TIDMSOLG
RNS Number : 1570A
SolGold PLC
22 December 2017
22 December 2017
SolGold plc
("SolGold" or the "Company")
Cascabel Exploration Update
Assay results show continued growth along the Alpala trend.
Cascabel drilling fleet expands to 12 diamond drill rigs.
Maiden Mineral Resource Estimate nearing completion.
The Board of SolGold (LSE and TSX code: SOLG) is pleased to
provide an update on current drilling at the Cascabel Project, the
Company's 85% owned copper-gold porphyry project in Ecuador.
HIGHLIGHTS:
Ø Hole 26-D2 (Alpala NW) returned 453.7m @ 0.53 % CuEq
(open-ended), incl. 229.7m @ 0.75 % CuEq. Hole 26-D2 ended in
mineralisation at 1333.65m due to reaching limits of drilling
capabilities in that hole.
Ø Hole 26-D3 (Alpala NW) intersected approximately 1136m of
visible mineralisation (936-2072m), and ended in mineralisation due
to limit of drilling capabilities. Assay results are pending.
Ø Hole 29-D2 (Alpala East) returned 484m @ 0.49 % CuEq, incl.
146m @ 0.74 % CuEq.
Ø Hole 30 (Alpala Central) returned 772m @ 0.62 % CuEq, incl.
500m @ 0.71 % CuEq.
Ø Hole 33 (Alpala Central) intersected approximately 977m of
visible mineralisation (585-1562m). Assay results are pending.
Ø Cascabel drilling fleet currently 11 drill rigs and expanding
to 12 drills. Rig 12, large track mounted drilling rig arriving in
the last week of December 2017.
Ø The independent consultants are in the process of finalising
their report into the Maiden Mineral Resource Statement for Alpala,
and the Company expects to make an announcement shortly.
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/1570A_-2017-12-22.pdf
FURTHER INFORMATION:
SolGold has completed over 63,000m of diamond drilling at Alpala
(Figure 1). Over 120,000m of drilling is planned for 2018. SolGold
has drill tested 5 of 15 copper-gold targets delineated in the
50km(2) tenement with a focus on Alpala. The remainder of the
targets are scheduled for testing in 2018, subject to ongoing
technical assessment, following completion of the Alpala maiden
Mineral Resource Estimate which is planned for release shortly, and
completion of ground magnetic modelling and Spartan Orion deep IP
surveys.
Recent assay results received from ALS Laboratories in Lima,
Peru for drilling at Alpala returned the following results (Table
1). Detailed summary of the progress of current drill holes at
Alpala are shown below (Table 2).
Hole 26-D2 (Alpala NW) returned 453.7m @ 0.53 % CuEq
(open-ended), incl. 229.7m @ 0.75 % CuEq. Hole 26-D2 ended in
mineralisation at 1333.65m, due to reaching limits of drilling
capabilities in that hole.
Hole 26-D3 (Alpala NW) intersected approximately 1136m of
visible mineralisation (936-2072m), and ended in mineralisation due
to limit of drilling capabilities. Assay results are pending. Hole
26-D3 confirms major extension to the northwest, along the Alpala
trend, and represents the deepest strongly mineralised, open ended
intercept on the project to date.
Hole 29-D2 (Alpala East) returned 484m @ 0.49 % CuEq, incl. 146m
@ 0.74 % CuEq. Hole 29-D3 (Alpala East) intersected approximately
243m of visible mineralisation (949-1192m). Assay results are
pending.
Holes 29-D2, and 29-D3 confirm the potential for further
extensions of the Alpala deposit, deeper and to the east. Parent
Hole 29, currently underway, is planned to test deep at Alpala East
target, along the deeper, open eastern edge of the deposit.
Hole 30 (Alpala Central) returned 772m @ 0.62 % CuEq, incl. 500m
@ 0.71 % CuEq, representing a 120m extension of the deposit towards
the south. Hole 30-D1 returned 542m @ 0.51 % CuEq, including 252m @
0.64 % CuEq, extending the Alpala Central deposit approximately
120m towards surface. Further drilling with Rig 1 is expected to
further extend the deposit towards surface along the open western
edge of the deposit.
Hole 31 (Alpala SE) returned 299.8m @ 0.33 % CuEq, incl. 132m @
0.48 % CuEq. Hole 31-D1 (Alpala SE) returned 226m @ 0.34 % CuEq,
incl. 120m @ 0.38 % CuEq. Further drilling with Rig 3 will target
extensions to the Alpala SE mineralisation southeast of Holes 24
and 24-D1.
Hole 32 (Alpala East) returned 484m @ 0.34 % CuEq, incl. 98.2m @
0.37 CuEq. Hole 32-D1 intersected approximately 65m of visible
mineralisation (1270-1335m). Assay results are pending.
