Commencement of Drilling at Cascabel

RNS Number : 9558M

SolGold PLC

02 September 2013

 



2 September, 2013

SolGold Plc

("SolGold" or the "Company")

Drilling Commences at Alpala, Cascabel Project, Ecuador

The Board of SolGold (AIM code: SOLG) is pleased to report on progress at its Cascabel Project, the Company's copper-gold project in northern Ecuador.  

SolGold holds a 50% interest, and can earn up to 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 Ecuadorian geologists to carry out exploration and related administrative functions for the Cascabel Project.

Commencement of Drilling At Cascabel

On 2 September, Cornerstone advised the company that drilling commenced at the Alpala prospect at 11:30 am 1 September.  The first drill-hole, CSD-13-001, is positioned to test the stock-work zone of mineralisation which has been sampled on surface by trenching yielding 45.6m @0.59% Cu and 0.81 g/t Au.  This drill-hole is planned to have a depth of 300 metres and will continue if mineralisation is encountered below this level.

Commenting on the news, CEO Alan Martin stated: "The commencement of drilling of our first hole at Alpala is a very exciting time for SolGold shareholders and our partners Cornerstone.  This is the time that every junior explorer dreams of, to be able to drill test a target deposit that has potential to be a world-class deposit.  The Board looks forward to delivering news on Hole 1 as it progresses in due course".

The Company anticipates that it will be in a position to provide visual confirmation of the stock-work mineralisation zone in Hole 1 as sampled in trenches on surface.  Timing for this is hoped to be over the next 10 to 20 days.

Following completion of CSD-13-001, the rig will be moved to drill site CSD-13-002 which is targeted to test beneath surface trench results being: 56.93 m @ 0.34% Cu and 1.16 g/t Au.

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. 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.

Contacts:

Alan Martin

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

[e-mail]

Nicholas Mather                                                                                              Tel: [phone]

SolGold Plc (Executive Director)

[e-mail] 

Karl Schlobohm                                                                                               Tel: [phone]

SolGold Plc (Company Secretary)

[e-mail]  

Ewan Leggat / Katy Birkin                                                                            Tel: [phone]

SP Angel Corporate Finance LLP (Broker)

[e-mail]  

Stephen Weir                                                                                                  Tel: [phone]

RFC Ambrian Limited (Nominated Advisor)

[e-mail] 

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 and 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 Florida prospecting licence was permitted to expire as part of SolGold's strategy to become increasingly focussed on the preceding tenements in the Solomon Islands, Queensland and Ecuador.

In July 2012, SolGold and Cornerstone Capital Resources Inc. announced that they had signed a definitive option agreement whereby SolGold may acquire up to 85% of Cornerstone's 100% owned 5,000 hectare Cascabel gold-copper-silver property in northern Ecuador.

The Cascabel project is located approximately 120 km north of Ecuador's capital, Quito, 20 km south of the Colombian border, and 75 km inland from the coastal city of San Lorenzo.  The copper-gold porphyry project is located within the Andean western cordillera, host to numerous tier 1 world class copper-gold deposits through Chile, Peru, Ecuador and Colombia.

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 currently has a total of 553,354,342 fully-paid ordinary shares, 1,500 Convertible Redeemable Preference Shares, 10,788,000 options exercisable at 50p, 2,750,000 options exercisable at 28p and 1,750,000 options exercisable at 14p on issue.  Further details concerning the Company's key projects and personnel can be found at: www.solgold.com.au

 

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