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Solgold PLC
Symbol C : SOLG
Shares Issued 1,696,245,686
Close 2018-08-17 C$ 0.37
Recent Sedar Documents

Solgold drills 582 m of 1.18% CuEq at Cascabel

2018-08-20 07:39 ET - News Release

Mr. Benn Whistler reports

CASCABEL EXPLORATION UPDATE

Solgold PLC has provided an update on recent drilling at Alpala Central, at the company's Cascabel project in northern Ecuador.

Highlights:

  • Hole 41-D1-D2 (Alpala Central infill drilling):
    • 582 metres at 1.18 per cent copper equivalent (0.64 per cent Cu and 0.85 gram per tonne), including 340 m at 1.54 per cent CuEq (0.78 per cent Cu and 1.21 g/t Au);
  • Hole 63 (Alpala Extension drilling, western lobe): thus far over 170 m of significant visible copper sulphide mineralization, including intensely mineralized zones with visual estimates up to 15 per cent chalcopyrite. Drilling continues;
  • Hole 58-D1 (Alpala Extension drilling, northwestern margin): thus far over 640 m of visible copper sulphide mineralization, including visual estimates of up to 6 per cent chalcopyrite. Drilling continues;
  • Hole 55R-D1 (Alpala Extension drilling, northwestern margin): thus far over 480 m of visible copper sulphide mineralization, including visual estimates of over 3.5 per cent chalcopyrite. Drilling continues;
  • Hole 62 (Alpala Extension drilling, east margin): approximately 400 m of visible copper sulphide mineralization, including visual estimates of over 3.5 per cent chalcopyrite. Assay results pending;
  • Hole 65 currently encountering strong mineralization from 762 m depth to 832 m depth on the western lobe. Drilling continues.

Commenting on today's release, Benn Whistler, the company's technical services manager, said: "A major chunk of all the gold mined globally is sourced from porphyry deposits as a byproduct of their copper concentrates. The Alpala deposit already has 6.0 million ounces of gold in the indicated category, and 6.3 M oz of gold in the inferred category in addition to the 2.3 million tons of copper in the indicated category and 2.9 Mt of copper in the inferred category of the Alpala maiden resource published in January, 2018 (refer table B in the notes to editors for full details). The additional 83 kilometres of drilling completed since the initial resource estimate has provided robust infill drilling results like hole 57 which returned over 560 m at 1.7 per cent CuEq.

"More recently, hole 41-D1-D2 returned a similar result, and is one of several recent infill holes that traverse across the core of the deposit at declination angles as low as 43 degrees. These, and other drill holes, now updated into 3-D geological and grade models on site, confirm the core of the deposit to have uninterrupted true dimension of up to 750 m vertically, 700 m long and 300 m wide, at a cut-off grade of 1.5 per cent CuEq. The actual grade of this gold-rich internal core (to the larger deposit) will of course be significantly higher grade than the cut-off grade. Additional high-grade tonnage being defined along the western lobe, which lies in a slightly raised position, adjacent to the high-grade core, is very encouraging. The outstanding 17,000 m of planned drilling (at Alpala) will see 100 kilometres of further drilling incorporated into an updated MRE (mineral resource estimate) to provide an even stronger resource base for the project."

Further information

The Cascabel project is located on the northern section of the prolific Andean copper belt, renowned as the base for nearly half of the world's copper production. The project area hosts mineralization of Eocene age, the same age as numerous Tier 1 deposits along the Andean copper belt in Chile and Peru to the south. The project base is located at Rocafuerte in northern Ecuador, approximately three hours drive north of Quito, close to water, power supply and Pacific ports. Solgold holds an 85-per-cent interest in ENSA (Exploraciones Novomining SA) which holds 100 per cent of the Cascabel tenement.

A maiden mineral resource estimate (MRE) for the Alpala deposit, estimated from the initial 53,616 m of drilling and released in December, 2017, comprised:

  • 430 Mt at 0.8 per cent CuEq (at 0.3-per-cent-CuEq cut-off) in the indicated category and 650 Mt at 0.6 per cent CuEq (at 0.3-per-cent-CuEq cut-off) in the inferred category;
  • Contained metal content of 2.3 Mt Cu in the indicated category and 2.9 Mt Cu in the inferred category (both at 0.3-per-cent CuEq cut-off);
  • Contained metal content of 6.0 M oz Au in the indicated category and 6.3 M oz Au in the inferred category (both at 0.3-per-cent-CuEq cut-off).

