Tue, 19 Nov 2019

SolGold PLC Announces Regional Exploration Update

ACCESSWIRE
23 Oct 2019, 16:55 GMT+10

Large New Copper-Gold-Silver-Molybdenum Porphyry System Discovered in the Cisne-Loja Project

BISHOPSGATE, LONDON / ACCESSWIRE / October 23, 2019 / The Board of SolGold (LSE & TSX code: SOLG) is pleased to provide an update from the Company's regional exploration activities from its Cisne Loja Project in southern Ecuador, held by wholly owned subsidiary Green Rock Resources S.A.

Highlights

Ø

New mineralised outcrops discovered at the Celen Prospect indicate a large new copper gold rich polymetallic porphyry system - 100% owned by SolGold.

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Extensive outcrops of porphyry style quartz-magnetite-chalcopyrite veining along with disseminated magnetite-chalcopyrite.

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Consistently rich copper, gold, silver and molybdenum mineralisation is present in outcrop over a large area 2km by 1km.

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Strong magnetic anomalism in mineralised zones. Magnetics identifies additional targets.

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Significantly, the porphyry style veins have 1:1 values of copper, gold with proportionate silver and molybdenum diagnostic of a strong Andean porphyry copper gold system.

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Proximal fracture hosted mineralisation is rich in diagnostic copper oxide and carbonate minerals, neotocite, malachite and azurite returning extremely high copper values.

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Significant rock chip mineralisation including:

·

R03001325 4.32% Cu, 4.51g/t Au, 20.8g/t Ag, 9.99ppm Mo

·

R03001342 .90% Cu, 0.21g/t Au, >100g/t Ag, 76.1ppm Mo

·

R03001304 2.54% Cu, 3.04g/t Au, 15.4g/t Ag, 185.5ppm Mo

·

R03001347 2.52% Cu, 3.11g/t Au, 12.5g/t Ag, 13.4ppm Mo

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R03001303 2.46% Cu, 0.10g/t Au, 54.5g/t Ag, 54.9ppm Mo

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60/72 (83%) of samples >0.6% Cu and 0.6g/t Au.

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Initial gridded copper-gold soil anomalies confirms Celen as an extensive mineralised porphyry target

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Centre of the Celen Prospect is located 7km from SolGold's mineralised Cuenca Loma gold-silver epithermal prospect, representing a mineralised gold and silver epithermal vein field.

References to figures and tables relate to the version visible in PDF format by clicking the link below:

http://www.rns-pdf.londonstockexchange.com/rns/8268Q_1-2019-10-23.pdf

Commenting on the results, Jason Ward, SolGold's Exploration & Country Manager said:

'The recent discovery of this large copper gold target at Celen, which outcrops over an area of 2km x 1km and exhibits all of the geochemical and geophysical hallmarks of a large porphyry system, underscores the prospectivity and unexplored nature of the area and brings the number of SolGold priority projects from 12 to 13. The Celen copper gold target is located just 5km south of an epithermal gold field we discovered at Cisne Loja which outcrops over an area of 2.5km x 1.5 km, and we are optimistic about the discovery of both gold and copper ore bodies at Cisne Loja.'

Introduction

Ecuador is located on the copper-gold rich and under-explored northern section of the Andean Copper Belt. The well explored southern portion is renowned as the production base for nearly half of the world's copper (Figure 1). SolGold's strategy to become a tier 1 copper and gold producer through systematic exploration continues to yield exciting results. Follow up exploration has focussed on 13 priority projects identified across SolGold's 75 granted regional concessions.

With 13 priority projects now recognised, ongoing exploration by SolGold technical teams is focussed on advancing these priority projects with a view to progress to drill testing as soon as possible. SolGold's high success rate has been achieved by operating multiple field teams comprising 42 Ecuadorean geologists in regional exploration, led by highly experienced national geologists and applying the exploration discovery and appraisal blueprint developed over the last 4 years at Alpala.

Further Information

Cisne 2C

Coherent area of copper mineralisation over 1km x 2km

Continued mapping and sampling by Green Rock Resources field teams at the Cisne Loja Project across three granted tenements (El Cisne 2A,2B,2C) covering 2km2has located outcrops with strong porphyry style copper, gold, silver and molybdenum mineralisation in the Celen prospect located in the El Cisne 2C concession. (Figure 2 & 3). Porphyry style mineralised outcrops occur in an extensive 2km by 1km area indicating a large poly metallic mineralised system located less than 7km south from the previously identified gold-silver epithermal field in El Cisne 2A.

The copper mineralization is best developed within magnetite-chalcopyrite porphyry veins in quartz diorite and microdiorite units with associated disseminated chalcopyrite mineralisation (Figures 4 & 5). Zones of high grade copper and gold mineralisation are also developed proximal to the porpyhry style veins with fractures containing diagnostic copper oxide and carbonate minerals, neotocite, malachite and azurite.

