SolGold: Further mineralisation encountered at Cascabel

AIM-listed SolGold has announced that recent follow-up channel sampling at its Alpala Prospect within the Cascabel Project in Ecuador has returned highly encouraging gold and copper assays from all follow-up trenching.

The company said that the results significantly expanded the area of mapped and mineralised porphyry gold-copper stockwork veining in the Alpala region.

A channel sample intersection at Alpala, previously reported on January 24th 2013 - Trench TH46, previously labelled by SolGold as TR5 - occurred in outcropping porphyry mineralisation within a copper-molybdenum-gold soil geochemical anomaly, the company said.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Subsequent follow-up channel sampling on Trench TH57, 130m south-southeast of Trench TH46, also yielded 45.50m grading 0.46 grammes per tonne (g/t) gold and 0.25% copper.

Follow-up trenches TH56B and TH56C, located 30m west of TH46 respectively, assayed 21.45m grading 0.47(g/t) gold and 0.42% copper, and 2.3m grading 0.30 g/t gold and 0.96% copper.

Nicholas Mather, Executive Director of SolGold, said: "The Cascabel project continues to yield results that exceed our expectations. We have identified the top of what we believe to be a very significant and, on our current evidence, gold-rich porphyry system in the Miocene belt of Northern Ecuador, a poorly explored terrain that hosts the 982m tonnes 0.89% copper Junin porphyry copper-molybdenum deposit to the south."

He added: "We are highly encouraged by the continuity of excellent gold and copper grades at surface at Alpala, and our next step is to define the surface extent of the mineralised stockwork, and then identify where it projects under the overlying zones of argillic alteration that are preserved on the flanks of the system."

SolGold's share price was up 5.88% to 2.25p at 10:30 on Monday.

MF