Chical Project Update

RNS Number : 2596Y

SolGold PLC

08 May 2019

 

8 May 2019

SolGold plc

("SolGold" or the "Company")

Large Copper and Gold Systems Discovered at Chical

The Board of SolGold (LSE & TSX code: SOLG) is pleased to provide an update from the Company's regional exploration activities from its 100% owned Chical Project in northern Ecuador, held by wholly owned subsidiary Carnegie Ridge Resources S.A.

Highlights

Ø	Follow up of anomalous stream sediment geochemistry has identified a 5.8km² area of mineralised epithermal gold and porphyry style mineralisation comprising 3 prospect areas; the Pascal, La Esperanza and Espinoza prospects.
Ø	The Chical Project is held under the 100% owned Chical 1,2 and 5 Tenements (Figure 1)
Ø	Mineralisation is associated with an extensive contact zone between intrusive granodiorite and gabbro with volcano-sedimentary units.
Ø	Gold mineralisation consists of epithermal stockwork quartz veining with an abundance of 10 to 15 veins per metre significantly more intense than that required for a significant mineral system associated with strong chlorite-sericite-epidote hydrothermal alteration.
Ø	Rock chip sampling of mineralised quartz veins and stockworks at Pascal and Espinoza prospects over a 2km length returned significant gold values:
	o	R01003083 45.5 g/t Au (float)
	o	R01003217 7.05 g/t Au
	o	R01003148 3.27 g/t Au
	o	R01003134 2.57 g/t Au
Ø	Rock chip samples of sulphide veinlets associated with potassic alteration (and alteration style diagnostic of a significant porphyry system) from the La Esperanza prospect return high copper and molybdenum values over an area 2.5km long and up to 1km wide:
	o	R01003071 1.04% Cu, 0.42 g/t Au, 886 ppm (0.088%) Mo
	o	R01003095 0.94% Cu, 0.18 g/t Au, 5.84 ppm Mo
	o	R01003156 0.9% Cu, 0.44 g/t Au, 348 ppm (0.034%) Mo

References to figures and tables relate to the version visible in PDF format by clicking the link below:

http://www.rns-pdf.londonstockexchange.com/rns/2596Y_1-2019-5-7.pdf

Commenting on the results, SolGold's Exploration and Country Manager Jason Ward said:

"The large areas of geochemical anomalism, the widespread extent of the altered and mineralised outcrops and the mineralisation style comprising multi directional veining accompanied by molybdenum are strong indicators of a large copper rich porphyry system at La Esperanza.  Peripheral high-grade gold rich epithermal veins have also been identified at Pascal and Espinoza. The high-grade gold vein occurrences also indicate potential for early high-grade gold resources beside the porphyries.

The proximity of Chical to Cascabel is geologically and logistically encouraging and vindicates our long-held opinion that we have discovered a new copper porphyry province. The generative foundations laid in 2014 are certainly paying off."

Introduction

Ecuador is located on the copper-gold rich and under-explored northern section of the Andean Copper Belt. The well explored southern portion is renowned as the production base for nearly half of the world's copper (Figure 1). SolGold's strategy to become a tier 1 copper and gold producer through systematic exploration continues to yield exciting results.  Follow up exploration has focussed on 11 priority projects identified across SolGold's 72 granted regional concessions.

With 11 priority projects now recognised, ongoing exploration by SolGold technical teams is focussed on advancing these priority projects with a view to progress to drill testing as soon as possible.  SolGold's high success rate has been achieved by operating multiple field teams comprising 42 Ecuadorean geologists in regional exploration, led by highly experienced national geologists and applying the exploration discovery and appraisal blueprint developed over the last 4 years at Alpala. 

Further Information

Chical Project

Follow up mapping (Figures 2 & 3) and rock chip sampling of a stream sediment geochemical gold anomaly, known as the Pascal and Espinoza prospects returned rock results of up to 45.5 g/t Au in granodiorite and andesite rocks (Figures 2, 3 & 4).  Samples were taken from epithermal quartz vein network(stockwork) outcrops (Figure 6) hosting the mineralisation.  Significant rock chip results from the Pascal prospect over 2km in length include;

o	R01003083           45.5g/t Au (float)
o	R01003217           7.05 g/t Au
o	R01003148           3.27g/t Au
o	R01003134           2.57g/t Au
o	R01003064           2.41g/t Au

A stream sediment geochemical copper anomaly was also identified in the La Esperanza prospect dominated by diorite and granodiorites with veinlets of quartz - chalcopyrite associated with porphyry diagnostic potassic alteration over an area of 2.5nm5km long and up to 1km wide (Figure 5).  This copper anomaly shows coincident molybdenum and copper - zinc ratio (Cu/Zn) geochemical anomalies (Figure 2 & 3).  Best geochemical rock chip results include:

o	R01003071           1.04% Cu, 0.42 g/t Au, 886 ppm (0.088%)  Mo
o	R01003095           0.94% Cu, 0.18 g/t Au, 5.84 ppm Mo
o	R01003156           0.9% Cu, 0.44 g/t Au, 348 (0.034) ppm Mo
o	R01003226           0.63% Cu, 0.59 g/t Au, 50.8 ppm Mo (float)
o	R01003157           0.42% Cu, 0.1 g/t Au, 459 ppm (0.045) Mo

Figure 1: Location plan of the Chical Project in southern Ecuador.

Figure 2: Geology of the Chical Project

Figure 3:  Chical Project - Gold and copper rock chip results.

Figure 4: High grade rock sample from the Chical Project.

Figure 5 : Rock chip sample from the Chical Project.

Figure 6: Quartz stockwork veining at the Chical project

Table 1: Significant gold results - Chical rock chips

Table 2: Significant copper results - Chical rock chips

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of the Regulation (EU) No 596/2014 until the release of this announcement.

Qualified Person:

Information in this report relating to the exploration results is based on data reviewed by Mr Jason Ward ((CP) B.Sc. Geol.), the Chief Geologist of the Company.  Mr Ward is a Fellow of the Australasian Institute of Mining and Metallurgy, holds the designation FAusIMM (CP), and has in excess of 20 years' experience in mineral exploration and is a Qualified Person for the purposes of the relevant LSE and TSX Rules.  Mr Ward 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

 

Nicholas Mather SolGold Plc (Chief Executive Officer) [e-mail]	Tel: [phone] [phone]
Karl Schlobohm SolGold Plc (Company Secretary) [e-mail]	Tel: [phone]
Anna Legge SolGold Plc (Corporate Communications) [e-mail]	Tel: [phone]
Gordon Poole / Nick Hennis Camarco (Financial PR / IR) [e-mail]	Tel: [phone]
Andrew Chubb / Ingo Hofmaier Hannam & Partners (Joint Broker and Financial Advisor) [e-mail]	Tel: [phone]
Ross Allister / David McKeown Peel Hunt (Joint Broker and Financial Advisor) [e-mail]	Tel: [phone]
James Kofman / Darren Wallace Cormark Securities Inc. (Financial Advisor) [e-mail]	Tel: [phone]

Follow us on twitter @SolGold_plc

 

END

 

 

UPDSSSFDWFUSEII