The eagerly awaited Maiden MRE has finally arrived and I don’t think there is one person out there that expected 1billion tonnes+ with the first report. It’s testament to management’s dedication and speed in getting the Cascabel project explored quickly and extensively. With Copper prices strengthening and China manufacturing looking firm, the future bodes well for SOLG.
As previously mentioned on TheShareHub – the MRE will be updated as further assays come in. With over 12 rigs in play now, the company is likely to be delivering market updates on a regular basis. 2018 looks like being another transformational year for SOLG and I suspect the super majors will be keeping a close eye on progress. The all important PEA (Preliminary Economic Assessment) of the deposit at Alpala, and the commencement of the PFS (pre-Feasibility Study) will come later in 2018 and the market is likely to pay much closer attention to that news than today’s MRE. It’s also worth noting that the recent placing at 25p has likely placed a bit of a drag on the share price as many of the syndicate banks offload unwanted stock into the market. This overhang should be cleared in the not-too distant future. Concerns over future funding will always be evident with a non producing outright explorer like SOLG. However, funding is in place to see them through to early Q4 at the latest. That said, I would expect a further fund raise or farm out deal to be discussed at some point during Q3 2018. An asset sale cannot be ruled out either and would certainly be transformational based on today’s MRE alone.
3 January 2018
Cascabel Exploration Update
Alpala Maiden Mineral Resource Estimate
120 Mt High Grade Core @1.8% CuEq (60% Indicated) within
1.08 Bt @ 0.68% CuEq (5.2 Mt Cu, 12.3 Moz Au, 40% Indicated)
The Board of SolGold (LSE and TSX code: SOLG) is pleased to announce the results of the Alpala Maiden Mineral Resource Estimate (MRE) at the Cascabel Project, the Company’s 85% owned copper-gold porphyry project in Ecuador (refer Further Information below). The MRE has been reported in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves (May 2014).
- Alpala Maiden Mineral Resource Estimate across both Indicated and Inferred classifications totals a current 1.08 Bt @ 0.68% CuEq (7.4 Mt CuEq) at 0.3% CuEq cut off, some 40% of which is in the Indicated category (by tonnage).
- Contained metal content totals a current 5.2 Mt Cu and 12.3 Moz Au, some 45% of which is within the Indicated category (by contained metal).
- Higher grade core has a current 120 Mt @ 1.8% CuEq (2.0 Mt CuEq) at a 1.1% CuEq cut off, some 60% of which is in the Indicated category (by tonnage);
- A further 100 Mt @ 1.0% CuEq (1.0 Mt CuEq) is added to the high grade core if a 0.9% CuEq cut off is used, some 50% of which is in the Indicated category (by tonnage).
- Estimate completed from 53,616m of drilling, approximately 84% of 63,500m metres drilled to date.
- Assay results still pending for a further 9,844m of drill core (16%) of the total to 21 December 2017.
- Strong potential for further growth in the deposit from pending assay results from recent drilling, conversion of current inferred to indicated mineral resources, and discovery of additional mineralisation in unclosed areas such as Alpala East, up dip Alpala Central, and Alpala North West and South East.
- 11 diamond drill rigs currently active at Cascabel, with a total of 12 to be active in January 2018. Over 120,000 metres planned in 2018.
SolGold’s CEO and Managing Director, Mr Nick Mather, commented on the Alpala MRE: “This maiden Mineral Resource Estimate (MRE) is a tremendous start and in our view by no means represents a final size or grade because the deposit is still growing. That the maiden MRE is so big, achieved with so few drill holes and that such a large percentage is in the indicated category is testimony to the size of the system at Alpala. SolGold plans to announce updated MRE statements throughout 2018. We plan to immediately follow this maiden MRE up with initiation of a PEA (Preliminary Economic Assessment) of the deposit at Alpala, towards commencement of the PFS (pre-Feasibility Study) later in 2018.
Unlike many producers, this project is unhedged to copper prices going into what we see as a copper bull market for some years to come. Along with Cascabel’s extraordinary logistic and expected capital advantages in a progressive and constructive regulatory and fiscal environment plus the multiplicity of as yet untested targets, this all creates a very exciting outlook for SolGold.”
SolGold’s Chief Technical Advisor Dr Steve Garwin commented on the upside at Alpala saying: “The maiden Mineral Resource estimate indicates strong potential to grow with additional drilling. There is room to convert Inferred Mineral Resources into Indicated Mineral Resources by infilling areas where the current drill hole spacing exceeds 150m, and there exists potential to convert unclassified mineralisation to Inferred Mineral Resources.
This is particularly important in the Alpala Northwest area, where drill holes will target the north-westerly plunge to the deposit and add to the current resources; this will increase the contained metal content of the growing deposit.
The MRE reflects the assays at hand. Additional results from recently completed, ongoing, and future holes will add to the resource total. The potential for discovery of additional copper and gold mineralisation at Alpala West, Trivinio and Alpala South East (south of CSD-24) is high. Aguinaga is a very attractive drill target, well supported by surface mapping, geochemical results and geophysical models which we expect to be finalised soon.”