TIDMSOLG
RNS Number : 8268Q
SolGold PLC
23 October 2019
23 October 2019
SolGold plc
("SolGold" or the "Company")
Large New Copper-Gold-Silver-Molybdenum Porphyry System
Discovered in the Cisne-Loja Project
The Board of SolGold (LSE & TSX code: SOLG) is pleased to
provide an update from the Company's regional exploration
activities from its Cisne Loja Project in southern Ecuador, held by
wholly owned subsidiary Green Rock Resources S.A.
Highlights
Ø New mineralised outcrops discovered at the Celen Prospect
indicate a large new copper gold rich polymetallic porphyry
system - 100% owned by SolGold.
Ø Extensive outcrops of porphyry style quartz-magnetite-chalcopyrite
veining along with disseminated magnetite-chalcopyrite.
Ø Consistently rich copper, gold, silver and molybdenum
mineralisation is present in outcrop over a large area
2km by 1km.
Ø Strong magnetic anomalism in mineralised zones. Magnetics
identifies additional targets.
Ø Significantly, the porphyry style veins have 1:1 values
of copper, gold with proportionate silver and molybdenum
diagnostic of a strong Andean porphyry copper gold system.
Ø Proximal fracture hosted mineralisation is rich in diagnostic
copper oxide and carbonate minerals, neotocite, malachite
and azurite returning extremely high copper values.
Ø Significant rock chip mineralisation including:
-- R03001325 4.32% Cu, 4.51g/t Au, 20.8g/t Ag,
9.99ppm Mo
-- R03001342 .90% Cu, 0.21g/t Au, >100g/t Ag, 76.1ppm
Mo
-- R03001304 2.54% Cu, 3.04g/t Au, 15.4g/t Ag,
185.5ppm Mo
-- R03001347 2.52% Cu, 3.11g/t Au, 12.5g/t Ag,
13.4ppm Mo
-- R03001303 2.46% Cu, 0.10g/t Au, 54.5g/t Ag,
54.9ppm Mo
Ø 60/72 (83%) of samples >0.6% Cu and 0.6g/t Au.
Ø Initial gridded copper-gold soil anomalies confirms
Celen as an extensive mineralised porphyry target
Ø Centre of the Celen Prospect is located 7km from SolGold's
mineralised Cuenca Loma gold-silver epithermal prospect,
representing a mineralised gold and silver epithermal
vein field.
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/8268Q_1-2019-10-23.pdf
Commenting on the results, Jason Ward, SolGold's Exploration
& Country Manager said:
"The recent discovery of this large copper gold target at Celen,
which outcrops over an area of 2km x 1km and exhibits all of the
geochemical and geophysical hallmarks of a large porphyry system,
underscores the prospectivity and unexplored nature of the area and
brings the number of SolGold priority projects from 12 to 13. The
Celen copper gold target is located just 5km south of an epithermal
gold field we discovered at Cisne Loja which outcrops over an area
of 2.5km x 1.5 km, and we are optimistic about the discovery of
both gold and copper ore bodies at Cisne Loja."
Introduction
Ecuador is located on the copper-gold rich and under-explored
northern section of the Andean Copper Belt. The well explored
southern portion is renowned as the production base for nearly half
of the world's copper (Figure 1). SolGold's strategy to become a
tier 1 copper and gold producer through systematic exploration
continues to yield exciting results. Follow up exploration has
focussed on 13 priority projects identified across SolGold's 75
granted regional concessions.
With 13 priority projects now recognised, ongoing exploration by
SolGold technical teams is focussed on advancing these priority
projects with a view to progress to drill testing as soon as
possible. SolGold's high success rate has been achieved by
operating multiple field teams comprising 42 Ecuadorean geologists
in regional exploration, led by highly experienced national
geologists and applying the exploration discovery and appraisal
blueprint developed over the last 4 years at Alpala.
Further Information
Cisne 2C
Coherent area of copper mineralisation over 1km x 2km
Continued mapping and sampling by Green Rock Resources field
teams at the Cisne Loja Project across three granted tenements (El
Cisne 2A,2B,2C) covering 2km(2) has located outcrops with strong
porphyry style copper, gold, silver and molybdenum mineralisation
in the Celen prospect located in the El Cisne 2C concession.