A further 83 km (83,000 m) of drilling have been completed (of which assays are outstanding for approximately 7,800 m) since calculation of the maiden MRE, and significant resource growth is expected in a revised MRE. The company believes that assay results from infill and extension drilling at Alpala Central substantiate the existence of a larger and more robust high-grade core than estimated in the December, 2017, MRE. Recent drilling shows that early-stage diorite and quartz diorite intrusions, relatively richer in copper and gold, are far more continuous than previously modelled.

Current 3-D geological and grade models on site confirm the core of the deposit to have uninterrupted true dimensions of up to 750 m vertically, 700 m long and 300 m wide, at a cut-off grade of 1.5 per cent CuEq. The actual grade of the gold-rich internal core (to the larger deposit) is expected to be significantly higher grade than the cut-off grade.

An updated mineral resource estimate is expected to provide a significantly greater resource base for the project upon completion of approximately 17,000 m of planned drilling.

Solgold is encouraged by mineralization, high grade being encountered in drilling across the western lobe of Alpala, lying in an elevated position, adjacent to the high-grade core, whilst extension drilling along the northwest and east margins of the Alpala deposit continue to add growth to the overall extent of mineralization.

Drill hole assays have been received for 113,800 m of a total 136,600 m on the project. Approximately 7,800 m of drilling has assays pending, with 15,000 m accounted for as non-assayed top access holes.

Highlights of assay results expected to add to the existing MRE at Alpala are in the attached table.

Aguinaga drilling program

Aguinaga drilling is progressing with hole 11 under way. The drilling program at Aguinaga is in its early stages. As drilling progresses, the geometry and extent of mineralization are becoming more apparent, and Solgold geologists believe potential exists for continuing discoveries through further drilling.

A more detailed update on the Aguinaga drilling program will be forthcoming as assay results are received and initial interpretation work matures.

Qualified person

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

                               HIGHLIGHTS OF RECENT ASSAY RESULTS AT ALPALA

                         Depth from       Depth to    Interval         Cu       Au     CuEq     Cut-off         m%
Hole ID                           m              m           m          %      g/t        %      (CuEq%)     (CuEq)

