REG - SolGold PLC - Environmental Licence Granted for Porvenir Project

SolGoldAnnouncement

12/05/2025 07:05

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RNS Number : 2360I  SolGold PLC  12 May 2025

12 May 2025

 

SolGold plc

("SolGold" or the "Company")

Announces Environmental Licence Granted for

Advanced Exploration Phase at Porvenir Project

·    Environmental Licence secured following completion of the
Environmental Impact Study and public consultation process

·    Preliminary Economic Assessment underway, aiming to demonstrate scale
and economic upside of the Cacharposa copper-gold deposit and will include
results from recent c.2,600m of drilling as well as potential additional
drilling, updates to market assumptions, and re-examined mining approaches

·    Given the significant potential scale of Porvenir, strategic options
for the asset are under evaluation as the cornerstone asset of SolGold's
ExploreCo strategy

SolGold (LSE & TSX: SOLG) is pleased to announce that the Government of
Ecuador has granted the Environmental Licence ("Licence") for the Porvenir
Project ("Porvenir" or the "Project"), located in southern Ecuador's Zamora
Chinchipe province. The concessions that comprise the Project are held by
Green Rock Resources S.A., SolGold's 100%-owned Ecuadorian subsidiary.

The Licence, issued under Resolution MAATE-SCA-2025-0012-R by the Ministry of
Environment, Water and Ecological Transition ("MAATE") and supported by a
phase change declaration to the Advanced Exploration Phase from the Ministry
of Energy and Mines, authorises SolGold to undertake a comprehensive suite of
advanced-stage exploration activities. These include diamond drilling,
trenching, geotechnical investigations, hydrogeological and metallurgical
studies, and other related field programs to support Project development.

The Licence covers all four Porvenir Project concessions, totalling 5,261
hectares. This includes the Cacharposa deposit and nearby porphyry targets
such as Diablo, Mula Muerta, Eudis, Barolo, Pamal, and Balmore. Project
development activities will proceed under Ecuador's gran minería (large-scale
mining) regime, which governs the development of projects with significant
scale and long-term potential.

The approval comes following the successful completion of the Environmental
Impact Study and a constructive public consultation process. Local
stakeholders expressed support for continued exploration at Porvenir,
recognising its potential to bring long-term employment and economic
development. SolGold's established presence in the region, commitment to
hiring and training local workers, and strong environmental practices have
helped to foster a collaborative, forward-looking relationship with
surrounding communities.

 

PRELIMINARY ECONOMIC ASSESSMENT IN PROGRESS

SolGold is finalising its internal technical and economic studies, which it
will share, with the necessary caveats, with the market when complete. In
parallel, the Company is in the process of engaging an independent engineering
firm to complete a Preliminary Economic Assessment ("PEA") for the Porvenir
Project. The study will integrate updated geological modelling, the most
recent drilling data, and more current market assumptions - including revised
metal prices and operating cost frameworks. The PEA will evaluate both
open-pit and potential underground mining scenarios, as well as low-cost bulk
mining methods suited to the system's scale and geometry.

Dan Vujcic, CEO of SolGold, commented:

"This licence allows us to advance Porvenir, the cornerstone asset of
ExploreCo, into its next phase with momentum. The Company has an exciting
portfolio of tenements in the southern part of the country, a region which
consists of top-tier success stories, namely Fruta de Norte and Mirador. We're
excited to build on the solid geological foundation already demonstrated at
Cacharposa and take a technically driven look at how best to achieve its
significant potential and to see its value acknowledged in our share price.
Over the coming weeks, site visits will be conducted, allowing us to fully
evaluate all options and the optimum path forward. The strong support of our
Ecuadorian team and local communities has made this possible, and we're ready
to move forward."

STRATEGIC CONSIDERATIONS

The Porvenir asset will be the cornerstone asset in SolGold's ExploreCo
portfolio. The Company is currently evaluating the capital requirements to
continue developing Porvenir, as well as maintaining ongoing discussions with
potential ExploreCo partners and stakeholders.

