TIDMSOLG
RNS Number : 8942K
SolGold PLC
07 September 2021
7 September 2021
SolGold plc
("SolGold" or the "Company")
Rationalisation of Ecuador Regional Exploration Portfolio
The Board of Directors of SolGold (LSE & TSX code: SOLG)
wishes to provide an update on the Company's Regional Exploration
Portfolio in Ecuador. SolGold's exploration team has recommended to
the Board and the Board has approved to rationalise its exploration
portfolio to focus resources on the Company's highest priority
targets.
SolGold intends to relinquish 10 of the 72 concessions held
within the Company's four 100% owned subsidiaries in Ecuador
largely due to lower assessed geological prospectivity compared to
our other project areas. These concessions cover approximately
37,000 hectares in total.
The relinquishment of these concessions will allow our
exploration teams to focus on higher priority projects and lower
the Company's exploration commitments, made when SolGold acquired
the licences, by circa USD 75.6 million. With a large portfolio in
Ecuador, SolGold's exploration strategy has always been to explore
as much ground as possible and relinquish less prospective areas in
our search for Tier 1 deposits. With a cash position of
approximately USD 109.6 million at 30 June 2021, the group is well
funded to advance its regional work programme and able to
re-allocate funds. The Company is required to impair these 10
concessions in-line with International Financial Reporting
Standards (IAS 36). The impairment charges of USD 3.1 million are
immaterial compared to the asset base of the Company and will be
disclosed as a subsequent event in the 30 June 2021 yearly accounts
to be released shortly.
SolGold continues to pursue its strategy as an integrated
explorer and developer and the Company maintains its plan of
applying its exploration blueprint of systematic evaluation of its
exploration assets across Ecuador. This process will likely involve
further consolidation of our project portfolio as a result of
SolGold's ongoing exploration and evaluation activities. Drilling
is currently underway at the Cascabel, Porvenir, Sharug and Rio
Amarillo projects, and soon to commence at the Cisne Loja project.
Field exploration activities continue to focus on Helipuerto,
Cisne-Victoria and Chical. The Company also continues to seek
strategic partners to advance certain projects with discussions
underway with several interested parties.
Keith Marshall, Interim CEO of SolGold commented: "The objective
of a rationalised exploration portfolio is to allow our exploration
teams to focus on our best targets, while reducing expenditure
commitments. Early-stage results from SolGold's regional
exploration programme are encouraging with the discovery of
significant near-surface copper-gold mineralisation at the
Cacharposa porphyry target at Porvenir as well as the discovery of
significant geochemical and geophysical hallmarks of large porphyry
systems identified at the Rio Amarillo, Cisne Loja, Sharug and
Helipuerto projects."
Jason Ward, Executive Director - Exploration commented: " We
want to focus our attention on the exploration projects where we
see the best chance to deliver additional Tier 1 discoveries. Our
success to date in Ecuador with discoveries at Alpala, Tandayama
and Cacharposa endorses our targeting and field strategy.
Importantly, we retain all our high priority projects and have
identified additional porphyry targets in close proximity to the
Cacharposa ore body within the Porvenir project."
By order of the Board
Dennis Wilkins
Company Secretary
CONTACTS
Dennis Wilkins
SolGold Plc (Company Secretary) Tel: +61 (0) 7 3303 0660
dwilkins@solgold.com.au
Ingo Hofmaier
SolGold Plc (GM - Project & Corporate Tel: +44 (0) 20 3823 2130
Finance) ihofmaier@solgold.com.au
Fawzi Hanano
SolGold Plc (Investors / Media) Tel: +44 (0) 20 3823 2130
fhanano@solgold.com.au
Follow us on twitter @SolGold_plc
Certain information contained in this announcement would have
been deemed inside information.
ABOUT SOLGOLD
SolGold is a leading resources company focussed on the
discovery, definition and development of world-class copper and
gold deposits. In 2018, SolGold's management team was recognised by
the "Mines and Money" Forum as an example of excellence in the
industry and continues to strive to deliver objectives efficiently
and in the interests of shareholders. SolGold is aggressively
exploring the length and breadth of this highly prospective and
gold-rich section of the Andean Copper Belt which is currently
responsible for c40% of global mined copper production.
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 the environmental impact.
Dedicated stakeholders
SolGold employs a staff of over 800 employees of whom 98% are
Ecuadorean. This is expected to grow as the operations expand at
Alpala, and in Ecuador generally. SolGold focusses its operations
to be safe, reliable and environmentally responsible and maintains
close relationships with its local communities. SolGold has engaged
an increasingly skilled, refined and experienced team of
geoscientists using state of the art geophysical and geochemical
modelling applied to an extensive database to enable the delivery
of ore grade intersections from nearly every drill hole at Alpala.
SolGold has over 80 geologists on the ground in Ecuador exploring
for economic copper and gold deposits.
About Cascabel and Alpala
The Alpala deposit is the main target in the Cascabel
concession, located on the northern section of the heavily endowed
Andean Copper Belt, the entirety of which is renowned as the base
for nearly half of the world's copper production. The project area
hosts mineralisation of Eocene age, the same age as numerous Tier 1
deposits along the Andean Copper Belt in Chile and Peru to the
south. The project base is located at Rocafuerte within the
Cascabel concession in northern Ecuador, an approximately
three-hour drive on sealed highway north of the capital Quito,
close to water, power supply and Pacific ports.
Having fulfilled its earn-in requirements, SolGold is a
registered shareholder with an unencumbered legal and beneficial
85% interest in ENSA (Exploraciones Novomining S.A.) which holds
100% of the Cascabel concession covering approximately 50km(2) .
The junior equity owner in ENSA is required to repay 15% of costs
since SolGold's earn in was completed, from 90% of its share of
distribution of earnings or dividends from ENSA or the Cascabel
concession. It is also required to contribute to development or be
diluted, and if its interest falls below 10%, it shall reduce to a
0.5% NSR royalty which SolGold may acquire for US$3.5million.
SolGold's Regional Exploration Drive
SolGold is using its successful and cost-efficient blueprint
established at Alpala, and Cascabel generally, to explore for
additional world class copper and gold projects across Ecuador.
SolGold is the largest and most active concessionaire in
Ecuador.
The Company wholly owns four other subsidiaries active
throughout the country that are now focussed on thirteen high
priority gold and copper resource targets, several of which the
Company believes have the potential, subject to resource definition
and feasibility, to be developed in close succession or even on a
more accelerated basis compared to Alpala.
SolGold is listed on the London Stock Exchange and Toronto Stock
Exchange (LSE/TSX: SOLG). The Company has on issue a total of
2,293,816,433 fully paid ordinary shares and 105,125,000 share
options.
See www.solgold.com.au for more information. 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, 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" 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. 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.sedar.com .
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.
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END
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