SolGold PLC (TSX:LON:SOLG) Blanca Project Update

High-Grade Gold Mineralisation in Northern Ecuador

The Board of SolGold (LSE & TSX code: SOLG) provides an update on its wholly-owned Blanca 1 concession in Northern Ecuador. The projects are held in Carnegie Ridge Resources SA a 100% owned subsidiary of SolGold plc. The projects lie approximately 5.1 km from the Tier 1 Cascabel copper-gold porphyry Project held by Exploraciones Novomining SA (ENSA) in which SolGold holds an 85% legal and beneficial interest. 

 

HIGHLIGHTS:

 

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Recent mapping and rock chip sampling at the Cielito Vein has returned additional high-grade gold results over 400m of strike confirming the Cielito Vein prospect as a high-grade epithermal priority drill target.

 

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New rock chip results returned from the Cielito Vein include;

R01000651         144.5 g/t Au

R01000652          31.5 g/t Au,

R01000648          25.5 g/t Au,

R01000649          5.66 g/t Au,

 

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These results compare favourably with previously reported rock chip samples of the Cielito Vein over 400m within the Blanca tenement that returned bonanza style epithermal gold mineralisation including;

617g/t Au, 317g/t Ag, 0.59% Cu

542g/t Au, 254g/t Ag, 0.54% Cu

269 g/t Au, 133 g/t Ag

116 g/t Au, 64.9 g/t Ag

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Structural mapping confirms the potential for multiple stacked flat-lying high-grade epithermal veins and over 118 mapped artisanal mining tunnels in the Cielito area (covering an area of 400m x 200m).

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Newly identified area of shallow artisanal workings located on the opposite ridge to the Cielito Vein, 380m to the SE is thought to be part of the same system with rock chip results of;

R01000648        25.5 g/t Au

R01000309        2.63 g/t Au

 

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Average of vein samples at Cielito is 81g/t Au.

 

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Cerro Quiroz prospect, located 700m SSW of Cielito represents an extensive mineralised and silicified topographic dome (covering an area of 500m x 500m) with rock results up to 6.8 g/t Au on surface.

 

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The Cielito NNW-SSW corridor represents a high-grade mineralised zone over 1km strike length and 250m width within a broad circular 0.02ppm gold in soil geochemical anomaly which is over 1.5km in diameter.

 

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

http://www.rns-pdf.londonstockexchange.com/rns/9047H_1-2019-8-5.pdf

Introduction

 

SolGold continues to aggressively explore its extensive tenement portfolio in Ecuador with the goal of becoming a tier 1 copper and gold producing company.  SolGold operates multiple regional field teams rapidly exploring and assessing its 75 regional concessions in each of the 4 regional subsidiary companies, across 12 significant targets each assessed to have world-class potential. 

 

The high priority Blanca 1 Project is located in northern Ecuador on 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 these two concessions through its Ecuadorean subsidiary company, Carnegie Ridge Resources S.A.  The Blanca Project is located in Ecuador’s Northern Eocene Belt.

 

Cielito Vein

The Cielito Vein represents a high-grade epithermal style gold target.  It is located in a previously reported NW trending structural corridor traversing the Blanca 1 concession. The vein system within the Blanca tenement is hosted in volcanic and volcanic breccias showing weak quartz-pyrite-illite and chlorite-sericite alteration. Rock chip sampling of the epithermal Cielito vein has previously returned bonanza gold mineralisation as follows:

617g/t Au, 0.59% Cu, 317g/t Ag, >500ppm Te, 0.74% Zn

542g/t Au, 0.54% Cu, 254g/t Ag, >500ppm Te, 0.50% Zn

269 g/t Au, 133 g/t Ag

116 g/t Au, 64.9 g/t Ag

Recent rock chip sampling and structural mapping has confirmed the high-grade tenor of the epithermal veins at Cielito;

R01000651        144.5 g/t Au

R01000652        31.5 g/t Au,

R01000648        25.5 g/t Au,

R01000649        5.66 g/t Au,

Structural mapping has recognised the potential for multiple flat-lying stacked epithermal veins at Cielito and newly identified artisanal gold workings on the opposing ridge provide evidence for an extensive mineralised epithermal vein system.  Rock chip samples taken from the new area of workings returned best results of;

 

R01000648         25.5 g/t Au

R01000309         2.63 g/t Au

With rock chip samples taken from the Cielito vein averaging 81 g/t and occurring over an area of over 1km x 250m, SolGold geologists envisage a multi-million-ounce gold exploration target in Blanca.

 

Cerro Quiroz prospect

 

At Cerro Quiroz in the Blanca 1 concession, SolGold geologists have identified a silicified topographic dome which contains widespread highly anomalous gold mineralisation in outcrop over an area of approximately 500 x 500 metres with grades in surface samples of up to 6.8 g/t gold. SolGold considers that this represents a significant bulk mineable target.  The Cerro Quiroz prospect is located 700m to the south of the Cielito Vein prospect and is believed to be part of the same mineralised system.  

 

Drill permits are expected to be granted imminently and platform and camp construction are well advanced.

 

The Blanca system is targeted to rapidly deliver a high-grade epithermal gold resource which may assist in the funding of SolGold’s share of the ENSA’s development of Alpala.

 

SolGold recently released details of its PEA on the Alpala Deposit in Cascabel showing a base case NPV 8% discount rate of US$4.2 bn over a 55-year mine life, on a contained resource of 23.2 m oz gold and 10.9 mt (24 bn lbs) of copper at $1300/oz gold and $3.30/ lb copper. This equates to 85m Oz of gold Eq at 33Bn lbs copper @ $1300 US/g/t Au and $3.30lb/Cu

 

Figure 1: Location of the 12 priority projects

 

 

Figure 2: Location Blanca Project

 

Figure 3: Sericite and Chlorite mapping along with structural interpretation at Blanca 1.

Figure 4: Auger soils with alteration mapping

Figure 5: Rock chip sample locations – Blanca project

Photo 1: Bonanza grade Cielito vein in tunnel

Photo 2: Cielito vein in tunnel

Photo 3: Cielito Vein

Photo 4: Aerial photo of new artisanal workings

Significant Results Cielito Vein – Blanca 1

Sample ID

Easting

Northing

elevation

Au ppm

Ag ppm

R01000651

791103

94231

1123

144.5

77.2

R01000652

791017

94233

1121

31.5

2.09

R01000648

791123

93932

1011

25.5

2.05

R01000649

790912

94182

1135

5.66

0.97

Table 1: Significant rock chip results – Blanca 1

Significant Results Cielito Vein – Blanca (Previously Announced)

Sample ID

Easting

Northing

elevation

Cu %

Au ppm

Ag ppm

Te ppm

Zn ppm

R01000436

791125

94210

1120

0.581

269

133

222

1950

R01000437

791120

94205

1120

0.0699

66.7

32

72.9

1540

R01000439

790904

94161

1136

0.0112

18.3

1.3

17.35

104

R01000440

790904

94161

1136

0.011

27.2

1.34

19.85

96

R01000441

790904

94161

1136

0.0331

23.2

1.87

28.1

237

R01000468

790991

94213

1062

0.0099

3.58

0.57

0.25

42

R01000562

791150

94277

1125

0.59

617

317

>500

7480

R01000563

791148

94275

1125

0.127

116.5

64.9

143.5

1380

R01000564

791146

94277

1125

0.548

542

254

>500

5060

Table 2: Significant rock chip results – Blanca (previously announced)

 

 

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.

By order of the Board

Karl Schlobohm

 


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