Cascabel Exploration Update - Hole 12

RNS Number : 1214U

SolGold PLC

27 July 2015

 



27 July, 2015

SolGold plc

("SolGold" or the "Company")

Hole 12 Intersects Mineralised Diorite Porphyry

Rig 2 Mobilised to Site

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 Hole 12 intersects shallow visible copper sulphide (chalcopyrite-bornite) mineralisation at Alpala Central from 88.4m to the current depth of 246.9m.

Ø Mineralised diorite porphyry intersected at 233.8m, several hundred metres shallower than expected.  Mineralised diorite porphyry occurs at a similar depth in Hole 1 (CSD-13-001).

Ø Extensions to surface mineralisation and shallow resource potential realised through recent mapping, trenching and rock-saw channel sampling programs.

Ø Mobilisation of second drill rig ("Rig 2") to site, with exploration drilling planned to test other porphyry centres within the greater Cascabel porphyry cluster.

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/1214U_-2015-7-27.pdf 

FURTHER INFORMATION:

Drilling continues on Hole 12 (CSD-15-012) and on 26 July 2015 was at a depth of 246.9 metres.

Hole 12 is being drilled at an azimuth of 210 degrees and an inclination of ‐87 degrees from a position 95m to the southeast of the Hole 5 (CSD-13-005) drill site, targeting extensions of high-grade porphyry copper and gold mineralisation encountered in Holes 1 and 5.

Visible chalcopyrite, bornite and magnetite veining encountered in Hole 12 from 88.4m, highlight the potential for significant south easterly extension of the mineralised system at Alpala Central.  The true width of this zone is not clear at this stage.

The presence of "B" type quartz veining with bornite "C" type sulphide veining, in conjunction with magnetite veining and within the characteristically poorly mineralised San Juan de Lacas Volcanics bodes extremely well for the continued intersection of significant copper and gold mineralisation at shallow depths in the south eastern quarter of the Alpala Central zone.

Hole 1 (CSD-13-001) has tested the central portion of this zone of shallow prospectivity with results in the top 300m from surface (as previously disclosed) which include:

·     100m @ 0.65% Cu, 1.00 g/t Au from 222m, including 58m @ 0.96% Cu, and 1.67 g/t Au from 226m, with estimated true widths being 52m and 30m respectively.

Mobilisation of Rig 2 continues, with transportation of over 2000m of drill rods to site.  This rig is planned to commence setup on site at Alpala North West around 7 August 2015. 

The Alpala North West drill target lies around 400m north west of Alpala Central along the Alpala Structural Corridor, where an interpreted porphyry centre lies co-incident with the "T1" geophysical target.  The "T1" target is characterised by coincident MVI magnetic and MT conductivity models, surrounded by an annular IP chargeability halo.  This target area is also characterised by the limit of manganese < 100 ppm in soil, inferred to be related to strong phyllic / argillic alteration, as well as a north west trending zone of pyrophyllite from soil spectral work.  This type of spatial relationship between geophysical, geochemical and spectral data is shown by many other globally significant porphyry systems.

Sheeted and stockwork surface mineralisation trending NW-SE in outcrop at surface has been traced over a 140m strike length to date, and the increasing potential for a shallow copper and gold resource in conjunction with deeper high grade targets at Alpala Central further enhance the scale and significant potential economic value of the Cascabel Project.

Rock saw channel sampling perpendicular to the north-west trend of mineralisation along Alpala Creek returned true widths of 33.3m @ 0.65% Cu, and 1.02 g/t Au, including 18.3m @ 0.78% Cu and 1.61g/t Au in Trench 5. 

Trenching at the north western limit of exposed surface mineralisation returned 53.9m @ 0.32% Cu, and 1.38 g/t Au, including 15.6m @ 0.77 % Cu, and 0.56 g/t Au from Trench 56A.  Trench 56A crosses the NW mineralisation trend at an oblique angle and true widths of these intercepts are estimated at around 26m and 7.5m respectively.

Recent discovery of extensions of surface mineralisation, around 80m southeast of Alpala Creek,  reveals outcropping porphyry stock work veining in the most south easterly trench.  All new trench sites are currently being cleared for rock saw channel sampling.

Location plans showing near surface drill hole results and surface rock saw channel results for copper and gold respectively are shown in Figures 1 and 2.   An example of recently discovered porphyry stock work veining in the most south easterly trench is shown in Figure 3.  Examples of mineralisation encountered in Hole 12 to date are shown in Figure 4.  Rig 2 planned location and target is shown in Figure 5.

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: [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 Harriet Jackson                                              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, 14km² and 9km² Induced Polarisation and Magnetotelluric "Orion" surveys at the Alpala and Aguinaga targets respectively.  Diamond drilling continues.

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.

In the Solomon Islands, SolGold holds three tenements; Kuma, Lower Koloula and Malukuna.

SolGold's 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 760,453,071 fully paid ordinary shares, 4,820,000 options exercisable at 50p, 7,530,000 options exercisable at 28p and 9,530,000 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

 

 

DRLPGUGAMUPAUAM