Diagnostic magnetic signatures

Strongly anomalous magnetic signatures characterise the copper mineralisation, and additional target areas west of Cuenca Loja and between Celen and Cueca Loja are still to be sampled (Figure 2)

Outcrops are characterised by pervasive magnetite mineralisation to 3% of the rock with associated chlorite and epidote alteration. The main orientation of veins and fractures are north east trending with a secondary north west trending structural orientation. Weathered mineralised intrusive units are present in volcanic units to the north of the main zone of mineralisation containing quartz-hematite-goethite veining. There are numerous tourmaline breccias outcropping south of the mineralised zone (Figure 5)

Of the 72 rock chip samples taken at the Celen prospect, 60 samples (83%) have returned grades greater than 0.6% Cueq with the average molybdenum results for all 72 samples of 51.95ppm Mo (Figure 3, Table 1). Best rock chip results from recent sampling include;

·

R03001325

4.32% Cu, 4.51g/t Au, 20.8g/t Ag, 9.99ppm Mo

·

R03001342

3.90% Cu, 0.21g/t Au, >100g/t Ag, 76.1ppm Mo

·

R03001304

2.54% Cu, 3.04g/t Au, 15.4g/t Ag, 185.5ppm Mo

·

R03001347

2.52% Cu, 3.11g/t Au, 12.5g/t Ag, 13.4ppm Mo

·

R03001303

2.46% Cu, 0.10g/t Au, 54.5g/t Ag, 54.9ppm Mo

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R03001330

1.99% Cu, 2.38g/t Au, 28.1g/t Ag, 8.69ppm Mo

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R03001333

1.77% Cu, 0.12g/t Au, 35.9g/t Ag, 5.1ppm Mo

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R03001328

1.63% Cu, 1.44g/t Au, 12.75g/t Ag, 31.3ppm Mo

Previously announced rock chip sample results include;

·

R03001218

5.28% Cu, 0.66 g/t Au, 91.4 g/t Ag

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R03001221

5.08% Cu, 1.10 g/t Au, 25.8 g/t Ag

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R03001204

4.92% Cu, 3.90 g/t Au, 55.7 g/t Ag

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R03001215

3.65% Cu, 0.02 g/t Au, 95.5 g/t Ag

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R03001214

3.43% Cu, 0.09 g/t Au, 73.8 g/t Ag

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R03001206

2.06% Cu, 0.24 g/t Au, 28.7 g/t Ag

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R03001211

1.63% Cu, 0.30 g/t Au, 39.8 g/t Ag

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R03001213

1.45% Cu, 0.02 g/t Au, 36.6 g/t Ag

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R03001207

1.39% Cu, 0.15 g/t Au, 24.6 g/t Ag

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R03001217

1.33% Cu, 0.08 g/t Au, 27.6 g/t Ag

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R03001218

5.28% Cu, 0.66 g/t Au, 91.4 g/t Ag

·

R03001221

5.08% Cu, 1.10 g/t Au, 25.8 g/t Ag

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R03001204

4.92% Cu, 3.90 g/t Au, 55.7 g/t Ag

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R03001215

3.65% Cu, 0.02 g/t Au, 95.5 g/t Ag

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R03001214

3.43% Cu, 0.09 g/t Au, 73.8 g/t Ag

Initial gridded soil anomalies confirm the extensive mineralised area identified by mapping and rock chip sampling. Large coherent copper and gold soil anomalies show a positive correlation to identified mineralisation and delineate additional areas for follow up exploration (Figure 6 & 7). The copper anomaly comprises extremely high copper in soil values up to 0.1% Cu. Soil anomalies remain open to the north and south and the gridded soil program will be extended to define the surface limits of the Celen porphyry target.

Figure 1: Location plan of the Cisne Loja Project in southern Ecuador.

Figure 2: Copper results in rock chips over aeromagnetic RTP data.

Figure 3: Celen geology with copper rock chip values.

Figure 4: Rock chip samples from the Celen Prospect

Figure 5: Celen prospect rock chip samples of peripheral intrusive units and tourmaline breccias .

Figure 6: Copper in soil values with copper geochemical anomaly and RTP magnetic data

Figure 7: Gold in soil values with gold geochemical anomaly and RTP magnetic data

Sample ID

Easting

Northing

RL

Cu_ppm

Au_ppm

Ag_ppm

Mo_ppm

R03001218

677734

9575087

1830

52790

0,661

91,4

165

R03001221

677751

9575045

1803

50820

1,1

25,8

69,9

R03001204

677712

9575009

1803

49180

3,9

55,7

86

R03001325

677867

9574396

1686

43220

4,51

20,8

9,99

R03001342

678118

9575961

2014

39010

0,212

100

76,1

R03001215

677543

9575623

2052

36530

0,025

95,5

542

R03001214

677578

9575610

2027

34330

0,098

73,8

75,6

R03001224

677777

9575588

1893

28240

0,026

60,1

18,8

R03001224

677777

9575588

1893

28240

0,026

60,1

18,8

R03001223

677854

9575431

1724

28120

0,019

61,3

41,7

R03001304

678406

9577825

2109

25420

3,04

15,4

185,5

R03001347

678078

9575036

1899

25220

3,11

12,5

13,4

R03001303

678323

9577776

2131

24580

0,103

54,5

54,9

R03001282

678240

9576306

1954

22330

0,092

96

431

R03001206

677674

9575028

1843

20610

0,243

28,7

31,6

R03001330

678008

9575057

1824

19880

2,38

28,1

8,69

R03001333

678081

9575068

1896

17700

0,116

35,9

5,1

R03001328

677865

9574357

1700

16300

1,44

12,75

31,3

R03001211

677659

9575345

1919

16270

0,304

39,8

11,95

R03001296

678500

9577553

2063

16230

0,263

100

214

R03001213

677448

9575344

2012

14500

0,028

36,6

38,8

R03001207

677694

9575034

1821

13910

0,154

24,6

6,19

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