REG - SolGold PLC - Cascabel Exploration Update - Tandayama-Ameríca

SolGoldAnnouncement

13/04/2022 07:00

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RNS Number : 1518I  SolGold PLC  13 April 2022

13 April 2022

SolGold plc

("SolGold" or the "Company")

Drilling Update: Tandayama-Ameríca, Cascabel Project

 

The Board of Directors of SolGold (LSE & TSX: SOLG) is pleased to provide
a drilling update on its Tandayama-Ameríca ("TAM") porphyry copper-gold
deposit at the Cascabel project in northern Ecuador.

The TAM deposit lies approximately 3km north of the Alpala deposit that
comprises 2,663Mt at 0.53% CuEq ( 1 ) in the Measured plus Indicated
categories and contained metal content of 9.9Mt Cu, 21.7Moz Au and 92.2Moz Ag
( 2 ) at the Cascabel project, held by Exploraciones Novomining S.A. ("ENSA"),
an 85% owned subsidiary of SolGold.

The TAM deposit currently contains a Mineral Resource Estimate ("MRE"), dated
19 October 2021, of 233Mt @ 0.33% CuEq ( 3 ) for 0.53Mt Cu and 1.20Moz Au each
in the Indicated category, plus 197Mt @ 0.39% CuEq for 0.52Mt Cu and 1.24Moz
Au in the Inferred category. The maiden MRE was estimated from a dataset
including drill holes 1-23, plus 458m of rock-saw channel assays across
hard-rock surface outcrops. A total of 30,925m of diamond drilling, in 41
drill holes, has now been completed at the TAM deposit, including a total of
29,632m of final assay results.

 

HIGHLIGHTS

 

Ø Additional resources being identified at TAM continue to provide a
strategic fit towards the development of the Cascabel property as a whole. A
TAM deposit MRE update is currently underway, assessing additional drill holes
19-40, equating to an additional 15,065.6m of final assays results received
since the recent release of the maiden MRE in October 2021.

Ø The assay results from holes 19-40 extend mineralisation potentially
mineable by both open pit and underground bulk mining methods and suggest
capacity for resource growth. Mineralisation remains open both along strike
north and south, and at depth in the southeast.

Ø Highlights of intersections ( 4 ) achieved from holes 25-40 include:

·   Hole 26: 769.9m @ 0.32% CuEq (open at depth), incl. 382m @ 0.43% CuEq
and 80m @ 0.61% CuEq

·   Hole 28: 588.0m @ 0.41% CuEq, incl. 140m @ 0.80% CuEq and 74m @ 1.18%
CuEq

·   Hole 32: 902.0m @ 0.28% CuEq, incl. 190m @ 0.41% CuEq and 56m @ 0.57%
CuEq

·   Hole 35: 334.0m @ 0.42% CuEq, incl. 168m @ 0.68% CuEq and 80m @ 1.03
CuEq

Ø The best drilling results achieved at the TAM deposit to date (previously
announced) include:

·   Hole 13: 1,010m @ 0.55% CuEq, incl. 392m @ 0.93% CuEq and 132m @ 1.09%
CuEq

·   Hole 24: 506m @ 0.55% CuEq, incl. 220m @ 0.72% CuEq and 62m @ 1.05%
CuEq

Ø Drilling continues with hole 41 at a current depth of 500m, testing
extensions to open mineralisation in the southeast quarter of the deposit.
Hole 41 has so far intersected visible copper sulphide mineralisation from
381.7m to its current depth.

 

FURTHER INFORMATION

The TAM deposit lies approximately 3km north of the Alpala deposit, at the
Cascabel project, held by ENSA, an 85% owned subsidiary of SolGold. The
project area lies within the Imbabura province of northern Ecuador
approximately 100 km north of the capital city of Quito and approximately 50
km north-northwest of the provincial capital, Ibarra (Figure 1).

To date a total of 30,925.2m of diamond drilling has been completed at the TAM
deposit, with drill hole 41 currently in progress at a depth of 500m (Figure
2). Assay results from hole 41 are pending.

