REG - SolGold PLC - Company Update

SolGoldAnnouncement

16/09/2024 07:00

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RNS Number : 2988E  SolGold PLC  16 September 2024

16 September 2024

SolGold plc

("SolGold" or the "Company")

Company Update

SolGold plc (LSE & TSX: SOLG) is pleased to provide an update on its 100%
owned Cascabel Project ("Cascabel" or "Project"), regional exploration
projects, and additional strategic initiatives.

Highlights

SolGold is making significant progress across its portfolio:

·   Building on SolGold's previous efforts, preparations for the
geotechnical program at Cascabel's Tailings Storage Facility ("TSF") are
progressing, with drilling locations and depths established. In recent weeks,
scouting efforts have been completed evaluating current operating conditions
and access routes, ensuring readiness for the planned mobilization of drill
rigs in the fourth quarter of 2024.

·      Assay results from the soil samples taken at the Cielito Norte
target within the Blanca Nieves project in the first half of 2024 have been
received and are undergoing detailed analysis to further understand the
mineral potential at this highly prospective target. Cielito Norte covers
approximately 6 km(2) of variable altered and mineralised intrusive and
volcanic rocks hosting previously reported high gold grade quartz veins
indicative of a significant intrusive related copper and gold system located
approximately 8 km north-northwest of Cascabel.(1,2)

·    SolGold is entering the consultation phase of permitting for the
Porvenir Project ("Porvenir"), an essential part of Ecuador's permitting
process to enhance community engagement and regulatory compliance. The Company
completed the first stage of the permitting process in July, obtaining the
advanced exploration permit for Porvenir from the Ministry of Energy and
Mines. The successful completion of the consultation process, application
submission, and the Ministry of Environment's approval are required for the
issuance of the environmental license necessary to enable any potential future
drilling activities at Porvenir.

Cascabel Project Update

·   In August and September, SolGold hosted site visits from Knight
Piésold Pty Ltd (Australia and Peru), SRK Consulting (Canada) Inc., Sedgman
Canada Ltd and other consultants. These industry experts, specializing in
areas such as Block Caving, Geotechnical Studies, Mining, Geology, Mineral
Processing, Metallurgy, TSF, Civil Engineering, Permitting, Environmental,
Social, and Governance, engaged with senior management to review and refine
Project development strategies, and identify opportunities for improvement in
the recent Pre-feasibility Study outcomes for Cascabel.(3,4)

·    To accelerate Project de-risking, SolGold has issued tenders to
several internationally recognized consulting firms. These contracts, once
assigned, will contribute to advancing the Project to the feasibility study
phase.

·   The Company has renewed option agreements with land and concession
owners in areas identified as potential infrastructure zones for the Project's
development that were due to expire earlier this year.

Exploration Update

Developments at the Cielito Norte Target in Blanca Nieves, 8 km
north-northwest of Cascabel:

·      Geological Setting: The Cielito Norte target is strategically
positioned between two key vein systems: the northeast-southwest El-Cielito
vein system to the south and the northwest-southeast La Florida vein system to
the east. This unique geological setting enhances the prospectivity of the
area. The vein systems are interpreted to lie on the margins of a significant
porphyry target.(1,2)

·   High-Grade Gold Occurrences: Bonanza gold grades have been identified
within quartz veins at El Cielito, occurring at elevations between 1,000 and
1,150 metres above sea level and La Florida, between 1,200 and 1,250 metres
above sea level. These findings indicate a consistent and significant level of
gold deposition across the target area, reinforcing the potential for
high-value mineralization and the potential for a targeted porphyry system at
depth. (1,2)

·     Extensive Geochemical Anomalies: A comprehensive soil grid covering
an area of 3.4 km by 1.8 km was completed at Cielito Norte, yielding 566 soil
samples. The results revealed a broad argillic alteration zone with notable
anomalies in gold (Au), silver (Ag), antimony (Sb), arsenic (As), and mercury
(Hg), predominantly between 1,300 and 1,700 meters above sea level. This
extensive geochemical footprint underscores the robustness of the mineralized
system.

