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Solgold PLC
Symbol C : SOLG
Shares Issued 1,696,245,686
Close 2018-11-19 C$ 0.61
Recent Sedar Documents

Solgold pegs Alpala at 19.4 million oz Au indicated

2018-11-20 07:52 ET - News Release

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

Mr. Nick Mather of Solgold reports

ALPALA MINERAL RESOURCE ESTIMATE DOUBLES SINCE DEC 2017

Solgold PLC has provided an update on the mineral resource estimate at the company's Alpala porphyry copper-gold deposit in northern Ecuador.

Highlights:

  • Alpala updated mineral resource estimate (MRE) totals a current:
    • 2,050 million tonnes at 0.60 per cent copper equivalent (CuEq) (at 0.2-per-cent CuEq cut-off) in the indicated category, and 900 million tonnes at 0.35 per cent CuEq (at 0.2-per-cent CuEq cut-off) in the inferred category;
    • Contained metal content of 8.4 Mt Cu and 19.4 Moz Au in the indicated category;
    • Contained metal content of 2.5 Mt Cu and 3.8 Moz Au in the inferred category.
  • Alpala updated MRE across both indicated and inferred classifications equates to a current 2.95 billion tonnes at 0.52 per cent CuEq (15.4 Mt CuEq) containing 10.9 Mt Cu and 23.2 Moz Au at 0.2-per-cent CuEq cut-off, 79 per cent of which is in the indicated category (by metal content);
  • 420 Mt high-grade core at 1.47 per cent CuEq (6.1 Mt CuEq) containing 3.8 Mt Cu and 12.3 Moz Au at 0.9-per-cent CuEq cut-off, 97 per cent of which is in the indicated category (by metal content);
  • MRE reported using a cut-off grade of 0.2 per cent CuEq, reflecting the reasonable potential for economic extraction by high production rate mass mining methods such as block caving;
  • Increase in overall reported resource of 108 per cent (by metal content) from 7.4 Mt CuEq in December, 2017, maiden MRE (0.3-per-cent CuEq cut-off) to current 15.4 Mt CuEq (0.2-per-cent CuEq cut-off);
  • Increase in resource of 77 per cent (by metal content) from 7.4 Mt CuEq to 13.1 Mt CuEq since December, 2017, maiden MRE (1.08 Bt at 0.68 per cent CuEq, 7.4 Mt CuEq at 0.3-per-cent cut-off grade, 40 per cent indicated);
  • Increase in high-grade resource size of 99 per cent (by metal content) from 3.1 Mt CuEq to 6.1 Mt CuEq since December, 2017, maiden MRE (220 Mt at 1.44 per cent CuEq, 3.1 Mt CuEq at 0.9-per-cent cut-off grade, 55 per cent indicated);
  • Potential for further growth with the 2019 drilling campaign to continue to expand the deposit at Alpala SE, Alpala NW, Trivinio and Alpala Western Limb.

Commenting on today's release, Solgold CEO, Mr Nick Mather said:

"We are very happy with the rapid and inexorable growth of this resource and progression of the Alpala project. The high-grade, gold-rich core of the deposit now contains double the copper and gold at a higher grade than in December, 2017. The high-grade resource has increased in size by 99 per cent at a 0.96-per-cent CuEq cut-off to 420 Mt at 1.47 per cent CuEq. Over all, the resource metal content has increased by 77 per cent at a 0.3-per-cent copper equivalent cut-off and by 108 per cent at a 0.2-per-cent copper equivalent cut-off.

"The project has approximately 950 Mt at 0.97 per cent CuEq for 6.1 Mt copper and 16.2 Moz gold, significantly exceeding the generally held requirement of 750 Mt at at a grade of at least 0.9 per cent copper equivalent for Tier 1 status for both copper and gold projects worldwide. Alpala has got more to grow yet and we are pursuing that aggressively over the coming months.

"The preliminary economic analysis (PEA) is advancing and feasibility studies will follow seamlessly. Our aim is to fast-track towards development.

