to the collection of drill data to be used in the
delivery of a Maiden Resource Estimate by the end of 2017, and is
preparing to make follow up resource estimation updates through
2018 as drilling continues to expand the resource at Alpala as well
as identify new resources at satellite prospects such as Aguinaga,
Cristal, Moran, and Tandayama-America.
Hole 23R-D1 (Rig 1 Alpala Central) was a "daughter" hole drilled
to the east off "parent" Hole 23R from 694.9m depth, testing for
the eastern extensions to the high-grade intrusions intersected in
Hole 23R, which recently returned 770.0m @ 1.44% copper equivalent
(0.71% Cu, 1.16 g/t Au).
Hole 23R-D1 assay results returned 695.1m grading 1.37% copper
equivalent (0.72% copper, 1.02 g/t gold) from 694.9m, including
458.0m grading 1.68% copper equivalent (0.88% copper, 1.26 g/t
gold) from 838.0m.
The mineralisation encountered in Hole 23-D1R extends known
mineralisation in the central portion of the Alpala Deposit
approximately 90m eastwards.
Hole 24-D1R (Rig 3 Alpala Southeast) was a "daughter" hole
drilled off "parent" Hole 24 from 735.0m depth, testing for depth
extensions to the mineralisation discovered in Hole 24 which
recently returned 160m @ 1.04% copper equivalent (0.63% Cu, 0.65
g/t Au).
Hole 24-D1R (Alpala Southeast) final assay results returned
512.9m grading 0.53% copper equivalent (0.34% copper, 0.30 g/t
gold), including 262.8m grading 0.86% copper equivalent (0.52%
copper, 0.53 g/t gold) from 755.2m.
The mineralisation encountered in Hole 24-D1R extends Alpala
Southeast mineralisation beneath Hole 24 by approximately 130m.
Intersections in holes 24 and 24-D1R are interpreted to represent
the upper portions of a strongly mineralised porphyry system at
depth and further drill testing at Alpala Southeast by Rigs 2 and 3
is underway. Significant high level bornite mineralisation was
encountered in Hole 24-D1R
Detailed intersections achieved in Holes 23R-D1 and 24-D1R,
showing data aggregation method, are detailed in Table 1.
Current Drill Holes at Alpala - Expanding Resource Potential
Hole 26-D1 (Rig 4 Alpala Northwest) was completed at 1662.7m
depth on 7(th) September 2017. Hole 26-D1 was a "daughter" hole
drilled off "parent" Hole 26 from 788.5m depth. Hole 26-D1
intersected strongly mineralised diorite and lesser quartz-diorite
porphyry over an (approximate) 470m interval from 1180m to 1650m.
Assay results are pending.
Hole 26-D2 (Rig 4 Alpala Northwest) is the second "daughter"
hole drilled off "parent" Hole 26 from 778.3m depth and is at a
current depth of 1333.3m. Hole 26-D2 has, to date intersected
strongly mineralised diorite porphyry over an open-ended 218m
interval from 1115.3m to 1333.3m. Hole 26-D2 continues to intersect
porphyry stockwork veining and visible copper sulphide and
mineralisation at the current depth of 1333.3m.
Hole 29 (Rig 5 Alpala East) commenced drilling on 9(th) August
2017, and is at a current depth of 901.0m, Hole 29 is currently on
hold whilst the second "daughter" Hole 29-D2 is drilled to
completion, before deepening of Hole 29 continues. Hole 29 is
planned to test deeper high-grade extensions along the eastern
flank of the Alpala Central deposit and is targeting a 200m
extension to the east of the known Alpala Central portion of the
deposit.
Hole 29-D1 (Rig 5 Alpala East) was a "daughter" hole drilled off
"parent" Hole 29 from 450.2m depth, and was completed at a depth of
1168.4m on 20(th) September 2017. Hole 29-D1 intersected strongly
mineralised diorite porphyry and minor late stage hydrothermal
breccia over an (approximate) 202m interval from 966m to 1168.4m.
Hole 29-D1 is planned to extend mineralisation some 350m below Hole
29-D1 and also infill mineralisation between Holes 23R-D1, 16 and
21.
Hole 29-D2 (Rig 5 Alpala East) commenced drilling on 1(st)
October 2017. Hole 29-D2 is the second "daughter" hole drilled off
"parent" Hole 29 from 901.00m depth. Hole 29-D2 is at a current
depth of 930.1m, towards a target some 150m below planned to infill
mineralisation between Holes 23R-D1 and 25. Assay results remain
pending.
