REG - SolGold PLC - Cascabel - Tandayama-America Resource Update

SolGoldAnnouncement

26/05/2022 07:00

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RNS Number : 8977M  SolGold PLC  26 May 2022

26 May 2022

SolGold plc

("SolGold" or the "Company")

Tandayama-America Mineral Resource Update

 

The Board of Directors of SolGold (LSE & TSX: SOLG) is pleased to provide
an independently verified update regarding the Mineral Resource Estimate
("MRE") for its Tandayama-America ("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 2,663 Mt at 0.53% CuEq ( 1 ) in the Measured plus Indicated
categories and contained metal content of 9.9 Mt Cu, 21.7 Moz Au and 92.2 Moz
Ag ( 2 ) at the Company's Cascabel project, held by Exploraciones Novomining
S.A. ("ENSA"), an 85% owned subsidiary of SolGold.

HIGHLIGHTS

 

Total Mineral Resource at the TAM deposit is updated to 528.5Mt @ 0.36% CuEq
for 1.27Mt Cu, and 3.16Moz Au in the Measured plus Indicated categories,
equating to an increase in contained metal of approximately 0.74 Mt Cu and
1.96 Moz Au compared to the maiden MRE announced on 19 October 2021.

 Mineral Resource Statement: Effective date 30 March 2022
 Potential Mining Method  Cut-off Grade (CuEq %)  Resource Category  Tonnage (Mt)  Grade                     Contained Metal
                          Cu (%)                                     Au (g/t)              CuEq (%)          Cu (Mt)  Au (Moz)  CuEq (Mt)

 Open Pit                 0.16                    Measured           17.8          0.20    0.16      0.30    0.04     0.09      0.05
                          Indicated                                  338.7         0.23    0.21      0.36    0.78     2.28      1.23
                          Inferred                                   35.7          0.22    0.23      0.36    0.08     0.26      0.13
 Underground              0.28                    Indicated          172.0         0.26    0.14      0.35    0.45     0.78      0.60
                          Inferred                                   69.4          0.26    0.16      0.36    0.18     0.36      0.25
 Total Measured + Indicated                                          528.5         0.24    0.19      0.36    1.27     3.16      1.89
 Total Inferred                                                      105.1         0.24    0.18      0.36    0.26     0.62      0.38

Notes:

1.    Dr Andrew Fowler, MAusIMM CP(Geo), Principal Geology Consultant of
Mining Plus, is responsible for this Mineral Resource statement and is an
"independent Qualified Person" as such term is defined in NI 43-101.

2.   The Mineral Resource is reported using cut-off grades that are applied
according to the mining method where 0.16 % CuEq applies to potentially
open-pittable material and 0.28 % CuEq applies to material potentially
mineable by underground bulk mining methods. Copper equivalency is discussed
in detail in "Reasonable Prospects for Eventual Economic Extraction",

3.    The Mineral Resource is considered to have reasonable prospects for
eventual economic extraction by open pit or underground bulk mining such as
block caving as described below.

4.    Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability.

5.    The statement uses the terminology, definitions and guidelines given
in the CIM Standards on Mineral Resources and Mineral Reserves (May 2014) as
required by NI 43-101.

6.    The underground portion of the Mineral Resource is reported on 100
percent basis within an optimized shape as described below.

7.    Figures may not compute due to rounding.

 

•    Potentially open pittable Mineral Resources comprise 356.5Mt @ 0.36%
CuEq in the Measured plus Indicated categories, plus 35.7Mt @ 0.36% CuEq in
the Inferred category, at a cut-off grade of 0.16% CuEq.

•    Optimisation studies of the potentially open pittable Mineral
Resource show a higher-grade internal zone containing 223.3Mt @ 0.41% CuEq
which includes an outcropping zone containing 28.0Mt @ 0.43% CuEq and 10.5Mt @
0.55% CuEq.

•    Mineral Resources potentially mineable by underground bulk mining
methods comprise 172.0Mt @ 0.35% CuEq in the Indicated category, plus 69.4Mt @
0.36% CuEq in the Inferred category, at a cut-off grade of 0.28% CuEq.

·   Potentially open pittable Measured plus Indicated resources CuEq metal
content has grown by 94% compared to the TAM Maiden MRE, to 0.82Mt Cu and
2.37Moz Au in MRE#2. Similarly, TAM Measured plus Indicated underground
resources CuEq metal content has grown by 445% to 0.45Mt Cu and 0.78Moz Au in
MRE#2.

·   Mineral Resources potentially mineable by underground bulk mining
methods include a higher-grade core that continues to remain open to the
southeast and at depth and will be the focus of further drilling aimed at
quantifying potential of other underground mining methods such as sub-level
caving and sub-level open stoping.

·   Following completion of Hole 42 at TAM on 29 April 2022, the drill rig
was moved to the Moran target to commence exploration drilling of hole
MOD-22-001. This hole is at a current depth of 414.7m and continues to
intersect bornite and visible chalcopyrite copper sulphide mineralisation from
19.1m to its current depth.

