REG - SolGold PLC - Porvenir Project Update

SolGoldAnnouncement

01/12/2023 12:45

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RNS Number : 4355V  SolGold PLC  01 December 2023

1 December 2023

SolGold plc

("SolGold" or the "Company")

Porvenir Project Update

Advancing Exploration Across a Cluster of Porphyry Copper-Gold Targets

 

SolGold (LSE & TSX: SOLG) is pleased to provide an update on the
exploration of the Porvenir Project ("Project"), held through its Ecuadorean
subsidiary, Green Rock Resources S.A.

The Porvenir Project is located within the south-eastern portion of the
Eastern Cordillera of Ecuador, approximately 70km south of the regional centre
of Loja. The Project sits within the northerly-trending, Jurassic metallogenic
belt of the northern Andes, which hosts significant economic gold and copper
mines at Fruta del Norte and Mirador, and large Cu-Au resources at Mirador
Norte, Warintza, San Carlos, Panantza.

Full details on the exploration updated are set out below under the heading
'Further Information'.

SolGold Geology Manager, Mr. Santiago Vaca, commented on today's exploration
update:

"Drilling completed in the Cacharposa deposit indicates a pit constrained
mineral resource, which is still open. The successful exploration performed at
Cacharposa allows us to enhance our understanding on the geology and
mineralization controls in the area, building our confidence in the potential
to keep growing the resource with additional drilling, and to validate the
high-quality of the other Cu-Au porphyry targets found within the Porvenir
project".

 

FURTHER INFORMATION

The Porvenir Project, covers a cluster of geochemical anomalies that represent
porphyry copper-gold targets that include Cacharposa, Balmore-(Diablo),
Bartolo, Palmal and Merino. The Cacharposa anomaly coincides with a Cu-Au
porphyry deposit that has an open-pit mineral resource estimate (CAC MRE#1)
that comprises 396.8 Mt @ 0.44% CuEq for 1.40 Mt Cu and 1.80 Moz Au in the
indicated category, plus 96.9 Mt @ 0.37% CuEq for 0.28 Mt Cu and 0.38 Moz Au
in the inferred category, using a cut-off grade of 0.16% CuEq (refer to
"Porvenir Property NI 43-101 Technical Report Mineral Resource Estimate,
October 2021"). The remaining anomalies have yet to be drill-tested.

On 26th October 2021, a data cut-off was applied to the Cacharposa dataset for
the purposes of a Mineral Resource Estimation. The CAC MRE#1 dataset comprised
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 drill holes 1 to
20.

Since that time, a further 2,610.0m of infill and extension diamond drilling
has been completed at the Cacharposa Deposit and number of drill holes have
been planned for future resource extension drilling (Figure 1).

 

Figure 1: Plan view of drilling at the Cacharposa Deposit, showing additional
drilling completed since CAC MRE#1 shown with red glow and planned diamond
drilling shown in green. (TOP). The extents of the orebody at 0.16%CuEq COG
utilising all drill holes are shown BOTTOM LEFT, and the CAC MRE#1 open-pit
optimisation phases are shown BOTTOM RIGHT.

 

The Cacharposa dataset now comprises 21,245.7m of diamond drilling; 439.6m of
surface rock-saw channel sampling from 23 outcrops; and 21,685.3m of final
assay results from drill holes 1 to 27.

Result assays obtained from the infill and extension drilling show encouraging
mineralized intersections (Table 1), which should support the conversion of a
large portion of the deposit into the measured and indicated categories, as
well as significantly increasing the resource tonnage in both the measured and
indicated categories as well as the inferred category. SolGold is planning to
complete a resource extension drilling program, and when it is completed, a
mineral resource update (CAC MRE#2) for the Cacharposa deposit will be done.

Table 1: Mineralized intersections from holes 21 to 27 using 10m composites.

The Porvenir Project also contains a number of satellite targets, generated by
careful compilation of numerous datasets, including geological mapping,
geochemical anomalies (soils, rocks, stream sediments, airborne and ground
geophysics, regional structural interpretation, and 3D geochemical modelling.
As such, the targets generated at the Project, display several encouraging
characteristics of porphyry style deposits, such as:

·    Identification of mineral occurrences (chalcopyrite, chalcocite,
bornite, native Cu, pyrite) and porphyry-style veining (quartz veins) at
Bartolo and Eudis.

·    Identification of common hydrothermal alteration minerals in porphyry
systems like K-feldspar, biotite, epidote, chlorite, and/or sericite (white
mica) at Bartolo and Mula Muerta.

·    Coincident Cu, Cu/Zn, Mo, Mo/Mn geochemical anomalies, at Bartolo,
Palmal, Diablo, Eudis and Merino.

·    Airborne and ground geophysics magnetic anomalies that lie coincident
with regional lineaments and lineament intersections at Mula Muerta, Diablo,
Palmal, Bartolo and Merino.

·    3D geochemical models for the potential (p=0.14) of a Yerington-like
porphyry centre (modified from Core, 2019), based on B-horizon soil-sample
muti-element results. The main anomalies generated include Cacharposa,
Balmore-(Diablo), Bartolo, Palmal and Merino.

 

Figure 2: Porvenir Project target generation summary showing geochemical
anomalies at Cacharposa, Eudis, Mula Muerta, Balmore, Diablo, Palmal, Bartolo
and Merino prospects, flagged for exploratory drill testing (TOP). Copper and
Molybdenum in soil anomalies (BOTTOM CENTRE & BOTTOM RIGHT), and airborne
reduced-to-pole magnetic image for the project area (BOTTOM LEFT).

 

 

 

Qualified Person:

 

Above information relating to the exploration results is based on data
reviewed by Mr. Santiago Vaca (M.Sc. P.Geo.), Santiago 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              Tel: +44 (0) 20 3807 6996

 Chief Executive Officer

 Tavistock (Media)           Tel: +44 (0) 20 7920 3150

 Jos Simson/Gareth Tredway

 

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 the
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.

 

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.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.

 

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.

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

 

 

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