ENVIRONMENTAL AND COMMUNITY COMMITMENT

As technical work advances, SolGold remains committed to sustainable
development and responsible mining. All plans will continue to be guided by
environmental responsibility, inclusive stakeholder engagement, and alignment
with community values. This permitting milestone builds on SolGold's proven
track record of progressing projects through Ecuador's regulatory framework.

CACHARPOSA: A LARGE, OPEN MINERAL SYSTEM(1,2,3)

Note: The following information is based on previously released data and does
not reflect updates from the PEA, which is currently in progress.

The Cacharposa deposit hosts a significant porphyry copper-gold system with
near-surface mineralisation. The Cacharposa Mineral Resource Estimate ("CAC
MRE#1") (Porvenir Property NI 43-101 Technical Report Mineral Resource
Estimate, 26 October 2021)(1) was defined using a dataset comprised of
18,635.7m of diamond drilling; 439.6m of surface rock-saw channel sampling
from 23 outcrops; and 16,982.4m of final assay results from 20 drill holes.

The Mineral Resource Estimate (effective 26 October 2021) includes:

·      Indicated Resource: 396.8 Mt @ 0.44% CuEq

·      Inferred Resource: 96.9 Mt @ 0.37% CuEq

(at a 0.16% CuEq cut-off)

The copper equivalency factor of 0.632 (whereby CuEq (%) = Cu (%) + Au (g/t) x
0.632) is based on third-party metal price forecasts, estimated recoveries,
and cost inputs based on data available from similar deposits.

Table 1. Cacharposa Mineral Resource Estimate (Porvenir Property NI 43-101
Technical Report Mineral Resource Estimate, 26 October 2021)(1,2)

 Potential Mining Method  Cut-off Grade  Resource Category  Tonnage   Grade                 Contained Metal

                          (Cu Eq%)                          (Mt)
                          Cu                                Au (g/t)        CuEq (%)        Cu (Mt)  Au (Moz)  CuEq

                          (%)                                                                                  (Mt)
 Open Pit                 0.16           Indicated          396.8     0.35  0.14      0.44  1.40     1.80      1.75
                          Inferred                          96.9      0.29  0.12      0.37  0.28     0.38      0.36

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 mining.

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. Figures may not compute due to rounding.

A conceptual starter pit was previously modelled at 44 Mt @ 0.64% CuEq,
highlighting potential for phased development.

Since the release of CAC MRE#1, SolGold has completed an additional 2,610m of
infill and extension diamond drilling at Cacharposa, bringing the total to
more than 21,200 metres. New drilling is planned to further test extensions of
the mineralised system.  A mineralised corridor approximately 1,200 metres
long, 800 metres wide, and 1,000 metres vertically has been outlined. The
deepest drill hole to date (PDH-20-002) reached 1,200 metres and terminated in
mineralisation, indicating that the system remains open at depth.(3)

 

Figure 1: Location of the Porvenir Project in Ecuador

Figure 2. Areas of Interest of the Porvenir Property

Notable Drill Intercepts

Assay results from the drilling at Cacharposa have returned a number of
outstanding drillholes, including:

·      PDH-20-001: 644m @ 0.47% Cu, 0.24 g/t Au (including 110m @ 0.57%
Cu, 0.2 g/t Au)

·      PDH-20-007: 570m @ 0.58% Cu, 0.23 g/t Au (including 204m @ 0.90%
Cu, 0.48 g/t Au)

·      PDH-20-019: 722m @ 0.52% Cu, 0.23 g/t Au (including 118m @ 0.80%
Cu, 0.52 g/t Au)

Figure 3. Plan view of drilling at the Cacharposa Deposit, showing additional
drilling completed since CAC MRE#1 (red) and proposed drilling (green)(3)

Figure 4. Cacharposa Mineralisation and Drilling Model(1)

Plan view showing drill hole traces and mineralisation extents with CuEq grade
shells at 0.15% (blue), 0.40% (green), and 0.70% (orange), overlaid on a
conceptual open-pit optimisation wireframe (grey).