                                658          1,158         500       0.55     0.25     0.71        0.50      355.0
CSD-17-030                      904          1,048         144       0.72     0.33     0.93        0.70      133.9
                                736          1,560         824       0.54     0.42     0.80        0.10      659.2
CSD-17-033                      850          1,426         576       0.61     0.51     0.93        0.40      535.7
                              1,218          1,388         170       0.81     1.07     1.48        0.70      251.6
                                732          1,336         604       0.51     0.34     0.73          na      440.9
CSD-17-033-D1                 1,040          1,186         146       1.09     0.99     1.71        0.30      249.7
                              1,398        2,004.7       606.7       0.45     0.25     0.61        0.20      370.1
CSD-17-036                    1,490          1,844         354       0.59     0.34     0.81        0.30      286.7
                              1,380          2,222         842       0.35     0.15     0.44        0.20      370.5
CSD-17-037                    1,644          1,842         198       0.55     0.30     0.74        0.40      146.5
                                998          1,754         756       0.53     0.47     0.82        0.30      619.9
CSD-18-041-0D1                1,282          1,668         386       0.70     0.79     1.19        0.50      459.3
                              1,346          1,598         252       0.86     1.07     1.53        1.00      385.6
                            1,017.9          1,449       431.1       0.41     0.24     0.56        0.30      241.4
CSD-18-041-D1-D1              1,202          1,449         247       0.45     0.33     0.65          na      160.6
                                926          1,779         853       0.52     0.62     0.91        0.20      776.2
                              1,048          1,630         582       0.64     0.85     1.18        0.30      686.8
CSD-18-041-D1-D2              1,112          1,630         518       0.68     0.93     1.27        0.40      657.9
                              1,172          1,512         340       0.78     1.21     1.54          na      523.6
                              1,310          1,456         146       1.04     2.03     2.32        1.00      338.7
                                448          1,176         728       0.75     0.50     1.06        0.30      771.7
                                620          1,124         504       0.92     0.58     1.28        0.40      645.1
CSD-18-042                      718          1,106         388       1.01     0.68     1.44        0.50      558.7
                                840          1,094         254       1.23     0.81     1.78        0.70      452.1
                                312          1,110         798       0.32     0.24     0.47        0.10      375.1
CSD-18-042-D2                   312            614         302       0.45     0.50     0.76        0.20      229.5
                                312            538         226       0.62     0.54     0.96          na      217.0
                                636          1,534         898       0.51     0.40     0.76        0.30      682.5
                                932          1,410         478       0.64     0.61     1.02        0.50      487.6
CSD-18-043                    1,090          1,408         318       0.70     0.73     1.16        0.70      368.9
                              1,108          1,268         160       0.90     1.06     1.56        1.00      249.6
                                530          747.8       217.8       0.50     0.23     0.65        0.30      141.6
CSD-18-048                      524            620          96       0.62     0.39     0.86        0.50       82.6
                                850          1,700         850       0.49     0.28     0.66        0.10      561.0
                                872          1,316         444       0.60     0.38     0.83        0.30      368.5
CSD-18-049                      882          1,150         268       0.77     0.56     1.12        0.60      300.2
                                890          1,010         120       1.01     0.88     1.57        1.00      188.4
                                714          1,408         694       0.43     0.28     0.61        0.20      423.3
                                826          1,302         476       0.53     0.36     0.75        0.30      357.0
CSD-18-051                    1,084          1,278         194       0.81     0.74     1.28        0.40      248.3
                              1,226          1,278          52       1.94     2.48     3.51        0.50      182.5
                                542          1,790       1,248       0.61     0.45     0.90        0.10     1123.2
                                542          1,604       1,062       0.69     0.52     1.02        0.20     1083.2
CSD-18-055R                   1,042          1,590         548       0.86     0.80     1.36        0.30      745.3
                              1,306          1,526         220       1.22     1.34     2.07        0.60      455.4
                                556          1,388         832       0.72     1.10     1.41        0.30     1173.1
                                814          1,376         562       0.85     1.37     1.72        0.40      966.6
CSD-18-057                      892          1,196         304       1.15     2.18     2.52        1.00      766.1
                              1,004          1,186         182       1.49     3.14     3.46        1.50      629.7
                                722          1,644         922       0.47     0.26     0.63        0.30      580.9
CSD-18-058                    1,040          1,288         248       0.72     0.51     1.04        0.70      257.9
                              1,140          1,264         124       0.86     0.59     1.23        1.00      152.5
                              1,270          1,346          76       0.53     0.28     0.71        0.50       54.0
                                796          1,122         326       0.84     0.37     1.08        0.10      352.1
                                802            996         194       1.28     0.54     1.61        0.30      312.3
CSD-18-060                      814            976         162       1.45     0.61     1.84        0.50      298.1
                                886            976          90       1.97     0.89     2.53        1.00      227.7

Data aggregation method: Intercepts reported using copper equivalent cut-off grades with up to 10 m internal 
                         dilution, excluding bridging to a single sample. Minimum intersection length 50 m. Gold 
                         conversion factor of 0.63 calculated from a copper price of $3 (U.S.) per pound and a gold 
                         price of $1,300 (U.S.)/oz. True widths of down hole interval lengths are estimated to be 
                         approximately 25 per cent to 50 per cent.

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.

                      ALPALA MINERAL RESOURCE STATEMENT AS OF DEC. 18, 2017
                                                                                              
                  Resource Tonnage 
                  category     (Mt)                                   Grade        Contained metal         
                                      Cu (%)   Au (g/t)   CuEq (%)   Cu (Mt)   Au (Moz)   CuEq (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      

Notes

* Martin Pittuck, MSc, CEng, MIMMM, is responsible for this mineral resource estimate and is an 
  independent qualified person as such term is defined in National Instrument 43-101.

* The mineral resource is reported using a cut-off grade of 0.3 per cent copper equivalent 
  calculated using (copper grade (per cent)) plus (gold grade (g/t) multiplied by 0.6) based on a 
  copper price of $2.80 (U.S.)/lb and gold price of $1,160 (U.S.)/oz.

* The mineral resource is considered to have reasonable potential for eventual economic extraction 
  by underground mass mining such as block caving.

* Mineral resources are not mineral reserves and do not have demonstrated economic viability.

* The statement uses the terminology, definitions and guidelines given in the CIM Standards on Mineral 
  Resources and Mineral Reserves (May, 2014).

* The MRE is reported on 100-per-cent basis.

* Values given in the table have been rounded, apparent calculation errors resulting from this are 
  not considered to be material.

* The effective date for the mineral resource statement is Dec. 18, 2017.

We seek Safe Harbor.

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