SolGold PLC Announces Regional Exploration Update

Extensive
Lithocap Identified at Rio Amarillo with Significant Copper and Gold Results

BISHOPSGATE, LONDON / ACCESSWIRE / May 30, 2019 / The Board of SolGold (LSE & TSX code: SOLG) is pleased to provide an update from the Company’s regional exploration activities from its 100% owned Rio Amarillo Project in northern Ecuador, held by wholly owned subsidiary Carnegie Ridge Resources.

Highlights:

Initial exploration on the Rio Amarillo Project has identified 5
prospects on concessions Rio Amarillo 1 & 2.

An extensive 2km by 2.4km lithocap has been identified in Rio
Amarillo 2. The lithocap is characterised by advanced argillic
alteration with crackle and hydrothermal breccias. Veins rich in
realgar (Photo 3) were also identified providing further evidence of
hydrothermal activity. Lithocaps commonly form over porphyry
intrusions. Best rock chip results from in and around the lithocap include:

R01001075 0.33% Cu, 0.31 g/t
Au, 32 ppm Mo

R01001089 0.21% Cu, 0.05 g/t
Au, 45 ppm Mo

Three other prospects have been identified in Rio Amarillo 1
surrounding the lithocap; known as the Chilanes, Cuambo and Pasquel
prospects.

The Cuambo and Pasquel prospects are distal to the lithocap with
epithermal vein mineralisation identified. Best rock chip results
include:

Cuambo Prospect

R01001018 11.3 g/t Au

R01001019 1.85 g/t Au

Pasquel Prospect

R01001290 13.35 g/t Au

R01001294 3.00 g/t Au

R01001295 2.45 g/t Au

At the Chilanes prospect, located proximal to the lithocap, B
type veins have been mapped and sampled with best rock chip results
including:

R01000025 0.93 g/t Au,
0.18% Cu, 11.85ppm Mo

R01000026 0.90 g/t Au,
0.01% Cu, 13.75 ppm Mo

R01000029 0.51 g/t Au,
0.13% Cu, 10.35 ppm Mo

The Puguran prospect is located in Rio Amarillo 2. It
represents a 250m long quartz diorite outcrop in Palomar creek with B type
veins identified. Rock saw sampling returned:

·

140m @ 0.24% Cu

Including 13m @ 0.65% Cu

Including 12m @ 0.38% Cu

*Please see all figures in this announcement to see the ranges of all samples

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/5364A_1-2019-5-29.pdf

Introduction

Ecuador is located on the rich and under-explored section of the Andean Copper Belt, from which 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 12 priority projects identified across SolGold’s 72 regional concessions.

With 12 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, applying the successful exploration blueprint developed by SolGold over the last 4 years.

Drilling is scheduled to commence on regional projects as soon as practical following completion of permitting processes.

Further
Information

The Rio Amarillo project consists of 3 concessions; Rio Amarillo 1, 2 & 3. Currently, 5 prospects have been identified on concessions 1 & 2. The main geological feature of the Rio Amarillo project is the extensive lithocap extending 2km by 2.4km in area.

Whilst the lithocap has an extensive covering of volcanic ash, outcrops of crackle and hydrothermal breccia (Photo 1) have been located, including areas of silica clay and advanced argillic hydrothermal alteration. Bordering the altered lithocap are various outcrops of diorite and quartz-diorite containing mineralised B type veins (Photo 2). Best rock chip results include:

R01001075 0.33% Cu, 0.31 g/t Au, 32 ppm Mo

R01001089 0.21% Cu, 0.05 g/t Au, 45 ppm Mo

R01001068 0.14% Cu, 0.84 g/t Au, 4 ppm Mo

R01001056 0.12% Cu, 0.45 g/t Au, 5 ppm Mo

Cuambo and Pasquel prospects are distal to the lithocap with epithermal vein mineralisation identified. The epithermal veining at these prospects are possibly associated with a deeper porphyry system that is responsible for the advanced argillic alteration forming the lithocap. Best results include:

Cuambo Prospect

R01001018 11.3 g/t Au

R01001019 1.85 g/t Au

Pasquel Prospect

R01001290 13.35 g/t Au

R01001294 3.00 g/t Au

R01001295 2.45 g/t Au

At the Chilanes prospect, located proximal to the lithocap, B type veins have been mapped and sampled. An outcrop of stockwork B type veins (Photo 5) has been identified hosted in a dark micro diorite – quartz diorite with the matrix altered to magnetite and chlorite, with best rock chip results including:

R01000025 0.93 g/t Au, 0.18% Cu, 11.85ppm Mo

R01000026 0.90 g/t Au, 0.01% Cu, 13.75 ppm Mo

R01000029 0.51 g/t Au, 0.13% Cu, 10.35 ppm Mo

The Puguran is located in Rio Amarillo 2. It represents a 250m long quartz diorite outcrop in Palomar creek (Photo 6) with B and D type veins identified. Alteration in this creek is interpreted as potassic overprinted by later phyllic alteration. Rock saw sampling returned:

140m @ 0.24% Cu

Including 13m @ 0.65% Cu

Including 12m @ 0.38% Cu

Figure
1
: Location plan showing the Rio Amarillo project in northern Ecuador.

