SolGold PLC SOLG Cascabel Update - Heli-mag and Soil Survey Results

  SolGold PLC (SOLG) - Cascabel Update - Heli-mag and Soil Survey Results

RNS Number : 6272Q
SolGold PLC
08 November 2012




                                                               8 November 2012

                                 SolGold Plc

                         ("SolGold" or the "Company")

                                      

                    CASCABEL GOLD-COPPER PORPHYRY PROJECT

     Heli-magnetics and Soil Sampling Update - Multiple Anomalies defined

                                      

The Board of SolGold plc (AIM code:  SOLG) is pleased to provide an update  on 
exploration  activities  at  the  Cascabel  gold-copper  porphyry  project  in 
Ecuador. The Cascabel  Project is a  joint venture between  SolGold and  TSXV 
listed Cornerstone  Capital  Resources Inc  ("Cornerstone";  TSXV-CGP,  F-GWN, 
B-GWN,  OTC-CTNXF).  SolGold  is   directing  the  exploration  program   and 
Cornerstone is implementing the program with its experienced in-country team.



Exploration   has   progressed   with    the   completion   of   a    detailed 
helicopter-supported magnetic and radiometric survey, and significant progress
has been made  towards completion of  a 200m x  100m grid-based soil  sampling 
program. Channel  sampling in  previously identified  outcropping  mineralised 
areas and field mapping continue to progress.



Highlights:



· Heli-magnetic survey completed.

· Soil  survey  40%  complete  and  has  identified  numerous  gold-copper 
anomalous areas.

· 1 kilometre long coincident gold-copper-molybdenum soil anomaly  defined 
in the NW portion  of the soil  sampling area and coinciding  with an area  of 
mapped potassic alteration at Quebrada America and Tandayama.

· Several other coincident gold-copper anomalies  exist but are yet to  be 
fully defined.

· 2 clear gold-copper porphyry target  domains have been defined from  the 
magnetic survey:

o Target T1 covers a 2km diameter feature partly coincident with  outcropping 
porphyry mineralisation at Quebrada Moran and Alpala;

o Target T2 covers a  2km diameter feature overlapping  the edge of the  soil 
survey with anomalous gold and copper.

· Magnetic, radiometric, soil, and  geological data are now being  further 
processed and integrated to define and prioritise all target domains.

·  Preliminary  assessment  outlines  a  25km^2  domain  hosting  numerous 
coincident gold and copper anomalies, and magnetic anomalies.

· Key  components  of the  gold-copper  porphyry target  model  have  been 
recognised.



Current activities:



· Ongoing  soil sampling  on  a 200m  x 100m  grid  to extend  the  survey 
coverage.

· Additional assay  results from  further soil sampling  expected in  late 
November.

· Commencement of 100m x 100m follow-up soil sampling in areas of  defined 
anomalies.

· Ongoing processing  of preliminary heli-magnetic  and radiometric  data, 
and receipt of final data for detailed 3-D inversion modelling.

· Spectral analysis of soil samples to build alteration maps.

· Community engagement and explanation of exploration program.



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:



http://www.rns-pdf.londonstockexchange.com/rns/6272Q_-2012-11-8.pdf





Magnetic survey:



The detailed  helicopter-supported magnetic  and radiometric  survey over  the 
Cascabel concession  has been  completed and  preliminary data  received  from 
Geophysics GPR International Inc. The data  has been modelled as a first  pass 
assessment of survey results.

The magnetic survey has identified two clear high priority target areas on the
concession where the magnetic  anomalies bear the  signature typical of  large 
gold-copper porphyry systems.  The magnetic  data is  preliminary and  further 
processing is in progress.



The highest priority target (T1) is  a 2-km-wide annular magnetic domain  that 
underlies the  outcropping gold-copper  porphyry  vein stockwork  at  Quebrada 
Alpala ('A'  in figure  2), and  is adjacent  to the  outcropping  gold-copper 
porphyry vein stockwork at Quebrada Moran ('M' in figure 2).



A second porphyry target (T2) with a classic gold-copper porphyry signature is
located under Quaternary  alluvial gravels  and older  volcaniclastics in  the 
northern part  of  the concession  (Figure  2), and  is  defined by  a  second 
2-km-wide zone  of complex  magnetic  high with  lows. Copper  and  molybdenum 
anomalism in soil samples starts to appear in this area on the very  northeast 
edge of the current soil survey coverage (Figure 3), and extension of the soil
sampling will be required to cover this second porphyry target.



