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Solgold PLC
Symbol C : SOLG
Shares Issued 1,837,012,007
Close 2019-04-09 C$ 0.66
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Solgold drills 1,918 m of 0.53% CuEq at Cascabel

2019-04-10 06:10 ET - News Release

Mr. Nick Mather reports

SOLGOLD PLC ANNOUNCES CASCABEL EXPLORATION UPDATE

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

Highlights:

  • 2019 drilling campaign along the greater Alpala trend providing further growth to the Alpala deposit at Alpala NW, Trivinio, Alpala Western Limb and Alpala South:
    • 189,984 metres of diamond drilling comprising 168 drill holes completed to date on the Alpala deposit, representing a further 56,408 m of drilling completed since release of MRE No. 2 with 6,654 m of recent drilling with assay results pending;
  • Updates to in-house models, estimated from the additional 49,794 m of assay results received since release of MRE No. 2, support expectations for additional resource growth across both indicated and inferred categories;
  • Discoveries of previously unknown high-grade (greater than 1.5 per cent copper equivalent) and medium grade (greater than 0.7 per cent CuEq) mineralization intersected within existing low-grade inferred resource areas at Alpala highlight continuing upgrades to existing resource base at Trivinio (hole 93), Alpala North (hole 75), Alpala Northwest (hole 86) and Alpala South (hole 89);
  • Drilling highlights:
    • Potential at Trivinio bolstered by hole 93 intersection (862 m at 0.43 per cent CuEq), 520 m of which lies outside the existing inferred resource area;
    • Alpala North mineralization remains open to the north, as shown by hole 75 intersection (1,918 m at 0.53 per cent CuEq), 288 m of which lies outside the existing inferred resource area;
    • Discovery of previously unknown QD10 source intrusion at Alpala Northwest, intersected in hole 86 (318 m at 0.67 per cent CuEq including 100 m at 1.34 per cent CuEq), highlights potential for further significant resource extension as the 2019 drilling campaign continues;
    • Alpala South mineralization remains open to the south and toward surface, as revealed by hole 89 intersection (420 m at 0.61 per cent CuEq);
  • Geotechnical, hydrogeological and sterilization drill testing commences at Cascabel, ahead of release of preliminary economic assessment report.

Nick Mather, chief executive officer of Solgold, stated, "The drilling campaign continues to deliver to our expectations with these latest results revealing previously unknown mineralization and providing a clear indication of the growth potential that exists through the extension of the Alpala resource."

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.

Solgold is encouraged by recent resource upgrade drilling results, expected to further enrich the existing resource base at Alpala. The company is also excited about resource extension drill hole results outside the previous resource area which promise further growth for the 2019 drilling campaign ahead.

Mineral resource extension and upgrade -- 2019 drilling campaign

The 2019 drilling campaign at Cascabel is presently utilizing 10 drilling rigs. The drilling fleet currently has three rigs focused on resource upgrade drilling (rigs 2, 5 and 7), five rigs focused on resource extension drilling (rigs 3, 4, 6, 8 and 9) and two rigs focused on geotechnical, hydrogeological and sterilization drilling (rigs 1 and 13).

A further two man-portable rigs (rigs 14 and 15) are under final construction and upgrade phase at the HP Drilling workshops, and are scheduled to join the Cascabel drilling fleet in May, 2019, to expedite geotechnical and hydrogeological drill testing, as well as continuing monitoring programs.

Continuing drilling, along the greater Alpala trend, is providing further growth to the Alpala mineral resource estimate at Alpala NW, Trivinio, Alpala Western Limb and Alpala South.

Recent drilling supports expectations for future resource growth across both indicated and inferred categories.

The current in-house database is built from 183,330 m of drill core samples, the same number of rock-saw trench samples. This represents an additional 49,754 m of diamond drilling since the release of the updated mineral resource estimate of January, 2019 (MRE No. 2).

To date a current total of 189,984 m of diamond drilling comprising 168 drill holes has been completed on the Alpala deposit, including 109 drill holes (holes 1 to 109), 36 daughter holes, eight redrills and 17 overruns. This represents a further 56,408 m of drilling completed since the release of MRE No. 2. There are also outstanding assay results pending from 6,654 m of recent drilling.

Discoveries of previously unknown high-grade (greater than 1.5 per cent CuEq) and medium grade (greater than 0.7 per cent CuEq) mineralization intersected within existing low-grade inferred resource areas at Alpala highlight potential for upgrades to the existing resource base at Trivinio (hole 93), Alpala North (hole 75), Alpala Northwest (hole 86) and Alpala South (hole 89).

The potential for resource expansion at Trivinio is bolstered by hole 93 intersection (862 m at 0.43 per cent CuEq), 520 m of which lies outside the existing inferred resource area.

Alpala North targets remain open to the north, as shown by hole 75 intersection (1,918 m at 0.53 per cent CuEq), 288 m of which lies outside the existing inferred resource area.

Discovery of previously unknown QD10 source intrusion at Alpala Northwest, intersected in hole 86 (318 m at 0.67 per cent CuEq including 100 m at 1.34 per cent CuEq), highlights potential for further resource extension as the 2019 drilling campaign continues.

Alpala South mineralization remains open to the south and toward surface, as revealed by hole 89 intersection (420 m at 0.61 per cent CuEq).

Geotechnical, hydrogeological and sterilization drill testing has commenced at Cascabel, ahead of the release of the preliminary economic assessment report.

January, 2019, mineral resource estimate

In January, 2019, an updated Alpala deposit mineral resource estimate (MRE No. 2) and an independent National Instrument 43-101 report on the Alpala deposit was completed. MRE No. 2 was estimated from 133,576 m of diamond drilling, and 2743 m of rock-saw samples from 262 surface rock exposure trenches.

MRE No. 2, using a 0.2-per-cent CuEq cut-off grade, currently includes:

  • 2.05 billion tonnes at 0.60 per cent CuEq in the indicated category (8.4 million tonnes Cu and 19.4 million ounces Au);
  • 900 million tonnes at 0.35 per cent CuEq in the inferred category (2.5 million tonnes Cu and 3.8 million ounces Au).

Within the deposit a medium-grade core exists, using a 0.45-per-cent CuEq cut-off grade, including:

  • 810 million tonnes at 1.03 per cent CuEq in the indicated category (5.4 million tonnes Cu, 15 million ounces Au);
  • 150 million tonnes at 0.65 per cent CuEq in the inferred category (700,000 tonnes Cu and 1.2 million ounces Au).

Using a 0.7-per-cent CuEq cut-off grade, MRE No. 2 includes:

  • 490 million tonnes at 1.37 per cent CuEq in the indicated category (4.1 million tonnes Cu and 13.0 million ounces Au);
  • 50 million tonnes at 0.93 per cent CuEq in the inferred category (400,000 tonnes Cu and 700,000 ounces gold Au).

A high-grade core forms the lower centre of the deposit, using a 0.9-per-cent CuEq cut-off grade, including:

  • 400 million tonnes at 1.49 per cent CuEq in the indicated category (3.6 million tonnes Cu and 11.9 million ounces Au);
  • 20 million tonnes at 1.05 per cent CuEq in the inferred category (200,000 tonnes Cu and 400,000 ounces gold Au).

The full NI 43-101 technical report entitled "A Technical Report on an Updated Mineral Resource Estimate for the Alpala Deposit, Cascabel Project, Northern Ecuador," can be found at the company's website.

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