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Solgold PLC
Symbol C : SOLG
Shares Issued 1,696,245,686
Close 2018-07-18 C$ 0.435
Recent Sedar Documents

Solgold samples 617 g/t Au at Blanca Nieves

2018-07-18 07:58 ET - News Release

Mr. Nick Mather reports

REGIONAL EXPLORATION UPDATE 10 PRIORITY PROJECTS IDENTIFIED ACROSS ECUADOR SIGNIFICANT COPPER AND GOLD RESULTS CONTINUE TO BE RETURNED FROM BLANCA NIEVES, LA HUECA AND PORVENIR

Solgold PLC has provided an update from the company's regional exploration activities, particularly results from its 100-per-cent-owned La Hueca, Porvenir and Blanca Nieves projects.

Solgold's strategy to become a Tier 1 copper and gold producing company through aggressive exploration is continuing to yield exciting results. Initial exploration of Solgold's 72 regional concessions, across Ecuador, is nearing completion. Based on the results of this initial exploration, a list of 10 priority targets have been identified for second phase exploration.

Ecuador is located on the gold-rich section of the northern Andean copper belt and is renowned as the production base for nearly half of the world's copper. Large copper gold deposits of similar age elsewhere in the Andes include Escondida, El Salvador, Collahuasi, Chuquicamata and Alpala -- Solgold's 85-per-cent-owned Cascabel project.

Continuing exploration will focus on advancing these priority projects, through geophysical surveys and detailed soil geochemistry, with a view to progress to drill testing as soon as permissions are in place. All of the 10 projects are held within the company's 100-per-cent-owned subsidiaries: Carnegie Ridge Resources, Green Rock Resources, Cruz Del Sol SA and Valle Rico Resources.

The 10 priority projects are:

  • Blanca Nieves;
  • Rio Armarillo;
  • Cisne Loja;
  • Porvenir;
  • Timbara;
  • Chillanes;
  • Salinas;
  • Sharug;
  • La Hueca;
  • Cisne Victoria.

The company has already announced exciting initial results from the Blanca Nieves, La Hueca and Porvenir projects, and positive results continue to be returned.

Highlights:

  • Rock chip samples from the Cielito vein at the Blanca Nieves project return very high-grade gold mineralization:
    • 617 grams per tonne Au, 0.59 per cent copper, 317 g/t silver and 0.74 per cent zinc;
    • 542 g/t Au, 0.54 per cent Cu, 254 g/t Ag and 0.50 per cent Zn.
    • 6.27 per cent Cu, 0.29 g/t Au, 22.9 g/t Ag and over 1 per cent molybdenum;
    • 4.58 per cent Cu, 0.13 g/t Au, 14.6 g/t Ag and 0.16 per cent Mo;
    • 4.15 per cent Cu, 0.24 g/t Au, 16.1 g/t Ag and 0.28 per cent Mo;
    • 2.19 per cent Cu, 0.12 g/t Au, 9.11 g/t Ag and 0.02 per cent Mo.
  • Initial results from ridge and spur augur soil sampling at the Porvenir project are delineating a large 2.5-kilometre by two km copper porphyry target. Soil results of up to 0.42 per cent Cu are delineating a priority drill target.
  • Mapping and rock chip sampling at the Porvenir continues to return high-grade copper results with recent assay results including:
    • 8.65 per cent Cu, 0.19 g/t Au and 38.1 g/t Ag;
    • 6.64 per cent Cu, 0.09 g/t Au and 33.1 g/t Ag;
    • 5.10 per cent Cu, 0.05 g/t Au and 22.3 g/t Ag.
  • At Cisne Loja, Solgold has delineated a large, epithermal gold zone with rock chip values up to 15.25 g/t Au and 23.6 g/t Ag over a 2.5 km by 1.5 km zone (3.75 square km).
  • Geophysical surveys are planned for all 10 priority projects.

Commenting on today's regional update, Solgold's chief executive officer, Nick Mather, said: "Solgold has been convinced of Ecuador's prospectivity since the company commenced operations in 2012, and started seeing outstanding results from the Cascabel project. Utilizing its first-mover advantage and the Cascabel exploration blueprint, Solgold has been aggressively scouring the country for more world-class projects. Management is very excited to have been able to identify 10 priority 100-per-cent-owned projects, so far, that will progress to the next phase of exploration. Our high success rate has been achieved by operating multiple field teams utilizing a specialized method of rapid prospect recognition in each of our four, 100-per-cent-owned regional subsidiary companies. Solgold employs 42 experienced Ecuadorean geologists within these subsidiaries. Environmental and social teams work alongside the technical teams to ensure Solgold and its subsidiaries maintain a social licence to operate in order to rapidly progress these projects."

