SOLGOLD PLC ("SolGold" or the "Company")
12 July 2016 Cascabel Yields a Further World Class Intersection in Hole 17. Extensions to the Alpala Deposit Upwards and to the South West.The Directors of SolGold herewith provide the drill hole CSD-16-017 ("Hole 17") assay results from the Cascabel Copper Gold Porphyry Project (SolGold 85%) in Northern Ecuador. Drill hole 17 adds another world class intersection to the Cascabel inventory, which holds several positions within the group of world class porphyry copper gold drilling results in the public domain, as indicated in Figure 1. The Cascabel Project is located on the gold rich northern section of the prolific Andean Copper belt renowned as the production base for nearly half of the world's copper (refer Figure 2, Location, and Figure 3, Regional Setting).
HIGHLIGHTS:- Drill hole 17 final assay results return 948m @ 0.54% copper and 0.53 g/t gold (for 1.01% copper equivalent) from 330m at Alpala (at 0.2% copper equivalent cut-off grade).
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High grade sections within this envelope include:
- 562m @ 0.70% copper and 0.75 g/t gold (for 1.36%copper equivalent) from 702m (at 0.4% copper equivalent cut-off grade);
- 248m @ 0.94% copper and 1.36 g/t gold (for 2.16% copper equivalent) from 784m (at 0.7% copper equivalent cut-off grade);
- 136m @ 1.28% copper and 2.20 g/t gold (for 3.24% copper equivalent) from 846m (at 1.5% copper equivalent cut-off grade).
- Intersection commences at 330m, approximately 350m below surface, and remains untested at higher elevation.
- Alpala Deposit extensions upwards and south west confirmed.
- Alpala mineralisation now drill confirmed over 450m width, 700m in length and 1800m vertically.
- Next drill campaign at Alpala includes testing the south west area over a 500m strike length.
- Further outcrop targets identified at Tobar Creek 700m west of the Tandayama- America target.
- Mapping and rock saw channel sampling continues along significant outcrops to mature drill targets at Aguinaga, Moran, Parambas, Tandayama-America and Carmen.
SolGold plc UK Company No. 5449516 ARBN 117 169 856 Phone: +61 (0) 7 3303 0660 Email: info@solgold.com.au Website: www.solgold.com.au Street address: Level 27, 111 Eagle St, Brisbane, Australia 4000 Postal address: GPO Box 5261, Brisbane QLD 4000
Registered office: 201 Bishopsgate London EC2M3AB Phone: +44 20 7861 9000
FURTHER INFORMATION:Assay results have been received and compiled for drill hole 17, indicating a significant upper level high grade zone to the porphyry copper-gold system and confirming a 150m lateral extension to the south west at Alpala. Results are presented in Table 1.
Table 1: Drilling results from Hole 17 (CSD-16-017) at Alpala.The hole was drilled from the same location as Holes 4, 14 and 16, in a south westerly direction (233 azimuth) at a declination of 74 degrees. The hole was designed to test and confirmed the upper extensions of rich mineralisation encountered in Holes 5 and 12. Molybdenum anomalies in soil samples in the area tested by Hole 17 are considered to indicate the surface expression of the zone encountered (refer Figure 4, Drill Hole Location Plan).
Intense visual, porphyry style, copper sulphide mineralisation in Hole 17, including 183m of very intense visible bornite-chalcopyrite copper sulphide mineralisation from 816m to 999m was reported and announced on 16 May 2016 (bornite and chalcopyrite are important copper ore minerals containing around 63% and 35% copper, respectively). The very highest grade mineralisation in this zone has assayed 136m @ 1.28% Cu and 2.20 g/t Au for 3.24% copper equivalent from 846m, at a cut-off grade of 1.5% copper equivalent.
Commenting on the Hole 17 intersection, CEO, Mr Nick Mather remarked "…this is a most pleasing result. Not only does it extend the Alpala deposit but it confers strong copper and gold grades high up closer to surface. We'll be putting in some new pads to test this zone over a 500 metre strike length and I think it will add significantly to the size of this deposit. Our field crews and management are to be congratulated on a tremendous achievement on this project to date
The gold content of this system suggests that it may be more appropriately referred to as a gold deposit. There simply aren't very many gold systems like this in the world that are big rich and predictable. Cascabel is certainly unique."
The Hole 17 mineralised zone represents the continuation of strong copper and gold mineralisation intersected in Holes 5 and 12 (refer Figure 5, Cross-section through Alpala Deposit) which returned intersections including:
• Hole 5: 532m @ 1.05% Cu and 1.08 g/t Au from 778m.
• Hole 12: 576m @ 1.03% Cu and 1.19 g/t Au from 844m.
The intersection in Hole 17 has the effect of extending the mineralised envelopes of the company's 3D models to the south west by 150 metres. This result significantly enhances the shallow high-grade resource potential at Alpala.
Examples of mineralised drill core encountered in Hole 17 are illustrated in Figures 6 and 7.
Commenting on the Hole 17 results, Technical Services Manager, Mr Benn Whistler said "…its very encouraging to see such strong copper and gold mineralization at the upper south western extent of the deposit, especially considering that the high-grade disseminated core of the causative intrusion driving the copper and gold mineralisation at Alpala has only been intersected in drill hole 8, which terminated at a depth of just over 1300m, in grades of 0.95% copper and 0.97 g/t gold. We are very confident that further testing of this high-grade source intrusion offers considerable potential to extend both size and grade of the deposit at depth."
