SolGold PLC (SOLG.L) Regional Exploration Update – Porvenir

Second Drill Hole at Porvenir Intersects Over 258m of

Visible Porphyry Mineralisation as Drilling Continues

The Board of SolGold (LSE & TSX: SOLG) is pleased to provide an update on its Porvenir Project, held by Green Rock Resources S.A, a 100% owned and unencumbered subsidiary of SolGold.

Highlights

Ø PDH-20-002, the second drill hole at the Porvenir Project, at Cacharposa is at a current depth of 273.7m. PDH20-002 has so far intersected 258.2m of visual chalcopyrite mineralisation from 15.5m depth, including chalcopyrite percentages of up to an estimated 3.0 % by volume with associated porphyry style total quartz vein abundance of up to a measured 28.0 % by volume.

Ø PDH-20-002 is being drilled from the same location as PDH-20-001 at a steeper angle of -75 degrees towards the same direction, with minimum target depth of 750m. PDH-20-002 is targeted to more fully transect the interpreted core of the Cacharposa porphyry system (Figure 2).

Ø A second drill rig is planned to be mobilised to Cacharposa Creek later this month, and sited approximately 200m west-northwest of PDH-20-001 with a view to test the central and western portions of the system including the potential root of the core of the system, which may extend deeper than 1000m as indicated by 3D geochemical modelling.

Ø Mineralisation in Cacharposa Creek is part of a 1700m long northerly-trending mineralised corridor, up to 1000m wide. The mineralisation styles, size and geometry at Cacharposa are consistent with the surface exposure of a vertically extensive, well-preserved porphyry copper-gold system .

Ø Due to highly encouraging visual estimates at Cacharposa and the growing potential for the presence of a large, strongly mineralised porphyry copper-gold system, SolGold is planning a larger revised 50,000m drilling program.

Ø While visual measurements and observations of drill core are extremely encouraging and SolGold believe provide initial validation of the prospectivity of Cacharposa at Porvenir, readers are strongly cautioned that the information in this press release is of a preliminary nature and the visual mineralization observed has not yet been assayed. The intensity of visual mineralisation should not be used to estimate grade or commercial viability at this stage.

 

 

References to figures relate to the version visible in PDF format by clicking the link below:

http://www.rns-pdf.londonstockexchange.com/rns/4495C_1-2020-10-19.pdf

Nick Mather, CEO of SolGold, re-iterated the implementation of SolGold’s broader regional exploration strategy:

“The mineral zonation and close correlation between chalcopyrite and magnetite is giving us a lot of confidence in the model and our drillhole target strategy at Porvenir. More broadly, across SolGold’s 14 exploration Targets in Ecuador, its increasingly obvious that the gross controls to orebody emplacement in the Ecuadorean sector of the Andean Copper Belt replicate. SolGold’s blueprint is rapidly refining in its application to our social, environmental, regulatory, and operating processes and SolGold’s geological understanding. The cost and time savings and efficiencies SolGold will enjoy as we replicate discoveries are immense. It goes to rapid growth and value creation for SolGold shareholders and Ecuador. Hole PDH-20-002 is continuing to confirm our view that the Cacharposa system is potentially very large and rich. ”

Further Information

SolGold is continuing to pursue its strategy to become a tier 1 copper producing company through aggressive exploration of its extensive tenement portfolio in Ecuador. The first pass regional exploration program is fully funded until mid- to late-2021.

The Porvenir Project is in Southern Ecuador, some 100 km north of the Peruvian border ( Figure 1 ). The project is situated within the eastern most metallogenic portion of the Ecuadorian sector of the Andean Copper Belt which hosts several of the world’s largest and most significant copper and gold deposits in Columbia, Ecuador, Peru, Argentina and Chile, including the Fruta Del Norte gold project owned by Lundin Gold, approximately 100km to the north-northeast.

Drilling commenced at the Cacharposa Target (Cacharposa), within the Porvenir Project area on 15th September 2020 as part of a revised 50,000m drilling program at Porvenir.

