REG - SolGold PLC - Multiple High-Grade Intervals at Tandayama-América

SolGoldAnnouncement

Mon 07:00

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RNS Number : 7701S  SolGold PLC  28 July 2025

28 July 2025

 

SolGold plc

("SolGold" or the "Company")

Reports Multiple High-Grade Intervals at

Tandayama-América as Part of Cascabel Execution Plan

 

·    First three holes confirm high-grade resource core at
Tandayama-América ("Tandayama") adjacent to Cascabel Project's Alpala Deposit

·    Fourth drill rig to be added to expedite results

·    Drill cores sampled for grade and metallurgical assessment,
geotechnical and waste rock characterisation tests

·    Early development of Tandayama open pit resource is targeted to
expedite production at Cascabel

·    Tandayama open pit production targeted to be integrated with
underground development access at Alpala, 3 km south, pursuant to SolGold's
early works strategic plan announced on 17 July 2025(1)

 

SolGold (LSE: SOLG) is pleased to report assay results from drill holes
TAD-52, TAD-53, and TAD-54 at the Tandayama-Ameríca ("Tandayama") deposit,
part of the flagship Cascabel Project in northern Ecuador.

 

These follow-up holes build on prior drilling at Tandayama and continue to
confirm near-surface copper-gold mineralisation within a potential open-pit
design envelope. The ongoing drill program is designed to support the
Company's strategy to develop a staged, open-pit and underground operation at
Cascabel.

 

Figure 1: Project Location and Cascabel Tenement

 

 

Dan Vujcic, CEO of SolGold, commented:

"These early results from the 2025 Tandayama campaign are highly encouraging.
The grades we are seeing at shallow depths and continuity of mineralisation
reinforce our staged development plan, with Tandayama playing a central role
in the Cascabel open-pit to underground strategy. With three rigs active and a
fourth on the way, we're accelerating our understanding of the near-surface
potential and building the data required to advance engineering and execution.

 

DRILLING HIGHLIGHTS

Significant intersections of high-grade open-pittable mineralisation have been
encountered in drill holes TAD 52, 53, and 54 in the proposed open pit 1
location at Tandayama.

 

Drill hole TAD-25-052 encountered 164.4 m from 21.6 m @ 0.35 % copper and 0.42
g/t gold (0.70% CuEq); including 58 m @ 0.47 % copper and 0.57 g/t gold (0.94%
CuEq) from 56 m, and 14 m @ 0.35 % Cu, 0.57 g/t Au (0.83 % CuEq) from 130 m.

 

Drill hole TAD-25-053 encountered 216 m @ 0.33 % copper and 0.31 g/t gold from
82 m (0.59 % CuEq); including 28 m @ 0.60 % copper and 0.71 g/t gold (1.19 %
CuEq) from 176 m, and 54 m @ 0.4 % copper and 0.46 g/t gold (0.79 % CuEq) from
224 m.

 

Drill hole TAD-25-054 encountered 226 m @ 0.34 % copper and 0.25 g/t gold
(0.55 % CuEq) from 50 m; including 60 m @ 0.46 % copper and 0.31 g/t gold
(0.72 % CuEq) from 94 m, and 64 m @0.38 % copper and 0.3 g/t gold (0.63 %
CuEq) from 184m.

 

Drill holes 52, 53, and 54, totalling 977 m, are the first three in a program
of 18 holes over 5,000 metres at Tandayama, aimed at bringing existing
resources in the near-surface zone to measured and indicated status in order
to define an early-stage, low-capex, open-pit development plan for
Cascabel.(2)

 

Figure 2: Tandayama-América Drill Hole Location Plan

 

 

Figure 3: Pit 1 Drill Hole Section, Tandayama-América

 

 

 

 

TABLE 1: ASSAY SUMMARY

 

 Hole ID     From         m          To               m                Interval       m        Cu           %            Au          g/t           Cu.Eq     % (0.833)      Cut-off (CuEq%)  m%          (CuEq%)
 TAD-25-052  21.6                    186                               164.4                   0.35                      0.42                      0.70                     0.30             115.1
             56                      114                               58                      0.47                      0.57                      0.94                     0.70             54.5
             130                     144                               14                      0.35                      0.57                      0.83                     0.70             11.6
 TAD-25-053  82                      298                               216                     0.33                      0.31                      0.59                     0.30             127.4
             176                     204                               28                      0.60                      0.71                      1.19                     0.50             33.3
             224                     278                               54                      0.40                      0.46                      0.79                     0.50             42.7
 TAD-25-054  50                      276                               226                     0.34                      0.25                      0.55                     0.30             124.3
             94                      154                               60                      0.46                      0.31                      0.72                     0.50             43.2
             184                     248                               64                      0.38                      0.30                      0.63                     0.50             40.3

 

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. Below some pictures showing some examples of
the typical mineralization from holes 52, 53, and 54.

