Hargreaves Lansdown

SolGold reports on drilling progress

Fri 06 October 2017 07:43 | A A A

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(ShareCast News) - SolGold updated the market on the drilling results of holes 23R-D1 and 24-D1R on Friday, as well as the progress of drilling at Cascabel, the company's 85%-owned copper-gold porphyry project in Ecuador.

The AIM-traded firm said that at hole 23R-D1 at Alpala Central, assay results returned 695.1m grading 1.37% copper equivalent from 694.9m, including 458.0m grading 1.68% copper equivalent from 838.0m.

At hole 24-D1R at Alpala Southeast, final assay results returned 512.9m grading 0.53% copper equivalent, including 262.8m grading 0.86% copper equivalent from 755.2m.

It said hole 23R-D1 extended known mineralisation in the central portion of the Alpala deposit approximately 90m to the east.

Hole 24-D1R extended the Alpala Southeast mineralisation beneath hole 24 by approximately 130m, and was interpreted to represent the upper portions of a strongly-mineralised porphyry system at depth, the board explained.

Further drill testing at Alpala Southeast by rigs two and three was underway.

SolGold said the drilling programme was expected to be further expanded from the previously-advised 10 to 12 drill rigs by January 2018, targeting drilling of 126,000m in 2018.

Man-portable drill rigs six and seven had arrived at Cascabel, the board confirmed, with the second and third drilling contractors signed with rigs eight, nine, 10 and 11 scheduled for arrival in November and Rig 12 in January.

The geophysical 3DIP survey was on schedule with the completion of the Spartan portion, and the commencement of the Orion portion of the "state-of-the-art" hybrid survey.

Data processing and final results were expected mid-November.

Re-processing and maturation of 3D MVI magnetic models over the greater Alpala area, Aguinaga, Tandayama-America, and Chinambicito was nearing completion with final targeting expected to be available mid-October.

Assays for Holes 26-D1, 26-D2, 28, 29, 29-D1, 29-D2, 30, 30-D1, 31, 31-D1 and 32 remained pending.

"Hole 23R-D1 and 24-D1R assay results demonstrate strong potential for significant extensions to the Alpala Deposit into the Alpala East and Alpala Southeast sectors," said SolGold's technical services manager Benn Whistler.

"Current drilling at Alpala Northwest, following up on the discovery of major extensions northwest of the Alpala Deposit in Hole 26, is proving fruitful with Hole 26-D2 currently intersecting strongly mineralised diorite porphyry.

"Rigs 6 and 7 have recently arrived at site and this is expected to expedite drilling at Alpala Central, Alpala Northwest and Alpala West, ahead of the arrival of more rigs to bring the project total to 12 rigs by January 2018."

Whisler said the company had "not yet found" the limits of the system at Alpala, adding that it believed that its "growing understanding" of the Alpala system, and the expansion of the drilling fleet, would lead to "rapid discovery" of major extensions at high priority targets, including Alpala Northwest, Alpala East, Alpala West and Alpala Southeast.

"In fact we are scheduled to drill 126,000m in 2018, so you can see there is exponential growth potential which is expected in the short-term.

"We have a strong desire to drill test the exciting and untested satellite targets at, Carmen, Trivinio, Parambas Aguinaga, Cristal, Moran, and Tandayama-America, which are scheduled for drill testing on completion of drill data collection for the Alpala Maiden Resource Estimate, and on completion of Spartan-Orion hybrid 3DIP Survey and maturing 3D MVI magnetic modelling," Whistler explained.

"This work is being expedited and the expansion of the drilling fleet is opening these doors for us."

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