(Figure 2 & 3). Porphyry style mineralised outcrops occur in an
extensive 2km by 1km area indicating a large poly metallic
mineralised system located less than 7km south from the previously
identified gold-silver epithermal field in El Cisne 2A.
The copper mineralization is best developed within
magnetite-chalcopyrite porphyry veins in quartz diorite and
microdiorite units with associated disseminated chalcopyrite
mineralisation (Figures 4 & 5). Zones of high grade copper and
gold mineralisation are also developed proximal to the porpyhry
style veins with fractures containing diagnostic copper oxide and
carbonate minerals, neotocite, malachite and azurite.
Diagnostic magnetic signatures
Strongly anomalous magnetic signatures characterise the copper
mineralisation, and additional target areas west of Cuenca Loja and
between Celen and Cueca Loja are still to be sampled (Figure 2)
Outcrops are characterised by pervasive magnetite mineralisation
to 3% of the rock with associated chlorite and epidote alteration.
The main orientation of veins and fractures are north east trending
with a secondary north west trending structural orientation.
Weathered mineralised intrusive units are present in volcanic units
to the north of the main zone of mineralisation containing
quartz-hematite-goethite veining. There are numerous tourmaline
breccias outcropping south of the mineralised zone (Figure 5)
Of the 72 rock chip samples taken at the Celen prospect, 60
samples (83%) have returned grades greater than 0.6% Cueq with the
average molybdenum results for all 72 samples of 51.95ppm Mo
(Figure 3, Table 1). Best rock chip results from recent sampling
include;
-- R03001325 4.32% Cu, 4.51g/t Au, 20.8g/t Ag, 9.99ppm
Mo
-- R03001342 3.90% Cu, 0.21g/t Au, >100g/t Ag, 76.1ppm
Mo
-- R03001304 2.54% Cu, 3.04g/t Au, 15.4g/t Ag, 185.5ppm
Mo
-- R03001347 2.52% Cu, 3.11g/t Au, 12.5g/t Ag, 13.4ppm
Mo
-- R03001303 2.46% Cu, 0.10g/t Au, 54.5g/t Ag, 54.9ppm
Mo
-- R03001330 1.99% Cu, 2.38g/t Au, 28.1g/t Ag, 8.69ppm
Mo
-- R03001333 1.77% Cu, 0.12g/t Au, 35.9g/t Ag, 5.1ppm Mo
-- R03001328 1.63% Cu, 1.44g/t Au, 12.75g/t Ag, 31.3ppm
Mo
Previously announced rock chip sample results include;
-- R03001218 5.28% Cu, 0.66 g/t Au, 91.4 g/t Ag
-- R03001221 5.08% Cu, 1.10 g/t Au, 25.8 g/t Ag
-- R03001204 4.92% Cu, 3.90 g/t Au, 55.7 g/t Ag
-- R03001215 3.65% Cu, 0.02 g/t Au, 95.5 g/t Ag
-- R03001214 3.43% Cu, 0.09 g/t Au, 73.8 g/t Ag
-- R03001206 2.06% Cu, 0.24 g/t Au, 28.7 g/t Ag
-- R03001211 1.63% Cu, 0.30 g/t Au, 39.8 g/t Ag
-- R03001213 1.45% Cu, 0.02 g/t Au, 36.6 g/t Ag
-- R03001207 1.39% Cu, 0.15 g/t Au, 24.6 g/t Ag
-- R03001217 1.33% Cu, 0.08 g/t Au, 27.6 g/t Ag
-- R03001218 5.28% Cu, 0.66 g/t Au, 91.4 g/t Ag
-- R03001221 5.08% Cu, 1.10 g/t Au, 25.8 g/t Ag
-- R03001204 4.92% Cu, 3.90 g/t Au, 55.7 g/t Ag
-- R03001215 3.65% Cu, 0.02 g/t Au, 95.5 g/t Ag
-- R03001214 3.43% Cu, 0.09 g/t Au, 73.8 g/t Ag
Initial gridded soil anomalies confirm the extensive mineralised
area identified by mapping and rock chip sampling. Large coherent
copper and gold soil anomalies show a positive correlation to
identified mineralisation and delineate additional areas for follow
up exploration (Figure 6 & 7). The copper anomaly comprises
extremely high copper in soil values up to 0.1% Cu. Soil anomalies
remain open to the north and south and the gridded soil program
will be extended to define the surface limits of the Celen porphyry
target.