SolGold CEO, Mr Darryl Cuzzubbo, commented on the work being advanced at
Cascabel:

"The Cascabel project continues to grow with more drilling with the additional
resources being identified at TAM providing an open pit resource potentially
enabling Cascabel production to be brought forward and a significant risk
mitigation to any ramp up delays in the underground production."

( 1 ) The Alpala Copper Equivalency (CuEq) and cut-off grade for reporting
were based on recent third party metal price research and forecasts of Cu and
Au prices as well as an operating cost structure for Alpala. Operating costs
included mining, processing and general and administration (G&A). Net
Smelter Return (NSR) included metallurgical recoveries and off-site
realization (TC/RC) including royalties. Metal prices used were US$3.40/lb for
Cu and US$1,400/oz for Au.

( 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.

( )

FURTHER INFORMATION

TAM MRE#2

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).

On 30 March 2022, a data cut-off was applied to the TAM dataset for the
purposes of an updated Mineral Resource Estimation ("MRE#2"). The TAM MRE#2
dataset comprised 30,892m of diamond drilling from holes 1-41, 458m of surface
rock-saw channel sampling from 72 outcrops, and 29,631.6m of final assay
results from holes 1-40 (Figure 2). This equates to an additional 15,065.6m of
final assays results received since the recent release of TAM maiden
MRE.
 

The estimation process followed the Canadian Institute of Mining, Metallurgy
and Petroleum ("CIM") "Estimation of Mineral Resources and Mineral Reserves
Best Practice Guidelines" ("CIM, 2019"). The Mineral Resource Estimate is
stated in accordance with CIM Definition Standards ("CIM, 2014") and Canadian
National Instrument 43-101 ("NI 43-101").

Ordinary Kriging ("OK") was run in three search passes and with soft
boundaries using Leapfrog Edge software. The estimation of Cu and Au was
confined within 3D estimation domains, which were based on the combination of
two 3D wireframe interpretations:

·   Grade Shell Interpretation: Low-, Medium- and High-Grade shells
equating to CuEq cut-off grades of 0.15%, 0.30% and 0.45% respectively (Figure
3).

·   Lithological Interpretation: Modelling of seven rock groups, comprising
"D10" (Pre-Mineral Diorite Host Rock), "EM" (Early-Mineral Quartz Diorite and
Diorite), "IBX" (Pre-Mineral Intrusive Breccia), "IM" (Intra-mineral Quartz
Diorite and Diorite), "LM" (Late-mineral Diorite), "PM" (Post-mineral Quartz
Diorite and Diorite), "V" (Pre-Mineral Volcanic Host Rocks), and "SOI" (soil
and oxidised rock) (Figure 4).

Model validation tests have not exhibited any material bias between the input
composite grades and the block model estimates.

The TAM MRE is constrained within a 3D Open Pit Optimised Shape ("OP") and an
Underground Optimised Shape ("UG"), whereby the UG "daylights" into the floor
of the OP (Figure 5).

The TAM deposit shares the same geological and structural setting as the
Alpala deposit. Mineralisation is hosted within a complex of middle to
late-Eocene (Bartonian) hornblende-bearing diorites, quartz diorites and
intrusive breccias that intrude volcanic host rocks to form a complex of
stocks, dykes, and breccia pipes.

The trend of mineralisation throughout the TAM deposit is defined by a
northwest (315(○)) trending intrusive complex inclined steeply (78(○))
towards the northeast. Surface mapping data was supported by structural
measurements taken from orientated drill core provided data from 127 intrusive
contacts and 3062 B-type quartz veins.

Copper and gold mineralisation is intimately associated with porphyry style
B-type quartz-chalcopyrite veins and stockworks, centred upon an early-mineral
causal quartz-diorite intrusion (QD10), and cut by a series of intra-mineral,
late-mineral and post-mineral stocks dykes and breccias of diorite, hornblende
diorite, and quartz diorite.

Intrusions have emplaced episodically such that each subsequent intrusion has
introduced mineralising fluids (and subsequent arrays of mineralised veins)
into the TAM system, and/or remobilising and enriching existing mineralisation
or contributed to localised overprinting of pre-existing mineralisation.

The geological character of the porphyry stocks / dykes encountered through
drilling to date indicate a well-preserved porphyry system with significant
potential for greater depth extent. Individual mineralised porphyry dykes are
observed to have emplaced within a vertical column of over 1,000m.

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 require
drill testing.

Reasonable Prospects for Eventual Economic Extraction

The cut-off grades used for reporting have been based on up to date third
party metal price research, forecasting of Cu and Au prices, and a cost
structure from mining studies currently being reviewed.  Costs include
mining, processing and general and administration ("G&A"). Net Smelter
Return ("NSR") includes metallurgical recoveries and off-site realisation
("TC/RC") including royalties and utilising metal prices of Cu at US$3.30/lb
and Au at US$1,700/oz.

Cut-off grades have been developed independently for open pit mining methods
and underground bulk mining methods. The cut-off grade for potentially open
pittable material has been calculated at 0.16% CuEq using a copper equivalency
factor of 0.632, 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 using a copper equivalency factor of 0.654.