"Solgold's project is Ecuador. We have secured 100-per-cent interest in 11 other high-priority copper gold targets throughout the 750-kilometre length of Ecuador and our aim is to define a pipeline of Tier 1 and world-class copper gold projects along a 750 km stretch of the most neglected sector of the Andean copper belt, the world's most prolific copper province. We aim to drill test these as soon as possible. The skills we've developed at Alpala will make the next generation of Solgold's discoveries even faster and more efficient.

"Solgold holds the most extensive and best selected position over 72 licences, covering 11 major targets, as a result if our first mover advantage four years ago in Ecuador. Ecuador covers the same extent, age and gross geology as you see in northern Chile, which covers 25 per cent of the world's copper resources.

"Alpala is just the beginning for Solgold and we can see the emergence of the company as a copper gold major and Ecuador becoming one of the world's largest copper producers as a result.

"Global electrification is driving copper demand and 'copper is the new iron ore.' It's a global must have.

"I take this opportunity to thank our staff, all 450 of them, 97 per cent Ecuadorean, the local communities and our award-winning management team for delivery of this resource upgrade; and offer the boards thanks to shareholders and investors, most recently BHP, for the support required to date."

Further information

The Alpala deposit is located in northern Ecuador, lying upon 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 is a 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.

November, 2018, Alpala mineral resource estimate

The November, 2018, Alpala MRE update, dated Nov. 15, 2018, was estimated from 68,173 assays, with 66,739 assays representing diamond drill core samples, and 1,434 assays representing rock-saw channel samples cut from surface rock exposures. Drill core samples were obtained from total of 133,576 metres of drilling comprising 128 diamond drill holes, including 75 drill holes (holes 1 to 75), 34 daughter holes, eight redrills and 11 overruns, and represents full assay data from holes 1 to 67 and partial assay data received from holes 68 to 75. Rock-saw samples were obtained from 2,743 m of rock-saw cuts from 262 surface rock exposure trenches. In contrast, the December, 2017, maiden MRE was estimated from 26,814 assays obtained from 53,616 m of drilling comprising 45 drill holes (holes 1 to 33) including 10 daughter holes and five redrills.

There now exists approximately triple the amount of drilling and assay information since the maiden MRE of December, 2017, and this has resulted in significant growth in tonnage (approximately 273 per cent) and contained metal (approximately 108 per cent) and a far greater proportion of the MRE now being in the indicated mineral resource category (2018: 77 per cent, 2017: 40 per cent).

The November, 2018, Alpala updated mineral resource estimate (MRE) totals a current:

  • 2,050 Mt at 0.60 per cent CuEq (at 0.2-per-cent CuEq cut-off) in the indicated category, and 900 Mt at 0.35 per cent CuEq (at 0.2-per-cent CuEq cut-off) in the inferred category;
  • Contained metal content of 8.4 Mt Cu and 19.4 Moz Au in the indicated category;
  • Contained metal content of 2.5 Mt Cu and 3.8 Moz Au in the inferred category.

Alpala updated MRE across both indicated and inferred classifications equates to a current 2.95 Bt at 0.52 per cent CuEq (15.4 Mt CuEq) containing 10.9 Mt Cu and 23.2 Moz Au at 0.2-per-cent CuEq cut-off, 79 per cent of which is in the indicated category (by metal content) (see attached tables).

The Alpala deposit includes a 420 Mt high-grade core at 1.47 per cent CuEq (6.1 Mt CuEq) containing 3.8 Mt Cu and 12.3 Moz Au at a 0.9-per-cent CuEq cut-off, 97 per cent of which is in the indicated category (by metal content).

The November, 2018, MRE update is reported using a cut-off grade of 0.2 per cent copper equivalent (CuEq) which Solgold and SRK Consulting consider to be reasonable, reflecting the potential for economic extraction by high production rate mass mining methods such as block caving. The central portions of the deposit present an opportunity for early extraction of higher grade material.

The updated MRE is presented on a 100-per-cent basis and has an effective date of Nov. 7, 2018. It represents an overall reported resource increase of 108 per cent (by metal content) from 7.4 Mt CuEq in December, 2017, maiden MRE (at a cut-off of 0.3 per cent CuEq) to the current 15.4 Mt CuEq (at a cut-off of 0.2 per cent CuEq).

