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High-grade intercepts to feed new SolGold resource

The latest drilling at SolGold’s (LSE: SOLG) Cascabel project in Ecuador has highlighted the potential for a larger, more cohesive high-grade core.
High-grade intercepts to feed new SolGold resource High-grade intercepts to feed new SolGold resource High-grade intercepts to feed new SolGold resource High-grade intercepts to feed new SolGold resource High-grade intercepts to feed new SolGold resource

Core from Cascabel

Staff reporter

The high-grade hits at Alpala Central have revealed a more robust high-grade core than previously modelled.

Results from Alpala Central infill drilling included 832m at 1.41% copper equivalent, including 562m at 1.72% copper equivalent, 304m at 2.52% copper equivalent and 182m at 3.46% copper equivalent.

A hole at the Alpala Central north-west extension hit 1,061m at 1.02% copper equivalent, including 548m at 1.36% copper equivalent and 220m at 2.07% copper equivalent.

Another partially complete hole at Alpala Central returned 512m at 1.09% copper equivalent, including 326m at 1.51% copper equivalent and 128m at 2.51% copper equivalent, with the hole open at depth.

An updated resource is due later this year.

Alpala already has an indicated resource of 430 million tonnes at 0.8% copper equivalent, and an inferred resource of 650Mt at 0.6% copper equivalent for 5.2Mt of contained copper and 12.3 million ounces of contained gold.

"From a potential mining perspective, the updated proposed mineral resource estimate could provide not only a stronger resource base but also a larger and more cohesive high-grade core which could be mined at a higher production rate in the early years thus enhancing the project net present value and internal rate of return," SolGold study manager Eduardo Valenzuela said.

The resource was based on 53,616m of drilling and a further 80,538m has been completed since.

The updated resource will underpin a preliminary economic assessment.

Brisbane-based SolGold was last capitalised at around £402 million in London.

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