Optimisation was completed in two stages, with the open pit optimisation
initially applied to the block model, and the remaining material was then
considered for underground optimisation.

The open pit optimisation was completed using the conventional Lerchs-Grossman
optimisation routine implemented in Whittle software, and the revenue factor
one pit was selected for reporting the Mineral Resource. The QP considers that
the open pit portion of the reported Mineral Resource, has reasonable
prospects for eventual economic extraction at the specified cut-off grade.

Subsequently, a three-dimensional Underground Optimised Shape ("UOS") was
generated using Datamine software at a cut-off grade of 0.28% CuEq. This
cut-off grade was based on costs associated with the block cave mining method.
The UOS maximises the tonnes above the cut-off while ensuring that all
material was part of a minimum mining unit with geometry appropriate for a
block cave of 120 m length by 120 m width by 200 m height. These minimum
mining dimensions for a block cave are consistent with Mining Plus's
experience and the resulting shape contains planned internal and edge dilution
that the QP considers appropriate.

It is noteworthy that the OP and UG optimised shapes are not described as
"mineable shapes". Mining factors excluded from this analysis include, but are
not limited to, capital costs (non-mining, access and footprint
establishment), regional pillars, footprint geometries, unplanned dilution and
the time value of money. However, the shape does enclose a contiguous and
appropriately diluted Mineral Resource that, by virtue of its grade and
geometry, should be considered for inclusion within a mineable shape. As such,
the QP considers that the underground portion of the reported Mineral
Resource, has reasonable prospects for eventual economic extraction by the
block cave underground mining method at the specified cut-off grade.

An assessment of whether the project as a whole is economically viable has not
been made under this analysis.

Moran Target

Following completion of Hole 42 at TAM on 29 April 2022, the drill machine was
moved to the Moran target where exploration drilling of hole MOD-22-001 is at
a current depth of 414.7m and continues to intersect bornite and visible
chalcopyrite copper sulphide mineralisation from 19.1m to its current depth.
The mineralisation style holds close affinities to that at the Alpala and TAM
deposits, with copper sulphide mineralisation formed as "B-type"
quartz-chalcopyrite veins and disseminated chalcopyrite mineralisation. Visual
logging of copper sulphides includes intervals containing over 2.2%
chalcopyrite by volume and up to 2.2% "B-type" quartz-chalcopyrite veins by
volume.

Mineralisation encountered thus far at the Moran target is hosted within
volcanic, intrusive breccia and diorite porphyry rocks. Examples of drill core
from the last week of drilling are shown in Figures 6, 7 and 8.

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

http://www.rns-pdf.londonstockexchange.com/rns/8977M_1-2022-5-26.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8977M_1-2022-5-26.pdf)

 

Figure 1: Location of TAM, Alpala and Aguinaga deposits at the Cascabel
project, showing the location of current drill testing underway at Moran
target.

Figure 2: Drill plan of the TAM deposit, looking down, showing TAM MRE#2
dataset of diamond drill holes 1-41, and surface rock-saw channel samples from
72 outcrops. Holes 1-40 display downhole CuEq assay grades utilised for the
estimation, whilst hole 41 (black) was utilised for geological data. Hole 42
was not included in the MRE#2 dataset as it was drilled after the data cut-off
date of 30 March 2022, with assays pending, is also shown. Cross-section
centre-line A-A' is shown in red.

Figure 3: Drill Section A-A', looking northwest, with a window thickness of
150m, showing modelled geology at the TAM deposit. Grid spacing 300m.

Figure 4: Drill Section A-A', looking northwest, with a window thickness of
150m, showing modelled CuEq grade shells at the TAM deposit.

Figure 5: Duplicate section views, looking south, with window thickness
1,700m, showing the high-grade >0.45% CuEq wireframe (top), and the "OP"
and "UG" optimisation shapes (bottom).

Figure 6: Selected examples of drill core from 140-190m depth in exploration
drill hole MOD-22-001 at the Moran target approximately 500m north of the
Alpala deposit.

Figure 7: Selected examples of drill core from 190-350m depth in exploration
drill hole MOD-22-001 at the Moran target approximately 500m north of the
Alpala deposit.

Figure 8: Example of drill core from ~400m depth in exploration drill hole
MOD-22-001 at the Moran target approximately 500m north of the Alpala deposit.

Table 1: TAM deposit drill hole master summary.

 

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 18
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) 7 3303 0660

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

 Fawzi Hanano

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

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

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
approximately 40% 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 99% are
Ecuadorian. 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.

The Alpala Copper Equivalency (CuEq) and cut-off grade for reporting were
based on recent third party metal price research and forecasts of Cu and Au
prices as well as an operating cost structure for Alpala. Operating costs
included mining, processing and general and administration (G&A). Net
Smelter Return (NSR) included metallurgical recoveries and off-site
realization (TC/RC) including royalties. Metal prices used were US$3.40/lb for
Cu and US$1,400/oz for Au.

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
(TC/RC) 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 0.632 (CuEq = Cu + Au x 0.632) for open pittable resources and 0.654 (CuEq
= Cu + Au x 0.654) for underground resources.

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.

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, and where possible aims to circulate all available
material on its website.

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