          OVERALL MINERAL RESOURCE STATEMENT FOR THE ALPALA COPPER-GOLD DEPOSIT

                                                                        Contained metal
                                                              Grade
Grade               Resource   Tonnage                                            Au   CuEq
category            category       (Mt)   Cu (%)   Au (g/t) CuEq (%) Cu (Mt)   (Moz)   (Mt)

Total +0.2% CuEq   Indicated     2,050     0.41       0.29     0.60     8.4    19.4   12.2
                    Inferred       900     0.27       0.13     0.35     2.5     3.8    3.2

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 0.2 per cent copper equivalent 
calculated using (copper grade (per cent)) plus (gold grade (g/t) multiplied by 0.63).

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 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 Nov. 7, 2018.

The date of completion of the mineral resource statement is Nov. 16, 2018.

 
    MINERAL RESOURCE STATEMENT FOR THE ALPALA COPPER-GOLD DEPOSIT EXPRESSED BY A RANGE IN COPPER-
                                     EQUIVALENT CUT-OFF GRADES

                                                                                    Contained metal
Cut-off                                           Grade
  grade       Resource    Tonnage                             CuEq         Cu         Au       CuEq
(% CuEq)      category        (Mt)     Cu (%)   Au (g/t)        (%)       (Mt)      (Moz)       (Mt)

0.10         Indicated      2,460       0.36       0.26       0.52        8.9       20.2       12.9
0.15         Indicated      2,290       0.38       0.27       0.55        8.8       19.9       12.7
0.20         Indicated      2,050       0.41       0.29       0.60        8.4       19.4       12.2
0.30         Indicated      1,500       0.49       0.37       0.73        7.4       17.8       10.9
0.45         Indicated        810       0.66       0.57       1.03        5.4       15.0        8.3
0.70         Indicated        490       0.84       0.83       1.37        4.1       13.0        6.7
0.90         Indicated        400       0.90       0.93       1.49        3.6       11.9        5.9
1.10         Indicated        200       1.13       1.36       1.99        2.2        8.7        3.9
1.50         Indicated        120       1.35       1.77       2.47        1.7        7.0        3.0
0.10          Inferred      1,380       0.22       0.11       0.28        3.0        4.7        3.9
0.15          Inferred      1,140       0.24       0.12       0.32        2.8        4.3        3.6
0.20          Inferred        900       0.27       0.13       0.35        2.5        3.8        3.2
0.30          Inferred        490       0.34       0.16       0.45        1.7        2.5        2.2
0.45          Inferred        150       0.49       0.26       0.65        0.7        1.2        1.0
0.70          Inferred         50       0.67       0.41       0.93        0.4        0.7        0.5
0.90          Inferred         20       0.72       0.52       1.05        0.2        0.4        0.2
1.10          Inferred         10       0.76       0.70       1.20        0.1        0.1        0.1
1.50          Inferred          -          -          -          -          -          -          -

Refer to the explanation for the "Overall mineral resource statement for the Alpala copper-gold 
deposit" table for description and qualifications that pertain to the resource statement.

The mineral resource statement will be supported by a full National Instrument 43-101 technical report filed by Jan. 4, 2019, and is accompanied by grade tonnage curves for overall resource (indicated plus inferred) as well as individual charts for the indicated and inferred categories.

The company believes here remains strong potential for further growth with the 2019 drilling campaign to continue to expand the deposit at Alpala SE, Alpala NW, Trivinio and Alpala Western Limb.

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 fellow of the Australasian Institute of Mining and Metallurgy, holds the designation FAusIMM (CP), and has in excess of 20 years of experience in mineral exploration and is a qualified person for the purposes of the relevant LSE and TSX 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. Solgold is the largest and most active concession holder in Ecuador and is aggressively exploring the length and breadth of this highly prospective, but underexplored, and gold-rich section of the Andean copper belt. Solgold aims to bring Alpala in to production, and build a copper gold major in the process.

We seek Safe Harbor.

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