Best Intersection to Date at Cascabel Project

RNS Number : 8681B

SolGold PLC

12 January 2015

 



12 January, 2015

SolGold plc

("SolGold" or the "Company")

Best Intersection to Date at Cascabel Project

Copper-Gold Open at Depth as
Drilling Continues in Hole 9

1050.8m @ 0.68% Cu & 0.92 g/t Au, including

772m @ 0.80% Cu & 1.19 g/t Au

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 Best drill intersection to date received for Cascabel Project.  Comparable to globally significant drill intersections at existing large porphyry copper-gold deposits.

Ø Hole CSD-14-009 ("Hole 9") total downhole interval extends over 1 kilometre and remains open at depth.  Hole 9 has been assayed to 1700.8m.  Drilling recommenced last week, and is at a current depth of 1,750.7m.

Ø Bulk intersection of 1270.8m grading 0.59% copper and 0.77 g/t gold for 1.05% copper equivalent from 430m to 1700.8m.

Includes 1050.8m grading 0.68% Cu and 0.92 g/t Au for 1.23% Cu equivalent from 650m to 1700.8m (current hole depth), and 772m grading 0.80% Cu and 1.19 g/t Au for 1.51% Cu equivalent from 710m to 1482m.

Ø Two distinct high grade porphyry stockwork zones intersected: 

Upper High Grade Zone of 110m @ 1.13% Cu and 2.32g/t Au for 2.53% Cu equivalent from 710m; and

Lower High Grade Zone of 420m grading 1.00% Cu and 1.34 g/t Au for 1.81% Cu equivalent from 1062m; including 298m @ 1.24% Cu & 1.72g/t Au for 2.28% Cu equivalent from 1184m.

Ø Hole 9 intersection gives three dimensions to high grade mineralisation.

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/8681B_-2015-1-12.pdf

Commenting on today's update, SolGold CEO and Managing Director, Alan Martin said:

"The intersection of more than a kilometre of copper and gold mineralisation, including multiple high grade zones, in Hole 9 is very pleasing.  The mineralisation intersected in Hole 9 extends the high grade copper and gold interval which was intersected in Hole 5 laterally to the north.  Importantly this intersection in Hole 9 extends the high grade copper and gold zone into a third dimension at Central Alpala.  The discovery of multiple high grade zones at Central Alpala, which are open in all dimensions, bodes well for the definition of high grade resources at Alpala within the broader large tonnage porphyry system."

FURTHER INFORMATION

Drilling of Hole 9 commenced on 28 October 2014.  On 17 December 2014 the hole was at a depth of 1700.8 metres ("m") and located within the MVI modelled magnetic high.  Drilling was ceased at that time for the Christmas break.  Drilling recommenced from 1700.8m on 8 January 2015, and is currently drilling ahead to a planned depth of 1800m, subject to ground conditions.

Hole 9 is located 120m north of the Hole 5 drill pad and is being drilled with an 85 degree inclination towards 210 degrees UTM (Universal Transverse Mercator) (Appendix 1).

Hole 9 was sited to test for the northwest and north extension of the high-grade copper and gold mineralisation in Hole CSD-13-005 ('Hole 5') and to test for vertical extension of this mineralisation beneath that intersected in Hole 5.

The Hole 9 results demonstrate the substantial breadth of the porphyry system at Cascabel.

Table 1 summarises the intersections to date from Hole 9. 

Appendix 2 shows a southwest-northeast cross-section through Hole 9 at Alpala.  Appendix 3 tabulates intersections from Holes 1‐9 at Alpala.

Intersections from Hole 9 (and Hole 5) rank among some of the best copper-porphyry exploration intersections worldwide as shown in Table 2 below.

High grade intervals coincide with abundant chalcopyrite mineralisation and persistent biotite and magnetite that define the potassic alteration assemblage.  

The intersection of these high grade zones along structures within the broader large tonnage porphyry system (which extends north-west, south-east and at depth) substantiate the confidence SolGold has in the presence of a strongly mineralised porphyry system at Alpala.

Plates 1-3, provided in Appendix 4, show examples of the chalcopyrite mineralisation within porphyry type 'B' and 'C' veins' from Hole 9 at downhole depths; 1466.2m, 1518.7m and 1695.8m.

The upper and lower high grade intervals intersected in Hole 9 occur within a dioritic intrusive phase that ranges from quartz diorite, to diorite and micro-diorite.  These host rocks are interpreted to represent the same intrusive phase that hosts the high grade intersection in Hole 5.

Mineralisation continues to be accompanied by magnetite-biotite alteration and is dominated by coarse chalcopyrite within B-veins and overprinting C-Veins. There is also fine grained disseminated chalcopyrite in fractures in the intrusive host rocks.

The lower interval in Hole 9 demonstrates that strong copper and gold mineralisation continues below the base of and 120m laterally north of the Hole 5 intersection.  The Hole 5 intersection from 458m to 1346m, comprised 888m grading 0.77% Cu and 0.72 g/t Au (for 1.21% Cu-Equivalent) as reported on 10 November 2014.  

