Cascabel Exploration Update

RNS Number : 2952O

SolGold PLC

18 September 2013

 



18 September 2013

SolGold Plc

("SolGold" or the "Company")

Cascabel Project Exploration Update

Drilling Underway at Hole 2

The Board of SolGold (AIM code: SOLG) is pleased to provide the following exploration update at its Cascabel Project in Ecuador.

Drill Hole CSD-13-002

The second hole at the Alpala Prospect, Hole CSD-13-002, commenced drilling on Sunday 15 September, and by Tuesday 17 September the hole had reached a depth of 153 metres.

This hole has the following objectives:

1.   Test beneath a higher-grade gold zone in Trench TH55A, which yielded 56.9m @ 1.16 g/t Au and 0.34% Cu (Figure 1);

2.   Test beneath the widest section of copper and gold mineralisation on surface at Alpala (Figure 1);

3.   Test through the mineralised quartz stockwork zone intersected in CSD-13-001 at depth (Figures 1 and 2);

4.   Test toward the magnetic apophysis and postulated potassic zone (Figures 1 and 2).

The figures in this release are available in the PDF version on the Company's website, or by clicking the link below:

http://www.rns-pdf.londonstockexchange.com/rns/2952O_-2013-9-18.pdf

 

Cascabel Project

SolGold currently holds a 50% interest, and can earn up to an 85% interest, in Exploraciones Novomining S.A. ("ENSA"), an Ecuadorean registered company, which holds 100% of the Cascabel concession in northern Ecuador.  Cornerstone Capital Resources Inc. ("Cornerstone") currently holds the other 50% of ENSA.  Cornerstone has been operating in Ecuador for six years and employs highly experienced Ecuadorian geologists to carry out exploration and related administrative functions for the Cascabel Project.  SolGold also employs several key exploration management personnel on the project.

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 60 km to the southwest of Cascabel, the 4.2 billion tonne at 0.35% Cu Cobre Panama deposits 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 ozs of gold in similar geological environments.

The Alpala Prospect exhibits surface mineralisation and alteration patterns indicative of porphyry copper gold systems and has a similar footprint to large porphyry systems around the world.

Qualified Persons

Information in this report relating to the exploration results isbased on data reviewed by Mr Nicholas Mather (B.Sc. Hon), the Executive Director 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 Alan Martin

SolGold Plc (Chief Executive Officer)                                                     Tel: [phone]

[e-mail]

Mr Nicholas Mather                                                                                       Tel: [phone]

SolGold plc (Executive Director)

[e-mail] 

Mr Karl Schlobohm                                                                                        Tel: [phone]

SolGold plc (Company Secretary)

[e-mail]  

Mr Ewan Leggat / Katy Birkin                                                                     Tel: [phone]

SP Angel Corporate Finance LLP (Broker)

[e-mail]  

Mr Stephen Weir                                                                                           Tel: [phone]

RFC Ambrian Limited (Nominated Advisor)

[e-mail] 

Mr Dominic Barretto / 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 JV 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 and Kuma licenses, both of which are located on Guadalcanal. 

The Cascabel copper-gold project is located approximately 180 km by sealed 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 JV partner is being sought for the Fauro project to pursue drilling of gold-copper targets defined in the 2011 exploration program. 

SolGold's strategy is to be an integrated gold and copper discoverer, developer and miner.

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 15.1% of its issued share capital.

SolGold is based in Brisbane, Queensland, Australia.  The Company listed on London's Alternative Investment Market (AIM) in 2006, under the AIM code 'SOLG' and after the allotment and admission of the placement shares from 16 and 18 September 2013, will have a total of 605,651,907 fully-paid ordinary shares, 18,788,000 options exercisable at 50p, 7,750,000 options exercisable at 28p, 4,750,000 options exercisable at 14p, and 3,000,000 options exercisable at 6p on issue.

 

END

 

 

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