Cascabel Exploration Update-Hole 11 Assay Results

RNS Number : 6218R

SolGold PLC

30 June 2015

 



30 June, 2015

SolGold plc

("SolGold" or the "Company")

Cascabel Exploration Update
Hole 11 Final Assay Results Confirm Strike Extension at
Alpala Central, Cascabel Project, Northern Ecuador

References to figures and tables relate to the version of this release on the Company's website (www.solgold.com.au) or visible in PDF format by clicking the link below:

http://www.rns-pdf.londonstockexchange.com/rns/6218R_-2015-6-30.pdf 

The Directors of SolGold (AIM: SOLG) are pleased to advise of progress at the Cascabel copper-gold project in Northern Ecuador (Figure 1). 

Final assay results for CSD-15-011 ("Hole 11") at the Cascabel Project, Northern Ecuador have now been received.  The results showed a bulk interval of 636m @ 0.58 % Cu, and 0.40 g/t Au from 996m depth, including four higher grade intervals as shown below in Table 1.

The results from Hole 11 are consistent with SolGold geologist's observations and interpretations of alteration assemblages in the drill core, which suggests that the hole passed along the northwest margin of the known high-grade Central Alpala porphyry, drilling through the ambient porphyry system extending NW-SE along the Alpala Structural Zone between high grade centres.  

Early diorite host rocks intersected at depth in Hole 11 show consistent stock-work quartz vein percentages of 0.5% - 2.0%, with fine disseminated chalcopyrite and bornite contributing significantly to copper and gold mineralization.  This mineralization is believed to form a "saddle" between the inferred Central Alpala and Northwest Alpala porphyry centres.

The intersections achieved in Hole 11, and surface mapping data now provide evidence for a lateral strike extent of copper and gold mineralisation at Alpala to 450m.  The continuous nature of diagnostic stockwork quartz magnetite chalcopyrite veins which increase in intensity and volume with depth is well illustrated by comparing vein abundance mapped at surface (Figure 2) with Level Plans at depth (Figure 3).  These features point to an increasing likelihood that an extension of high-grade copper and gold may also be discovered beyond Hole 5 to the Southeast, where Hole 12 (CSD-15-012) is sited.

By order of the Board

Karl Schlobohm

Company Secretary

Qualified Person:

Information in this report relating to the exploration results is based on data reviewed by Mr Nicholas Mather (B.Sc. Hons Geol.), Executive Director of the Company.  Mr Mather is a Fellow of the Australasian Institute of Mining and Metallurgy who has in excess of 25 years' experience in mineral exploration and is a Qualified Person under the AIM Rules.  Mr Mather consents to the inclusion of the information in the form and context in which it appears

Contacts:

Mr Nicholas Mather                                                                                       Tel: [phone]

SolGold Plc (Executive Director)                                                                        [phone]

[e-mail]

Mr Karl Schlobohm                                                                                         Tel: [phone]

SolGold Plc (Company Secretary)

[e-mail]

Mr Ewan Leggat/Ms Katy Birkin                                                                Tel: [phone]

SP Angel Corporate Finance LLP (NOMAD and Broker)

[e-mail]

Richard Greenfield/Alexandra Carse                                                      Tel: [phone]

GMP Securities Europe LLP (Joint Broker)

[e-mail]

Mr Dominic Barretto                                                                                      Tel: [phone]

Yellow Jersey PR Limited (Financial PR)

[e-mail]

Follow us on twitter @SolGold_plc

NOTES TO EDITORS

SolGold is a Brisbane based, AIM-listed (SOLG) copper gold exploration and development company with assets in Ecuador, the Solomon Islands and Australia.  The Company's objective is to create substantial shareholder value by discovering and defining world-class copper-gold deposits.  SolGold's Board and Management Team have significantly vested interests in the Company as well as strong track records in the areas of exploration mine development, investment, finance and law.

Cascabel, the Company's flagship copper-gold porphyry project, is located in North West Ecuador on the under-explored northern section of the richly endowed Andean Copper Belt.  SolGold owns 85% of Exploraciones Novomining S.A. ("ENSA") and approximately 11% of TSX-V-listed Cornerstone Capital Resources, which holds the remaining 15% of ENSA, the Ecuadorian registered company which holds 100% of the Cascabel concession.  To date the Company has completed geological mapping, soil sampling, 14km² and 9km² Induced Polarisation and Magnetotelluric "Orion" surveys at the Alpala and Aguinaga targets respectively.  Diamond drilling continues.

In Queensland, Australia the Company is evaluating the future exploration plans for the Mt Perry, Rannes and Normanby projects.  Joint venture agreements are still being investigated with the strategy for the joint venture partner to commit funds and carry out exploration to earn an interest in the tenements.

In the Solomon Islands, SolGold holds three tenements; Kuma, Lower Koloula and Malukuna.

SolGold's Board and Management have significantly vested interests in the Company, holding approximately 14% of its issued share capital.

SolGold is based in Brisbane, Queensland, Australia.  The Company listed on London's AIM Market in 2006, under the AIM code 'SOLG' and currently has a total of 760,453,071 fully paid ordinary shares, 4,820,000 options exercisable at 50p, 7,530,000 options exercisable at 28p and 9,530,000 options exercisable at 14p.

CAUTIONARY NOTICE

The news release may contain certain statements and expressions of belief, expectation or opinion which are forward looking statements, and which relate, inter alia, to the Company's proposed strategy, plans and objectives or to the expectations or intentions of the Company's directors. Such forward-looking 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 forward-looking statements. Accordingly, you should not rely on any forward-looking statements and save as required by the AIM Rules for Companies or by law, the Company does not accept any obligation to disseminate any updates or revisions to such forward-looking statements.

 

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