Preliminary Assay Results - Alpala Hole CSD-13-001

RNS Number : 2148Q

SolGold PLC

10 October 2013

 



10 October 2013

SolGold Plc

("SolGold" or the "Company")

Cascabel Project Update

Drill Hole 1 at Alpala

Preliminary Assay Results Received

The Board of SolGold (AIM code: SOLG) is pleased to report that preliminary assay results have been received for Drill Hole CSD-13-001 at the Alpala prospect within the Cascabel Project, the Company's copper-gold porphyry exploration project in northern Ecuador (refer Figure 1).  

Highlights:

Ø Preliminary assay results indicate copper-gold mineralisation in Drill Hole CSD-13-001 over 2 zones:

·    104m @ 0.37% copper and 0.38 g/t gold from 16m, and;

·    100m @ 0.50% copper and 1 g/t gold from 222m.

Ø High grade zones over 1% copper (principally 232m to 248m) to be re-assayed at higher copper cut-off technique.

Ø Mineralisation styles indicative of potentially significant copper-gold porphyry system.

Ø Drill Hole CSD-13-002 assays awaited.

Ø Drill Hole CSD-13-003 underway targeted to intersect interpreted magnetic core of the porphyry system.

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/2148Q_-2013-10-10.pdf

 

Drill Hole 1 - Preliminary Assay Results

The preliminary assay results received and as outlined in Table 1 below confirm the visually encouraging mineralisation encountered and reported by SolGold on 11 September 2013 in Drill Hole CSD-13-001 at Alpala, Cascabel, which terminated at 353.56m.  Figure 3 shows copper and gold values down hole together with the principal intersections whilst Figure 4 shows a cross-section of gold and copper intersections.

Eleven (11) 2m samples require re-assaying for copper, using a less sensitive assay technique, as these results were all greater than 1% copper, the maximum value for the preliminary assay technique employed.  These samples are located between the following intervals:

Ø 52m to 54m

Ø 226m to 228m

Ø 232m to 248m

Ø 262m to 264m

The preliminary assay results for Drill Hole 1 support the SolGold assessment that Drill Holes CSD-13-001 and CSD-13-002 are located on the margins and associated with alteration zones above and northwest of the presently interpreted core of the porphyry system, as indicated by the 3D magnetic interpretation and alteration mineral spectral datasets.

SolGold considers the intersections encountered in Hole CSD-13-001 to be robust.  The continuity of copper mineralisation is particularly encouraging. Updated results will be announced as soon as the final assay results are received.  

Assay results for Drill Hole CSD-13-002 are still awaited.  Drill Hole CSD-13-003 is currently underway, and was at a depth of 183m as at 9 October 2013.

About Cascabel

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. 

The Cascabel project is located in north-western Ecuador in an under-explored northern section of the richly endowed Andean Copper Belt.  World class deposits located within this belt include the 982 million tonnes at 0.89% Cu Junin copper project located some 60 km to the southwest of Cascabel, the 3.3 billion tonne at 0.36% Cu Cobre Panama deposit located to the north in Panama and the 905 million tonnes at 0.92 g/t Au La Colosa porphyry deposit located to the north in Colombia, containing 26 million ounces of gold.  The Alpala Prospect exhibits surface mineralisation and alteration patterns indicative of a porphyry copper gold system and has a similar footprint to large porphyry systems around the world.

Qualified Person:

Information in this report relating to the exploration results is based on data reviewed by Dr Bruce Rohrlach (BSc (Hons), PhD), the GM Exploration of the Company.  Dr Rohrlach is a Member 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.  Dr Rohrlach 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:

Mr Alan Martin

SolGold Plc (CEO and Managing Director)                                                                    Tel: [phone]

[e-mail]

Mr Nicholas Mather                                                                                                         Tel: [phone]

SolGold Plc (Executive Director)

[e-mail] 

Mr Karl Schlobohm                                                                                                         Tel: [phone]

SolGold Plc (Company Secretary)

[e-mail]  

Mr Ewan Leggat / Ms Katy Birkin                                                                               Tel: [phone]

SP Angel Corporate Finance LLP (Broker)

[e-mail]  

Mr Stephen Weir                                                                                                             Tel: [phone]

RFC Ambrian Limited (Nominated Advisor)

[e-mail] 

Mr Dominic Barretto / Ms 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. 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 Cascabel copper-gold project is located approximately 180 km by sealed north of Ecuador's capital, Quito, 20 km south of the Colombian border, and 75 km inland from the coastal city of San Lorenzo. 

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 14% 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 603,895,309 fully-paid ordinary shares, 19,608,000 options exercisable at 50p, 11,000,000 options exercisable at 28p, 8,000,000 options exercisable at 14p, and 3,000,000 options exercisable at 6p on issue.

 

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