PDH-20-002, the second drill hole at the Porvenir Project, at Cacharposa is at a current depth of 273.7m. PDH20-002 has so far intersected 258.2m of visual chalcopyrite mineralisation from 15.5m depth, including chalcopyrite percentages of up to an estimated 3.0 % by volume with associated porphyry style total quartz vein abundance of up to a measured 28.0 % by volume.

PDH-20-002 is being drilled from the same location as PDH-20-001 at a steeper angle of -75 degrees towards the same direction, with minimum target depth of 750m. PDH-20-002 is targeted to more fully transect the interpreted core of the Cacharposa porphyry system (Figure 2).

PDH-20-001, the first drill hole on the Porvenir Project, at Cacharposa was completed at 909.3m depth, having intersected 893.4m of visual chalcopyrite mineralisation from 15.9m depth, including chalcopyrite percentages of up to an estimated 6.0 % by volume with associated porphyry style total quartz vein abundance of up to a measured 11.7 % by volume.

Visible copper sulphide mineralisation was observed in PDH-20-001 from 15.9m to the end of the hole at 909.3m. The dominant copper sulphide mineral observed was chalcopyrite, an important ore-forming copper sulphide mineral containing 34.5% copper. Pyrite and molybdenite are also common. Molybdenite is particularly common in the last 200m of PDH-20-001 and supports alteration indicators that suggest the hole passed into the periphery of a mineralised porphyry copper-gold(-molybdenum) deposit.

In PDH-20-001, detailed core logging, from the last reported logged depth of 619.0m, to the end of hole depth of 909.0m, shows chalcopyrite percentages of up to an estimated 2.6 % by volume with associated porphyry-style quartz vein abundance of up to a measured 5.7 % by volume.

PDH-20-001 tested the eastern limits of the Cacharposa porphyry system and SolGold geologists interpret that the hole passed across the upper periphery of the core of a large, strongly mineralised porphyry copper-gold system. PDH-20-001 passed beneath outcropping surface mineralisation in Cacharposa Creek that returned an open-ended rock-saw channel assay result of 147.8m @ 0.69% CuEq (0.43 g/t Au, 0.37% Cu) including, 82.63m @ 1.08% CuEq (0.71 g/t Au, 0.55% Cu). The results exhibit an approximate 1:1 copper (%) to gold (g/t) ratio and an approximate 1:1 copper to gold ratio is also expected from drill core assays.

The visual estimates of chalcopyrite in PDH-20-001 support a larger, lower probability 3D geochemical model, and this application now supports the geochemical footprint width of 1000m, and indicates an updated scope for depth continuation of mineralisation of approximately 1000m ( Figure 2 ). The geochemical probability limits reflect the probability of finding a Yerington like porphyry centre based on the surface geochemical results at Cacharposa and is based upon modelling work performed by Fathom Geophysics.

SolGold geologists are highly encouraged by the tenor of mineralisation in what is interpreted to represent an intersection peripheral to the centre of a highly mineralised porphyry copper-gold system. Geological and rock-alteration vectors drawn from surface rock-saw and drill core observations, including an increasing chalcopyrite to pyrite ratio with depth beneath the discovery outcrop, suggest that more intense copper mineralisation can be reasonably expected deeper, and in the targeted core of the system.

PDH-20-001 has intersected a number of different mineralised intrusive phases and mineralisation styles, exhibiting a wide range of porphyry style veining. The complex multi-phase nature of mineralisation observed in PDH-20-001 is considered favourable to the development of a significant system.

The Cacharposa target is characterised by coincident Cu, Mo, Au and Cu:Zn soil anomalies that lie central to a magnetic high and zone of Mn-depletion in soil (Figure 3). These styles of g round RTP magnetics and geochemical signatures at Cacharposa are characteristic of porphyry copper and copper-gold deposits globally.

Mineralisation in Cacharposa Creek is part of a 1700m long northerly-trending mineralised corridor, up to 1000m wide. PDH-20-001 was collared in mineralisation and approximately 200m north of the centre of coincident soil gold, copper, molybdenum and Cu:Zn anomalies, drilling at a dip of -55 degrees towards the east-southeast. The mineralisation styles, size and geometry at Cacharposa are consistent with the surface exposure of a vertically extensive, well-preserved porphyry copper-gold system.