Exploration activities and results

Blanca Nieves

The Blanca Nieves project is located in northern Ecuador on the northern Eocene belt of the prolific Andean copper belt, immediately north of the Cascabel concession that hosts Solgold's flagship Cascabel copper-gold deposit. The project comprises two concessions (Blanca and Nieves) over 97 square km. Solgold holds a 100-per-cent interest in these two concessions through its Ecuadorean subsidiary company, Carnegie Ridge Resources SA.

High-grade epithermal-style gold mineralization has been identified over an interpreted 10 km long northwest-trending structural corridor linking both the Nieves and Blanca concessions. The Blanca Nieves epithermal gold veins are situated in a previously unrecognized corridor of gold mineralization highlighting once again the underexplored potential of the Ecuadorean section of the Andean copper-gold belt.

The rich epithermal gold mineralization is thought to be associated with large copper gold porphyry systems in the area including the Alpala deposit.

Cielito vein prospect

Hosted in volcanics and volcanic breccias showing weak quartz-pyrite-illite and chlorite-sericite alteration. Sampling of the intermediate sulphidation Cielito vein returned very high-grade gold mineralization (see "Significant results Cielito vein -- Blanca Nieves" table):

  • 617 g/t Au, 0.59 per cent Cu, 317 g/t Ag and 0.74 per cent Zn;
  • 542 g/t Au, 0.54 per cent Cu, 254 g/t Ag and 0.50 per cent Zn.

A ridge and spur auger soil program is under way traversing the projected trend of the epithermal structural corridor. Following the results of the geochemical sampling program, a targeted geophysical survey will be planned, and drill testing.

La Hueca

The La Hueca project is located in southern Ecuador and lies on the southern part of Ecuador's eastern Jurassic belt, which contains the Fruta del Norte epithermal gold deposit currently being developed by Lundin Gold, the Mirador porphyry copper deposit and the Santa Barbara porphyry gold-copper deposit. The Hueca project comprises three concessions over 160 square km and is 100 per cent owned by Solgold's subsidiary, Cruz del Sol SA.

As previously announced, Solgold's technical team has discovered an extensive new corridor of porphyry copper and gold mineralization at La Hueca project that also trends through the company's Porvenir and Timbara projects.

Target 6

Target 6 has returned strong copper, gold and molybdenum anomalism over a large area 1.25 km by 1.0 km. This new discovery by the Cruz del Sol team is significant due to k-feldspar, secondary biotite and chlorite-sericite hydrothermal alteration intensity, and the presence of chalcopyrite, molybdenite and bornite. A- and B-type quartz veins are also present at variable density. Geochemical high Cu-Mo results are significant (see "Significant results -- Target 6 -- La Hueca" table), and they are dispersed over an extensive area.

Best rock chip results from Target 6 include:

  • 6.27 per cent Cu, 0.29 g/t Au, 22.9 g/t Ag and over 1 per cent Mo;
  • 4.58 per cent Cu, 0.13 g/t Au, 14.6 g/t Ag and 0.16 per cent Mo;
  • 4.15 per cent Cu, 0.24 g/t Au, 16.1 g/t Ag and 0.28 per cent Mo;
  • 2.19 per cent Cu, 0.12 g/t Au, 9.11 g/t Ag and 0.02 per cent Mo.

A program of gridded auger soil sampling is under way at Target 6 to further delineate drilling targets. Geophysical surveys are also planned over the La Hueca project.

Porvenir

The Porvenir project is also located in southern Ecuador and lies on the southern part of Ecuador's eastern Jurassic belt. The concession covers 244 square km and is owned by the company's 100-per-cent-owned subsidiary, Green Rock Resources SA.

Stream sediment, mapping and rock chip sampling programs at the Porvenir project delineated two porphyry copper prospect areas within the larger six km by 5.5 km stream anomaly, the Derrumbo and Bartolo prospects.

