SolGold PLC (SOLG) - Cascabel Update - Heli-mag and Soil Survey Results
RNS Number : 6272Q
08 November 2012
8 November 2012
("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.
· Heli-magnetic survey completed.
· Soil survey 40% complete and has identified numerous gold-copper
· 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
· 2 clear gold-copper porphyry target domains have been defined from the
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
· Ongoing soil sampling on a 200m x 100m grid to extend the survey
· Additional assay results from further soil sampling expected in late
· Commencement of 100m x 100m follow-up soil sampling in areas of defined
· 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:
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
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
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
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
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.
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
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
Tel: +61 (0)7 3303 0660
SolGold Plc (Company Secretary)
Mr Ewan Leggat / Katy
Tel: +44 (0)20 3463 2276
SP Angel Corporate Finance LLP (Broker)
Ewan.firstname.lastname@example.org / email@example.com
Mr Stephen Weir
Tel: +61 (0)2 9250 0048
RFC Ambrian Limited (Nominated Advisor)
Tel: +44 (0)7768 537 739
Yellow Jersey PR (PR & IR)
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
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
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
MSCUWANRUUAARRA -0- Nov/08/2012 07:00 GMT
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