·     Future Area Exploration Work: The soil anomalies at Cielito Norte,
located at the side of and topographically at a higher elevation than the
well-documented Au-Ag quartz veins, indicate a highly prospective zone to have
a well-preserved mineralized system with the potential for hosting
higher-grade epithermal Au-Ag mineralization for a vertical extent of at least
250 meters. The presence of high-grade gold values supports the rationale for
exploration efforts that focus on delineating the vertical and lateral extents
of these promising mineralized systems and potential related porphyry systems.
(1,2)

Corporate Governance

As part of SolGold's commitment to strong corporate governance, Director and
Audit & Risk Committee Chair Charles Joseland, Director and Audit &
Risk Committee member María Amparo Albán, Director John Liu, and Director
and CEO Scott Caldwell accompanied SolGold's corporate advisors on a visit to
the Cascabel site and attended meetings at the Company's office in Quito. The
visit and meetings in September were integral to a comprehensive review of the
Company's governance, highlighting SolGold's dedication to transparency and
rigorous oversight.

Strategic Conferences and Industry Engagement

In September, SolGold is participating in key industry conferences, including
the Denver Gold Forum and Beaver Creek Precious Metals Summit, followed by the
CGES 2024: Colombia mining conference in October. These events offer
opportunities to present the Company's recent technical and financial
achievements and strengthen relationships with current and prospective
shareholders and industry stakeholders. Management looks forward to engaging
in strategic discussions to advance SolGold's objectives further.

Looking Ahead

As SolGold continues to advance its strategic objectives, the management team
is focusing on several key initiatives designed to drive progress and enhance
shareholder value:

·    Mobilization of Drill Rigs: Preparations are underway for the
mobilization of drill rigs for geotechnical work at Cascabel, scheduled to
begin in Q4 2024. This phase is critical for ensuring the structural integrity
of the proposed infrastructure and tailings storage facilities.

·    Porvenir Permitting: The Company expects to complete the
consultation phase for the Porvenir Project during calendar Q4 2024, followed
by the submission of the application to the Ministry of Environment in
calendar Q1 2025.

·     Expansion of the Project Team: Continuing the efforts outlined
last month, SolGold is in the process of expanding its Project team with
strategic hires and consultants, bringing expertise in civil engineering,
environmental management, and community relations. These efforts are poised to
enhance our Project execution capabilities as we gear up for critical phases
ahead.

·      Enhanced Community Engagement: Plans are in progress to launch a
series of community engagement initiatives aimed at ensuring the sustainable
development of our projects. These initiatives include educational programs,
local workforce training, and health and safety campaigns.

·    Strategic Exploration Planning: Leveraging the encouraging outcomes
from the El Cielito and La Florida vein systems and at the Cielito Norte
target, the team is drafting a detailed exploration program to investigate the
vertical and lateral extents of these mineralized zones. The proposed program
may include expanded soil sampling efforts in the La Florida area and
incorporate Induced Polarization (IP) geophysics to trace the continuity of
identified anomalies and structures, and a magnetic survey over selected parts
of the area to complement an existing partial magnetic survey over Blanca
Nieves. It is anticipated that integrative mapping of these data would equip
our geological team with a more comprehensive understanding of the prospect's
potential.

As SolGold advances and de-risks the Cascabel Project, Management remains
focused on delivering results through diligent planning and responsible
management, with our established commitment to excellence in environmental,
social, and governance practices at the core. The Company anticipates sharing
additional updates as the Board and Management advance SolGold's initiatives.

Endnotes

1.     Refer to news release dated 05 December 2023 on Sedar+ and the
Company's website. Link: 2023-12-05 Release
(https://polaris.brighterir.com/public/solgold/news/rns/story/rggkp0r)

2.     Refer to news release dated 19 March 2024 on Sedar+ and the
Company's website. Link: 2024-03-19 Release
(https://polaris.brighterir.com/public/solgold/news/rns/story/w1k933x)

3.     Refer to news release dated 16 February 2024 on Sedar+ and the
Company's website. Link: 2024-02-16 Release
(https://polaris.brighterir.com/public/solgold/news/rns/story/xze09lx)

4.     Refer to news release dated 12 March 2024 on Sedar+ and the
Company's website. Link: 2024-03-12 Release
(https://polaris.brighterir.com/public/solgold/news/rns/story/w0jjk8x)

About SolGold SolGold is a leading exploration company focused on the
discovery and definition of world-class copper-gold deposits. The company
holds a portfolio of exploration projects in Ecuador. SolGold's primary
objective is to discover and develop ecological copper and gold deposits
through a disciplined exploration approach led by an experienced management
team.