Modelled geological and grade shell interpretations show an intimate spatial
relationship between intrusive phases and subsequent copper and gold
mineralisation (Figure 3).

All holes were drilled for resource definition of the TAM deposit, except
drill holes 20, 27, 30-31, 33-34, 36, 39, and 40 which were drilled
specifically for geotechnical purposes, targeting the proposed west wall of a
potential open pit design. The current hole 41 focusses on resource extension
in the southeast quarter of the deposit footprint.

A summary of drilling results achieved from drill holes 24-40 are included in
Table 1.

The full size and tenor of the TAM system has not yet been tested.
Mineralisation remains open to the south and east and at depth. Further
surface geochemical anomalies to the east of the current drilling area also
require drill testing.

The maiden Mineral Resource at TAM dated 19 October 2021 totals 233Mt @ 0.33%
CuEq for 0.53Mt Cu, and 1.20Moz Au in the Indicated category, plus 197Mt @
0.39% CuEq for 0.52Mt Cu, and 1.24Moz Au in the Inferred category.

The TAM maiden MRE dataset comprised 17,535m of diamond drilling from holes
1-23, 458m of surface rock-saw channel assays from 72 outcrops, and 14,566m of
final assay results from holes 1-18.

An updated TAM MRE#2 is currently underway with a dataset that comprises
30,925.2m of diamond drilling from holes 1-41, 458m of surface rock-saw
channel assays from 72 outcrops and a total of 29,631.6m of final assay
results from holes 1-40.

 

References to figures relate to the version visible in PDF format by clicking
the link below:

http://www.rns-pdf.londonstockexchange.com/rns/1518I_1-2022-4-12.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1518I_1-2022-4-12.pdf)

 

( 1  )Alpala MRE was reported at a cut-off grade of 0.21% copper equivalent
(CuEq) using a copper equivalency factor of 0.613 (whereby CuEq = Cu + Au x
0.613).  Cut-off grades and copper equivalency used for reporting were based
on third party metal price research, forecasting of Cu and Au prices, and a
cost structure from mining studies data available at the time.  Costs include
mining, processing and general and administration (G&A).  Net Smelter
Return (NSR) includes metallurgical recoveries and off-site realisation (TCRC)
including royalties and utilising metal prices of Cu at US$3.40/lb and Au at
US$1,400/oz.

( 2 ) See "Cascabel Property NI 43-101 Technical Report, Alpala Porphyry
Copper-Gold-Silver Deposit - Mineral Resource Estimation, January 2021" with
an Effective date: 18 March 2020 and Amended Date: 15 January 2021 (the
"Amended Technical Report"), filed at www.Sedar.com (http://www.Sedar.com) on
January 29, 2021.

( 3  )Cut-off grades have been developed independently for open pit mining
methods and underground bulk mining methods. Cut-off grades and copper
equivalency used for reporting were based on third party metal price research,
forecasting of Cu and Au prices, and a cost structure from mining studies data
available at the time. Costs include mining, processing and general and
administration (G&A). Net Smelter Return (NSR) includes metallurgical
recoveries and off-site realisation (TCRC) including royalties and utilising
metal prices of Cu at US$3.30/lb and Au at US$1,700/oz, and a copper
equivalency factor of 0.654 (whereby CuEq = Cu + Au x 0.654). The cut-off
grade for potentially open pittable material has been calculated at 0.16%
CuEq, while the cut-off grade for material potentially mineable by a bulk
underground mining method such as block caving has been calculated at 0.28%
CuEq.

( 4  )Significant down-hole drill intercepts at TAM are reported using a data
aggregation method based on copper equivalent (CuEq) cut-off grades with up to
10m internal dilution, excluding bridging to a single sample and with minimum
intersection length of 50m.

 

Figure 1: Location of TAM, Alpala and Aguinaga deposits at the Cascabel
project.

 

Figure 2: Comparative plan view looking down of TAM orebody at a cut-off grade
of 0.3% CuEq, showing the orebody at the time of the TAM maiden MRE in holes
1-18 (TOP) and the current orebody from drilling completed in holes 1-41
(BOTTOM). Potential open pittable resource area previously identified in the
TAM Maiden MRE is shown in light brown, and the orientation line of
cross-section A-A' (overleaf) is shown in red. Grid spacing 300m.