Soil sampling survey:



Soil sampling  on  a  200m  x  100m  grid is  in  progress  over  an  area  of 
approximately 20km^2, covering the main gold-copper porphyry mineralised areas
identified  from  field  mapping.  Assay   results  have  been  received   for 
approximately 40% of the sampled area,  and this announcement relates to  only 
those assays received.  Further results will  be released once  assay data  is 
received and verified.  Soil sampling in  the south, at  Quebrada Alpala,  has 
been completed  and  assay results  are  being  awaited and  are  expected  in 
December.



The results to  date are defining  areas of coincident  gold-copper-molybdenum 
anomalism in  the  area  of  mapped  potassic  alteration  areas  at  Quebrada 
Tandayama and America (see Figures 1 and 3), and coincident gold-copper in the
areas over and immediately north of Quebrada Moran where outcropping  porphyry 
veining with gold and  copper has been previously  reported. The tenor of  the 
soil sampling results is consistent with signatures expected from  gold-copper 
porphyry  systems.  The  soil  sampling  suggests  that  the  district  is   a 
gold-copper domain, with weaker  molybdenum, and this  is consistent with  the 
results from rock chip sampling.



Infill sampling on a 100m x 100m grid will commence in November over areas  of 
currently defined anomalism to further define areas of coincident gold, copper
and molybdenum  in preparation  for  drill targeting.  Extension of  the  soil 
sampling to the north over magnetic target T2 will also be scheduled.



All exploration activities are focussed  on understanding the geometry of  the 
Cascabel mineralised system to deliver drill targets as soon as possible.



In addition to the technical exploration program, Cornerstone has continued to
engage with  the  communities  in  the area  of  exploration  activities,  and 
continues  to  implement  community  relations  programs.  The  project   and 
exploration programs are strongly supported by the local communities. 



Malcolm  Norris,  CEO  of  SolGold  commented:  "These  results  are   greatly 
encouraging, and  further  reinforce  the  interpretation  that  the  Cascabel 
concession  is  extremely  prospective  for  large  gold-copper  porphyry  and 
associated high-level epithermal gold  systems.We are seeing coincidence  of 
datasets that once  fully integrated  will deliver high  quality targets.  The 
scale of  the mineralised  systems  and targets  are significant  and  further 
reinforce our  optimism  for  ongoing  exploration.  Drilling  is  subject  to 
permitting and we are progressing the work required for the issuance of  those 
permits".



The data show a series of magnetic features that are currently interpreted  to 
represent buried  intrusive bodies,  areas  of argillic  ('clay')  alteration, 
northwest-trending structural domains and  a regional-scale circular  feature, 
approximately 5 km in diameter, which incorporates all the target areas.



The target magnetic domains, that bear the signature typical of large porphyry
systems include:



1) Annular magnetic high anomalies that are typically 1-2 km in diameter;

2) Annular  magnetic  anomaly  clusters,  with  a  complex  association  of 
magnetic highs and  lows that  may reflect  potassic-altered (i.e.  containing 
magnetite) intrusions overprinted by alteration (typically clay) at  shallower 
levels; and

3) Location of these magnetic features at major fault junctions.



Anomaly T1 extends northwest-ward under a zone of mapped clay alteration. This
annular anomaly  is associated  with alteration-induced  magnetite-destructive 
alteration defined by mapped argillic alteration seen at surface. This  target 
is located on the northern edge of a major WNW-trending structural lineament.



Anomaly T2 is centred at the intersection of two regional magnetic lineaments
that trend northwest and east-northeast.



Qualified Persons

Information in this  report relating to  the exploration results,  gold:silver 
ratios and  cut-off grades  is based  on data  reviewed by  Mr Malcolm  Norris 
(B.Sc. Hons, MSc), the Chief Executive Officer of the Company. Mr Norris 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 under  the AIM  Rules. Mr  Norris  consents to  the inclusion  of  the 
information in the form and context in which it appears.





Assaying, Quality Assurance/Quality Control (QAQC)

Samples were delivered  in sealed bags  by Cornerstone employees  to the  ACME 
preparation laboratory  in  Cuenca.  Rock  samples  are  prepared  (ACME  code 
R200-250), and assayed by the ACME-Vancouver laboratory (www.acmelab.com)  for 
gold (ACME code G601,  F.A., 30 g)  and multi-elements (ACME  code 1E, 4  Acid 
digestion ICP-ES finish). All over limits results for precious and base metals
were systematically  re-assayed (ACME  codes G6Gr  and 7TD).  Stream  sediment 
samples are prepared (ACME code SS80),  and assayed for gold (ACME code  G601, 
F.A., 30  g) and  multi-elements  (ACME code  1EX,  4 acid  digestion,  ICP-MS 
finish).