Figure 1: Location plan of the Cisne Loja Project in southern
Ecuador.
Figure 2: Copper results in rock chips over aeromagnetic RTP
data.
Figure 3: Celen geology with copper rock chip values.
Figure 4: Rock chip samples from the Celen Prospect
Figure 5: Celen prospect rock chip samples of peripheral
intrusive units and tourmaline breccias .
Figure 6: Copper in soil values with copper geochemical anomaly
and RTP magnetic data
Figure 7: Gold in soil values with gold geochemical anomaly and
RTP magnetic data
Sample Easting Northing RL Cu_ppm Au_ppm Ag_ppm Mo_ppm
ID
R03001218 677734 9575087 1830 52790 0,661 91,4 165
-------- --------- ----- ------- ------- ------- -------
R03001221 677751 9575045 1803 50820 1,1 25,8 69,9
-------- --------- ----- ------- ------- ------- -------
R03001204 677712 9575009 1803 49180 3,9 55,7 86
-------- --------- ----- ------- ------- ------- -------
R03001325 677867 9574396 1686 43220 4,51 20,8 9,99
-------- --------- ----- ------- ------- ------- -------
R03001342 678118 9575961 2014 39010 0,212 100 76,1
-------- --------- ----- ------- ------- ------- -------
R03001215 677543 9575623 2052 36530 0,025 95,5 542
-------- --------- ----- ------- ------- ------- -------
R03001214 677578 9575610 2027 34330 0,098 73,8 75,6
-------- --------- ----- ------- ------- ------- -------
R03001224 677777 9575588 1893 28240 0,026 60,1 18,8
-------- --------- ----- ------- ------- ------- -------
R03001224 677777 9575588 1893 28240 0,026 60,1 18,8
-------- --------- ----- ------- ------- ------- -------
R03001223 677854 9575431 1724 28120 0,019 61,3 41,7
-------- --------- ----- ------- ------- ------- -------
R03001304 678406 9577825 2109 25420 3,04 15,4 185,5
-------- --------- ----- ------- ------- ------- -------
R03001347 678078 9575036 1899 25220 3,11 12,5 13,4
-------- --------- ----- ------- ------- ------- -------
R03001303 678323 9577776 2131 24580 0,103 54,5 54,9
-------- --------- ----- ------- ------- ------- -------
R03001282 678240 9576306 1954 22330 0,092 96 431
-------- --------- ----- ------- ------- ------- -------
R03001206 677674 9575028 1843 20610 0,243 28,7 31,6
-------- --------- ----- ------- ------- ------- -------
R03001330 678008 9575057 1824 19880 2,38 28,1 8,69
-------- --------- ----- ------- ------- ------- -------
R03001333 678081 9575068 1896 17700 0,116 35,9 5,1
-------- --------- ----- ------- ------- ------- -------
R03001328 677865 9574357 1700 16300 1,44 12,75 31,3
-------- --------- ----- ------- ------- ------- -------
R03001211 677659 9575345 1919 16270 0,304 39,8 11,95
-------- --------- ----- ------- ------- ------- -------
R03001296 678500 9577553 2063 16230 0,263 100 214
-------- --------- ----- ------- ------- ------- -------
R03001213 677448 9575344 2012 14500 0,028 36,6 38,8
-------- --------- ----- ------- ------- ------- -------
R03001207 677694 9575034 1821 13910 0,154 24,6 6,19
-------- --------- ----- ------- ------- ------- -------
R03001217 677701 9575175 1858 13330 0,084 27,6 14,55
-------- --------- ----- ------- ------- ------- -------
R03000313 677908 9575150 1726 12150 1.535 11,3 3,51
-------- --------- ----- ------- ------- ------- -------