Figure
2
: Prospect location map – Rio Amarillo

Figure 3: Rock chip locations – copper and gold results

Photo 1: Hydrothermal breccia found in the lithocap

Photo 2: Quartz diorite with B type veining

Photo 3: Realgar vein associated with hydrothermal systems

Photo 4: Pasquel Prospect – gold rich iron oxide veins

Photo 5: Copper gold stockwork B type veins

Photo 6: Pugaran prospect – strongly altered and copper rich with B and D type veining

Sample ID

easting

northing

elevation

Au g/t

R01001290

814971

58823

1742

13.35

R01001294

814900

58852

1761

3.0

R01001298

814900

58840

1756

2.45

R01001295

814791

58863

1779

1.65

R01001293

814930

58800

1175

1.12

R01001297

814929

58792

1754

1.07

Table 1: Significant rock chip results Pasquel Prospect

Sample ID

easting

northing

elevation

Au g/t

R01001018

818460

64085

1365

11.3

R01001019

818381

64198

1362

1.85

R01001006

818300

63713

1481

0.26

R01001003

818436

63548

1521

0.17

Table 2: Significant rock chip results Cuambo Prospect

Sample ID

easting

northing

elevation

Au g/t

Cu %

R01000025

816219

63182

2472

0.93

0.18

R01000026

816206

63194

2441

0.90

0.01

R01000029

816205

63224

2453

0.51

0.13

R01000027

816198

63246

2422

0.50

0.12

Table 3: Significant rock chip results Chilanes Prospect

Sample ID

easting

northing

elevation

Cu %

Au g/t

Mo_ppm

R01001075

814149

62939

2572

0.33

0.31

32.20

R01001089

814176

63068

2515

0.21

0.05

45.00

R01001127

814795

63000

2303

0.21

0.13

6.69

R01001104

814226

63362

2422

0.19

0.21

3.48

R01001078

814138

62903

2587

0.19

0.05

21.90

R01001242

814791

63081

2265

0.18

0.05

0.27

R01001088

814059

62870

2620

0.16

0.23

21.60

R01001068

814167

63004

2537

0.14

0.84

4.66

R01001056

814168

62987

2542

0.12

0.46

5.09

R01001278

814827

63225

2206

0.01

3.17

0.47

Table 4: Significant rock chip results Lithocap area

Sample Id

easting

northing

elevation

sample width (m)

