REG - SolGold PLC - Blanca-Nieves Project Update

SolGoldAnnouncement

19/03/2024 07:00

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RNS Number : 3855H  SolGold PLC  19 March 2024

19 March 2024

 

SolGold plc

("SolGold" or the "Company")

Blanca-Nieves Project Update - Outcrop results 6.15m @ 7.46 g/t Au

 

SolGold (LSE & TSX: SOLG) is pleased to provide an update on the
Blanca-Nieves Project ("Project"). SolGold holds a 100% interest in the
Project through its Ecuadorian subsidiary, Carnegie Ridge Resources S.A.

 

·      Exploration identified a significant porphyry target at El Cielto
Norte covering approximately 2.5 x 2.5 km and is greater in extent than the
Alpala system to the south at the Cascabel Project

·      At Florida, new assays from channel samples of gold-bearing
epithermal quartz vein outcrops with up to 6.15m true thickness, returned
results of 6.15m @ 7.46 g/t Au, including 2.2m @ 21.1 g/t Au

·      Advancing new target areas towards drill-ready status

·      Potential for future integration of Blanca-Nieves with the Tier 1
Cascabel Project, due to the proximity of approximately 8 km

 

Santiago Vaca, SolGold's Chief Geologist, commented:

"Our team is excited about the overall prospect of the Blanca-Nieves Project,
including the potential for future integration with the Cascabel Project. The
district scale opportunity reinforces our view that mining has the potential
to be a significant, multi-generational sector in Ecuador."

Further Information

The Blanca-Nieves Project is situated approximately 8 km north of the
Company's Tier 1 Cascabel Project in northern Ecuador, which holds 3.7 Bt of
ore, 12.4 Mt of copper and 31.3 Moz of gold in the measured plus indicated
category, and 854 Mt of ore, 2.0 Mt of copper and 5.3 Moz of gold in the
inferred category. The Cascabel Project is the largest undeveloped copper-gold
resource in South America and one of the largest in the world; with its
recently published pre-feasibility study indicating an initial capex of $1.55B
and the initial block cave yielding a peak annual production of 216 kt of
copper, 734 koz of gold and 1.16 Moz of silver. The Project is situated in the
Northern Andean Copper-Gold Belt, a region that promises to deliver a
significant proportion of the copper and gold necessary to meet the growing
global demand over the coming decades.

 

High-grade "bonanza-style" gold and silver mineralisation with visible gold
has been discovered outcropping at numerous locations within the Blanca-Nieves
Project area. This includes the previously reported presence of epithermal
quartz veins with over 100 g/t gold grades at Cielito and Florida. The ongoing
exploration efforts at the Blanca-Nieves epithermal gold-silver vein field
continue to demonstrate significant potential for complex high-grade
epithermal vein systems, and recent work has also identified the potential for
a parent mineralised porphyry body beneath the outcropping gold system.

 

SolGold is advancing new target areas towards drill-ready status as
exploration continues with both epithermal vein and porphyry gold-copper as
objectives. SolGold intends ultimately to extend the definition of the
gold-bearing epithermal veins at Cielito and Quiroz beyond the range of
previous historical artisanal mining and drilling to date and to extend the
size of the discovery at Florida, further demonstrating the Company's
commitment to realising the full potential of the Blanca-Nieves Project with a
view to integration with Cascabel.

 

Recent and historic exploration at the Blanca-Nieves Project, immediately
north of the Company's Cascabel Project, has identified a widespread
epithermal gold and silver precious metal field which covers more than 80
square kilometres.

 

New assays of channel samples from gold-bearing epithermal quartz vein
outcrops, with up to 6.15m true thickness, returned 6.15m @ 7.46 g/t Au at
Florida, including 2.2m @ 21.1 (mailto:2.2m@21.1) g/t Au (Figure 1). A
significant thickening of quartz veins is observed along with an increase in
clay alteration at Florida, and more recent fieldwork has identified a
significant porphyry target at El Cielito Norte, immediately west of Florida.

 

El Cielito Norte lies central to peripheral high-grade gold-silver and base
metal vein occurrences at Cielito, Florida, Quiroz and Las Chorreras. The El
Cielito Norte porphyry target is characterised by a central magnetic high
anomaly, surrounded by an annular magnetic low, typical of the inner potassic
and outer hydrothermal alteration zones observed in many large porphyry
deposits around the globe (Figure 2).

 

High-grade quartz-gold-silver epithermal vein systems at Cielito, Florida,
Quiroz, and Las Chorreras occur peripheral to the El Cielito Norte porphyry
target defined by a central diorite porphyry intrusion coincident with a
kilometre scale RTP magnetic high with annular magnetic low. Zones of argillic
clay alteration lie coincident with the magnetic low (Figure 2).