A program of ridge and spur auger soil sampling is currently under way with initial auger soil results having identified a 2.5 km by two km zone of strong copper anomalism. Initial multielement soil geochemistry is delineating a strongly zoned porphyry copper target with copper-in-soil values of up to 0.42 per cent Cu. Follow-up mapping has confirmed mineralization in outcrop, with best rock chip results including:

  • 8.65 per cent Cu, 0.19 g/t Au and 38.1 g/t Ag;
  • 6.64 per cent Cu, 0.09 g/t Au and 33.1 g/t Ag;
  • 5.10 per cent Cu, 0.05 g/t Au and 22.3 g/t Ag;
  • 4.27 per cent Cu, 0.09 g/t Au and 14.6 g/t Ag.

Auger soil programs are continuing and infill programs are planned to delineate drill targets. Geopysical surveys are also planned over the Bartolo and Derrumbo prospects.

Cisne Loja

The Cisne Loja project is located in the south-central region of Ecuador. Cisne Loja covers 147 square km and is owned by the company's 100-per-cent-owned subsidiary, Green Rock Resources SA.

First-pass stream sediment surveys have identified several large areas of strong gold mineralization across the tenement. Recent follow-up of gold anomalies has led to the discovery of outcropping epithermal-style alteration and mineralization over an area of 2.5 km by 1.5 km with several episodes of quartz veining, which shows similarities to the epithermal gold system at Fruta del Norte in southern Ecuador.

Numerous areas of epithermal quartz veins with alteration exhibiting silica-kaolinite-quartz clay assemblages together with vuggy quartz indicate an intermediate to low sulphidation epithermal environment.

Numerous rock chip samples have returned gold and silver results greater than one g/t Au with a best rock chip sample of:

  • 15.25 g/t Au and 23.6 g/t Ag.

Further detailed mapping, sampling and trenching are planned along with a geophysical survey, prior to drill testing.

Timbara

The Timbara project is located in Ecuador's eastern Jurassic belt which hosts the Fruta del Norte epithermal gold deposit (14 million ounces Au), the Mirador copper porphyry deposit (three million tonnes Cu) and the Santa Barbara copper-gold porphyry deposit (eight million ounces Au). The concessions cover 151 square km and are owned by the company's 100-per-cent-owned subsidiary, Green Rock Resources.

Results from rock chip samples collected during stream reconnaissance programs at Timbara include:

  • 28.89 per cent Cu and over 100 g/t Ag;
  • 4.00 per cent Cu and over 100 g/t Ag;
  • 2.94 per cent Cu;
  • 2.32 per cent Cu.

The location and orientation of mineralized veins may represent a continuation of the highly prospective porphyry corridor identified at Solgold's La Hueca project.

Initial exploration programs are continuing.

Rio Amarillo

Located in northern Ecuador on the prolific Andean copper belt near Solgold's world-class Cascabel project, the three Rio Armarillo concessions cover an area of 123 square km.

Two main prospects have been identified in both Rio Armarillo 1 and 2: the Chilanes and the Pugaran prospects.

Chilanes consists of an extensive lithocap with surrounding strong stream sediment anomalies. The lithocap measures approximately 2.4 km by 2.4 km. It consists of crackle and hydrothermal breccias, with silca-clay and advanced argillic alteration, typical of the upper levels of a porphyry system.

Pugaran hosts abundant B-type veins and zones of strong copper mineralization. It represents a 250 m long outcrop of copper mineralization consisting of B-type veins with pyrite, chalcopyrite, chalcocite and bornite. K-alteration overprinted by phyllic alteration.

The next stage of exploration at Rio Armarillo project will start with detailed auger soil program over the Chilanes lithocap in Rio Armarillo 2 concession and geophysical surveys covering the entire project, to enable drill target selection.

Chillanes

The Chillanes project is located in the Miocene belt in central Ecuador. The concession covers 48 square km and is owned by the company's 100-per-cent-owned subsidiary, Green Rock Resources SA.

Whilst initial exploration is yet to be completed over the entire concession, early results are very encouraging. Stream sediment geochemical sampling has return the highest copper results from any Solgold project in Ecuador with best results including 1,140 parts per million Cu and 1,110 ppm Cu. Detailed follow-up mapping and rock chip sampling are continuing with the best rock chip assay returned to date of 1.42 per cent Cu.

Hydrothermal alteration consists of phyllic alteration with abundant chalcopyrite and pyrite with lesser chalcocite and bornite mapped in outcrop.

Following the completion of initial anaconda mapping, a program of auger soil geochemistry will be carried out to delineate priority drill targets.

Cisne Victoria

The Cisne Victoria project is located in southeastern Ecuador. The concession covers 170 square km and is owned by the company's 100-per-cent-owned subsidiary, Cruz del Sol SA.