R03000312 677905 9575139 1726 10670 0,839 11,55 10,6
R03000314 677902 9575144 1726 8900 0,758 6,61 6,65
R03001209 677496 9575155 1947 7840 0,32 7,69 12,5
-------- --------- ----- ------- ------- ------- -------
R03001012 677765 9574993 1764 7250 0,038 2,64 15,1
-------- --------- ----- ------- ------- ------- -------
R03001205 677707 9575017 1817 6820 0,064 6,02 1,93
-------- --------- ----- ------- ------- ------- -------
R03001335 678077 9575060 1886 6710 0,024 5,41 1,61
-------- --------- ----- ------- ------- ------- -------
R03001016 677927 9575161 1707 6590 0,944 3,5 5
-------- --------- ----- ------- ------- ------- -------
R03001015 677952 9575124 1742 6370 1,9 21,8 2,14
-------- --------- ----- ------- ------- ------- -------
R03001208 677824 9575316 1760 6270 0,186 5,38 34,4
-------- --------- ----- ------- ------- ------- -------
R03001348 678055 9575364 1795 6120 0,548 6,98 2,63
-------- --------- ----- ------- ------- ------- -------
R03001212 677607 9575660 2022 6100 0,031 10,65 34,6
-------- --------- ----- ------- ------- ------- -------
R03001216 677361 9575196 2011 6050 0,028 9,89 18,75
-------- --------- ----- ------- ------- ------- -------
R03001013 677745 9574995 1760 5890 0,097 5,11 145,5
-------- --------- ----- ------- ------- ------- -------
R03001332 678036 9575103 1825 5700 0,071 11,35 1,66
-------- --------- ----- ------- ------- ------- -------
R03001222 677753 9575018 1788 5590 0,05 2,73 6,64
-------- --------- ----- ------- ------- ------- -------
R03001337 677708 9575010 1824 5550 0,608 8,9 92,9
-------- --------- ----- ------- ------- ------- -------
R03001329 678046 9574473 1776 5410 0,05 21,9 1,5
-------- --------- ----- ------- ------- ------- -------
R03001338 677962 9575158 1754 5300 0,054 24,7 69,6
-------- --------- ----- ------- ------- ------- -------
R03001285 678426 9575339 1867 4710 0,602 8,41 20,2
-------- --------- ----- ------- ------- ------- -------
R03001340 677923 9575045 1761 3400 0,213 0,62 1,15
-------- --------- ----- ------- ------- ------- -------
Table 1: Significant results table
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.
By order of the Board
Karl Schlobohm
Company Secretary
CONTACTS
Nicholas Mather Tel: +61 (0) 7 3303 0665
SolGold Plc (Chief Executive Officer) +61 (0) 417 880 448
nmather@solgold.com.au
Karl Schlobohm
SolGold Plc (Company Secretary) Tel: +61 (0) 7 3303 0661
kschlobohm@solgold.com.au
Anna Legge
SolGold Plc (Corporate Communications) Tel: +44 (0) 20 3823 2131
alegge@solgold.com.au
Gordon Poole / Nick Hennis
Camarco (Financial PR / IR) Tel: +44 (0) 20 3757 4997
solgold@camarco.co.uk
Andrew Chubb Tel: +44 (0) 20 7907 8500
Hannam & Partners (Joint Broker and Financial
Advisor)
solgold@hannam.partners
Ross Allister / David McKeown Tel: +44 (0)20 7418 8900
Peel Hunt (Joint Broker and Financial
Advisor)
solgold@peelhunt.com
James Kofman / Darren Wallace Tel: +1 416 943 6411
Cormark Securities Inc. (Financial Advisor)
dwallace@cormark.com
Follow us on twitter @SolGold_plc
ABOUT SOLGOLD
SolGold is a leading exploration company focussed on the
discovery and definition of world-class copper and gold deposits.
