REG - SolGold PLC - Exceptional Near-Surface Intercepts at Tandayama

SolGoldAnnouncement

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RNS Number : 5043V  SolGold PLC  15 August 2025

15 AUG 2025

 

SolGold plc

("SolGold" or the "Company")

Reports Exceptional Near-Surface Copper-Gold

 Intercepts at Tandayama América

 

·    Hole TAD-58 delivers the strongest near-surface intervals to date at
Tandayama and the Cascabel Project, intersecting 140 m @ 0.92 % CuEq from 8 m,
including 106 m @ 1.10 % CuEq from 22 m

·    Results continue to confirm the strong potential for a low-capex,
near-surface open-pit starter operation to accelerate early cash flow at
Cascabel

·    Mineralisation remains open at depth, with further drilling planned
to expand the resource

·    Geological interpretations and geochemistry point to further
extensions and targets

·    Integration with Alpala underground development remains central to
SolGold's staged production plan

 

SolGold (LSE: SOLG) is pleased to report assay results from three additional
drill holes, TAD-25-055 ("Hole 55"), TAD-25-056 ("Hole 56"), and TAD-25-058
("Hole 58"), at the Tandayama-Ameríca ("Tandayama") deposit. These results
follow the high-grade intervals reported on 28 July 2025 (News Release:
SolGold plc Reports Multiple High-Grade Intervals at Tandayama-América as
Part of Cascabel Execution Plan)(1) and further reinforce the Company's
strategy to bring forward low capex, low opex, open-pit ore from Tandayama in
the early years of Cascabel's mine life. The Tandayama deposit is part of the
100% owned Tier-One copper-gold Cascabel Project Complex ("Cascabel" or the
"Project") in northern Ecuador.

 

These holes build on the existing resource at Tandayama, and the recently
released high-grade drill core assays from holes TAD-25-052, TAD-25-053, and
TAD-25-054 from the current drilling program. The program is designed to
confirm the Company's strategy to develop an open-pit and underground
operation at Cascabel. The SolGold team continues to investigate near-surface
copper-gold mineralisation within a potential open-pit design envelope, with
additional drilling and assays pending. Additional mineralisation is likely to
extend resources, notional pit boundaries, and grades.

 

DRILLING HIGHLIGHTS

 

·    TAD-25-058 (Pit 2):

• 140 m @ 0.92 % CuEq (0.41 % Cu, 0.59 g/t Au) from 8 m, including

• 106 m @ 1.10 % CuEq from 22 m

• Additional 50 m @ 0.49 % CuEq from 250 m; mineralisation open at depth

 

The intersections in hole 58 in pit 2 area open considerable prospectivity for
further substantial resource definition at Tandayama.

 

·    TAD-25-055 (Pit 2):

·    58 m @ 0.29 % CuEq (0.17 % Cu, 0.14 g/t Au) from 6 m, including

·    6 m @ 0.33 % CuEq (0.18 % Cu, 0.18 g/t Au) from 6m,

·    24 m @0.36 % CuEq (0.21 % Cu, 0.17 g/t Au) from 40

 

The mineralization found in hole 55 represents the extension towards the SE of
hole 58, as these two holes started from the same collar (see figure 4).

 

·    TAD-25-056 (Pit 1):

·    280 m @ 0.32 % CuEq (0.21 % Cu, 0.13 g/t Au)

 

This hole tested the border of the preliminary Pit 1 design, providing a clear
indication that the mineralized body inside contains grades economically
minable (see figure 3).

 

·    Holes TAD-57, TAD-59, TAD-60 and TAD-61 have been completed, and all
the core samples have already been sent to the laboratory for analysis. When
the assay results from the entire hole (s) are received, they will be
published.

 

CEO Dan Vujcic commented:

"TAD-58 is one of the most robust results we've seen from Cascabel to date -
with high grades from near surface over substantial widths in a location that
aligns with our open-pit to underground strategy. These results continue to
show the potential to deliver early, high-margin tonnes from Tandayama-the
kind of material that can provide valuable flexibility in the development of
Cascabel.

 

As I've noted on previous occasions, SolGold, relative to global peers and
precedents, is considerably undervalued; continuing to deliver results like
this and increasing market awareness of the quality of our endowment in
Northern Ecuador is how we close the value gap. Early results suggest an
increase in the size of the resource being open at depth, and the grades
exceed what we have internally modelled previously for the deposit. We will
continue to update the market as we finalise and potentially expand the
current drill program, while continuing to progress early works and
preparation at Alpala."