Hole 30 (Rig 1 Alpala Central) commenced drilling on 18(th)
August 2017, and is at a current depth of 634.0m. Hole 30 is
infilling between Holes 22 and 27 focusing on confirming resource
potential at Alpala Central. The hole is currently on hold whilst
the first "daughter" Hole 30-D1 is drilled to completion, before
deepening of Hole 30. Hole 30 is planned to infill mineralisation
between Holes 16, 19, 27, 28 and 30-D1 focusing on providing
required drill spacing for resource confidence at Alpala
Central.
Hole 30-D1 (Rig 1 Alpala Central) commenced drilling on 4(th)
September 2017. Hole 30-D1 was a "daughter" hole drilled off
"parent" Hole 30 from 527.8m depth, and was completed at a depth of
1109.8m on 4th September 2017. Hole 30-D1 intersected volcanic host
rocks and minor mineralised diorite porphyry. Hole 30-D1 was
planned to extend mineralisation between Holes 19, 28 and 27,
extending mineralisation approximately 150m southeast of Hole 22.
Assay results remain pending.
Hole 31 (Rig 3 Alpala Southeast) commenced drilling on 27(th)
August 2017, from a drill site approximately 100m north of the Hole
24 and 24-D1R drill site. Hole 31 is at a current depth of 606.0m,
and is currently on hold whilst the first "daughter" hole 31-D1 is
drilled to completion, before deepening of Hole 31 continues. Hole
31 is planned to infill mineralisation between Holes 24-D1 and 27.
Assay results remain pending.
Hole 31-D1 (Rig 3 Alpala Southeast) commenced drilling on 15(th)
September 2017, and is at a current depth of 1192.3m. Hole 31-D1
has intersected volcanic host rocks and minor mineralised diorite
porphyry, towards a planned depth of 1500m. Hole 31-D1 is planned
to infill mineralisation between Holes 24-D1 and 27, above planned
Hole 31.
Hole 32 (Rig 2 Alpala Southeast) commenced drilling on 15(th)
September 2017, following a rig move approximately 250m east of the
Hole 28 drill site, and is at a current depth of 560.2m. Hole 32
has intersected volcanic host rocks, towards a planned depth of
1800m. Hole 32 is planned to extend mineralisation at depth
approximately 100m east of Hole 25.
Expanding Drill Program
The Cascabel drilling program is expanding to 12 drill rigs by
January 2018 using three experienced drilling contractors.
Two more man-portable drill rigs (Rigs 6 and 7) have arrived at
site and are expected to commence drilling at Alpala in the coming
week. A second drilling contractor has mobilised further two large
track-mounted Sandvik drill rigs (Rigs 8 and 9) via sea freight,
which are expected to arrive at site in early November. A third
drilling contractor is expected to deliver two track mounted drill
rigs (Rigs 10 and 11) by mid-November, ahead of the arrival of Rig
12 in January 2018. The total metres scheduled for 2018 is
126,000m.
Maturation of Geophysics Targets
The geophysical 3DIP survey is on schedule with completion of
the Spartan portion, and commencement of the Orion portion of the
state of the art hybrid survey. Data processing and final results
are expected in mid-November 2017.
The re-processing and maturation of 3D MVI magnetic models over
the greater Alpala area, Aguinaga, Tandayama-America, and
Chinambicito nears completion with final targeting expected to be
available in mid-October.
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 and NI 43-101. Mr Mather
consents to the inclusion of the information in the form and
context in which it appears.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of the
Regulation (EU) No 596/2014 until the release of this
announcement.
By order of the Board
Karl Schlobohm
Company Secretary
Brisbane, Australia
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 / Mr Richard Morrison Tel: +44 (0) 20 3470
0470
SP Angel Corporate Finance LLP
ewan.leggat@spangel.co.uk
Follow us on twitter @SolGold_plc
NOTES TO EDITORS
SolGold is a Brisbane, Australia based, dual AIM and TSX--listed
(SOLG on both exchanges) copper gold exploration and future
development company with assets in Ecuador, Solomon Islands and
Australia. SolGold's primary objective is to discover and define
world--class copper--gold deposits. The Board and Management Team
have substantial vested interests in the success of the Company as
shareholders as well as strong track records in the areas of
exploration, mine appraisal and development, investment, finance
and law. SolGold's experience is augmented by state of the art
geophysical and modelling techniques and the guidance of porphyry
copper and gold expert Dr Steve Garwin.