In 2018 SolGold's management team was recognised by the "Mines and
Money" Forum as an example of excellence in the industry, and
continues to strive to deliver objectives efficiently and in the
interests of shareholders. SolGold is the largest and most active
concession holder in Ecuador and is aggressively exploring the
length and breadth of this highly prospective and gold-rich section
of the Andean Copper Belt.
The Company operates with transparency and in accordance with
international best practices. SolGold is committed to delivering
value to its shareholders, while simultaneously providing economic
and social benefits to impacted communities, fostering a healthy
and safe workplace and minimizing the environmental impact.
Dedicated stakeholders
SolGold employs a staff of over 560 and at least 98% are
Ecuadorean. This is expected to grow as the operations at Alpala,
and in Ecuador generally, expand. SolGold focusses its operations
to be safe, reliable and environmentally responsible and maintains
close relationships with its local communities. SolGold has engaged
an increasingly skilled and experienced team of geoscientists using
state of the art geophysical and geochemical modelling applied to
an extensive data base to enable the delivery of ore grade
intersections from nearly every drill hole at Alpala. SolGold has
86 geologists, of which 11% are female, on the ground in Ecuador
looking for copper and gold.
About Cascabel and Alpala
The Alpala deposit is the main target in the Cascabel
concession, located on the northern section of the heavily endowed
Andean Copper Belt, the entirety of which is renowned as the base
for nearly half of the world's copper production. The project area
hosts mineralisation of Eocene age, the same age as numerous Tier 1
deposits along the Andean Copper Belt in Chile and Peru to the
south. The project base is located at Rocafuerte within the
Cascabel concession in northern Ecuador, an approximately three
hour drive on sealed highway north of Quito, close to water, power
supply and Pacific ports (Figure 1).
Having fulfilled its earn-in requirements, SolGold is a
registered shareholder with an unencumbered legal and beneficial
85% interest in ENSA (Exploraciones Novomining S.A.) which holds
100% of the Cascabel concession covering approximately 50km(2) .
The junior equity owner in ENSA is required to repay 15% of costs
since SolGold's earn in was completed, from 90% of its share of
distribution of earnings or dividends from ENSA or the Cascabel
concession. It is also required to contribute to development or be
diluted, and if its interest falls below 10%, it shall reduce to a
0.5% NSR royalty which SolGold may acquire for US$3.5m.
Over 226,328m of diamond drilling has been completed on the
project. With numerous rigs currently active on the project,
SolGold produces up to approximately 10,000m of core every month.
The Cascabel drill program is currently focussed on extending and
upgrading the status of the Alpala Resource, as well as further
drill testing of the rapidly evolving Aguinaga prospect. Drill
testing of the Trivinio target has commenced, whilst the numerous
other untested targets, namely at Moran, Cristal, Tandayama-America
and Chinambicito, are flagged for drill testing as overall program
demands allow.
The November 2018 Alpala MRE update, dated 15 November 2018, was
estimated from 68,173 assays. Drill core samples were obtained from
total of 133,576m of drilling comprising 128 diamond drill holes,
including 75 drill holes comprising, 34 daughter holes, 8 redrills,
and 11 over-runs, and represents full assay data from holes 1-67
and partial assay data received from holes 68 to 75. In contrast,
the Dec 2017 Maiden MRE was estimated from 26,814 assays obtained
from 53,616m of drilling comprising 45 drill holes, including 10
daughter holes and 5 redrills.
The November 2018 Alpala updated Mineral Resource Estimate (MRE)
totals a current:
o 2,050 Mt @ 0.60% CuEq (at 0.2% CuEq cut-off) in the Indicated
category, and 900 Mt @ 0.35% CuEq (at 0.2% CuEq cut-off)
in the Inferred category.
o Contained metal content of 8.4 Mt Cu and 19.4 Moz Au in
the Indicated category.
o Contained metal content of 2.5 Mt Cu and 3.8 Moz Au in
the Inferred category.
Investors should consult the technical report dated 3 January
2019 for a detailed account of the assumptions on which the
estimates were based as well as any known legal, political,
environmental and other risks that could materially affect the
development of the resources.