 

STRATEGIC SIGNIFICANCE

 

The ongoing 2025 drill program at Tandayama is focused on upgrading
near-surface resources to Measured and Indicated categories for inclusion in
detailed mine planning. An open pit at Tandayama could supply higher-grade
feed to Cascabel's processing plant ahead of full underground production from
the Alpala deposit, located approximately 3 km to the south.

 

Integrating early ore from Tandayama into Cascabel's development sequence is a
key pillar of SolGold's staged execution plan and a central driver of
SolGold's low capex, early revenue strategy.

 

Figure 1: Project Location and Cascabel Tenement

Figure 2: Tandayama-América Drill Hole Location Plan

 

 

Figure 3 and 4: Pit 1 and 2 Drill Hole Sections, Tandayama-América

 

 

TABLE 1: ASSAY SUMMARY

 

 

 

MINERALISATION OVERVIEW

The current drilling at the Tandayama América deposit is confirming the
presence of economic copper-gold mineralization close to surface. Mineralized
magmatic intrusive breccia, early and intermineral dikes showing potassic
alteration are the most common lithologies, chalcopyrite and pyrite are the
more common sulfides identified, which are related with the presence of quartz
(B-veins), magnetite and chalcopyrite veins, also disseminated sulfides along
the core are a typical feature. Pictures below are examples of the typical
mineralization from holes 55, 56, and 58.

 

Figure 5: A) Magmatic Intrusive Breccia, hosting chalcopyrite veins (C veins;
0.27%Cu, 0.23 g/t Au). B) Quartz diorite (QD15), hosting C veins (0.13%Cu,
0.09 g/t Au). C) Quartz diorite (QD15), hosting stockwork B veins with
Chalcopyrite (0.57%Cu, 0.4 g/t Au). D) Quartz diorite (QD10), hosting B
veins with chalcopyrite and magnetite (0.72% Cu, 0.73 g/t
Au). E) Diorite (D10), hosting stockwork B veins with disseminated
chalcopyrite (0.44% Cu, 0.48 g/t Au). F) Diorite (D10), hosting
stockwork B veins and chalcopyrite veins (1.02% Cu, 1.05 g/t Au). G) Quartz
diorite (QD15), hosting chalcopyrite bearing B-vein (0.57% Cu, 0.80 g/t
Au). H) Diorite (D10), hosting chalcopyrite bearing B-vein (1.20% Cu, 1.30
g/t Au).

 

DRILLING PROGRAM AND PROJECT INTEGRATION

The 2025 Tandayama drilling program is focused on upgrading resources within
the conceptual open-pit shell to Measured and Indicated classifications, while
providing critical input to the broader Cascabel development plan, including:

·    Open pit slope geotechnical domains

·    Processing plant feed sequencing

·    Infrastructure layout and pit-access planning

To date:

·    10 holes completed (3,398.16 m drilled)

·    8 holes remaining (1,868.84 m planned)

·    4 drill rigs active at site

·    Samples from 4 more holes have been shipped out for assaying

 

NEXT STEPS

·    Integration of new results into ongoing mine planning

·    Receive and report assays from Hole 57 and other pending holes in
August

·    Incorporate new data into the Feasibility Study led by G Mining
Services

CONTACTS

 Dan Vujcic

 Chief Executive Officer   Tel: +61 461 304 393

ENDNOTES:

1.   Refer to News Release Dated 28 July 2025: SolGold plc Releases
Reports Multiple High-Grade Intervals at Tandayama-América as Part of
Cascabel Execution Plan: See Link
(https://polaris.brighterir.com/public/solgold/news/rns/story/xl9vv9x)

COPPER EQUIVALENT CALCULATION

Copper equivalent (CuEq) values have been calculated using the following
formula:

CuEq (%) = Cu (%) + [Au (g/t) × 0.858]

Copper equivalent (CuEq) values are calculated using a gold price of
US$2,500/oz and a copper price of US$4.25/lb, and do not account for
metallurgical recoveries. Recoveries will be updated as metallurgical test
work advances.

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 in the interests of its shareholders.

SolGold completed and released a staged development plan, including a
Pre-Feasibility Study, on 16 February 2024. The study, completed at
US$1,750/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 Resources 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
(Barbados) Corporation and OR Royalties International Ltd. (formerly Osisko
Bermuda Limited) (the "Streamers"), pursuant to which the Streamers would pay
US$100 million as pre-development funding in three tranches, conditional upon
achieving various technical and permitting milestones. The first US$33.3
million was received upon signing, with a further US$33.3 million approved by
the Streamers on 9 July 2025. 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 (LSE: 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.

 

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.

 

 

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