Strong association of high grade copper and gold mineralisation with magnetite and porphyry intrusions along known structures enhances ability to target high grade zones within the larger Alpala porphyry complex.

Appendices 5 and 6 show simplified sections indicating target locations along the Alpala Structural Corridor.  These images illustrate that IP chargeability data defines a chargeable halo flanking the MVI magnetic anomaly within and overlying a deep seated conductive zone.  This kind of combined geophysical response is typical of several globally significant copper-gold porphyry systems such as Batu Hijau in Indonesia and Resolution in Arizona.

Four exciting targets zones are currently recognised at Alpala;  Northwest Alpala, Central Alpala, Southeast Alpala and Alpala Deeps.

Along the Hole 9 path, late stage intra-mineral dykes truncate a portion of the high grade mineralisation. Multiple phase mineralized intrusive events with late stage intra-mineral low grade dykes such as this are a common feature in large porphyry systems (Batu Hijau) as illustrated in Appendix 7.

About Cascabel

SolGold owns 85% of Exploraciones Novomining S.A. ("ENSA") and 21.1m shares (approximately 11%) in TSX-V-listed Cornerstone Capital Resources (Cornerstone).  ENSA is an Ecuadorean registered company, which holds 100% of the Cascabel concession in northern Ecuador.  Cornerstone holds the remaining 15% of ENSA.

The Cascabel project is located in northwestern Ecuador in an under-explored northern section of the richly endowed Andean Copper Belt.  World class deposits located within this belt include the 982 million tonnes at 0.89% Cu Junin copper project located some 60km to the southwest of Cascabel, the 3.3 billion tonnes at 0.36% Cu Cobre Panama deposit located to the north in Panama and the 905 million tonnes at 0.92 g/t Au La Colosa porphyry deposit located to the north in Colombia, containing 26 million ounces of gold.  The Alpala Prospect exhibits surface mineralisation and alteration patterns indicative of a porphyry copper gold system and has a similar footprint to large porphyry systems around the world.

Qualified Person:

Information in this report relating to the exploration results is based on data reviewed by Dr Bruce Rohrlach (BSc (Hons), PhD), the GM Exploration of the Company. Dr Rohrlach is a Member of the Australasian Institute of Mining and Metallurgy who has 27 years' experience in mineral exploration and is a Qualified Person under the AIM Rules. Dr Rohrlach 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 Alan Martin

SolGold Plc (CEO and Managing Director)                                                    Tel: [phone]

[e-mail]

Mr Nicholas Mather                                                                                         Tel: [phone]

SolGold Plc (Executive Director)                                                                            [phone]

[e-mail] 

Mr Karl Schlobohm                                                                                         Tel: [phone]

SolGold Plc (Company Secretary)

[e-mail]  

Mr Ewan Leggat/Ms Katy Birkin                                                                  Tel: [phone]

SP Angel Corporate Finance LLP (NOMAD and Broker)

[e-mail]  

Richard Greenfield/ Alexandra Carse                                                         Tel: [phone]

GMP Securities Europe LLP (Joint Broker)

[e-mail]

Mr Dominic Barretto / Ms Anna Legge                                                     Tel: [phone]

Yellow Jersey PR Limited (Financial PR)

[e-mail]  

NOTES TO EDITORS

SolGold's exploration projects are located in northern Ecuador, Australia, and the Solomon Islands. In Ecuador, they consist of a joint venture with Cornerstone Capital Resources Inc. on the Cascabel copper-gold project.  In Australia, SolGold holds 100% of the Rannes, Mt Perry, Cracow West and Normanby Projects, all in southeast Queensland. In the Solomon Islands they comprise the Fauro Project (located on Fauro Island), and the Lower Koloula, Malukuna and Kuma licenses, which are located on Guadalcanal. 

The Cascabel copper-gold project is located approximately 180 km by sealed road north of Ecuador's capital, Quito, 20 km south of the Colombian border, and 75 km inland from the coastal city of San Lorenzo. At the Rannes project SolGold has announced indicated and inferred resources of 18.7 million tonnes at 0.9 g/t gold equivalent (gold + silver) for 550,146 ounces of gold equivalent (296,657 ounces of gold and 10,137,736 ounces of silver; see announcement dated 23 May 2012 for details of the resource statement and gold equivalent ratios).  The Rannes project is currently under review.

In the Solomon Islands, a soil geochemical survey and 3D modelling of magnetic data has been approved at Kuma.

SolGold's objective is to create substantial shareholder value by discovering and defining world-class copper-gold deposits.

SolGold's Board includes accomplished professionals with strong track records in the areas of exploration, mine development, investment, finance and law.  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 685,745,030 fully paid ordinary shares, 12,820,000 options exercisable at 50p, 12,730,000 options exercisable at 28p and 9,730,000 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.

 

END

 

 

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