Figure 5. Sectional View of Grade Distribution at Cacharposa(1)

Cross section through the Cacharposa deposit looking north-northwest showing
vertical extent of mineralisation and CuEq grade shells at 0.15% (blue), 0.40%
(green), and 0.70% (orange), along with indicated (IND) and inferred (INF)
resource boundaries and the open-pit optimisation shell.

 Grade Distribution CuEq (%)

 

LOOKING AHEAD

SolGold will continue advancing the PEA and advanced exploration phase field
activities in the coming months, with further updates to be provided as new
technical results and plans are finalised.

CONTACTS

 Dan Vujcic

 Chief Executive Officer   Tel: +61 461 304 393

 

ENDNOTES

1.   Porvenir Property NI 43-101 Technical Report, Mineral Resource
Estimate, October 2021, effective date 26 October 2021.

2.   SolGold plc news release dated 15 December 2021: 'Cacharposa Maiden
Mineral Resource Estimate'.

3.   SolGold plc news release dated 1 December 2023: 'Porvenir Project
Update - Advancing Exploration Across a Cluster of Porphyry Copper-Gold
Targets'.

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.

SolGold completed and released a staged development plan, Pre-Feasibility
Study on 16 February 2024. The study, completed at US$1750/oz gold, US$3.85/lb
copper and US$22.50/oz for silver, delivered an NPV (based on a discount rate
of 8%) of US$3.22bn on a capex of US$1.55bn for an initial 12 Mtpa underground
block caving operation. The evaluation also showed an after-tax IRR of 24% and
a first 10-year free cash flow generation of US$7.1bn. The PFS assessed
Mineral Reserves 539.7 Mt tonnes, which represents only 18% of the total
resource over an initial 28-year project life.

On 15 July 2024, SolGold announced a gold stream agreement with Franco Nevada
and Osisko Royalties (the "Streamers") pursuant to which the Streamers would
pay US$100m as pre-development funding in three tranches, conditional on
achieving various technical and permitting milestones. The first US$33.3m was
received on signing. A further US$650m contribution to development expenditure
will be provided on completion of the feasibility study, permitting and
financing, subject to CPs, acceptable financing packages for the balance
funding required. SolGold has agreed, in consideration for this funding, a
life of mine stream priced at 20% of the spot gold price at the time for 20%
of gold production for the first 10 years and 12% thereafter. The stream
represents approximately 5% of total revenue for the project and provides some
42% of currently estimated capital development costs. SolGold retains change
of control buyback options on the stream to the extent of 50% within 3 years
and 33 1/3 % for a further two years.

SolGold continues to advance de-risking programs, permitting and financing
discussions and to reevaluate the Project at recent consensus prices for
copper and gold.

On 28 October 2024, SolGold appointed G-Mining Services to be the Project
Manager for the Feasibility Study.

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.

 

Qualified Person

 

The scientific and technical disclosure included in this news release has been
reviewed and approved by Mr. Santiago Vaca (M.Sc. P.Geo.), a Qualified Person
as defined under National Instrument 43-101 - Standards of Disclosure for
Mineral Projects.

 

The basis for the scientific and technical information included in this news
release is a technical report Porvenir Property NI 43-101 Technical Report,
Mineral Resource Estimate, October 2021, effective date 26 October 2021
("Porvenir Technical Report"), which can be found on SEDAR+ under the
Company's issuer profile at www.sedarplus.ca. Readers are encouraged to read
the Porvenir Technical Report in its entirety. The Porvenir Technical Report
is intended to be read as a whole, and sections should not be read or relied
upon out of context.

 

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. 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.

 

 

SolGold plc UK Company No. 5449516 ARBN 117 169
856 Email: info@solgold.com.au (mailto:info@solgold.com.au)
 Website: www.solgold.com.au (http://www.solgold.com.au)

Head office: Level Level 5/191 St Georges Terrace, Perth WA
6000Australia Postal address: PO Box 7059, Cloisters Square PO Perth WA 6850
Australia

Registered office: 1 Cornhill, London, EC3V 3ND, UK Phone: +44 (0) 20 3807
6996

 

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