The Company announced USD54m in capital raisings in September
2016 involving Maxit Capital LP, Newcrest International Ltd and DGR
Global Ltd, and a USD41.2m raising in June of 2017 largely from
Newcrest International with USD1.2m raised from Ecuadorean
investors. All of these raisings were undertaken at substantial
premiums to previous raisings, and SolGold currently has circa
USD60m in available cash to continue the exploration and
development of its flagship Cascabel Project.
Mr Craig Jones joined the SolGold Board on 3 March 2017,
nominated to the Board of SolGold by Newcrest Mining, now a 14.54%
shareholder in SolGold. Mr Jones is a Mechanical Engineer and is
currently the Executive General Manager Wafi-Golpu
(Newcrest-Harmony MMJV). He has held various senior management and
executive roles within the Newcrest Group, including General
Manager Projects, General Manager Cadia Valley Operations,
Executive General Manager Projects and Asset Management, Executive
General Manager Australian and Indonesian Operations, Executive
General Manager Australian Operations and Projects, and Executive
General Manager Cadia and Morobe Mining Joint Venture. Prior to
joining Newcrest, Mr Jones worked for Rio Tinto.
Cascabel, SolGold's 85% owned "World Class" (Refer
www.solgold.com.au/cautionary-notice/) flagship copper--gold
porphyry project, is located in northern 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 5% of TSX--V--listed Cornerstone Capital
Resources ("Cornerstone"), which holds the remaining 15% of ENSA,
the Ecuadorian registered company which holds 100% of the Cascabel
concession. Subject to the terms of existing agreements,
Cornerstone is debt financed by SolGold for its share of costs to
completion of a Feasibility Study ("Financing Option").
In terms of repayment, SolGold shall receive 90% of
Cornerstone's share of earnings or dividends from ENSA or the
Tenement to which Cornerstone would otherwise be entitled until
such time as the amounts so received equal the aggregate amount of
expenditures incurred by SolGold that, but for the Financing
Option, would have been payable by Cornerstone, plus interest
thereon from the dates such expenditures were incurred at a rate
per annum equal to LIBOR plus 2 per cent until such time as SolGold
is fully reimbursed.
The investments by Newcrest for 14.54% of SolGold endorses
Ecuador as an exploration and mining destination, the management
team at SolGold, the dimension, size and scale of the growing
Alpala deposit, and the prospectivity of Cascabel and its multiple
targets. The gold endowment, location, infrastructure, logistics
are important competitive advantages offered by the project.
To date SolGold has completed geological mapping, soil sampling,
rock saw channel sampling, geochemical and spectral alteration
mapping over 25km(2) , along with an additional 9km(2) of Induced
Polarisation and 14km(2) Magnetotelluric "Orion" surveys over the
Alpala cluster and Aguinaga targets.
SolGold has completed over 50,000m of drilling and expended over
USD50M on the program, which includes corporate costs and
investments into Cornerstone. This has been accomplished with a
workforce of up to 260 Ecuadorean workers and geoscientists, and 6
expatriate Australian geoscientists. The results of 39 holes
drilled (including re-drilled holes) and assayed to date have
produced some of the greatest drill hole intercepts in porphyry
copper-gold exploration history, as indicated by Hole 12
(CSD-16-012) returning 1560m grading 0.59% copper and 0.54 g/t gold
including, 1044m grading 0.74% copper and 0.54 g/t gold.
The average grade of all metres drilled to date on the project
currently stands at 0.31% copper and 0.26 g/t gold. Intensive
diamond drilling is planned for the next 12 months with 12 drill
rigs expected to be operational by early 2018, targeting 126,000m
of drilling in 2018.
Cascabel is characterised by fifteen (15) identified targets,
"World Class" drilling intersections over 1km in length at
potentially economic grades, and high copper and gold grades in
richer sections, as well as logistic advantages in location,
elevation, water supply, proximity to roads, port and power
services; and a progressive legislative approach to resource
development in Ecuador.
To date, SolGold has drill tested 4 of the 15 targets, being
Alpala Northwest, Alpala Central, Hematite Hill, and Alpala
Southeast. Currently drill testing of Alpala Northwest, Alpala
Central and Alpala Southeast targets is underway, with drill
testing of the other priority targets to be considered following
the publication of the Company's maiden resource estimate for
Alpala, and the finalisation of further IP surveying and modelling
work currently underway.
