REG - SolGold PLC - Technical Report Filed on SEDAR - Porvenir

SolGoldAnnouncement

01/02/2022 07:00

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RNS Number : 2274A  SolGold PLC  31 January 2022

31 January 2022

SolGold plc

("SolGold" or the "Company")

NI 43-101 Technical Report on the Maiden Mineral Resource

Estimate for the Cacharposa deposit, Porvenir project, Southern Ecuador

 

The Board of Directors of SolGold (LSE & TSX: SOLG) is pleased to announce
the filing on SEDAR of the independent NI 43-101 Technical Report completed by
Mining Plus, entitled:

"Porvenir Property NI 43-101 Technical Report Mineral Resource Estimate,
October 2021"

Highlights of the Cacharposa maiden Mineral Resource at a 0.16% CuEq ( 1 )
cut-off grade:

·     Mineral Resource of 396.8Mt @ 0.44% CuEq for 1.40 Mt Cu, and 1.80
Moz Au in the Indicated category.

·     Mineral Resource of 96.9 Mt @ 0.37% CuEq for 0.28 Mt Cu, and 0.38
Moz Au in the Inferred category.

 

FURTHER INFORMATION

Mining Plus was commissioned by SolGold to prepare a Mineral Resource Estimate
("MRE") and subsequent Technical Report for the Cacharposa porphyry
copper-gold deposit at the Porvenir project in Southern Ecuador.

The Porvenir project lies approximately 100km north of the Ecuador-Peru
border, approximately 100km south of the 9.48 Moz Au Fruta Del Norte deposit,
and is held by Green Rock Resources S.A., a 100% owned and unencumbered
subsidiary of SolGold. The Cacharposa deposit evaluated in this MRE is located
on the Porvenir 2 concession and is one of several porphyry targets at
Porvenir.

The MRE, with an effective date of 26 October 2021, is stated in accordance
with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM")
Definition Standards (CIM, 2014) and Canadian National Instrument 43-101 ("NI
43-101"). The estimation process followed the CIM "Estimation of Mineral
Resources and Mineral Reserves Best Practice Guidelines" (CIM, 2019).

The Cacharposa deposit has been reported inside an optimised pit shell to
ensure the stated MRE meets the criteria for Reasonable Prospects for Eventual
Economic Extraction (RPEEE, Table 14-23).

The potentially open pittable Mineral Resource comprises 396.8 Mt at 0.44%
CuEq in the Indicated category using a cut-off grade of 0.16% CuEq. The
Inferred category contains an additional 96.9 Mt at 0.37% CuEq (Table 1).

 Mineral Resource Statement (effective date 26 October 2021)
 Potential Mining Method  Cut-off Grade             Resource Category  Tonnage      (Mt)       Grade                             Contained Metal

(CuEq %)
                          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.

7.    Figures may not compute due to rounding.

Table 1: Cacharposa deposit Mineral Resource Statement.

The MRE comprises a contained metal content of 1.40 Mt Cu and 1.80 Moz Au in
the Indicated category. The Inferred category contains an additional 1.28 Mt
Cu and 0.38 Moz Au.

To the best of Mining Plus's knowledge, there are no environmental,
permitting, legal, title, tax, socio-economic, market, political or other
relevant factors that would affect the Mineral Resource Estimate presented in
this Technical Report.

Mining Plus employee, Dr Andrew Fowler takes Qualified Person ("QP")
responsibility for the MRE and Technical Report excepting Section 12 (Data
Verification) for which Dr Karl John Roa takes QP responsibility.

The NI 43-101 technical report on the Mineral Resource Estimate for the
Cacharposa deposit can be found at the following link:

https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00043090
(https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00043090)
 

 

 1  Copper equivalency factor of 0.632 (whereby CuEq = Cu + Au x 0.632) is
based on third party metal price research, forecasting of Cu and Au prices,
and a cost structure from mining study data available from a similar
deposit.  Costs include mining, processing and general and administration
(G&A).  Net Smelter Return (NSR) includes off-site realisation (TC/RC)
including royalties, metallurgical recoveries (84% for Cu and 65% for Au) and
metal prices of Cu at US$3.30/lb and Au at US$1,700/oz.

 

By order of the Board

Dennis Wilkins

Company Secretary

 

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

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 16 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.

 

 

 

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 900 employees of whom 98% are Ecuadorean. 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
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 29,250,000 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.

CAC potentially open-pittable 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).

 

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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