Mr. Nick Mather reports
CASCABEL EXPLORATION UPDATE
Solgold PLC has provided an update from the company's
Cascabel project in Northern Ecuador, where drilling is currently focused on targeting high-grade
extensions to the Alpala resource.
12 rigs now on site and operational at Alpala;
An additional 13,384 metres of drilling completed since release of Alpala maiden mineral
resource estimate cut-off (published on Jan. 3, 2018, refer to attached table). Over 120,000 m of drilling scheduled for the next 12 months;
Alpala drill hole targeting high-grade extensions to the current Alpala resource;
Hole 33 high-grade mineralization extension: 824 m at 0.80 per cent copper equivalent, including 576 m at 0.93 per cent
Drilling cost reduced to $530/m from $1,100/m;
Rig to resource integrated data capture protocol to expedite revised mineral resource
Aguinaga modelling nearing completion and drilling expected to commence in the
Study manager selection and recruitment under way for preliminary economic
Commenting on the progress, Solgold chief executive officer and managing director Nick Mather said:
"The maiden resource is just the tip of the iceberg at Alpala. We are looking to substantially increase
it, and focusing on high-grade expansion. The bornite-rich areas at Alpala South are yet to be
comprehensively tested, and I'm confident we will find a deep, rich root at Alpala.
"We plan to drill at least 120,000 m in 2018, so it is pleasing to see that the new track-mounted rigs
are already performing beyond expectations, delivering up to 60 metres/day each. Furthermore, the
average cost for drilling has declined markedly from $1,100/metre to $530/metre."
Solgold currently has 12 rigs that are progressing holes: 29-D4, 32-D3, 33-D1, 34-D1, 36, 37, 38-D1, 39,
40, 41, 42 and 43.
Hole 33 assay results from ALS in Lima, Peru, confirm significant mineralization along the up-dip,
western side of the deposit, returning:
- 824 m at 0.80 per cent CuEq (0.54 per cent Cu, 0.42 gram per tonne gold), including:
576 m at 0.93 per cent CuEq (0.61 per cent Cu, 0.51 g/t Au);
206 m at 1.32 per cent CuEq (0.75 per cent Cu, 0.92 g/t Au).
Hole 33-D1 has drilled across the orebody from northeast to southwest, intersecting intensely
mineralized diorite porphyry from 1,042 m to 1,161 m, and is continuing onward to test for extensions to
the west of a late mineralization D20 diorite dike. Assay results are pending.
Hole 36 has intersected an intensely mineralized diorite intrusion and is expected to extend the mineral
resource down dip and to the northeast.
Hole 41, drilled from the northeast side of the deposit and collared near the Parambas anomaly, has
intersected very shallow epithermal (low temperature) mineralized vein sets between 60 m and 100 m
depth. Additional porphyry style mineralization is interpreted at depth, on the northeast flank of the
Nine other holes (29-D4, 32-D3, 34-D1, 37, 38-D1, 39, 40, 41, 42 and 43) have yet to reach target depth.
Significant mineral resource extensions at Alpala are being targeted along the open margins of the
deposit and at depth.
ALPALA MINERAL RESOURCE STATEMENT AS OF JAN. 3, 2018
Resource Tonnage Grade Contained metal
category (Mt) Cu Au Cu Au CuEq
(%) (g/t) CuEq (%) (Mt) (Moz) (Mt)
+1.1% CuEq Indicated 70 1.1 1.3 1.8 0.7 2.8 1.2
Inferred 50 1.1 1.3 1.8 0.5 1.9 0.8
0.9 - 1.1% CuEq Indicated 50 0.7 0.5 1.0 0.3 0.9 0.5
Inferred 50 0.7 0.5 1.0 0.4 0.9 0.5
0.3 - 0.9% CuEq Indicated 310 0.4 0.2 0.5 1.2 2.3 1.6
Inferred 550 0.4 0.2 0.5 2.0 3.5 2.6
Total +0.3% CuEq Indicated 430 0.5 0.4 0.8 2.3 6.0 3.4
Inferred 650 0.4 0.3 0.6 2.9 6.3 4.0
The Aguinaga target is anticipated to be drilled using a man portable rig during the March quarter. A
series of three holes will test key elements of geochemical and geophysical anomalies:
Northeasterly and northwesterly oriented zones of strong molybdenum anomalism;
Coincident high copper/zinc, molybdenum, Cu and gold in soil geochemical highs;
A deep root in the magnetic model;
Coincident high chargeability and magnetic features, interpreted to be a magnetic,
chalcopyrite-rich potassic core to a porphyry system;
Vertically extensive cylindrical features in the chargeability and resistivity surveys.
Cost control at Cascabel
Cost control at Cascabel is proceeding according to plan. The 20,000 m drilled since November, 2017,
has been completed at a cost of $530/m. This is the result of scale efficiencies, use of directional drilling
technology (Devico) and increased rig supervision. To date, the use of daughter holes off a single
parent hole has saved over 12,000 m of drilling.
Rig to resource data protocol
Solgold is implementing a rig to resource data transfer protocol which provides for immediate
electronic recording of all drilling, surveying, logging and geochemical data as well as geophysical and
geological models and interpretations into files accessible by Solgold explorationists and Solgold's
independent consultants. This is being designed to enable regular resource statement upgrades, and
the provision of interpretable data in real time.
Information in this report relating to the exploration results is based on data reviewed by Jason
Ward (BSc, honours Geol), the chief geologist of the company. Mr. Ward is a member of the Australasian
Institute of Mining and Metallurgy, holds the designation MAusIMM (CP), and has in excess of 20 years
experience in mineral exploration, and is a qualified person for the purposes of the relevant London Stock Exchange and
Toronto Stock Exchange rules. Mr. Ward consents to the inclusion of the information in the form and context in which it
Solgold is a dual LSE- and TSX-listed (SOLG on both exchanges) copper-gold
exploration and future development company, based in Brisbane, Australia, with assets in Ecuador, Solomon Islands and Australia.
Solgold's primary objective is to discover and define world-class copper-gold deposits. The board and
management team have substantial vested interests in the success of the company as shareholders as
well as strong records in the areas of exploration, mine appraisal and development, investment,
finance, and law. Solgold's experience is augmented by state-of-the-art geophysical and modelling
techniques, and the guidance of porphyry copper and gold expert Dr. Steve Garwin.
We seek Safe Harbor.
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