Getting Alpala advanced towards development
The resource at the Alpala deposit boasts a high grade core
which, in the event of the construction of a mine, is targeted to
facilitate early cashflows and an accelerated payback of initial
capital. SolGold is currently investigating development and
financing options available to the company for the development of
Cascabel on reaching feasibility.
The results of the PEA were published on 20 May 2019,
highlighting the following key aspects:
Ø Net Present Value ("NPV") estimates range from US$4.1Bn
to US$4.5Bn (Real, post-tax, @ 8% discount rate, US$3.3/lb
copper price, US$1,300/oz gold price and US$16/oz silver
price) depending on production rate scenario.
Ø Internal Rate of Return ("IRR") estimates range from 24.8%
to 26.5% (Real, post-tax, US$3.3/lb copper price, US$1,300/oz
gold price and US$16/oz silver price) depending on production
rate scenario.
Ø Pre-production Capex estimated at approx. US$2.4B to US$2.8B,
and total Capex including life of mine sustaining Capex
of US$10.1B to US$10.5B depending on production rate scenario.
Ø Payback Period on initial start-up capital - Range from
3.5 to 3.8 years after commencement of production depending
on production rate scenario.
Ø Preferred Mining Method - Underground low-cost mass mining
using Block Cave methods applied over several caves designed
on two vertically extensive Lifts.
Full results and all details of the PEA are available in the
Company's market release of 20 May 2019.
SolGold's regional push
SolGold is using its successful and cost efficient blueprint
established at Alpala, and Cascabel generally, to explore for
additional world class copper and gold projects across Ecuador.
SolGold is the largest and most active concessionaire in
Ecuador.
The Company wholly owns four other subsidiaries active
throughout the country that are now focussed on thirteen high
priority gold and copper resource targets, several of which the
Company believes have the potential, subject to resource definition
and feasibility, to be developed in close succession or even on a
more accelerated basis from Alpala.
SolGold is listed on the London Stock Exchange and Toronto Stock
Exchange (LSE/TSX: SOLG). SolGold is listed on the London Stock
Exchange and Toronto Stock Exchange (LSE/TSX: SOLG). The Company
has on issue a total of 1,846,321,033 fully-paid ordinary shares;
139,012,000 share options exercisable at 60p and 21,250,000 share
options exercisable at 40p.
Figure 1: Location of Cascabel project in Imbabura Province,
northern Ecuador, highlighting the significant capital advantages
held by the project, with proximity to ports, road infrastructure,
hydro-electric power stations and the trans-continental power
grid.
See www.solgold.com.au for more information. Follow us on
twitter @SolGold_plc
CAUTIONARY NOTICE
News releases, presentations and public commentary made by
SolGold plc (the "Company") and its Officers may contain certain
statements and expressions of belief, expectation or opinion which
are forward looking statements, and which relate, inter alia, to
interpretations of exploration results to date and the Company's
proposed strategy, plans and objectives or to the expectations or
intentions of the Company's Directors. Such forward-looking and
interpretative statements involve known and unknown risks,
uncertainties and other important factors beyond the control of the
Company that could cause the actual performance or achievements of
the Company to be materially different from such interpretations
and forward-looking statements.
Accordingly, the reader should not rely on any interpretations
or forward-looking statements; and save as required by the exchange
rules of the TSX and LSE or by applicable laws, the Company does
not accept any obligation to disseminate any updates or revisions
to such interpretations or forward-looking statements. The Company
may reinterpret results to date as the status of its assets and
projects changes with time expenditure, metals prices and other
affecting circumstances.
This release may contain "forward--looking information" within
the meaning of applicable Canadian securities legislation.
Forward--looking information includes, but is not limited to,
statements regarding the Company's plans for developing its
properties. Generally, forward--looking information can be
identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved".
Forward--looking information is subject to known and unknown
risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of the
Company to be materially different from those expressed or implied
by such forward--looking information, including but not limited to:
transaction risks; general business, economic, competitive,
political and social uncertainties; future prices of mineral
prices; accidents, labour disputes and shortages and other risks of
the mining industry. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking information,
there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that
such information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward--looking information. The Company does not
undertake to update any forward-looking information, except in
accordance with applicable securities laws.
