Cascabel Exploration Update

RNS Number : 4127D

SolGold PLC

06 July 2016

 

6 July 2016

SolGold plc

("SolGold" or the "Company")

Cascabel's True Potential Begins to Emerge

14 Porphyry Targets Identified to Date

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

HIGHLIGHTS:

Ø Additional targets supported by magnetic modelling and molybdenum in soils samples at
 Carmen, Parambas and Moran.

Ø Drilling to date at the Alpala deposit has returned remarkable results, with 5 of 17 holes
 ranking amongst the top published porphyry copper-gold exploration drill holes in
 history (ranked by metre percent copper equivalent).

Ø Magnetic modelling on the greater Moran-Alpala trend reveals striking similarities to the
 giant Hugo Dummet deposit of Oyu Tolgoi, Mongolia.

Ø Proximity to the growing high-grade Alpala porphyry copper-gold deposit and genetic
 similarity bodes well for the prospectivity of these satellite targets.

Ø Alpala Central deposit continues to grow with each drill hole, and holds numerous
 similarities with the large high-grade Golpu deposit in Morobe Province, Papua New
 Guinea.

Ø Evidence mounts to define Cascabel as a world class Tier 1 copper-gold porphyry field. 
 Fourteen porphyry targets generated within the Cascabel concession, seven of which
 have been elevated to close to drill ready status.

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/4127D_-2016-7-6.pdf

FURTHER INFORMATION:

The Directors of SolGold advise that recent geological and geochemical field work in conjunction with updated three dimensional MVI magnetic modelling has now defined fourteen copper-gold porphyry targets within the Cascabel project area in Northern Ecuador (refer Figure 1, Location).  Proximity to and geologic similarity with the growing Alpala porphyry copper-gold deposit suggests that these satellite targets within the Cascabel tenement will yield similar deposits to Alpala Central, the only target drilled to date.  

Revised magnetic modelling, reconciled to downhole magnetic susceptibility readings from drill core, has refined MVI magnetic models to represent a proxy for magnetite-chalcopyrite style porphyry mineralisation that exists at Alpala.  Soil geochemistry, molybdenum anomalies and detailed 1:500 scale "Anaconda" style surface geological and structural mapping has resulted in the Company now having increased confidence in targeting other rich parts of the wider porphyry systems within the Cascabel tenement.

Recently, modelling has identified coincident magnetic and molybdenum anomalism which is considered to be particularly diagnostic at new targets at Moran, Carmen and Parambas.  SolGold has recently reported on its initial investigations at Moran, and is currently commissioning mapping and sampling programs at Carmen and Parambas.  As with Moran, SolGold aims to define significant areas of surface mineralisation at Carmen and Parambas.

Seven high priority porphyry centres are now within the Cascabel project, from a total of fourteen porphyry targets inferred to date, including the newly discovered Moran, and the recently defined Carmen and Parambas target areas (refer Figure 4 and 6, Cascabel Targets).  

The Cascabel Project is located on the gold rich northern section of the prolific Andean Copper belt renowned as the production base for nearly half of the world's copper (refer Figure 2, Regional Setting).  

SolGold's Global Exploration Manager, Mr Jason Ward, commented on today's release: "….considering that tremendously fertile porphyry copper-gold systems characteristically form clusters of deposits, rather than a single body, the chances that we have discovered the best of this massive copper gold system in outcrop in Alpala Creek is very slim.  The chance that we have drilled the best portion of the Alpala deposit itself is also very slim, and the ongoing discoveries of similar targets within the overall tenement is very encouraging.  As we drill additional holes the eventual size of the greater Cascabel system will unfold." 

Drilling to date at the Alpala deposit has returned remarkable results, with 5 of 17 holes ranking amongst the top published porphyry copper-gold exploration drill holes in history by metre percent copper equivalent, as shown in the peer reviewed compilation of published drilling results set out in Figure 3.

The north westerly trend of the Moran-Alpala MVI magnetic anomaly reveals a geometry which is very similar to the very large, very rich porphyry system at Hugo Dummet, in Oyu Tolgoi, Mongolia (refer Figure 5 , Long-section of the Moran-Alpala Wider Target Zone). 

The quality of this corridor as a high priority target is supported by contiguous datasets, including MVI magnetics, soil geochemistry, induced polarisation resistivity, and spectrometry to assess the diagnostic clays mineralogy in soils which are typically consistent with sulphide bearing disseminated and/or stockwork style mineralisation peripheral to, and above, a mineralised porphyry stock. (refer Figures 6, 7 and 8).

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 June 2016, the Company had completed approximately 25km² of soil sampling, 14km² of electrical surveys, 23,700m of drilling and expended a total of approximately US$32m on the program, corporate costs and investments.  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, Moran, 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 0.89, determined using copper price of US$2.20/pound and gold price of US$1350/ounce.

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

 

 

DRLUGUBAMUPQUBQ