 

A) Diorite (D10) hosting Cpy bearing B-vein (1.14% Cu, 1.18g/t
Au). B) Diorite(D10) hosting magnetite and B-veins, (0.68% Cu, 0.98 g/t
Au). C) Lapilli tuff hosting chalcopyrite vein (0.8% Cu, 1.27g/t
Au). D) Magmatic intrusive breccia hosting B-veins (0.51% Cu, 0.86g/t
Au) E) Magmatic intrusive breccia hosting B-veins stockwork (1.13% Cu,
1.17g/t Au). F) Quartz diorite(QD15) hosting B veins (0.51% Cu, 0.48g/t
Au). G) Magmatic intrusive breccia hosting B-veins (0.95% Cu, 1.08g/t
Au). H) Magmatic intrusive breccia hosting chalcopyrite veins (0.33%Cu,
0.18g/t Au). I) Magmatic intrusive breccia hosting B-veins (0.35% Cu,
0.26g/t Au). J) Quartz diorite QD15 in contact with Magmatic intrusive
breccia (0.5% Cu, 0.39g/t Au). K) intrusive magmatic breccia hosting B-veins
(0.28%Cu, 0.18g/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:

·    7 holes completed (2,287m drilled)

·    11 holes remaining (2,980m planned)

·    3 drill rigs currently active at site, with the 4(th) mobilising and
potentially a 5(th) to speed up the program and provide flexibility for any
additional holes that warrant being drilled

·    Samples from 5 more holes have been shipped out for assaying

 

NEXT STEPS

·    Pit 1 drilling is expected to be completed in early August

·    Assay turnaround expected by mid to late August

·    Integration of new results into ongoing mine planning

 

CORPORATE REORGANISATION

Following the acquisition of Cornerstone Capital Resources Inc. (now known as
SolGold Canada Inc.), the Group is undergoing a restructuring to simplify the
ownership structure of its assets.  The first stage, completed in July 2025,
involved the transfer of the 15% ownership of the Cascabel Project to be held
under SolGold Finance AG, thereby consolidating 100% ownership under SolGold
Finance AG.  Subsequent stages in process include the closure of dormant
entities and updating the ownership structure of the regional Ecuadorian
assets as part of the previously announced establishment of ExploreCo.

Dan Vujcic, CEO of SolGold, remarked:

"This reorganization or 'long overdue clean-up' marks a key step in
simplifying SolGold's corporate structure as we focus on advancing the
development of the Cascabel Project and supporting strategic initiatives."

In line with this consolidation, SolGold's voluntary delisting from the
Toronto Stock Exchange (TSX) was completed on 18 June 2025. The Company's
ordinary shares continue to trade on the London Stock Exchange (LSE) under the
ticker symbol SOLG.

CONTACTS

 Dan Vujcic

 Chief Executive Officer   Tel: +61 461 304 393

ENDNOTES:

1.   Refer to News Release Dated 17 July 2025: SolGold plc Releases
Execution Plan: News Release (http://bit.ly/3Uv6qJ5)

2.   Refer to News Release Dated 15 April 2025: SolGold plc to target early
production open pit strategy to expedite production at Cascabel: News Release
(https://polaris.brighterir.com/public/solgold/news/rns/story/xol3y3x)

COPPER EQUIVALENT CALCULATION

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

CuEq (%) = Cu (%) + [Au (g/t) × 0.833]

This formula assumes a gold price of US$2,400/oz and copper price of
US$4.20/lb, and does not account for metallurgical recoveries. Recoveries will
be updated as metallurgical testwork 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
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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
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Forward looking information is subject to known and unknown risks,
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including but not limited to: transaction risks; general business, economic,
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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
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the conclusions, interpretations or views expressed in press articles or
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