The Company and its officers do not endorse, or reject or
otherwise comment on the conclusions, interpretations or views
expressed in press articles or third-party analysis, and where
possible aims to circulate all available material on its
website.
The Company recognises that the term "World Class" is subjective
and for the purpose of the Company's projects the Company considers
the drilling results at the growing Alpala Porphyry Copper Gold
Deposit at its Cascabel Project to represent intersections of a
"World Class" deposit. The Company considers that "World Class"
deposits are rare, very large, long life, low cost, and are
responsible for approximately half of total global metals
production.
"World Class" deposits are generally accepted as deposits of a
size and quality that create multiple expansion opportunities, and
have or are likely to demonstrate robust economics that ensure
development irrespective of position within the global commodity
cycles, or whether or not the deposit has been fully drilled out,
or a feasibility study completed.
Standards drawn from industry experts (1) Singer and Menzie,
2010; (2) Schodde, 2006; (3) Schodde and Hronsky, 2006; (4) Singer,
1995; (5) Laznicka, 2010) have characterised "World Class" deposits
at prevailing commodity prices. The relevant criteria for "World
Class" deposits, adjusted to current long run commodity prices, are
considered to be those holding or likely to hold more than 5
million tonnes of copper and/or more than 6 million ounces of gold
with a modelled net present value of greater than USD 1
Billion.
The Company and its external consultants prepared an initial
mineral resource estimate at the Cascabel Project in December 2017.
Results are summarised in Table B attached.
The Mineral Resource Estimate was completed from 53,616m of
drilling, approximately 84% of 63,500m metres drilled as of
mid-December 2017, the cut-off date for the maiden resource
calculation. There remains strong potential for further growth from
more recent drilling results, and continue rapid growth of the
deposit.
Any development or mining potential for the project remains
speculative.
Drill hole intercepts have been updated to reflect current
commodity prices, using a data aggregation method, defined by
copper equivalent cut-off grades and reported with up to 10m
internal dilution, excluding bridging to a single sample. Copper
equivalent grades are calculated using a gold conversion factor of
0.63, determined using an updated copper price of USD3.00/pound and
an updated gold price of USD1300/ounce. True widths of down hole
intersections are estimated to be approximately 25-70%.
On the basis of the drilling results to date and the results of
the Alpala Maiden Mineral Resource Estimate, the reference to the
Cascabel Project as "World Class" (or "Tier 1") is considered to be
appropriate. Examples of global copper and gold discoveries since
2006 that are generally considered to be "World Class" are
summarised in Table A.
References cited in the text:
1. Singer, D.A. and Menzie, W.D., 2010. Quantitative Mineral
Resource Assessments: An Integrated Approach. Oxford University
Press Inc.
2. Schodde, R., 2006. What do we mean by a world class deposit?
And why are they special. Presentation. AMEC Conference,
Perth.
3. Schodde, R and Hronsky, J.M.A, 2006. The Role of World-Class
Mines in Wealth Creation. Special Publications of the Society
of Economic Geologists Volume 12.
4. Singer, D.A., 1995, World-class base and precious metal
deposits-a quantitative analysis: Economic Geology, v.
90, no.1, p. 88-104.
5. Laznicka, P., 2010. Giant Metallic Deposits: Future Sources
of Industrial Metal, Second Edition. Springer-Verlag Heidelberg.
