REG - SolGold PLC - Regional Exploration Update - Rio Amarillo

SolGoldAnnouncement

24/11/2021 07:00

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RNS Number : 3346T  SolGold PLC  24 November 2021

24 November 2021

SolGold plc

("SolGold" or the "Company")

Rio Amarillo Hole 1 Partial Assays to 1,052m Depth Return

72m @ 2.16 g/t Au, Including 24m @ 5.77 g/t Au

Visible Gold Identified at 1,216m

 

The Board of Directors of SolGold (LSE & TSX: SOLG) is pleased to provide
an update on the Company's regional exploration activities from its Rio
Amarillo project in northern Ecuador, held by 100% owned subsidiary Carnegie
Ridge Resources S.A. The Rio Amarillo project area lies approximately 35km
southwest of the Company's world class 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 at the Company's
Cascabel project, held by Exploraciones Novomining S.A. ("ENSA"), an 85% owned
subsidiary of SolGold.

 

HIGHLIGHTS:

 

Ø Partial assays from Hole 1 to 1,052m downhole depth at the Varela target
return 72m @ 2.16 g/t Au, including 24m @ 5.77 g/t Au.

Ø Assay results from 1,052m to end of hole at 1,708.1m including free gold
and porphyry mineralisation are pending.

Ø Gold mineralisation is associated with a strongly phyllic-altered zone
within diorite host rock containing quartz veins and fractures with 1-2%
pyrite, 0.4-1.2% realgar, and lesser chalcopyrite and molybdenite.

Ø Visible gold is identified at 1,216m and zones of porphyry-style
mineralisation in the form of a notable increase in sulphide mineralisation in
magmatic breccias and B-type quartz veins, containing
pyrite-chalcopyrite-molybdenite occurs from 1,260-1,680m depth.

Ø Hole 2, situated approximately 300m NE of Hole 1, progresses at a current
depth of 430m. This hole passes below the discovery outcrops at Varela that
previously returned significant rock-saw channel surface results of 99m @ 0.29
g/t Au, 0.09% Cu, 38.7ppm Mo including 25.17m @ 0.61 g/t Au, 0.12% Cu, 85ppm
Mo.

SolGold's Executive Board Member and Head of Exploration, Mr Jason Ward,
commented on the drilling underway at the Rio Amarillo project, saying:

"This is a very encouraging result from the first drill hole ever into Rio
Amarillo, which is one of our highest priority projects. The mineral
assemblage and alteration styles encountered in Hole 1 suggest that the hole
has passed along the periphery of a vertically extensive porphyry Au-Cu-Mo
deposit.

Hole 2 is now positioned to test below the central portion of the Varela Mo/Mn
surface anomaly at Varela which is of similar size to the zone of anomalous
Mo/Mn at the Company's flagship Alpala porphyry Cu-Au deposit, some 35km to
the northwest.

The Rio Amarillo project area holds three large-scale porphyry targets at
Varela, Chalanes and Palomar. The Palomar prospect, to the west of Varela, is
a similar target to be tested. Palomar is characterised by a 250m long quartz
diorite outcrop containing porphyry style veining and alteration with surface
rock-saw channel anomaly of 140m @ 0.24% Cu including 13m @ 0.65% Cu."

 1  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, filed at
www.Sedar.com on January 29, 2021.

 

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

http://www.rns-pdf.londonstockexchange.com/rns/3346T_1-2021-11-23.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3346T_1-2021-11-23.pdf)

 

FURTHER INFORMATION

SolGold's 100% owned Rio Amarillo project comprises three concessions in
northern Ecuador and lies approximately 35km southeast of the Company's
flagship Alpala deposit at the Company's Cascabel project. The location is
geologically consistent with regional distribution of porphyry deposits along
significant parts of the Ecuadorian Andean Porphyry Belt. (Figure 1).

A conspicuous geological feature of the Rio Amarillo project area is a cluster
of preserved lithocap zones discovered through geological mapping, and further
delineated by geochemical and airborne magnetic surveys, that are visible from
the air (Figure 2).

Partial assays to 1,052m depth in the sub-vertical Hole 1 (RDH-21-001) at
Varela returned 72.0m @ 2.16 g/t Au from 639.7m, including 24m @ 5.77 g/t Au.
Assay results from 1,052m to end of hole at 1,708.1m are pending (Table 1).

Gold mineralisation is associated with a strongly phyllic-altered zone within
diorite host rock containing quartz veins and fractures with 1-2% pyrite,
0.4-1.2% realgar, and lesser chalcopyrite and molybdenite.

Visible gold is identified at 1,216m and notable increase in sulphide
mineralisation in magmatic breccias and porphyry-style B-type quartz veins,
containing pyrite-chalcopyrite-molybdenite occurs from 1,260-1,680.

