Cascabel Exploration Update

RNS Number : 3342Y

SolGold PLC

16 May 2016

 

16 May 2016

SolGold plc

("SolGold" or the "Company")

Cascabel Exploration Update

Hole 17 at Alpala Intersecting Very Strong Visible Copper Mineralisation

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

HIGHLIGHTS:

Ø Hole 17 intersects strong visible mineralisation from 641.3 metres to current hole depth at 999.2 metres.

Ø Very intense visible bornite and chalcopyrite copper sulphide mineralisation at Alpala, the principle target at Cascabel from 816.2 m to 999.2 metres depth.

Ø Drill Hole 17 is extending the surface footprint of high grade mineralisation approximately 100 metres south west and approximately 300 metres higher at this position.

Ø Drilling and strong mineralisation continues.

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:

[RNS to insert PDF link here]

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 Friday 13 May 2016, Hole 17 (CSD-16-017) was drilling at a depth of 999.2m.  Rig 1 is drilling Hole 17 to the southwest at a declination of -74 degrees, from the same drill site as Hole 16, towards a planned depth of 1400m  (refer Figure 3, Drill Hole Location Plan).

Hole 17 is targeting shallow extensions of the Alpala deposit to the west, along the interpreted continuation of strong copper and gold mineralisation intersected in Holes 1, 5 and 12, which returned intersections including:

·     Hole 1:  318m @ 0.39 % Cu and 0.48 g/t Au from 16m, including

                                100m @ 0.65 % Cu and 1.00 g/t Au from 222m.

·     Hole 5:  1306m @ 0.62 % Cu and 0.54 g/t Au from 24m, including

                        552m @ 1.03m % Cu and 1.05 g/t Au from 778m. 

·     Hole 12:  1312m @ 0.67 % Cu and 0.63 g/t Au from 128m, including

                          576m @ 1.03m % Cu and 1.19 g/t Au from 844m. 

Hole 17 passed into significant, intrusion hosted, visible porphyry style copper sulphide mineralisation from 641.3m depth, and has intersected over 350m of significant mineralisation to date. 

The intersection so far in Hole 17 has the effect of extending high grade envelopes in the company's 3D models to the south west by 100 metres and upwards (shallower) by some 300 metres.  This is expected to significantly enhance the interpreted copper cutoff tonnages in the vicinity of Hole 17.

Hole 17 passed into very intense visible bornite-chalcopyrite copper sulphide mineralisation from 816.2m.  Bornite and chalcopyrite are important copper ore minerals containing around 63% and 35% copper, respectively.

Hole 17 continues to intersect intense visible mineralization to the current depth of 999.2m, and examples of mineralisation encountered to date are shown in Figures 4 and 5 (refer Figures 4 and 5, Core Photos).

Rig 2 continues drilling Hole 15R2 towards a revised planned depth of 2000m, having intersected over 950m of significant intrusion hosted, porphyry style copper sulphide mineralisation from 803.2m to the current depth of 1749.4m.

Hole 15R2 is targeting extensions of the Alpala deposit to the north, and at depth, some 100m north of the deeper high-grade zone intersected in Hole 9, which returned 1050.8m @ 0.68% Cu and 0.92 g/t Au, including 420m @ 1.00 % copper and 1.34 g/t gold. 

Assay results and a detailed review on Hole 15R2 will be forthcoming when assay results are released later in the month of May.

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.

 

END

 

 

MSCGGUBAAUPQURQ