 

Additional porphyry-style magnetic signatures are evident, overlapping on the
northern edge of the main anomaly (Figure 2).

 

The porphyry target alteration footprint at El Cielito Norte covers
approximately 2.5 x 2.5 km and is greater in extent than the Alpala system to
the south.

 

Ongoing surface rock chip float and channel and soil sampling programs are in
preparation to map extensions of this exciting discovery and outline drill
targets.

 

 

 

Figure 1: High-grade quartz-gold-silver epithermal vein systems at Cielito,
Florida, Quiroz, and Las Chorreras are peripheral to the El Cielito Norte
porphyry target which is defined by a central diorite porphyry intrusion
coincident with a kilometre-scale magnetic high anomaly with annular magnetic
low. Zones of argillic clay alteration lie coincident with the magnetic low.

 

 

 

Figure 2: High-grade quartz-gold-silver epithermal vein systems at Cielito,
Florida, Quiroz, and Las Chorreras peripheral to the El Cielito Norte porphyry
target defined by a central diorite porphyry intrusion coincident with a
kilometre scale magnetic high anomaly with annular magnetic low. Zones of
argillic clay alteration lie coincident with the magnetic low.

 

Qualified Person:

Above information relating to the exploration results is based on data
reviewed by Mr Santiago Vaca (M.Sc. P.Geo.). Mr. Vaca joined SolGold in 2014
as Chief Geologist for the Cascabel project and is an Ecuadorian geologist
with over 18 years of experience in mineral Exploration and research. Mr Vaca
holds a Professional Geoscientist Certification (P.Geo) granted by the
Association of Professional Engineers and Geoscientists of Alberta (APEGA) in
Canada and is a Qualified Person for the purposes of the relevant LSE and TSX
Rules. Mr Vaca consents to the inclusion of the information in the form and
context in which it appears.

 

 

 

CONTACTS

 Scott Caldwell

 SolGold Plc (CEO)             Tel: +44 (0) 20 3807 6996

 Tavistock (Media)

 Jos Simson/Gareth Tredway     Tel: +44 (0) 20 7920 3150

ABOUT SOLGOLD

SolGold is a leading resources company focused on the discovery, definition,
and development of world-class copper and gold deposits and continues to
strive to deliver objectives efficiently and in the interests of shareholders.

The Company operates with transparency and in accordance with international
best practices. SolGold is committed to delivering value to its shareholders
while simultaneously providing economic and social benefits to impacted
communities, fostering a healthy and safe workplace, and minimizing
environmental impact.

SolGold is listed on the London Stock Exchange and Toronto Stock Exchange
(LSE/TSX: SOLG).

See www.solgold.com.au (http://www.solgold.com.au) for more information.
Follow us on "X" @SolGold_plc

 

CAUTIONARY NOTICE

News releases, presentations and public commentary made by SolGold plc (the
"Company") and its Officers may contain certain statements and expressions of
belief, expectation or opinion which are forward looking statements, and which
relate, inter alia, to interpretations of exploration results to date and the
Company's proposed strategy, plans and objectives or to the expectations or
intentions of the Company's Directors, including the plan for developing the
Project currently being studied as well as the expectations of the Company as
to the forward price of copper. Such forward-looking and interpretative
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 interpretations and forward-looking statements.

Accordingly, the reader should not rely on any interpretations or
forward-looking statements; and save as required by the exchange rules of the
TSX and LSE or by applicable laws, the Company does not accept any obligation
to disseminate any updates or revisions to such interpretations or
forward-looking statements. The Company may reinterpret results to date as the
status of its assets and projects changes with time expenditure, metals prices
and other affecting circumstances.

This release may contain "forward‑looking information". Forward‑looking
information includes, but is not limited to, statements regarding the
Company's plans for developing its properties. Generally, forward‑looking
information can be identified by the use of forward-looking terminology such
as "plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases or state
that certain actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved".