Figure 3: Drill Section A-A', looking northwest, with a window thickness of
150m, showing modelled geology (TOP) and CuEq grade shells (BOTTOM) at the TAM
deposit. Grid spacing 300m.

Table 1: Selected drilling results from holes 24-40 at the TAM deposit

 Notes to Table 1:

 1. Significant down-hole drill intercepts are reported using a data
 aggregation method based on copper equivalent (CuEq) cut-off grades with up to
 10m internal dilution, excluding bridging to a single sample and with minimum
 intersection length of 50m.
 2. True width of down-hole intersections reported are expected to be
 approximately 35-90% of the down-hole lengths, depending on the attitude of
 the drill hole.  Drill hole inclinations range from -15 to -80 degrees.
 3. Copper equivalency factor of 0.654 (whereby CuEq = Cu + Au x 0.654) is
 based on third party metal price research, forecasting of Cu and Au prices,
 and a cost structure from mining studies data available from a similar
 deposit.  Costs include mining, processing and general and administration
 (G&A).  Net Smelter Return (NSR) includes metallurgical recoveries and
 off-site realisation (TCRC) including royalties and utilising metal prices of
 Cu at US$3.30/lb and Au at US$1,700/oz.
 4. Metre percent Copper Equivalent (m% CuEq) = interval length (m) x grade of
 the entire interval (CuEq%). This calculation provides a standardised measure
 of comparing drilling intercepts by calculating an analogous interval length
 that would hold a CuEq% grade of 1% for each metre within the selected
 interval.
 5. "nsi"- no significant intersection.
 6. "*"- intersection remains open at depth.

 

 

Qualified Person:

 

Information in this report relating to the exploration results is based on
data reviewed by Mr Jason Ward ((CP) B.Sc. Geol.), the Chief Geologist of the
Company.  Mr Ward is a Fellow of the Australasian Institute of Mining and
Metallurgy, holds the designation FAusIMM (CP), and has in excess of 20 years'
experience in mineral exploration and is a Qualified Person for the purposes
of the relevant LSE and TSX Rules.  Mr Ward consents to the inclusion of the
information in the form and context in which it appears.

 

Information in this report relating to the Mineral Resource Estimate was
reviewed by Dr Andrew Fowler. Dr Fowler is a Chartered Professional Member of
the Australasian Institute of Mining and Metallurgy and has in excess of 20
years' experience in Mineral Resource Estimation, open pit mining, underground
mining and mineral exploration. He is an independent Qualified Person for the
purposes of the relevant LSE and TSX Rules. Dr Fowler consents to the
inclusion of the information in the form and context in which it appears.

 

 

By order of the Board

Dennis Wilkins

Company Secretary

 

Certain information contained in this announcement would have been deemed
inside information.

 

 

CONTACTS

 

 Dennis Wilkins

 SolGold Plc (Company Secretary)                                                  Tel: +61 (0) 417 945 049

 dwilkins@solgold.com.au (mailto:dwilkins@solgold.com.au)

 Ingo Hofmaier

 SolGold Plc (Acting CFO)                                                         Tel: +44 (0) 20 3823 2130

 ihofmaier@solgold.com.au (mailto:ihofmaier@solgold.com.au)

 Fawzi Hanano / Lia Abady

 SolGold Plc (Investors / Communication)                                          Tel: +44 (0) 20 3823 2130

 fhanano@solgold.com.au (mailto:fhanano@solgold.com.au) / labady@solgold.com.au
 (mailto:labady@solgold.com.au)

 Tavistock (Media)

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

 

Follow us on twitter @SolGold_plc

 

ABOUT SOLGOLD

SolGold is a leading resources company focussed on the discovery, definition
and development of world-class copper and gold deposits. In 2018, SolGold's
management team was recognised by the "Mines and Money" Forum as an example of
excellence in the industry and continues to strive to deliver objectives
efficiently and in the interests of shareholders. SolGold is aggressively
exploring the length and breadth of this highly prospective and gold-rich
section of the Andean Copper Belt which is currently responsible for c40% of
global mined copper production.

