Cascabel Exploration Update

RNS Number : 8241W

SolGold PLC

29 April 2016

 

29 April 2016

SolGold plc

("SolGold" or the "Company")

Cascabel Exploration Update

Hole 16 Results Extend Alpala Central High Grade

Mineralisation at Cascabel

The Board of Directors of SolGold (AIM: SOLG) wish to provide shareholders with the following update from its Cascabel Copper-Gold Porphyry Project in Ecuador.

HIGHLIGHTS:

Ø Hole 16 final results received, returning another world class intersection from the Alpala deposit of:

·    1145.6m @ 0.63% Copper and 0.78 g/t Gold from 516m, including

             856.0m @ 0.80% Copper and 1.04 g/t Gold from 548m.

Ø This broad zone of porphyry style copper and gold mineralisation includes two high grade zones:

1.   Upper Zone

152m @ 1.18% Copper and 1.69 g/t Gold from 612m (cut ³ 0.7% Copper)

108m @ 1.46% Copper and 2.19 g/t Gold from 656m (cut ³ 1.0% Copper)

2.   Lower Zone

 373.6m @ 1.00% Copper and 1.34 g/t Gold from 928m (cut ³ 0.7% Copper)

367.6m @ 1.01% Copper and 1.35 g/t Gold from 934m (cut ³ 1.0% Copper)

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:

FURTHER INFORMATION

The Cascabel Project is located in Northern Ecuador, within the northern portion of the Andean copper belt, renowned as the host of 48% of the World's copper production, and numerous Tier 1 global resource assets (refer Figure 1 - Location, and Figure 2 - Regional Setting).  

The deposit at Alpala continues to grow with each new drill hole, and the Directors of SolGold advise that at 12 noon Central America time on Thursday 28 April 2016, Hole 15R2 (CSD-16-015R2) was drilling at a depth of 1533m and Hole 17 (CSD-16-017) was drilling at a depth of 643m.  Both drill holes continue to intersect significant porphyry style copper-gold mineralisation at the Alpala deposit.

These final assay results from Hole 16 extend the known extent of the Alpala deposit by a further 120m to the southeast, and increases the known strike range of copper and gold mineralisation along the greater Alpala trend, from Hole 13 in the northwest to Hole 16 in the southeast, to some 700m in length (refer Figure 3 - Drill Hole Location Plan).

The Alpala Central deposit, which outcrops in Alpala Creek, is open in virtually all directions, and is to date defined at greater than 0.7% copper over a strike length of 625m, a lateral width of 300m, and a vertical extent of 1,800m (refer Figure 4 - Three Dimensional Model). 

Photographs showing examples of the intense porphyry style stock work veining and mineralisation encountered in Hole 16 are shown in Figure 5 (refer Figure 5 - Examples of Mineralisation).

The extension of Alpala Central to the south east is accompanied by increased intensity of bornite mineralisation at surface and increasing intensity of veining with depth.  Sub-horizontal vein sets and the prevalence of strong magnetite alteration (a magnetically susceptible iron-oxide mineral used as a temperature proxy to high temperature copper mineralisation in porphyry systems) support the veracity of significant mineralisation potential surrounding the Alpala Central system (refer Figure 6 - Three Dimensional Magnetic Model).

By order of the Board

Karl Schlobohm

Company Secretary

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 30 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.

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                                                                                                Tel: [phone]

SP Angel Corporate Finance LLP (NOMAD and Broker)

[e-mail]

Follow us on twitter @SolGold_plc

NOTES TO EDITORS

SolGold is a Brisbane, Australia 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 high vested interests in the success of Company, holding approximately 14% of its issued share capital, as well as strong track records in the areas of exploration mine development, investment, finance and law.  SolGold's experience is augmented by state of the art geophysical techniques and the guidance of Newmont trained porphyry expert Dr Steve Garwin.

Cascabel, the Company's world class 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.  By December 2015, the Company had completed approximately 25km² of soil sampling, 14km² of electrical surveys, 20,100m of drilling and expended approximately US$30m.  Diamond drilling currently continues with two drilling rigs.

Cascabel is characterised by multiple targets, world class drilling intersections over 1km in length, and high copper and gold grades, as well as logistic advantages in location, elevation, water supply, proximity to road, port and power services and a progressive legislative approach to resource development.

SolGold is planning a resource statement at Alpala the most advanced target at Cascabel during 2016, in addition to drill testing the other key targets in the Cascabel concession at Aguinaga, Trivinio, Alpala Northwest, Hematite Hill, Alpala Southeast, Cristal, Tandayama-America and Chinambicito.  By the end of 2016 the Company is planning further metallurgical testing, and completion of early stage mine and plant design and a scoping study for an economic development at Cascabel.  SolGold is investigating both high tonnage / low grade open cut and high grade / low tonnage underground developments as a block caving operation.

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.  Copper equivalent grades are calculated using a gold conversion factor of 0.6, determined using copper price of US$3/pound and gold price of US$40/gram.

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.

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 953,897,601 ordinary shares issued, 4,820,000 options exercisable at 50p, 7,280,000 options exercisable at 28p and 9,280,000 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.

http://www.rns-pdf.londonstockexchange.com/rns/8241W_-2016-4-29.pdf

 

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