Ecuador and Australia to Sign Mining MOU

RNS Number : 6044G

SolGold PLC

23 November 2015

 



23 November, 2015

SolGold plc

("SolGold" or the "Company")

Ecuador and Australia to Sign Mining MOU

The Ecuadorean Ministry of Mining announced on Friday 20 November 2015 its intention to sign a Memorandum of Understanding ("MOU") with the Australian Government next month in Ecuador's capital city of Quito.

The MOU will cover the development and expansion of cooperative ties in the mining sector between both countries, aiming to create a positive setting for trade and investment between the mining industries of Australia and Ecuador.  The MOU will also seek to promote the exchange of technical expertise and sustainable mining practices.

Ecuador has identified as relevant, the experience of Australia in the following areas:

Ø Environmental and land management;

Ø Mine safety and occupational health;

Ø Taxation and royalties from mining;

Ø Data management;

Ø Community management;

Ø Public policy and legislation;

Ø Mining Excellence Centre; and

Ø Training Ecuadorean communities and staff of the secretariat of state and related bodies.

The MOU will strengthen the bonds of bilateral cooperation in the mining industry and technology transfer between the two countries.

SolGold in Ecuador

SolGold has been active in Ecuador since 2012 as a result of farming in to the Cascabel copper-gold porphyry project, located in North West Ecuador on the under-explored northern section of the richly endowed Andean Copper Belt (refer Figure 1).  SolGold now holds an 85% interest in the project.  Cascabel is characterised by multiple targets, world class intersections rich in high grades of copper and gold, logistic advantages in location, elevation, water supply, proximity to road, port and power services and a progressive legislative approach to resource development.

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 October 2015, the Company had completed approximately 25km² of soil sampling and 14km² of electrical surveys, 21,000m of drilling and expended approximately US$30m.  Diamond drilling continues with two drilling rigs completing approximately 8000 metres per rig each per annum.

SolGold is planning a resource statement at Alpala the most advanced target at Cascabel by mid-2016, in addition to drill testing the other key targets at Aguinaga, Tandayama America and Chinambicito in the Cascabel concession.  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.

By order of the Board

Karl Schlobohm
Company Secretary

http://www.rns-pdf.londonstockexchange.com/rns/6044G_-2015-11-23.pdf

Figure 1: Location plan of the Cascabel Project in Northern Ecuador, showing mineral belts of the northern portion of the Andean Copper Belt

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]

Mr Dominic Barretto / Ms Harriet Jackson                                            Tel: [phone]

Yellow Jersey PR Limited (Financial PR)

[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 October 2015, the Company had completed approximately 25km² of soil sampling and 14km² of electrical surveys, 21,000m of drilling and expended approximately US$30m.  Diamond drilling continues with two drilling rigs completing approximately 8000 metres per rig each per annum.

Cascabel is characterised by multiple targets, world class intersections rich in high grades of copper and gold, 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 by mid-2016, in addition to drill testing the other key targets at Aguinaga, Tandayama America and Chinambicito in the Cascabel concession.  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.

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 760,453,071 fully paid ordinary shares, 4,820,000 options exercisable at 50p, 7,280,000 options exercisable at 28p and 9,280,000 options exercisable at 14p.  On 2 October 2015, SolGold issued two 12 month Convertible Notes for A$1.25m and £500,000 each respectively, convertible at the greater of 1.75 p or 80% of volume weighted average price over the 5 days preceding the date of notification of conversion.  At the minimum conversion price of 1.75p and an AUD/GBP exchange rate of 2.171 SolGold would issue a further 64,666,156 shares for an undiluted total of 825,119,227 shares.

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.

 

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