The Alpala deposit is open in multiple directions and the
mineralised corridor marked for drill testing of the greater Alpala
cluster occurs over a 2.2km strike length from Trivinio in the
northwest to Cristal in the southeast. The mineralised corridor is
known to be prospective over approximately 700m width.
High priority targets within the Alpala cluster, at Moran
approximately 700m to the north, and at Aguinaga approximately
2.3km north east, are closely modelled by 3D MVI magnetic
signatures that currently encompass over 10Bt of magnetic rock.
Based on a strong spatial and genetic relationship between copper
sulphides and magnetite, this body of magnetic rock is considered
to be highly prospective for significant copper and gold
mineralisation, and requires drill testing.
SolGold is focussing on extending the dimensions of the Alpala
deposit including Alpala Northwest, Hematite Hill, Alpala South
East, Cristal, Trivinio, Alpala West, Alpala East, Carmen, Parambas
and Alpala South before completing a Maiden Resource Estimate and
then drill testing the other key targets within the Cascabel
concession at Aguinaga, Tandayama-America, Moran, and
Chinambicito.
The Company is currently planning further metallurgical testing
and completion of an independent Pre-Feasibility Study at Cascabel.
SolGold is investigating both high tonnage open cut and underground
block caving operations, as well as a high grade / low tonnage
initial underground development towards the economic development of
the copper gold deposit/s at Cascabel.
Drill hole intercepts have been updated to reflect current
commodity prices, 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
0.63, determined using an updated copper price of USD3.00/pound and
an updated gold price of USD1300/ounce. True widths of down hole
intersections are estimated to be approximately 25-50%.
Following a comprehensive review of the geology and
prospectivity of Ecuador, SolGold and its subsidiaries have also
applied for additional exploration licences in Ecuador over a
number of promising porphyry copper gold targets throughout the
Country. To date 59 such concessions have been granted and
announced. SolGold is negotiating external funding options which
will provide the Company with the ability to have some of these
projects fully funded by a third party while focussing on
Cascabel.
In Queensland, Australia the Company is evaluating the future
exploration plans for the Mt Perry, Rannes and Normanby projects,
with drill testing of the Normanby project planned for the coming
quarter. Joint venture agreements are being investigated for a
joint venture partner to commit funds and carry out exploration to
earn an interest in the tenements.
SolGold retains interests in its original theatre of operations,
Solomon Islands in the South West Pacific, where the 100% owned,
but as yet undrilled, Kuma prospect on the island of Guadalcanal
exhibits surface lithocap characteristics which are traditionally
indicative of a large metal rich copper gold intrusive porphyry
system. SolGold intends in the future to apply intellectual
property and experience developed in Ecuador to target additional
"World Class" copper gold porphyries at Kuma and other targets in
Ecuador and the Solomon Islands.
SolGold is based in Brisbane, Queensland, Australia. The Company
listed on London's AIM Market in 2006, and dual-listed onto the TSX
in July 2017 (both exchanges using the ticker code: SOLG) and
currently has on issue a total of 1,516,245,686 fully-paid ordinary
shares, 31,795,884 share options exercisable at 28p; 9,795,884
share options exercisable at 14p and 46,762,000 share options
exercisable at 60p.
CAUTIONARY NOTICE
News releases, presentations and public commentary made by
SolGold plc (the "Company") and its Officers may contain certain
statements and expressions of belief, expectation or opinion which
are forward looking statements, and which relate, inter alia, to
interpretations of exploration results to date and the Company's
proposed strategy, plans and objectives or to the expectations or
intentions of the Company's Directors. Such forward-looking and
interpretative 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 interpretations
and forward-looking statements. Accordingly, the reader should not
rely on any interpretations or forward-looking statements; and save
as required by the exchange rules of TSX and LSE-AIM and LSE for
companies or by applicable laws, the Company does not accept any
obligation to disseminate any updates or revisions to such
interpretations or forward-looking statements. The Company may
reinterpret results to date as the status of its assets and
projects changes with time expenditure, metals prices and other
affecting circumstances.
The Company and its officers do not endorse, or reject or
otherwise comment on the conclusions, interpretations or views
expressed in press articles or third-party analysis, and where
possible aims to circulate all available material on its
website.
