2742 St. Joseph Blvd., Unit 200
Canada, K1C 1G5
SolGold Plc (AIM code: SOLG)
The Cascabel property is located in Imbabura Province in northern Ecuador, approximately 120 km north of Ecuador's capital city, Quito, and 20 km south of the Colombian border. The property covers an area of 50 km2 and lies at elevations ranging from approximately 750 to 2,100 m above sea level. Access is very good via a paved road from the coastal city of San Lorenzo to the provincial capital of Ibarra, and secondary gravel roads to the central part of the property.
Exploraciones Novomining S.A. ("ENSA"), an Ecuadorean company owned by SolGold Plc and Cornerstone, holds 100% of the Cascabel concession. Subject to the satisfaction of certain conditions, including SolGold's fully funding the project through to feasibility, SolGold Plc will own 85% of the equity of ENSA and Cornerstone will own the remaining 15% of ENSA. SolGold Plc is funding 100% of the exploration at Cascabel and is the operator of the project.
Cascabel is an early stage copper-gold porphyry project located within the Western Cordillera of the Andes, which hosts numerous world class copper-gold deposits in Chile and northwards through Peru, Ecuador and Colombia. Large undeveloped deposits in the Cascabel region include the Llurimagua (formerly Junin) porphyry copper-molybdenum deposit 65 km. to the southwest (undeveloped National Instrument 43-101 compliant inferred resource of 982 Mt @ 0.89% Cu, 0.04% Mo and 1.9 g/t Ag), and the La Colosa porphyry gold deposit in neighbouring Colombia.
In August 2013 the Ecuadorean Ministry of Environment granted an environmental license for advanced exploration (including drilling). The drilling that began in September 2013 and is ongoing (18 holes as of August 2016) indicates the discovery of a large gold-enriched copper porphyry system. Several holes have intersected kilometric lengths of > 1% Cu equivalent (CuEq*), with higher included intercepts: Hole 5 (the Discovery Hole) intersected 1306m (from 24m) grading 0.62% Cu and 0.54 g/t Au (1.10% CuEq); Hole 9 intersected 1,271m (from 430m) @ 0.59% Cu and 0.77 g/t Au (1.28% CuEq; true width ~485m); Hole 12 intersected 1312m (from 128m) @ 0.67% Cu and 0.63 g/t Au (1.23% CuEq); and Hole 16 intersected 1145.6 m (from 516m) @0.63% Cu, 0.78 g/t Au (1.32% CuEq). Several other holes have similar CuEq grades over >500m. Approximately 60% of core intercepts for high angle holes are true widths.
SolGold has announced it is planning a resource statement at Alpala, the most advanced target at Cascabel, during 2016, in addition to drill testing the other key targets at Aguinaga, Trivino, Alpala NW, Hematite Hill, Alpala SE, Cristal, Tandayama America, Moran, and Chinambicito within the Cascabel concession. SolGold has also announced that by the end of 2016 it is planning further metallurgical testing, and completion of early stage mine and plant design and a scoping study (which may or may not be the approximate equivalent of a preliminary economic assessment as defined under Canada's National Instrument 43-101) for an economic development at Cascabel. SolGold has reported it is investigating both high tonnage / low grade open cut and high grade / low tonnage underground developments as a block caving operation.
The Cascabel property is underlain by Upper Cretaceous sedimentary rocks which are overlain by Oligocene to Miocene andesitic flows and breccias. These units are intruded by Miocene age granodiorite and diorite batholiths and stocks. Major regional tectonic structures in the area strike northeast. One such structure, the Apuela regional fault, transects the southeast part of the Cascabel property. Several mineral prospects which are hosted in the same geological belt, have been identified in the Cascabel district including the Chical (Au-Ag) and Rio Amarillo (Au-Ag-Cu) epithermal prospects located 12 km to the northwest and 12 km to the south of the property respectively. Cascabel is located upstream from an extensive alluvial gold district, Playa de Oro, located 50 km to the west.
Please see Cornerstone news release dated December 16, 2013 for the agreement terms.
17-18 - Cascabel Exploration Update - Ground Magnetics Survey Results and Future Survey Plans