ACME is an ISO 9001:2008 qualified  assayer that performs and makes  available 
internal assaying controls. Certified blanks and standards are  systematically 
inserted every 25 samples as part of Cornerstone's QA/QC program.





By order of the Board

Karl Schlobohm

Company Secretary



Contacts:



Mr Karl
Schlobohm
Tel: +61 (0)7 3303 0660

SolGold Plc (Company Secretary)

kschlobohm@solgold.com.au



Mr               Ewan               Leggat               /                Katy 
Birkin
Tel: +44 (0)20 3463 2276

SP Angel Corporate Finance LLP (Broker)

Ewan.leggat@spangel.co.uk / katy.birkin@spangel.co.uk



Mr                                Stephen                                 Weir 

Tel: +61 (0)2 9250 0048

RFC Ambrian Limited (Nominated Advisor)

stephen.weir@rfcambrian.com



Mr                                                                     Dominic 
Barretto
Tel: +44 (0)7768 537 739

Yellow Jersey PR (PR & IR)

dominic@yellowjerseypr.com 





NOTES TO EDITORS



SolGold's exploration projects are located in northern Ecuador, Australia, and
the Solomon Islands. In Australia, they comprise the Rannes, Mt Perry,  Cracow 
West and  Normanby  Projects, all  in  southeast Queensland.  In  the  Solomon 
Islands they comprise  the Fauro Project  (located on Fauro  Island), and  the 
Guadalcanal Joint Venture with Newmont Mining Corporation, and in Ecuador a JV
with Cornerstone Capital Resources on the Cascabel gold-copper project.



In July 2012, SolGold  and Cornerstone Capital  Resources Inc. announced  that 
they had signed a Definitive Option  Agreement whereby SolGold may acquire  up 
to 85% of Cornerstone's 100%  owned 5,000 hectare Cascabel  gold-copper-silver 
property in northern Ecuador.



The Cascabel  project  is located  approximately  120 km  north  of  Ecuador's 
capital, Quito, 20 km south of the Colombian border, and 75 km inland from the
coastal city  of San  Lorenzo.  The gold-copper  porphyry project  is  located 
within the Andean  western cordillera,  host to  numerous Tier  1 world  class 
copper-gold deposits through Chile, Peru, Ecuador and Colombia.



At the Rannes project SolGold  has announced Indicated and Inferred  resources 
of 18.7 million tonnes at 0.9 g/t gold equivalent (gold + silver) for  550,146 
ounces of gold  equivalent (296,657 ounces  of gold and  10,137,736 ounces  of 
silver; see  announcement  dated 23  May  2012  for details  of  the  resource 
statement and gold equivalent ratios). The 2012 exploration program, including
planned drilling  to  define new  ore  positions  and grow  the  resource,  is 
underway.



Exploration continues at Mt. Perry, Normanby and Cracow West.



In the Solomon Islands, the 2012 exploration program on the Fauro project  has 
been delayed while a  JV partner is sought  to pursue drilling of  gold-copper 
targets defined in the  2011 exploration program.  The 2012 Guadalcanal  Joint 
Venture with NVL Solomon Islands Limited (a subsidiary of NYSE-listed  Newmont 
Mining Corporation)  is  now  seeking expressions  of  interest  for  possible 
divestment.



SolGold's strategy  is  to  be  an  integrated  gold  and  copper  discoverer, 
developer and miner.



SolGold's Board includes accomplished professionals with strong track  records 
in the areas of exploration,  mine development, investment, finance and  law. 
Board and  Management  have significantly  vested  interests in  the  Company, 
holding approximately 17.5% of its issued share capital.



SolGold is based in  Brisbane, Queensland, Australia.  The Company listed  on 
London's Alternative Investment Market in 2006, under the AIM Code 'SOLG'  and 
currently has  a  total  of 424,242,966  fully-paid  ordinary  shares,  10,700 
Convertible Redeemable  Preference Shares,  9,472,000 options  exercisable  at 
50p, 1,250,000 options exercisable at 28p and 1,250,000 options exercisable at
14p on  issue.  Further details  concerning  the Company's  key  projects  and 
personnel can be found at www.solgold.com.au.

                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


MSCUWANRUUAARRA -0- Nov/08/2012 07:00 GMT
 
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