The Company recognises that the term "World Class" is subjective
and for the purpose of the Company's projects the Company considers
the drilling results at the growing Alpala Porphyry Copper Gold
Deposit at its Cascabel Project to represent intersections of a
"World Class" deposit on the basis of comparisons with other
drilling intersections from "World Class" deposits tabulated in
Table 1, some of which have become, or are becoming, producing
mines and on the basis of available independent opinions which may
be referenced to define the term "World Class" (or "Tier 1").
The Company considers that "World Class" deposits are rare, very
large, long life, low cost, and are responsible for approximately
half of total global metals production. "World Class" deposits are
generally accepted as deposits of a size and quality that create
multiple expansion opportunities, and have or are likely to
demonstrate robust economics that ensure development irrespective
of position within the global commodity cycles, or whether or not
the deposit has been fully drilled out, or a feasibility study
completed.
Standards drawn from industry experts (1Singer and Menzie, 2010;
2Schodde, 2006; 3Schodde and Hronsky, 2006; 4Singer, 1995;
5Laznicka, 2010) have characterised "World Class" deposits at
prevailing commodity prices. The relevant criteria for "World
Class" deposits, adjusted to current long run commodity prices, are
considered to be those holding or likely to hold more than 5
million tonnes of copper and/or more than 6 million ounces of gold
with a modelled net present value of greater than USD 1
Billion.
The Company cautions that the Cascabel Project remains an early
exploration stage project at this time. Despite the relatively high
copper and gold grades over long intersections and broad areas, and
widespread surface mineralization discovered at the Cascabel
Project to date, much of which has still not yet been drill tested,
the Company has yet to prepare an initial mineral resource estimate
at the Cascabel Project and any development or mining potential for
the project remains speculative. There is inherent uncertainty
relating to any project at an exploration stage, prior to the
determination of a mineral resource estimate, preliminary economic
assessment, pre-feasibility study and/or feasibility study. There
is no certainty that future results will yield the results seen to
date or that the project will continue to be considered to contain
a "World Class" deposit. Accordingly, past exploration results may
not be predictive of future exploration results.
From the drilling results at the growing Alpala Porphyry Copper
Gold Deposit (only) within the Cascabel Project, the Company
considers the deposit to have significant resource potential and
the data gathered has provided the basis for the estimation of an
exploration target over the area drilled to date. Initial 3D
modelling and grade shell interpolants have outlined an approximate
exploration target at Alpala that ranges from 729Mt at 1.06% copper
equivalent, using a cut-off grade of 0.4% copper equivalent, to
969Mt at 0.92% copper equivalent, using a cut-off grade of 0.3%
copper equivalent. These estimates equate to an endowment of
between 7.7-8.9Mt of contained copper equivalent (Figure A).
Copper equivalent grades used are calculated using a gold
conversion factor of 0.63, determined using a copper price of USD
3.00/pound and a gold price of USD 1300/ounce. 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. True
widths of down hole intersections are estimated to be approximately
25-50%.
The Company cautions that the potential quantity and grade
ranges (exploration target) disclosed above for the Alpala Porphyry
Copper Gold Deposit within the Cascabel Project is conceptual in
nature, and there has been insufficient exploration to define a
mineral resource, and the Company is uncertain if further
exploration will result in the exploration target being delineated
within a mineral resource estimate.
On this basis, the reference to the Cascabel Project as "World
Class" (or "Tier 1") is considered to be appropriate. Examples of
global copper and gold discoveries since 2006 that are generally
considered to be "World Class" are summarised in Table 2.
References cited in the text:
1. Singer, D.A. and Menzie, W.D., 2010. Quantitative Mineral
Resource Assessments: An Integrated Approach. Oxford University
Press Inc.
2. Schodde, R., 2006. What do we mean by a world class deposit?
And why are they special. Presentation. AMEC Conference, Perth.
3. Schodde, R and Hronsky, J.M.A, 2006. The Role of World-Class
Mines in Wealth Creation. Special Publications of the Society of
Economic Geologists Volume 12.
4. Singer, D.A., 1995, World-class base and precious metal
deposits-a quantitative analysis: Economic Geology, v. 90, no.1, p.
88-104.
5. Laznicka, P., 2010. Giant Metallic Deposits: Future Sources
of Industrial Metal, Second Edition. Springer-Verlag
Heidelberg.
This information is provided by RNS
The company news service from the London Stock Exchange
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