Qualified Person:

Above information relating to the exploration results is based on data
reviewed by Mr. Santiago Vaca (M.Sc. P.Geo.). Mr. Vaca joined SolGold in 2014
as Chief Geologist for the Cascabel project and is an Ecuadorian geologist
with over 19 years of experience in mineral Exploration and research. Mr. Vaca
holds a Professional Geoscientist Certification (P.Geo) granted by the
Association of Professional Engineers and Geoscientists of Alberta (APEGA) in
Canada and is a Qualified Person for the purposes of the relevant LSE and TSX
Rules. Mr. Vaca consents to the inclusion of the information in the form and
context in which it appears.

 CONTACTS

 Chris Robinson

 Director of Corporate Operations                                    Tel: +44 (0) 20 3807 6996

 & Communications

 Tavistock (Media)

 Jos Simson/Gareth Tredway                                           Tel: +44 (0) 20 7920 3150

ABOUT SOLGOLD

SolGold is a leading resources company focused on the discovery, definition
and development of world-class copper and gold deposits and continues to
strive to deliver objectives efficiently and in the interests of shareholders.

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
environmental impact.

SolGold is listed on the London Stock Exchange and Toronto Stock Exchange
(LSE/TSX: SOLG).

See www.solgold.com.au (http://www.solgold.com.au) for more information.
Follow us on X @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, including the plan for developing the
Project currently being studied as well as the expectations of the Company as
to the forward price of copper. 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". 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.
Factors that could cause actual results to differ materially from such
forward-looking information include, but are not limited to, risks relating to
the ability of exploration activities (including assay results) to accurately
predict mineralization; errors in management's geological modelling and/or
mine development plan; capital and operating costs varying significantly from
estimates; the preliminary nature of visual assessments; delays in obtaining
or failures to obtain required governmental, environmental or other required
approvals; uncertainties relating to the availability and costs of financing
needed in the future; changes in equity markets; inflation; the global
economic climate; fluctuations in commodity prices; the ability of the Company
to complete further exploration activities, including drilling; delays in the
development of projects; environmental risks; community and non-governmental
actions; other risks involved in the mineral exploration and development
industry; the ability of the Company to retain its key management employees
and skilled and experienced personnel; and those risks set out in the
Company's public documents filed on SEDAR+ at www.sedarplus.ca. 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.

Quality Assurance / Quality Control on Sample Collection, Security and
Assaying

SolGold operates according to its rigorous Quality Assurance and Quality
Control (QA/QC) protocol, which is consistent with industry best practices.

Primary sample collection involves secure transport
from SolGold's concessions in Ecuador, to the ALS certified sample
preparation facility in Quito, Ecuador. Samples are then air freighted
from Quito to the ALS certified laboratory in Lima, Peru where the
assaying of drill core, channel samples, rock chips and soil samples is
undertaken. SolGold utilises ALS certified laboratories
in Canada and Australia for the analysis of metallurgical samples.

Samples are prepared and analysed using 100g 4-Acid digest ICP with MS finish
for 48 elements on a 0.25g aliquot (ME-MS61). Laboratory performance is
routinely monitored using umpire assays, check batches and inter-laboratory
comparisons between ALS certified laboratory in Lima and the ACME certified
laboratory in Cuenca, Ecuador.

In order to monitor the ongoing quality of its analytical
database, SolGold's QA/QC protocol encompasses standard sampling
methodologies, including the insertion of certified powder blanks, coarse chip
blanks, standards, pulp duplicates and field duplicates. The blanks and
standards are Certified Reference Materials supplied by Ore Research and
Exploration, Australia.

SolGold's QA/QC protocol also monitors the ongoing quality of its analytical
database. The Company's protocol involves Independent data validation of the
digital analytical database including search for sample overlaps, duplicate or
absent samples as well as anomalous assay and survey results. These are
routinely performed ahead of Mineral Resource Estimates and Feasibility
Studies. No material QA/QC issues have been identified with respect to sample
collection, security and assaying.

Reviews of the sample preparation, chain of custody, data security procedures
and assaying methods used by SolGold confirm that they are consistent with
industry best practices and all results stated in this announcement have
passed SolGold's QA/QC protocol.

 

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