Numerous prospects have been discovered during Solgold's initial geochemical stream sampling. Significant alteration and mineralization have been identified that are indicative of a large porphyry system.

The best result includes a seven m continuous channel chip sample that returned:

  • Seven m at 2.29 per cent Cu, 0.73 g/t Au and 8.83 g/t Ag.

The initial first-pass exploration is continuing to define the extent of the copper mineralization and locate new prospects.

  SIGNIFICANT RESULTS CIELITO VEIN -- BLANCA NIEVES

Sample ID     Cu %   Au ppm   Ag ppm   Te ppm   Zn ppm

R01000436   0.5810      269      133      222    1,950
R01000437   0.0699     66.7       32     72.9    1,540
R01000439   0.0112     18.3      1.3    17.35      104
R01000440   0.0110     27.2     1.34    19.85       96
R01000441   0.0331     23.2     1.87     28.1      237
R01000468   0.0099     3.58     0.57     0.25       42
R01000562   0.5900      617      317     >500    7,480
R01000563   0.1270    116.5     64.9    143.5    1,380
R01000564   0.5480      542      254     >500    5,060

          SIGNIFICANT RESULTS -- TARGET 6 -- LA HUECA

Sample ID         Au ppm      Ag ppm        Cu ppm       Mo ppm

R02000802          0.289        22.9        62,710      >10,000
R02000785          0.132       14.65        45,830        1,570
R02000768          0.235        16.1        41,500        2,820
R02000784          0.124        9.11        21,870        194.5
R02000774          0.284        5.96        19,560         87.6
R02000783          0.213        3.49        18,720         57.9
R02000781          0.166       10.65        16,540        2,180
R02000782           0.16        5.49        13,940          208
R02000685          0.299        7.71        13,080        19.95
R02000760          0.351        5.59        12,300         7.18
R02000856          0.173         3.5        11,190          373
R02000669          0.388        7.29        10,850         19.2
R02000773          0.019        3.73         9,580         18.9
R02000801          0.032        2.31         8,340          186
R02000772          0.105        4.13         7,870        152.5
R02000653          0.389        4.08         6,470         0.79
R02000681           0.07        3.97         6,450         6.98
R02000832          0.107        1.37         6,310        199.5
R02000846          0.162        2.14         6,270          213
R02000777          0.123        3.42         5,930         23.9
R02000753           0.04           1         5,730         2.67
R02000836          0.092         1.3         5,480           93
R02000860          0.065        1.71         5,450          157
R02000817          0.032        3.22         5,340          899
R02000843          0.103        1.34         5,080          322
R02000794          0.033        1.65         5,060          127

      SIGNIFICANT ROCK CHIP RESULTS PORVENIR

               Cu       Au      Ag       Cu     Mo
Sample ID       %      ppm     ppm      ppm    ppm

R03000875   8.651    0.189    38.1   86,510    9.65
R03000696   6.636    0.094    33.1   66,360     523
R03000699   5.101    0.056    22.3   51,010    76.8
R03000588   4.267    0.094   14.55   42,670    1.59
R03000860   2.084    0.032     6.8   20,840   17.35
R03000587   1.579    0.068    5.75   15,790      88
R03000863   1.451    0.012    4.81   14,510    48.8
R03000878   1.308    0.059    6.81   13,080    8.12
R03000592   1.299    0.246    2.69   12,990   160.5
R03000854   1.074    0.018    5.55   10,740   189.5
R03000697   0.936    0.111    5.57    9,360     254
R03000866   0.906    0.01     3.18    9,060    42.4
R03000618   0.846    0.024    0.62    8,460    7.37
R03000864   0.751    0.037    3.03    7,510    89.2
R03000599   0.647    0.007    2.42    6,470    34.2
R03000852   0.620    0.022    2.10    6,200      70
R03000616   0.598    0.09     0.90    5,980     147
R03000879   0.523    0.02     2.12    5,230    83.4

Qualified person

Information in this report relating to the exploration results is based on data reviewed by Jason Ward (CP, BSc, 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 appears.

About Solgold PLC

Solgold is a leading exploration company focused on the discovery and definition of world-class copper and gold deposits. In 2017 Solgold's management team was recognized as an example of excellence in the industry, and continues to strive to deliver objectives efficiently and in the interests of shareholders. Solgold is the largest and most active concession holder in Ecuador and is aggressively exploring the length and breadth of this highly prospective section of the Andean copper belt.

We seek Safe Harbor.

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