Mr. Nicholas Mather reports
EPITHERMAL GOLD TARGETS IDENTIFIED AT CISNE LOJA PROJECT
Solgold PLC has provided an update on exploration at its 100-per-cent-owned Cisne project in Loja, southern Ecuador. The prospect is held in the 100-per-cent-owned subsidiary
Green Rock Resources SA.
First pass stream sediment survey identifies several areas of strong gold mineralization
in the Cisne Loja concessions.
Follow-up of gold anomalies has led to the discovery of outcropping epithermal-style
alteration and mineralization with multiple episodes of quartz veining.
Similarities to the epithermal gold system at Fruta del Norte in southern Ecuador (14 million ounces -- Lundin Gold).
Numerous rock chip samples returned gold and silver greater than one gram per tonne Au with a best
rock sample result of 15.25 g/t Au and 23.6 g/t Ag.
Numerous areas of epithermal quartz veins with alteration exhibiting silica-kaolinite-quartz clay assemblages together with vuggy quartz indicate an intermediate
sulphidation epithermal environment.
Solgold continues to aggressively explore its extensive tenement portfolio in Ecuador with the goal of
becoming a Tier 1 copper-gold-producing company through discovery. Solgold operates multiple
regional field teams rapidly exploring 10 selected major mineralization centres over 73 regional
concessions held in four wholly owned Ecuadorean subsidiary companies. With this new discovery at
Cisne Loja, Solgold's exploration teams led by experienced geologists have now successfully defined
targets indicative of large mineralized porphyry Cu systems and/or epithermal gold systems in 10
The Cisne Loja project comprises three concessions (El Cisne 2A, El Cisne 2B and El Cisne 2C) with a total
land area of 14,672 hectares in Loja province in southern Ecuador. Solgold holds a 100-per-cent interest
in these three concessions through its Ecuadorean subsidiary company, Green Rock Resources SA. The
Cisne Loja project is located at the southern end of Ecuador's Miocene belt which also hosts the INV
Metals Loma Larga gold project.
The gold mineralization encountered is similar in style to the large 14-million-ounce Fruta del Norte project
(Lundin Gold) in Ecuador.
Exploration activities and results
Solgold has had field teams on the ground conducting reconnaissance stream and rock chip sampling,
mapping, and prospecting at the three Cisne Loja concessions since December, 2017. The attached table details the total number of samples collected at the Cisne Loja project to date.
SAMPLE TOTALS AT CISNE LOJA
Rock chip samples 178
Stream sediment samples 214
Panned heavy concentrate samples 139
The epithermal gold and silver mineralization is hosted in a lithic tuff unit that has been strongly altered
by sacharoidal quartz with minor goethite-hematite alteration. The dominant alteration assemblage
consists of silica, kaolinite and quartz clays. Alteration and quartz veining carrying the gold
mineralization have been mapped over an area of 2.5 kilometres by 1.5 km. Quartz veins occur in two main
orientations, northeast and east-west trending.
Results from initial rock chip samples identifying multiple strongly anomalous gold and silver results
greater than one g/t are found in the attached table. A program of gridded soil geochemistry is being planned to
help determine the extent of the epithermal system along with possible trenching and rock channel
sampling. Assay results have been provided by ALS Laboratories in Lima, Peru.
Solgold is targeting the discovery of a significant gold deposit at Cisne Loja based on the extensive
system and widespread ore grade encountered in sampling.
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 of
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
SIGNIFICANT ROCK CHIP RESULTS
Sample ID Au g/t Ag ppm
R03000453 15.25 23.60
R03000382 10.00 63.30
R03000353 9.29 33.40
R03000302 4.74 13.90
R03000476 4.58 14.65
R03000383 4.23 65.90
R03000424 2.88 44.30
R03000373 2.00 19.85
R03000388 1.96 12.60
R03000389 1.88 1.34
R03000408 1.81 1.35
R03000416 1.46 >100.00
R03000402 1.41 >100.00
R03000322 1.29 1.08
R03000404 1.18 8.71
R03000324 0.92 0.72
R03000473 0.91 1.38
R03000377 0.82 3.33
R03000303 0.81 2.97
R03000412 0.78 35.70
R03000454 0.76 >100.00
R03000371 0.75 2.63
R03000393 0.68 0.39
R03000398 0.64 >100.00
R03000379 0.61 13.75
* Rock samples taken from multiple zones
of epithermal veining over a combined
estimated true width of 860 m.
** Samples analyzed at ALS Peru.
*** > is overlimit assay result.
Solgold, based in Brisbane, Australia, is a dual London Stock Exchange- and Toronto Stock Exchange-listed (SOLG on both exchanges) copper-gold
exploration and future development company 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
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