Preliminary Assay Results - Lower Part of Hole 2

RNS Number : 8891S

SolGold PLC

13 November 2013

 



13 November 2013

SolGold Plc

("SolGold" or the "Company")

Cascabel Project Update - Alpala Prospect

Drill Hole CSD-13-002 Porphyry Copper-Gold Mineralisation Extends at Depth

Preliminary Assay Results Received for Lower Part of Hole

The Board of SolGold (AIM code: SOLG) is pleased to report that preliminary assay results have been received for the lower portion of drill hole CSD-13-002 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 for the entire drill hole CSD-13-002 yield the following copper-gold intersections:

·    18m @ 0.33% copper, 0.41 g/t gold (from 6m);

·    292m @ 0.37% copper, 0.30 g/t gold (from 126m); incl.

·    42m @ 0.50% copper, 0.68 g/t gold (from 184m).

·     Copper-gold mineralisation encountered to date is interpreted to lie within a high-level structural zone that taps a larger porphyry copper-gold system at depth.

·     Higher grade intervals included:

·    10m @ 0.91% Cu, 0.41 g/t Au (from 130m)

·    2m @ 2.58% Cu, 0.81 g/t Au (from 132m)

·     Hole CSD-13-004 terminated at a depth of 318.51m due to poor ground conditions.

·     Hole CSD-13-004A (as a relocation of Hole CSD-13-004) will test the porphyry target below Holes 1 and 2. 

·     Hole CSD-13-004A is due to commence within the next few days.

·     Assays for Hole CSD-13-003 are anticipated in 2 weeks.

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/8891S_-2013-11-13.pdf

SolGold Managing Director, Mr Alan Martin said "the results continue to indicate a large-scale copper-gold-molybdenum porphyry system, the best part of which we have not yet encountered.

Drill Hole CSD-13-002 Preliminary Assay Results

A second batch of preliminary assay results has been received for drill hole CSD-13-002.  The hole was terminated at 547.42m depth in mineralisation due to hole deviation caused by faulting in the deeper part of the hole and associated drilling difficulties.

The preliminary copper and gold intersections for the entire drill hole are outlined in Table 1 below. The new extended intersection further confirms and expands the known distribution of copper-gold mineralisation below the zone of outcropping stock-work vein mineralisation in Alpala Creek.  Figure 3 shows a cross-section of gold and copper intersections in holes CSD-13-001 and CSD-13-002.  Two main intersections were encountered in drill hole CSD-13-002:

·     A shallow intersection of 18m length grading 0.33% Cu, 0.41 g/t Au (from 6m depth).

·     A deeper intersection of 292m length grading 0.37% Cu, 0.30 g/t Au (from 126m depth).

The extensive mineralisation within the hole (292m @ 0.37% copper and 0.30 g/t gold) is particularly encouraging, and it laterally expands the extent of mineralisation on cross-section at Alpala Creek (refer Figure 3).   

Drill Holes CSD-13-003, CSD-13-004 and CSD-13-004A

Drill Hole CSD-13-003 terminated at 751.33m (see separate RNS dated 4 November 2013).  Assay results are expected in 2 weeks.

Drill Hole CSD-13-004 was terminated at a depth of 318.51m due to poor ground conditions.  CSD-13-004 was sited to test an area 300 metres vertically below the lower mineralised interval in Hole CSD-13-001 (Figure 3) but the hole was terminated at 318.51m in bad ground conditions.  A re-designed hole, CSD-13-004A, will be collared at the same location as CSD-13-001 and drilled at a steeper angle of -85 degrees to test for the continuation of the high grade copper-gold mineralisation intersected in the lower section of CSD-13-001 (Figure 2).

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, Malukuna and Kuma licenses 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.

 

END

 

 

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