Alpala Central is the only one of fourteen (14) targets outlined in the complex porphyry cluster on the Cascabel Exploration Licence that has been drilled thus far. The anomalies have been identified on the basis of strong coincident copper/zinc and molybdenum highs supported by 3D Magnetic Vector Imaging (MVI). The MVI models are reconciled to actual magnetic susceptibility data from drilling at Alpala, and SolGold is increasingly confident that the combination of the MVI modelling and surface mapping sampling and geochemistry is a highly predictive strategy for drill targeting.
Current field activities involve auger bedrock sampling, infill soil grids, and reconnaissance mapping and sampling and geophysical modelling, focussing on Aguinaga, Tandayama-America, Moran, Trivinio, Parambas and Carmen.
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.), the Chief Executive Officer of the Company. Mr Mather is a Fellow of the Australasian Institute of Mining and Metallurgy who has in excess of 30 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: +61 (0) 7 3303 0665SolGold Plc (Executive Director) +61 (0) 417 880 448
nmather@solgold.com.au
Mr Karl Schlobohm Tel: +61 (0) 7 3303 0661SolGold Plc (Company Secretary) kschlobohm@solgold.com.au
Mr Ewan Leggat Tel: +44 (0) 20 3470 0470SP Angel Corporate Finance LLP (NOMAD and Broker) ewan.leggat@spangel.co.uk
Follow us on twitter @SolGold_plc
Company | Property | Location | Interval (m) | Copper (%) | Gold (g/t) | Cu.Eq (%) | m% (Cu.Eq) |
Codelco | Chiquicamata*** | Northern Chile | ? | ? | ? | ? | |
Codelco | El Teniente*** | Central Chile | ? | ? | ? | ? | |
Kennecott | Bingham Canyon | Utah, USA | ? | ? | ? | ? | |
Newcrest / Harmony Gold | Wafi-Golpu | PNG | 883 | 2.15 | 2.23 | 4.13 | 3868 |
Newcrest / Harmony Gold | Wafi-Golpu | PNG | 799 | 1.9 | 1.43 | 3.17 | 2661 |
Anglo American | La Poloma | Central Chile | 730 | 3.58 | - | 3.58 | 2613 |
Anglo American | Los Sulphatos | Central Chile | 717 | 3.60 | - | 3.60 | 2581 |
Reservior Minerals / Freeport Mcmoran | Chukaru-Peki | Eastern Serbia | 291 | 5.13 | 3.40 | 8.16 | 2485 |
Imperial Metals | Red Chris | BC, Canada | 1024 | 1.01 | 1.26 | 2.13 | 2324 |
Freeport McMoran | Grasberg | Irian Jaya | 591 | 1.7 | 1.8 | 3.30 | 2069 |
Anglo Gold Ashanti | Nuevo Chaquiri | Colombia | 810 | 1.65 | 0.78 | 2.34 | 1968 |
Solgold - Hole 12 | Cascabel | Northern Ecuador | 1312 | 0.67 | 0.63 | 1.23 | 1706 |
Solgold - Hole 9 | Cascabel | Northern Ecuador | 1088 | 0.66 | 0.89 | 1.45 | 1686 |
Newcrest | Cadia Ridgeway | NSW, Australia | 341 | 0.93 | 3.86 | 4.37 | 1633 |
Ivanhoe Mines | Oyu Tolgoi** | Southern Mongolia | 326 | 3.77 | 1.23 | 4.86 | 1630 |
Solgold - Hole 16 | Cascabel | Northern Ecuador | 1146 | 0.63 | 0.78 | 1.32 | 1616 |
Solgold - Hole 5 | Cascabel | Northern Ecuador | 1306 | 0.62 | 0.54 | 1.10 | 1515 |
Exeter Resources | Caspiche | Northern Chile | 1214 | 0.90 | 0.33 | 1.19 | 1493 |
Ivanhoe Mines | Oyu Tolgoi** | Southern Mongolia | 476 | 2.16 | 0.67 | 2.76 | 1347 |
Anglo American | Los Sulphatos | Central Chile | 990 | 1.26 | - | 1.26 | 1247 |
Imperial Metals | Red Chris | Canada | 1135 | 0.50 | 0.59 | 1.03 | 1237 |
Ivanhoe Mines | Hugo Dummet | Southern Mongolia | 302 | 3.11 | 0.98 | 3.98 | 1235 |
Ivanhoe Mines | Oyu Tolgoi** | Southern Mongolia | 258 | 3.68 | 0.98 | 4.55 | 1202 |
Solgold - Hole 15R2 | Cascabel | Northern Ecuador | 1338 | 0.49 | 0.36 | 0.81 | 1137 |
Ivanhoe Mines | Oyu Tolgoi** | Southern Mongolia | 422 | 2.48 | 0.21 | 2.67 | 1135 |
Exeter Resources | Caspiche | Northern Chile | 1058 | 0.70 | 0.35 | 1.01 | 1111 |
Imperial Metals | Red Chris | BC, Canada | 716 | 0.79 | 0.74 | 1.45 | 1096 |
Exeter Resources | Caspiche | Northern Chile | 793 | 0.96 | 0.40 | 1.32 | 1078 |
NOTES: 1. Copper equivalent conversion factor of 0.89 calculated from copper price US$2.2-/pound and gold price US$1350/ounce.
2. The Chilean, Chiquicamata and El Teniente, state owned drilling results remain unpublished. 3. Bingham Canyon drilling results remain unpublished.
Sources: various company releases & broker reports, intierra.com, infomine.com.
Figure 1: A summary of world class porphyry copper gold drilling results in the public domain.SolGold plc published this content on 12 July 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 12 July 2016 09:18:01 UTC.
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