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Solgold PLC
Symbol C : SOLG
Shares Issued 1,696,245,686
Close 2018-10-05 C$ 0.61
Recent Sedar Documents

Solgold drills 869 m of 0.72% CuEq at Cascabel

2018-10-05 07:45 ET - News Release

Also News Release (C-CGP) Cornerstone Capital Resources Inc (2)

Mr. Nick Mather of Solgold reports

CASCABEL EXPLORATION UPDATE ALPALA MINERAL RESOURCE UPDATE FOR DECEMBER 2018

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

Highlights

  • With over 124,000 metres of drill hole assays now received, a further 70,400 metres of drilling have been added to the existing Alpala maiden resource during 2018 of 5.2 million tonnes of copper (2.3 million tonnes indicated, 2.9 Mt inferred) and 12.3 million ounces of gold (six million oz indicated, 6.3 Moz inferred) (published, January, 2018).
  • Approximately 32,000 m of further drilling set to be completed at Alpala in 2018, significantly adding to the mineral resource estimate (MRE) update.
  • Updated mineral resource estimate projected for completion and release December, 2018. Recent drilling highlights include hole 55RD1 (869 m at 0.72 per cent copper equivalent, including 378 m at 1.17 per cent CuEq), hole 58D1 (983 m at 1.08 per cent CuEq, including 456 m at 1.71 per cent CuEq) and hole 66 (634 m at 1.25 per cent CuEq, including 301 m at 1.88 per cent CuEq and 174 m at 2.46 per cent CuEq open at depth).
  • Hole 66 intersects rich porphyry style mineralized zone containing visible gold.
  • Hole 64 intersects new zone containing primary bornite mineralisation at Alpala NW.
  • Assay turnaround reduced to three weeks.
  • Internal geology, grade and resource modelling indicates potential for significant growth in total metal inventory at Alpala at all cut-off grades.

Commenting on today's release, Solgold chief executive officer Nick Mather said: "The results from these latest drill holes are very encouraging, with several notable drill hole results outside the previous resource area, such as hole 64, which last week intersected primary bornite mineralization deep at Alpala NW.

"The 2018 drilling campaign at Alpala will add approximately 105,000 m of drilling to what we believe is already one of the top five undeveloped Cu-Au resources in the world. Initial results of internal modelling updates at the Alpala deposit suggest that an MRE update planned for release in December could deliver significant resource growth, and the conversion of a large amount of tonnage into the indicated category.

"We expect the MRE update to validate a far more robust high-grade core, and an additional (much shallower) second high-grade 'western lobe' extension to the high-grade core.

"The company continues to press its first-mover advantage in Ecuador. Its wider exploration efforts beyond Cascabel, that have only just scratched the surface, have yielded several very encouraging porphyry and epithermal targets, which we believe places Ecuador at the forefront of prospectivity."

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, an approximate three-hour drive north of Quito, close to water, power supply and Pacific ports. Solgold holds an 85-per-cent registered and beneficial interest in ENSA (Exploraciones Novomining SA) which holds 100 per cent of the Cascabel tenement.

Solgold is encouraged by the outstanding infill drilling results, which are expected to expand and enrich the existing high-grade resource. The company is also excited about notable drill hole results outside the previous resource area, such as hole 64, which last week intersected primary bornite mineralization deep at Alpala NW. The discovery of primary bornitechalcopyrite assemblages with magnetite and in the absence of pyrite, is indicative of the high-temperature core many porphyry systems, and warrants follow-up drill testing and may lead to unearthing further evidence of a second system adjacent to the Alpala deposit.

Hole 66 extended the high-grade core of the deposit toward the southeast at depth and intersected a zone of visible gold associated with porphyry style chalcopyrite and bornite mineralization. Very high gold grades in the core and periphery of the deposit at Alpala can be associated with related to intermediate to high sulphidation state sulphide mineral assemblage associated with a phyllic alteration overprint, and is a feature common in many of the world's richest porphyry deposits, like Oyu Tolgoi, Grasberg and Wafi Golpu.

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

A total of 12 drill rigs are currently in operation on the project, with the entire fleet moved back to Alpala in order to expedite drilling ahead of planned December mineral resource estimate. Secondary targets at Cascabel, including Aguinaga, Trivinio and Moran, are planned for drill testing as the Alpala resource development program allows.

The company is currently changing out two track-mounted drill rigs for manportable drill rigs, with the first replacement manportable now mobilized to site. The company is increasing its manportable portion of the Cascabel drill fleet to increase flexibility in rig movements and siting, as well achieving a higher metre rate at lower cost.

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 a contained metal content of 2.3 Mt Cu in the indicated category and 2.9 Mt Cu in the inferred category and 6.0 M oz Au in the indicated category, and 6.3 M oz Au in the inferred category (all at 0.3-per-cent CuEq cut-off).

