New discovery by SolGold – High grade copper and gold sampling results returned from the Machos -Florida -Santa Cruz- La Hueca Project, Southern Ecuador
The Board of SolGold (TIDM: SOLG) is pleased to provide an update on its 100% owned Machos – Florida Santa Cruz- La Hueca Project (“the Project”) in Southern Ecuador.
Ø Rock chip samples collected from the Project have returned high grade copper and gold mineralisation from extensive outcropping porphyry copper gold mineralisation over a broad 5km x 1km zone over an extensive area. Best results include:
o 13.82% Cu in sample R02000263
o 8.37% Cu in sample R02000310
o 4.08% Cu in sample R02000259
o 2.50% Cu in sample R02000307
o 1.80% Cu in sample R02000305
o See Photographs herein.
Ø 25km long porphyry trend identified.
Ø Jurassic in age similar to Fruta del Norte, Mirador and the giant La Alumbrera mine in Argentina (Glencore).
Ø Samples were taken from an extensive zone of complex multiphase copper sulphide and magnetite mineralised quartz veining and hydrothermal alteration extending over an unclosed 5km long zone.
Ø Stream sediment and panned concentrate sampling results have highlighted additional areas of strongly anomalous copper and gold mineralisation outside of the mineralised quartz vein zone, to be followed up with detailed prospecting and field mapping.
References to figures and tables relate to the version of this release on the Company’s website (www.solgold.com.au) or visible in PDF format by clicking the link below:
SolGold is continuing to pursue its strategy to become a tier one coppercompany through the aggressive exploration of the Company’s extensive tenement portfolio in Ecuador.
The Machos – La Hueca Project is located on the gold-rich northern section of the prolific Andean Copper belt which is renowned as the production base for nearly half of the world’s copper, (Figure 1). SolGold holds a 100% interest in the Project through its wholly owned Ecuadorean subsidiary company, Cruz del Sol S.A.
CEO Nick Mather commented:
“Following the discovery of the Alpala copper gold porphyry in Northern Ecuador and the rapid progression by SolGold towards the definition of the size, grade and extent of the exciting Alpala system, SolGold has developed a unique system and blueprint for the discovery of world class copper gold porphyry systems in Ecuador.
This efficient blueprint, SolGold’s status as the largest and most active tenement holder in Ecuador, the highly endowed nature of the geological terrain and the recent recognition of SolGold’s exploration achievements positions SolGold as the best entry to copper-gold growth globally for investors. I am very confident that this discovery will further differentiate SolGold from its competitors in Ecuador over the coming year.
SolGold secured the first mover advantage in Ecuador three and a half years ago in 2014. Following the Cascabel discovery, the Company recognised the opportunity to secure and explore a geological terrain with the same broad geology and potential for similar copper endowment (plus gold benefits) along the Andean spine of Ecuador from the Peruvian to the Colombian borders.
The greater La Hueca zone is huge, covering a strike length of 25km of rocks of the same age as the giant and rich Alumbrera mine in Argentina across a corridor width of approximately 2km. The prevalence of rich gold with abundant magnetite, chalcopyrite, bornite and molybdenite assemblages suggests this system is rich, large and oxidised. A happy recipe, and its 100% owned by SolGold. We look forward to rapidly advancing this large and rich system.”
Approximately 14 of 22 copper gold porphyry targets have been secured. To date SolGold has identified outcropping copper gold porphyry systems on five (5) of these targets:
1. La Hueca Machos Florida Santa Cruz (as detailed in this announcement);
4. Timbarra; and
Several others also show surface mineralisation including San Antonio and Agustin.
Exploration Activities & Results
SolGold has had field teams on the ground conducting reconnaissance sampling, mapping and prospecting at the La Hueca Project for several months. The summary table below details the total number of samples collected at the La Hueca Project to date. A strike length of 25km of prospective copper gold porphyry targets has been developed on the basis of outcropping mineralisation, strong stream sediment anomalism for copper and gold, and strong panned gold and magnetite concentrate results.
By comparison, the Alpala system was evident in a 50m channel in Alpala creek only, and the total tenement size at the La Hueca, Florida, Santa Cruz and Machos tenements is approximately three times the size of Cascabel.
Summary Sample Table
Results from initial stream sediment and pan concentrate sampling in the La Hueca tenement area have identified several areas of interest known as the El Cerro Florida Naquipa and Eduardo prospects from north to south. Streams over a 6km x 4km zone draining the area of interest were ubiquitously rich in gold and magnetite indicating the prevalence of the copper gold mineralised porphyries in the area. The first stream anomaly followed up was recognised as exhibiting significant potassic and propyllitic alteration and mineralisation indicative of the presence of a large porphyry system. Detailed mapping and rock chip sampling was carried out to determine the extent of the alteration system. The results are detailed in Table 1 outlined below.
A northeast – southwest striking quartz stockwork was identified and mapped over a 5km length that remains open along strike northwest and southeast, and lies within an altered corridor several kilometres wide comprising mostly diorite host rocks. The most significant zone mapped so far within this diorite hosted quartz stockwork corridor displays very strong alteration and mineralisation over an area 700m long by 450m wide, characterised by with a multidirectional quartz vein network containing diagnostic copper gold porphyry minerals including notably chalcopyrite, bornite, molybdenite and magnetite associated with chlorite, sericite and epidote alteration. This zone has returned the highest grade copper and gold results.
Strong molybdenum mineralisation evident as molybdenite is ubiquitous in the La Hueca system and SolGold’s technical advisors have opined that this indicates a substantial porphyry system sourcing mineralisation from a deep seated and strongly metal endowed batholith. SolGold believes that this is a favourable indicator for the ultimate size and grade of the system being explored at La Hueca.
Detailed mapping and sampling of the stockwork corridor continues with several new areas of strong alteration and mineralisation recently reported by the field teams to the northeast, southwest and west. In addition, several large geochemical stream anomalies outside of the stockwork corridor have been identified at the La Hueca Project that are yet to be investigated by SolGold’s field teams.
SolGold will continue to provide updates on its regional exploration program and the results of its continuing field activities.
Information in this report relating to the exploration results is based on data reviewed by Mr Nicholas Mather (B.Sc. Hons Geol.), the Chief Executive Officer of the Company. Mr Mather is a Fellow of the Australasian Institute of Mining and Metallurgy who has in excess of 25 years’ experience in mineral exploration and is a Qualified Person. Mr Mather consents to the inclusion of the information in the form and context in which it appears.
By order of the Board
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
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