Cu %

Au g/t

Mo_ppm

R01000037

806618

59219

2627

2

0.73

0.20

12.60

R01000038

806633

59167

2639

2

0.40

0.08

20.20

R01000039

806620

59200

2674

2

0.17

0.03

6.93

R01000040

806621

59198

2674

2

0.09

0.03

5.56

R01000041

806605

59210

2679

0.9

0.22

0.04

21.50

R01000042

806622

59197

2673

1.95

0.07

0.08

42.20

R01000043

806624

59197

2673

2.34

0.10

0.10

24.00

R01000044

806625

59197

2671

1.66

0.04

0.08

12.85

R01000045

806627

59196

2671

2.07

0.32

0.08

36.60

R01000046

806628

59195

2670

2.29

0.55

0.14

12.60

R01000047

806628

59193

2670

2.23

0.70

0.29

17.35

R01000048

806630

59191

2670

2.2

0.24

0.10

26.30

R01000049

806632

59190

2670

2.14

0.21

0.04

17.50

R01000051

806632

59188

2670

2

0.30

0.03

11.20

R01000052

806633

59186

2669

2

0.02

0.01

0.86

R01000053

806635

59182

2668

2

0.23

0.11

5.01

R01000054

806635

59181

2668

2.08

0.16

0.04

4.56

R01000055

806636

59179

2667

2.13

0.19

0.03

8.85

R01000056

806636

59178

2667

2.09

0.16

0.03

10.75

R01000057

806637

59176

2667

1.11

0.09

0.10

22.50

R01000058

806638

59175

2667

1.89

0.19

0.07

50.60

R01000059

806637

59173

2666

2.1

0.14

0.04

31.30

R01000060

806638

59171

2665

1.93

0.11

0.17

76.20

R01000062

806639

59170

2664

1.98

0.37

0.14

154.00

R01000063

806640

59168

2664

2.04

0.14

0.06

26.90

R01000064

806640

59166

2664

2.01

0.10

0.03

20.00

R01000065

806640

59164

2663

2.03

0.11

0.02

21.60

R01000067

806615

59202

2675

2

0.16

0.05

8.27

R01000068

806613

59203

2675

2

0.27

0.05

8.41

R01000071

806641

59154

2662

2.1

0.09

0.04

14.25

R01000072

806641

59152

2661

2.03

0.11

0.06

20.50

R01000073

806641

59150

2661

1.92

0.25

0.21

27.00

R01000074

806641

59148

2660

2.05

0.16

0.08

58.90

R01000075

806641

59146

2660

1.98

0.10

0.05

20.70

R01000076

806642

59122

2655

2.08

0.16

0.49

14.20

R01000077

806643

59124

2656

2.14

0.17

0.06

24.40

R01000078

806642

59126

2657

1.92

0.06

0.02

5.63

R01000079

806642

59127

2657

1.96

0.12

0.05

37.50

R01000080

806642

59129

2657

1.98

0.14

0.03

32.80

R01000081

806641

59131

2658

1.87

0.09

0.02

10.90

R01000082

806646

59100

2652

2.3

0.34

0.01

6.33

R01000083

806650

59096

2651

1.75

0.13

0.04

19.50

R01000084

806649

59094

2650

1.7

0.21

0.09

58.30

R01000085

806649

59093

2650

2.1

1.24

0.05

28.00

R01000086

806648

59091

2649

2.3

0.68

0.03

12.50

R01000087

806649

59089

2649

2.2

1.30

0.10

25.00

R01000088

806649

59087

2648

2.45

0.19

0.03

23.30

R01000089

806645

59089

2650

2

0.37

0.04

13.30

R01000090

806644

59090

2651

2

0.41

0.03

32.80

R01000092

806643

59092

2652

2.1

0.24

0.02

25.80

R01000093

806642

59094

2652

1.9

0.18

0.03

27.00

R01000094

806641

59095

2653

1.98

0.24

0.06

67.10

R01000095

806641

59097

2654

1.95

0.40

0.03

52.30

R01000096

806640

59099

2654

2

0.16

0.05

34.40

R01000097

806639

59101

2655

2

0.20

0.06

36.80

R01000098

806639

59102

2655

1.76

0.13

0.08

33.00

R01000099

806640

59104

2655

1.8

0.12

0.06

16.25

R01000101

806640

59106

2655

2.15

0.12

0.08

53.50

R01000102

806640

59108

2656

2

0.14

0.07

32.90

R01000103

806640

59110

2656

2

0.13

0.05

34.60

R01000104

806641

59112

2657

2

0.10

0.04

21.90

R01000105

806641

59114

2657

2

0.09

0.05

35.10

Table 5: Puguran rock saw sampling

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
SolGold Plc (Chief Executive Officer)nmather@solgold.com.au

Tel: +61 (0) 7 3303 0665

Karl Schlobohm
SolGold Plc (Company Secretary)kschlobohm@solgold.com.au

Tel: +61 (0) 7 3303 0661

Anna
Legge
SolGold Plc (Corporate Communications)alegge@solgold.com.au

Tel: +44 (0) 20 3823 2131

Gordon Poole / Nick Hennis
Camarco (Financial PR / IR)

solgold@camarco.co.uk

Tel: +44 (0) 20 3757 4997

Andrew Chubb / Ingo
Hofmaier
Hannam & Partners (Joint Broker)solgold@hannam.partners

Tel: +44 (0) 20 7907 8500

Clayton Bush / Trystan Cullen / Laura Hamilton
Liberum Capital Limited (Joint Broker)solgold@liberum.com

Tel: +44 (0) 20 3100 2222

Ross Allister / James Bavister
Peel Hunt (Joint Broker)

solgold@peelhunt.com

Tel: +44 (0) 20 7418 8900

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
Name

Discovery
Year

Major
Metals

Country

Current
Status

Mining
Style

Inventory

LA COLOSA

2006

Au, Cu

Colombia

Feasibility – New Project

Open Pit

1 469Mt @ 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, Zn

Congo (DRC)

Feasibility – New Project

Open Pit & Underground

4 1.3Bt @ 2.72% Cu; 36.5 Mt Cu

GOLPU

2009

Cu, Au

PNG

Feasibility – New Project

Underground

5 820Mt @ 1.0% Cu, 0.70g/t Au; 8.2Mt Cu, 18.5Moz Au

COTE

2010

Au, Cu

Canada

Feasibility Study

Open Pit

6 289Mt @ 0.90 g/t Au; 8.4Moz Au

HAIYU

2011

Au

China

Development/Construction

Underground

7 15Moz Au

RED HILL-GOLD RUSH

2011

Au

United States

Feasibility Study

Open Pit & Underground

8 47.6Mt @ 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

Category

Resource

Category

Tonnage

(Mt)

Grade

Contained Metal

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.

SOURCE: SolGold PLC

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