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 the
environmental impact.

Dedicated stakeholders

SolGold employs a staff of approximately 800 employees of whom 98% are
Ecuadorean. This is expected to grow as the operations expand at Cascabel, and
in Ecuador generally. SolGold focusses its operations to be safe, reliable and
environmentally responsible and maintains close relationships with its local
communities. SolGold has engaged an increasingly skilled, refined and
experienced team of geoscientists using state of the art geophysical and
geochemical modelling applied to an extensive database to enable the delivery
of ore grade intersections from nearly every drill hole at Alpala. SolGold has
close to 60 geologists on the ground in Ecuador exploring for economic copper
and gold deposits.

About Cascabel and Alpala

The Alpala deposit is the main target in the Cascabel concession, located on
the northern section of the heavily endowed Andean Copper Belt, the entirety
of which is renowned as the base for nearly half of the world's copper
production. The project area hosts mineralisation of Eocene age, the same age
as numerous Tier 1 deposits along the Andean Copper Belt in Chile and Peru to
the south. The project base is located at Rocafuerte within the Cascabel
concession in northern Ecuador, an approximately three-hour drive on sealed
highway north of the capital Quito, close to water, power supply and Pacific
ports.

Having fulfilled its earn-in requirements, SolGold is a registered shareholder
with an unencumbered legal and beneficial 85% interest in ENSA (Exploraciones
Novomining S.A.) which holds 100% of the Cascabel concession covering
approximately 50km(2). The junior equity owner in ENSA is required to repay
15% of costs since SolGold's earn in was completed, from 90% of its share of
distribution of earnings or dividends from ENSA or the Cascabel concession. It
is also required to contribute to development or be diluted, and if its
interest falls below 10%, it shall reduce to a 0.5% NSR royalty which SolGold
may acquire for US$3.5million.

SolGold's Regional Exploration Drive

SolGold is using its successful and cost-efficient blueprint established at
Alpala, and Cascabel generally, to explore for additional world class copper
and gold projects across Ecuador. SolGold is a large and active concessionaire
in Ecuador.

The Company wholly owns four other subsidiaries active throughout the country
that are now focussed on a number of high priority copper and gold resource
targets, several of which the Company believes have the potential, subject to
resource definition and feasibility, to be developed in close succession or
even on a more accelerated basis compared to Alpala.

SolGold is listed on the London Stock Exchange and Toronto Stock Exchange
(LSE/TSX: SOLG). The Company has on issue a total of 2,293,816,433 fully paid
ordinary shares and 32,250,000 share options.

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.

The data aggregation method for calculating Copper Equivalent (CuEq) for
down-hole drilling intercepts and rock-saw channel sampling intervals are
reported using copper equivalent (CuEq) cut-off grades with up to 10m internal
dilution, excluding bridging to a single sample and with minimum intersection
length of 50m.

Alpala Copper Equivalency (CuEq) was calculated (assuming 100% recovery of
copper and gold) using a Gold Conversion Factor of 0.613 (CuEq = Cu + Au x
0.613), calculated from a nominal copper price of US$3.40/lb and a gold price
of US$1,400/oz.

TAM open pittable and underground resources were estimated using a Copper
Equivalency (CuEq) calculated from estimated costs, including mining,
processing and general and administration (G&A), whereby Net Smelter
Return (NSR) includes metallurgical recoveries and off-site realisation (TCRC)
including royalties, and utilising the updated nominal copper price of
US$3.30/lb and a gold price of US$1,700/oz to produce a Gold Conversion Factor
of 0.654 (CuEq = Cu + Au x 0.654).

 

See www.solgold.com.au (http://www.solgold.com.au) for more information.
Follow us on twitter @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" within the meaning of
applicable Canadian securities legislation.  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.sedar.com (http://www.sedar.com) .  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.

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the conclusions, interpretations or views expressed in press articles or
third-party analysis, and where possible aims to circulate all available
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