LSE- and TSX-listed SolGold’s exploration efforts at its fully-owned Porvenir project, in Ecuador, have paid off, with multiple mineralisations identified, and more to be pursued.
In an exploration update on Tuesday, the Australia-based company said that the size and grade of the outcropping mineralisation at Porvenir indicated a significant copper/gold porphyry system.
The 150-m-long channel sample was significantly longer and richer than the 50-m-long discovery outcrop at Alpala in the Cascabel tenement, which had so far yielded a contained resource of 23-million ounces of gold and nearly 11-million tonnes of copper.
“The Porvenir system has the hallmarks of a significant discovery so far,” said CEO Nick Mather.
Mapping and sampling has extended the porphyry copper/gold mineralisation zone at Cacharposa Creek, located on the Porvenir 2 concession. Results from additional rock saw sampling along the Cacharposa Creek extend the mineralised intercept to 147 m at 0.64% copper equivalent, including 0.43 g/t gold and 0.37% copper, and 82 m at 0.96% copper equivalent, including 0.71 g/t gold and 0.55% copper.
The company’s mapping and sampling, done by wholly-owned subsidiary Green Rock Resources, of the Mula Muerta Creek – on the northwestern side of the ridge from the Cacharposa Creek – had discovered similar mineralisation. Both areas were believed to be part of the same mineralised system.
These areas form part of an 800-m-wide northeast trending mineralised corridor that is more than 1 200 m long. Porvenir contained mineralisation styles, size and geometry consistent with exposure of a vertically extensive, well-preserved porphyry copper/gold system.
Further, three-dimensional geochemical modelling carried out by Fathom Geophysics has confirmed the potential for shallow porphyry-style mineralisation extending at depth. Modelling also confirmed the potential for mineralisation at the Bartolo prospect along with two new target areas.
The company planned on doing drill testing and ground magnetics at Porvenir target 15 during the second quarter, as well as an airborne magnetic survey for the entire Porvenir concession package during the second quarter.
“The latest progress at Porvenir is indicative of the effort SolGold puts into its first mover advantage secured in 2014 across Ecuador. SolGold's team of geoscientists led by porphyry expert Dr Steve Garwin has recognised several targets with the right geochemical, geological and geophysical signature and we have so far secured eleven of them.
“SolGold is committed to leading the development of a sustainable copper/gold mining industry in Ecuador. The high grades and strong gold endowment at Alpala and Porvenir provide us with a unique opportunity to develop this company without joint ventures,” said Mather.
He stressed that SolGold’s next generation of growth would come from 100%-owned discoveries.
The company is planning an offer for TSX-V-listed Cornerstone Capital Corporation – its partner in the Cascabel project. Despite announcing that it had approached Cornerstone about a possible takeover at the end of January, SolGold has still not presented a formal offer.
Mather stated that shareholders would “soon be availed” of its bid for Cornerstone.
The company previously proposed an all-stock transaction of 0.55 a share for every Cornerstone share held, which it argues is a 20% premium to the takeover target’s share price. Cornerstone has snubbed the proposal and questioned the timing of the proposed bid in the lead-up to the release of the preliminary economic assessment of the Cascabel project.