Hole 2 (RDH-21-002), situated approximately 300m NE of Hole 1, is progressing
at a current depth of 430m. This hole passes below the discovery outcrops at
Varela that previously returned significant rock-saw channel surface results
of 99m @ 0.29 g/t Au, 0.09% Cu, 38.7ppm Mo including 25.17m @ 0.61 g/t Au,
0.12% Cu, and 85ppm Mo.

Access to the main target area where Hole 2 is now positioned was delayed due
to extreme topography and the Company is excited to see what this hole will
intersect below the central portion of the Varela Mo/Mn surface anomaly
(Figure 3). The Mo/Mn anomaly at Varela is of similar size to the zone of
anomalous Mo/Mn at the Company's flagship Alpala porphyry Cu-Au deposit and is
consistent with 3D geochemical modelling that indicates a vertically extensive
target seated directly beneath the lithocap area (Figure 4).

The 72m down-hole gold-bearing interval in Hole 1 at Varela corresponds to a
strongly phyllic-altered fault zone within diorite that contains quartz veins
and late-stage fractures with 1% to 2% pyrite, 0.4% to 1.2% realgar, and
lesser chalcopyrite and molybdenite (Figure 5), which is logged from 636.55 to
667.7m; and weakly to moderately phyllic- and chlorite-sericite-altered
diorite with 1 % to 2% pyrite and 0.1 to 0.2% chalcopyrite, logged from 667.7
to 711.35m.

The highest gold grades are spatially associated with the late-stage,
pyrite-realgar-coated fractures from 636.5 to 667.7m in the phyllic-altered
fault zone, which returned 24m at 5.77 g/t Au, using a cut-off of 1.0 g/t Au
(643.7 to 667.7m). The structural orientation dataset is still being developed
at Varela and the geometry of this gold bearing zone is not yet well
constrained, therefore an accurate estimate of true widths is not currently
possible.

Additional gold mineralisation has been identified in hand specimen with
visible gold logged at 1,216m down-hole within a
quartz-carbonate-gold-molybdenite vein (Figure 6). Zones of porphyry style
mineralisation in the form of pyrite-rich magmatic breccias and altered
intrusive diorites with increasing abundance of
pyrite-chalcopyrite-molybdenite-bearing B-type quartz veins occur between
1,260m and 1,680m (Figure 7).

 

Table 1: Summary of down-hole intercepts in Hole 1 to 1,052m downhole depth at
Varela, Rio Amarillo.

 

Figure 1: Location plan showing the Rio Amarillo project location in relation
to the Alpala (SolGold) and the Llurimagua (ENAMI-Codelco) deposits. The Rio
Amarillo project holds similar infrastructure advantages to the Alpala
Project.

 

Figure 2: Location plan of mapped lithocap areas (outlined yellow) within the
Rio Amarillo Project concessions (red), showing the highly visible natural
scarring at Varela lithocap area.

 

Figure 3: Plan view of Varela target, showing SolGold's Varela Camp, the
mapped lithocap area (thick black outline), over Halley & Cohen 3D
geochemical targets (yellow shading). Assay results from Hole 1 and surface
outcrops are shown, and current drill hole path of RDH-21-002 is shown in red,
planned drill holes are shown in green.  The overall size of the Varela Mo/Mn
anomaly exceeds 1,200m x 800m, which is of similar size to the zone of
anomalous Mo/Mn at Alpala (see inset comparison in the upper left-hand side of
the figure).

Figure 4: Sectional view looking east-southeast towards an azimuth of
115(○), showing Halley & Cohen 3D geochemical targets (yellow), assay
results from Hole 1, current drill hole path of RDH-21-002 (red), and planned
drill holes (green). 3D geochemical modelling indicates a vertically extensive
target zone seated directly beneath the Varela lithocap area. The model
indicates potential for a porphyry copper deposit at depth, based on the
comparison of geochemical zoning at Varela to the Yerington porphyry deposit
in Nevada (Cohen, 2011; and Halley et al., 2015).

 

Figure 5: Portion of mineralised core within a 2-m interval that returned 6.03
g/t Au from a chlorite-sericite- and phyllic-altered fault zone in diorite
with porphyry-style B-type quartz veins that contain pyrite (Py), chalcopyrite
(Cpy) and molybdenite (Mo). Realgar (orange As-sulphide) occurs along
late-stage fractures.

 

Figure 6: Sections of drill-core at 1,216.0m down-hole that contain multiple
occurrences of visible gold, up to 1mm in mean-diameter, within a
quartz-carbonate-gold-molybdenite vein hosted in chlorite-sericite-altered
diorite.

Figure 7: Core photos taken from various depths showing B type quartz veins
with sulphide mineralisation (chalcopyrite-pyrite-molybdenite) associated with
early biotite-potassic alteration overprinted by chlorite-sericite-clay
alteration of diorite, quartz diorite and magmatic intrusive breccia.

 

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.

 

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

 

By order of the Board

Dennis Wilkins

Company Secretary

 

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 over 800 employees of whom 98% are Ecuadorean. This
is expected to grow as the operations expand at Alpala, 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
over 80 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 34,250,000 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.

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
material on its website.

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