SolGold PLC (LSE: SOLG, TSX: SOLG, OTC: SLGGF) has announced what it describes as some of its strongest assay results to date from ongoing drilling at the Tandayama deposit, part of the Cascabel project in northern Ecuador.
The company said the findings support its strategy to prioritise low-cost, open-pit ore in the early stages of mine development.
Drill hole TAD-58 returned 140 metres at 0.92% copper equivalent from a depth of just 8 metres, including 106 metres at 1.10%.
· Hole TAD-58 delivers the strongest near-surface intervals to date at Tandayama and the Cascabel Project, intersecting 140 m @ 0.92 % CuEq from 8 m, including 106 m @ 1.10 % CuEq from 22 m
· Results continue to confirm the strong potential for a low-capex, near-surface open-pit starter operation to accelerate early cash flow at Cascabel
· Mineralisation remains open at depth, with further drilling planned to expand the resource
· Geological interpretations and geochemistry point to further extensions and targets
· Integration with Alpala underground development remains central to SolGold’s staged production plan
Chief executive Dan Vujcic commented:
“TAD-58 is one of the most robust results we’ve seen from Cascabel to date – with high grades from near surface over substantial widths in a location that aligns with our open-pit to underground strategy. These results continue to show the potential to deliver early, high-margin tonnes from Tandayama-the kind of material that can provide valuable flexibility in the development of Cascabel.
As I’ve noted on previous occasions, SolGold, relative to global peers and precedents, is considerably undervalued; continuing to deliver results like this and increasing market awareness of the quality of our endowment in Northern Ecuador is how we close the value gap. Early results suggest an increase in the size of the resource being open at depth, and the grades exceed what we have internally modelled previously for the deposit. We will continue to update the market as we finalise and potentially expand the current drill program, while continuing to progress early works and preparation at Alpala.”