An updated mineral resource estimate is expected to provide a significantly greater resource base for the project upon completion of approximately 14,000 m of further planned drilling in December, 2018. The company will assay 100 per cent of metres drilled (148,000 m) at the project, with 24,000 m of drilling currently awaiting assay results. The assay backlog is set to clear before December, 2018, with ALS Global having completed the commissioning of larger preparation facilities in Ecuador. Assay results for drilling on the Cascabel project are currently performed by ALS Global in Lima, Peru.

During September, 2018, BHP Billiton purchased a 6-per-cent stake in the company. Commenting at the time of the acquisition, BHP Billiton's chief executive officer noted that this investment would give BHP exposure to a high-quality copper exploration project in Ecuador, which is a highly prospective location for BHP, and that, consistent with its positive long-term outlook, copper is a key exploration focus for BHP as it seeks to replenish its resource base.

Qualified person

Information in this report relating to the exploration results is based on data reviewed by Jason Ward (CP, BSc, Geol), exploration manager global of the company. Mr. Ward is a fellow 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.

                       From       To  Interval    Cu      Au    CuEq   Cut-off       m%
Hole ID                   m        m         m     %     g/t       %    (CuEq%)   (CuEq)

CSD17030                658    1,158       500  0.55    0.25    0.71      0.50    355.0
CSD17030D1              532    1,074       542  0.37    0.22    0.51      0.20    276.4
                        736    1,560       824  0.54    0.42    0.80      0.30    659.2
CSD17033                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
CSD17033D1            1,040    1,186       146  1.09    0.99    1.71      0.30    249.7
                      1,048    1,154       106  1.31    1.29    2.13      1.00    225.8
                      1,398  2,004.7     606.7  0.45    0.25    0.61      0.20    370.1
CSD17036              1,490    1,844       354  0.59    0.34    0.81      0.30    286.7
CSD17037              1,380    2,222       842  0.35    0.15    0.44      0.20    370.5
CSD18036D1            1,574  2,226.7     652.7  0.34    0.11    0.41      0.20    267.6
                        914  1,827.7     913.7  0.47    0.40    0.72      0.10    657.9
CSD18041D1            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
                        926    1,779       853  0.52    0.62    0.91      0.20    776.2
CSD18041D1D2          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
CSD18042                620    1,124       504  0.92    0.58    1.28      0.40    645.1
                        312    1,110       798  0.32    0.24    0.47      0.10    375.1
CSD18042D2              312      614       302  0.45    0.50    0.76      0.20    229.5
                        600    1,574       974  0.48    0.37    0.71      0.10    691.5
CSD18043                932    1,410       478  0.64    0.61    1.02      0.50    487.6
                        850    1,700       850  0.49    0.28    0.66      0.10    561.0
CSD18049                872    1,316       444  0.60    0.38    0.83      0.30    368.5
                        440    1,486     1,046  0.35    0.21    0.48      0.10    502.1
CSD18051                826    1,302       476  0.53    0.36    0.75      0.30    357.0
                        542    1,604     1,062  0.69    0.52    1.02      0.20  1,083.2
CSD18055R             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
                        706  1,575.6     869.6  0.50    0.36    0.72      0.10    626.1
CSD18055RD1           1,060    1,438       378  0.75    0.67    1.17      0.40    442.3
                      1,140    1,252       112  1.07    1.05    1.73      0.80    193.8
                        500    1,478       978  0.64    0.95    1.24      0.20  1,212.7
CSD18057                814    1,376       562  0.85    1.37    1.72      0.40    966.6
                        892    1,196       304  1.15    2.18    2.52      1.00    766.1
                        636    1,702     1,066  0.43    0.23    0.58      0.20    618.3
CSD18058              1,040    1,288       248  0.72    0.51    1.04      0.70    257.9
                     684.15    1,668    983.85  0.73    0.56    1.08      0.10  1,062.6
CSD18058D1            1,178    1,634       456  1.10    0.96    1.71      0.50    779.8
                      1,178    1,516       338  1.17    1.08    1.85      0.80    625.3
                        796    1,122       326  0.84    0.37    1.08      0.10    352.1
CSD18060                802      996       194  1.28    0.54    1.61      0.30    312.3
CSD18061                830    1,328       498  0.33    0.15    0.43        na    214.1
                      1,056    1,554       498  0.46    0.41    0.72      0.20    358.6
CSD18062              1,136    1,410       274  0.58    0.62    0.97      0.50    265.8
CSD18063                640    1,314       674  0.36    0.16    0.46      0.20    310.0
                        870  1,503.8     633.8  0.74    0.81    1.25      0.20    792.3
CSD18066              1,202  1,503.8     301.8  1.06    1.30    1.88      0.70    567.4
                      1,330  1,503.8     173.8  1.36    1.73    2.46      1.00    427.5

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 by the "Mines and Money" forum as an example of excellence in the industry, and continue 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 and goldrich section of the Andean copper belt.

We seek Safe Harbor.

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