Forward‑looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of the Company to be materially
different from those expressed or implied by such forward‑looking
information, including but not limited to: transaction risks; general
business, economic, competitive, political and social uncertainties; future
prices of mineral prices; accidents, labour disputes and shortages and other
risks of the mining industry. Although the Company has attempted to identify
important factors that could cause actual results to differ materially from
those contained in forward-looking information, there may be other factors
that cause results not to be as anticipated, estimated or intended.  There
can be no assurance that such information will prove to be accurate, as actual
results and future events could differ materially from those anticipated in
such statements. Factors that could cause actual results to differ materially
from such forward-looking information include, but are not limited to, risks
relating to the ability of exploration activities (including assay results) to
accurately predict mineralization; errors in management's geological modelling
and/or mine development plan; capital and operating costs varying
significantly from estimates; the preliminary nature of visual assessments;
delays in obtaining or failures to obtain required governmental, environmental
or other required approvals; uncertainties relating to the availability and
costs of financing needed in the future; changes in equity markets; inflation;
the global economic climate; fluctuations in commodity prices; the ability of
the Company to complete further exploration activities, including drilling;
delays in the development of projects; environmental risks; community and
non-governmental actions; other risks involved in the mineral exploration and
development industry; the ability of the Company to retain its key management
employees and skilled and experienced personnel; and those risks set out in
the Company's public documents filed on SEDAR+ at www.sedarplus.ca
(http://www.sedarplus.ca) . Accordingly, readers should not place undue
reliance on forward‑looking information. The Company does not undertake to
update any forward-looking information, except in accordance with applicable
securities laws.

The Company and its officers do not endorse, or reject or otherwise comment on
the conclusions, interpretations or views expressed in press articles or
third-party analysis.

The Company recognises that the term World Class is subjective and for the
purpose of the Company's projects the Company considers the drilling results
at the Alpala porphyry copper-gold deposit at its Cascabel project to
represent intersections of a World Class deposit on the basis of comparisons
with other drilling intersections from World Class deposits, some of which
have become, or are becoming, producing mines and on the basis of available
independent opinions which may be referenced to define the term "World Class"
(or "Tier 1").

The Company considers that World Class deposits are rare, very large, long
life, low cost, and are responsible for approximately half of total global
metals production. World Class deposits are generally accepted as deposits of
a size and quality that create multiple expansion opportunities and have or
are likely to demonstrate robust economics that ensure development
irrespective of position within the global commodity cycles, or whether or not
the deposit has been fully drilled out, or a feasibility study completed.

Standards drawn from industry experts (1Singer and Menzie, 2010; 2Schodde,
2006; 3Schodde and Hronsky, 2006; 4Singer, 1995; 5Laznicka, 2010) have
characterised World Class deposits at prevailing commodity prices. The
relevant criteria for World Class deposits, adjusted to current long run
commodity prices, are considered to be those holding or likely to hold more
than 5 million tonnes of copper and/or more than 6 million ounces of gold with
a modelled net present value of greater than US$1billion.

The Company cautions that the Cascabel Project remains an early-stage project
at this time and there is inherent uncertainty relating to any project at
prior to the determination of pre-feasibility study and/or defined feasibility
study.

On this basis, reference to the Cascabel Project as "World Class" (or "Tier
1") is considered to be appropriate.

 

Quality Assurance / Quality Control on Sample Collection, Security and
Assaying

SolGold operates according to its rigorous Quality Assurance and Quality
Control (QA/QC) protocol, which is consistent with industry best practices.

Primary sample collection involves secure transport from SolGold's concessions
in Ecuador, to the ALS certified sample preparation facility in Quito,
Ecuador. Samples are then air freighted from Quito to the ALS certified
laboratory in Lima, Peru where the assaying of drill core, channel samples,
rock chips and soil samples is undertaken. SolGold utilises ALS certified
laboratories in Canada and Australia for the analysis of metallurgical
samples.

Samples are prepared and analysed using 100g 4-Acid digest ICP with MS finish
for 48 elements on a 0.25g aliquot (ME-MS61). Laboratory performance is
routinely monitored using umpire assays, check batches and inter-laboratory
comparisons between ALS certified laboratory in Lima and the ACME certified
laboratory in Cuenca, Ecuador.

In order to monitor the ongoing quality of its analytical database, SolGold's
QA/QC protocol encompasses standard sampling methodologies, including the
insertion of certified powder blanks, coarse chip blanks, standards, pulp
duplicates and field duplicates. The blanks and standards are Certified
Reference Materials supplied by Ore Research and Exploration, Australia.

SolGold's QA/QC protocol also monitors the ongoing quality of its analytical
database. The Company's protocol involves Independent data validation of the
digital analytical database including search for sample overlaps, duplicate or
absent samples as well as anomalous assay and survey results. These are
routinely performed ahead of Mineral Resource Estimates and Feasibility
Studies. No material QA/QC issues have been identified with respect to sample
collection, security and assaying.

Reviews of the sample preparation, chain of custody, data security procedures
and assaying methods used by SolGold confirm that they are consistent with
industry best practices and all results stated in this announcement have
passed SolGold's QA/QC protocol.

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