Cascabel Exploration Update - Hole 10

RNS Number : 1804G

SolGold PLC

02 March 2015

 

2 March, 2015

SolGold plc

("SolGold" or the "Company")

Hole 10 Intersects Strong Visual Copper Mineralisation

Targeting Strike Extension of High Grade Zones in Hole 9

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 Cascabel project continues to provide spectacular drill hole intersections as CSD-15-10 ("Hole 10") intersects strong visible copper mineralisation from 765.0m to the current hole depth of 782.8m.

Ø Hole 10 targets extensions to high-grade copper-gold ("Cu-Au") zones intersected in CSD-14-009 ("Hole 9").

Ø Increasing evidence for a strong T1 target at North West Alpala.

Ø Recent full technical audit and review results in higher predicted drilling reliability.

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/1804G_-2015-3-2.pdf 

FURTHER INFORMATION

Drilling of Hole 10 continues, and on 1^st March 2015 the hole was at a depth of 782.8 metres.

Hole 10 is being drilled at an azimuth of 260 degrees and an inclination of -85 degrees from the same drill pad as Hole 9. A location plan and cross-section is shown as Figures 1 and 2.

Significant quartz veining and alteration was first encountered in Hole 10 at 668.3m. Drilling has continued within the same mineralised sub-porphyritic microdiorite intrusion encountered in Hole 9 that produced spectacular high grade intersections, including:

·     110m @ 1.13 % Cu, and 2.32 g/t Au from 710m, and

·     420m @ 1.00 % Cu, and 1.34 g/t Au from 1062m.

Strong visible copper mineralisation has been encountered from 765.0m to the current hole depth of 782.8m.

Drilling is expected to continue to intersect strongly mineralised porphyritic diorite in the coming days, as Hole 10 targets extensions around 100m north and northwest of the Upper and Lower High Grade zones intersected in Hole 9. 

The mineralisation encountered in hole 10 is located just 60m from the southeastern margin and 300m from the centre of the large T1 target at North West Alpala. SolGold is encouraged by the increasing confidence in the T1 target.

Significant advances in the understanding of intrusion relationships and geometries have been achieved through a recent site project review involving the entire SolGold and ENSA technical team, and Executive Directors of SolGold and management believe future drill hole targets will be increasingly reliable. 

Figure 2 shows a scaled cross-section along the planned Hole 10 path, indicating projected geometries of high grade zones intersected 100m to the south in Hole 9. Images of mineralisation encountered to date are shown in Plates 1 to 3.

HIGH GRADE ZONES - CONCEPTUAL DEPOSIT VOLUMES

The discovery of high-grade copper and gold intervals at Alpala (particularly in Holes 5 and 9 and recent visual confirmation in Hole 10) confirms the potential for multiple high-grade zones within the larger mineralised porphyry system at Alpala. These mineralised intervals are already providing an indication for the potential dimensions of high-grade zones at Central Alpala. Broad dimensions for the currently identified high-grade target zones are approximately 300m strike length, approximately 100m true thickness (aggregated) over a vertical extent of approximately 1000m. At a specific gravity of 2.7, SolGold has identified a reasonable target of approximately 80 million tonnes at a grade of approximately 2.5% copper equivalent.

The potential economic value to SolGold from the development of these zones is considerable and therefore SolGold's immediate drilling program at Alpala targets the definition of these zones within the broader mineralised Alpala Porphyry system.

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]

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 programme, 14km² and 9km² Induced Polarisation and Magnetotelluric "Orion" survey at the Alpala target and Aguinaga target respectively. Diamond drilling continues.

In Queensland, Australia the Company is evaluating the forward exploration 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 in interest in the tenements.

In the Solomon Islands, SolGold holds three tenements; Kuma, Lower Koloula and Malukuna. Results for the soil and rock sampling program from the Kuma tenement are being interpreted to determine the next stage of exploration.

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.

 

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