Hole 33 (Alpala Central) intersected approximately 977m of
visible mineralisation (585-1562m). Assay results are pending. Hole
33-D1 (Alpala Central) has intersected approximately 208m of
visible mineralisation thus far (617-825m). Drilling continues.
Hole 34 (Alpala West) intersected approximately 65m of visible
mineralisation (395-457m). Assay results are pending. Hole 34
passed over the top of the Alpala trend, and confirmed
mineralisation approximately 250m northwest of hole 13, extending
the known strike length of the Alpala Deposit to approximately
1500m.
Drill holes 35, 36, 37, 38 and 39 are in progress, and Hole 40
is set to commence following completion of rig move to Alpala
SE.
Further drill testing will focus on:
Ø Extending and infilling the Alpala Central area with Rigs, 1,
6 and 5.
Ø Expanding the system at Alpala Northwest and Trivinio with
Rigs 8,9,10,11, and 12.
Ø Testing extensions of the system at Alpala Southeast with Rigs
2,3, and 4.
Ø Testing geochemical and magnetic targets at Alpala West and
Carmen with Rig 7.
There are currently 11 drilling rigs active at Alpala. The
Cascabel drilling fleet will expand to 12 drills with the arrival
of a large track mounted drill rig (Rig 12) during the last week of
December 2017.
ABBREVIATIONS USED
CuEq - copper equivalent
Cu - copper
Au - gold
m - metres
incl. - including
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 JORC Code and NI 43-101. Mr Mather
supervised the preparation of this release and 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 (Broker)
ewan.leggat@spangel.co.uk
Follow us on twitter @SolGold_plc
NOTES TO EDITORS
SolGold is a Brisbane, Australia based, dual LSE 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.
In October 2017, at the Mines and Money Americas Conference in
Toronto, SolGold's Nicholas Mather won the award for the CEO of the
Year - Exploration, Latin America. SolGold won the Exploration
Award for Latin America, and Ecuador won the Country Award for
Latin America. Each party then duly won the 2017 award for each
respective category on a global basis at London Mines and Money on
30 November 2017.
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. In November 2017 SolGold raised a
further GBP45m at 25p per share, placed with institutions and
Newcrest pursuant to their anti-dilution rights. SolGold currently
has circa USD110m in available cash to continue the exploration and
appraisal of its flagship Cascabel Project, and with which to
conduct regional exploration programs on its 77 other 100%-owned
projects in its wholly owned subsidiary companies.
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 other targets at Aguinaga, Parambas,
Tandayama-America, Moran and Chinambicito.
SolGold has completed over 63,000m of drilling and expended over
USD69M in Ecuador, which includes Cascabel exploration, regional
exploration, 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 60 holes drilled (including
re-drilled holes, daughter holes and current 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,
including non-mineralised intersections, 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 over 120,000m 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 5 of the 15 targets, being
Alpala Northwest, Alpala West, 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 a further 700m to the north of Trivinio, 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 Central, Alpala Northwest, Alpala West,
Alpala East, Alpala South East, Trivinio, and Carmen, over the
coming Quarter. Following completion of a Maiden Resource Estimate
and then drill testing the other key targets within the Cascabel
concession at Aguinaga, Tandayama-America, Moran, Cristal, Parambas
and Chinambicito.
The Company is currently planning further metallurgical testing
and completion of an independent Preliminary Economic Assessment
and Pre-Feasibility Studies 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 several
applications for additional exploration licences in Ecuador over a
number of promising porphyry copper gold targets throughout the
Country.
SolGold, through its 4 subsidiary companies, has 100% ownership
of 77 granted concessions throughout Ecuador. Each subsidiary
company has technical teams, led by experienced senior geologists,
on the ground prospecting granted tenements and collecting baseline
data, whilst regional geophysics surveys are being planned.
Significant copper occurrences have been identified at numerous
projects to date, including La Hueca, Machos, Rio Armarillo,
Sharug, Porvenir and Timbara.
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
is listed on the LSE and TSX, with both exchanges using the ticker
code: SOLG, and currently has on issue a total of 1,696,245,686
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 the TSX and LSE 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.
This release may contain "forward--looking information" within
the meaning of applicable Canadian securities legislation.
Forward--looking information includes, but is not limited to,
statements regarding the Company's plans for developing its
properties. Generally, forward--looking information can be
identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved". Forward--looking information is subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
the Company to be materially different from those expressed or
implied by such forward--looking information, including but not
limited to: transaction risks; general business, economic,
competitive, political and social uncertainties; future prices of
mineral prices; accidents, labour disputes and shortages and other
risks of the mining industry. Although the Company has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
information, there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no assurance
that such information will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward--looking information. The Company does not
undertake to update any forward-looking information, except in
accordance with applicable securities laws.
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 (1) Singer and Menzie,
2010; (2) Schodde, 2006; (3) Schodde and Hronsky, 2006; (4) Singer,
1995; (5) Laznicka, 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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