Deposit Discovery Major Country Current Status Mining Inventory
Name Year Metals Style
LA COLOSA 2006 Au, Cu Colombia Feasibility Open Pit (1) 469Mt
- New Project @ 0.95g/t
Au; 14.3Moz
Au
============= =========== ============ ========================= =============== ===============
LOS SULFATOS 2007 Cu, Mo Chile Advanced Exploration Underground (2) 1.2Bt
@1.46% Cu
& 0.02% Mo;
17.5Mt Cu
============= =========== ============ ========================= =============== ===============
BRUCEJACK 2008 Au Canada Development/Construction Open Pit (3) 15.6Mt
@ 16.1 g/t
Au; 8.1Moz
Au
============= =========== ============ ========================= =============== ===============
KAMOA-KAKULA 2008 Cu, Co, Congo Feasibility Open Pit (4) 1.3Bt
Zn (DRC) - New Project & Underground @ 2.72% Cu;
36.5 Mt Cu
============= =========== ============ ========================= =============== ===============
GOLPU 2009 Cu, Au PNG Feasibility Underground (5) 820Mt
- New Project @ 1.0% Cu,
0.70g/t Au;
8.2Mt Cu,
18.5Moz Au
============= =========== ============ ========================= =============== ===============
COTE 2010 Au, Cu Canada Feasibility Open Pit (6) 289Mt
Study @ 0.90 g/t
Au; 8.4Moz
Au
============= =========== ============ ========================= =============== ===============
HAIYU 2011 Au China Development/Construction Underground (7) 15Moz
Au
============= =========== ============ ========================= =============== ===============
RED HILL-GOLD 2011 Au United Feasibility Open Pit (8) 47.6Mt
RUSH States Study & Underground @ 4.56 g/t
Au; 7.0Moz
Au
============= =========== ============ ========================= =============== ===============
XILING 2016 Au China Advanced Exploration Underground (9) 383Mt
@ 4.52g/t
Au; 55.7Moz
Au
============= =========== ============ ========================= =============== ===============
Source: after MinEx Consulting, May 2017
(1) Source: http://www.mining--technology.com/projects/la--colosa
(2) Source: http://www.angloamerican.com/media/press--releases/2009
(3) Source: http://www.pretivm.com/projects/brucejack/overview/
(4) Source: https://www.ivanhoemines.com/projects/kamoa--kakula--project/
(5) Source:
http://www.newcrest.com.au/media/resource_reserves/2016/December_2016_Resources_and_Reserves_Statement.pdf
(6) Source: http://www.canadianminingjournal.com/news/gold--iamgold--files--cote--project--pea/
(7) Source: http://www.zhaojin.com.cn/upload/2015--05--31/580601981.pdf
(8) Source: https://mrdata.usgs.gov/sedau/show--sedau.php?rec_id=103
(9) Source: http://www.chinadaily.com.cn/business/2017--03/29/content_28719822.htm
Table A: Tier 1 global copper and gold discoveries since 2006.
This table does not purport to be exhaustive exclusive or
definitive.
Grade Resource Tonnage Grade Contained Metal
Category Category (Mt)
======================
Cu (%) Au (g/t) CuEq Cu (Mt) Au (Moz) CuEq
(%) (Mt)
====== ======== ==== ======= ======== =====
Total >0.2%
CuEq Indicated 2,050 0.41 0.29 0.60 8.4 19.4 12.2
============ ========== ======= ====== ======== ==== ======= ======== =====
Inferred 900 0.27 0.13 0.35 2.5 3.8 3.2
======================= ======= ====== ======== ==== ======= ======== =====
Table B: Alpala Mineral Resource Estimate updated effective 16
November 2018.
Notes:
-- Mr. Martin Pittuck, MSc, CEng, MIMMM, is responsible for
this Mineral Resource estimate and is an "independent qualified
person" as such term is defined in NI 43-101.
-- The Mineral Resource is reported using a cut-off grade
of 0.3% copper equivalent calculated using [copper grade
(%)] + [gold grade (g/t) x 0.6] based on a copper price
of US$2.8/lb and gold price of US$1,160/oz.
-- The Mineral Resource is considered to have reasonable potential
for eventual economic extraction by underground mass mining
such as block caving.
-- Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability.
-- The statement uses the terminology, definitions and guidelines
given in the CIM Standards on Mineral Resources and Mineral
Reserves (May 2014).
-- The MRE is reported on 100 percent basis.
-- Values given in the table have been rounded, apparent calculation
errors resulting from this are not considered to be material.
-- The effective date for the Mineral Resource statement is
16 November 2018.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDPGGCGUUPBUQW
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