Due to the highly encouraging visual estimates from the first hole at Cacharposa (PDH-20-001) and growing potential for a large, strongly mineralised porphyry copper-gold system at Cacharposa, SolGold will plan a larger 50,000m drilling program, subject to ongoing positive results.

A second drill rig is planned to be mobilised to Cacharposa Creek later this month and sited approximately 230m west-northwest of PDH-20-001 with a view to test the central and western portions of the system ( Figure 3 ). Planning and logistical work is underway to ramp up drilling by mobilising an additional five drill rigs to site as quickly as COVID19 restrictions allow. The second drill machine is planned to arrive late October, with another 2 machines expected to be finalised for mobilisation from Hubbard Perforaciones Cuenca workshops in November.

Selected examples of mineralisation encountered in PDH-20-001 so far are shown in Figures 4 and 5.

Ground reduced-to-the-pole (RTP) magnetics and geochemical signatures at Cacharposa are characteristic of global porphyry copper and copper-gold deposits. The RTP magnetics exhibit a central magnetic high surrounded by an annular magnetic low . Soil Molybdenum geochemistry shows a broad high nested within the magnetic feature and exhibits good inverse correlation with soil Manganese (Figure 6).

The coincidence of soil Copper, Gold and Cu:Zn geochemical anomalies are classic signatures of porphyry copper-gold deposits.

While visual measurements and observations of drill core are extremely encouraging and SolGold believe provide initial validation of the prospectivity of Cacharposa at Porvenir, readers are strongly cautioned that the information in this press release is of a preliminary nature and the visual mineralization observed has not yet been assayed. The intensity of visual mineralisation should not be used to estimate grade or commercial viability at this stage.

Figure 1: Location plan showing Porvenir Project in Southern Ecuador, highlighting the locations of the Cacharposa and Alpala porphyry deposits.

Figure 2: Cross-section looking north-northeast with window thickness of 100m, showing completed, current and planned drill holes. Mineralisation and hydrothermal alteration intersected in drilling so far shows good correlation between down hole geology and 3D magnetic- and geochemical-models. 3D geochemical models are contours of confidence for a porphyry centre based on the zoning of metals at the Yerington porphyry deposit in Nevada, USA. The visual estimates of chalcopyrite in PDH-20-001 support the larger, lower probability contour.

Figure 3: Cacharposa Mineralised Corridor plan view of the Cacharposa Target (formerly Target 15) showing the zone of interpreted coincident soil gold, copper, molybdenum and Cu:Zn anomalies. The current hole path is shown in black with planned drill hole paths shown in green. Future drill holes, aim to intersect two main northwest and northeast-trending vein sets at Cacharposa, and may exceed the planned lengths should mineralization continue at depth. Additional drill holes to those shown, will be planned to extend mineralisation to the south, north and other directions dependant on drill results.

Figure 4: Selected drill-core examples from surface to 150.0m showing disseminated and vein-controlled chalcopyrite-pyrite mineralisation.

Figure 5: Selected drill-core examples from 150m to 250m showing disseminated and vein-controlled chalcopyrite-pyrite mineralisation.

Figure 6: Ground reduced-to-the-pole (RTP) magnetics and geochemical signatures at Cacharposa are characteristic of global porphyry copper and copper-gold deposits. The RTP magnetics exhibit a central magnetic high surrounded by an annular magnetic low (Top Left). Soil Molybdenum geochemistry shows a broad high nested within the magnetic feature (Top Centre) and exhibits good inverse correlation with soil Manganese (Top Right). The coincidence of soil Copper, Gold and Cu:Zn geochemical anomalies (Bottom Left, Centre and Right) are classic signatures of porphyry copper-gold deposits.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of the Regulation (EU) No 596/2014 until the release of this announcement.

Qualified Person:

Information in this report relating to the exploration results is based on data reviewed by Mr Jason Ward ((CP) B.Sc. Geol.), the Chief Geologist 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’ 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.


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